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, 2014

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, 2014

2014 Semi-Annual Report to Shareholders

DWAQ	PowerShares DWA NASDAQ Momentum Portfolio
PWC	PowerShares Dynamic Market Portfolio
PRF	PowerShares FTSE RAFI US 1000 Portfolio
PRFZ	PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

Table of Contents

Broad Market Portfolios
Schedules of Investments
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)	3
PowerShares Dynamic Market Portfolio (PWC)	5
PowerShares FTSE RAFI US 1000 Portfolio (PRF)	7
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)	18
Statements of Assets and Liabilities	33
Statements of Operations	34
Statements of Changes in Net Assets	36
Financial Highlights	38
Notes to Financial Statements	40
Fees and Expenses	47

2

Portfolio Composition

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Health Care	29.2
Information Technology	27.5
Consumer Discretionary	18.6
Industrials	12.8
Consumer Staples	5.6
Financials	4.1
Materials	0.9
Telecommunication Services	0.8
Energy	0.5
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—18.6%
	1,123	Charter Communications, Inc., Class A(b)	$	177,872
	2,472	Comcast Corp., Class A		136,825
	3,056	Core-Mark Holding Co., Inc.		177,340
	3,519	Ctrip.com International Ltd. ADR (China)(b)		205,158
	2,273	DISH Network Corp., Class A(b)		144,676
	2,088	Expedia, Inc.		177,417
	4,355	Gentherm, Inc.(b)		181,603
	2,092	G-III Apparel Group Ltd.(b)		166,000
	10,547	Liberty Interactive Corp., Class A(b)		275,699
	4,162	Liberty Ventures, Series A(b)		146,086
	4,841	Loral Space & Communications, Inc.(b)		370,336
	795	Netflix, Inc.(b)		312,252
	1,604	O’Reilly Automotive, Inc.(b)		282,112
	549	Priceline Group, Inc. (The)(b)		662,209
	6,732	Sonic Corp.(b)		169,714
	1,455	Tesla Motors, Inc.(b)		351,674
	1,536	TripAdvisor, Inc.(b)		136,182
	15,004	Tuesday Morning Corp.(b)		305,932
	3,418	Universal Electronics, Inc.(b)		194,450
				4,573,537
		Consumer Staples—5.6%
	2,206	Andersons, Inc. (The)		140,588
	1,593	Cal-Maine Foods, Inc.		139,849
	2,282	Hain Celestial Group, Inc. (The)(b)		247,027
	1,774	J & J Snack Foods Corp.		182,775
	2,477	Keurig Green Mountain, Inc.		375,885

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	10,480	Pilgrim’s Pride Corp.(b)	$	297,737
				1,383,861
		Energy—0.5%
	1,968	Golar LNG Ltd. (Norway)		110,425
		Financials—4.1%
	9,596	Bank of the Ozarks, Inc.		338,163
	5,616	East West Bancorp, Inc.		206,444
	4,013	Pinnacle Financial Partners, Inc.		157,310
	5,118	PrivateBancorp, Inc.		165,414
	1,203	Signature Bank(b)		145,719
				1,013,050
		Health Care—29.2%
	17,017	Akorn, Inc.(b)		758,107
	1,129	Atrion Corp.		372,581
	26,125	AVANIR Pharmaceuticals, Inc.(b)		338,058
	786	Biogen Idec, Inc.(b)		252,369
	1,656	Celgene Corp.(b)		177,341
	6,045	DexCom, Inc.(b)		271,723
	21,669	Dyax Corp.(b)		268,046
	6,676	Gilead Sciences, Inc.(b)		747,712
	5,138	Henry Schein, Inc.(b)		616,714
	2,656	ICON PLC (Ireland)(b)		139,732
	1,687	Illumina, Inc.(b)		324,883
	4,506	Jazz Pharmaceuticals PLC(b)		760,793
	5,052	Medidata Solutions, Inc.(b)		227,896

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

3

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	48,719	Mimedx Group, Inc.(b)	$	495,959
	4,974	Natus Medical, Inc.(b)		169,116
	3,819	NuVasive, Inc.(b)		156,197
	4,844	Pacira Pharmaceuticals, Inc.(b)		449,620
	2,356	PAREXEL International Corp.(b)		127,954
	1,469	Salix Pharmaceuticals Ltd.(b)		211,316
	1,187	United Therapeutics Corp.(b)		155,461
	1,413	Vertex Pharmaceuticals, Inc.(b)		159,160
				7,180,738
		Industrials—12.8%
	1,141	Allegiant Travel Co.		152,289
	1,026	AMERCO		278,169
	2,425	American Railcar Industries, Inc.		159,589
	3,761	American Woodmark Corp.(b)		153,863
	4,546	Apogee Enterprises, Inc.		199,570
	5,799	Astronics Corp.(b)		300,446
	4,293	Avis Budget Group, Inc.(b)		239,335
	7,811	H&E Equipment Services, Inc.		292,053
	3,326	Middleby Corp. (The)(b)		294,351
	3,308	Multi-Color Corp.		163,085
	2,829	Old Dominion Freight Line, Inc.(b)		206,149
	6,020	Saia, Inc.(b)		295,100
	2,690	Spirit Airlines, Inc.(b)		196,666
	10,774	TASER International, Inc.(b)		202,982
				3,133,647
		Information Technology—27.5%
	6,723	Apple, Inc.		726,084
	4,666	ARRIS Group, Inc.(b)		140,073
	1,929	Avago Technologies Ltd. (Singapore)		166,376
	1,868	Baidu, Inc. ADR (China)(b)		446,022
	8,667	Cadence Design Systems, Inc.(b)		155,573
	2,006	Check Point Software Technologies Ltd. (Israel)(b)		148,945
	3,245	Cognex Corp.(b)		128,372
	3,793	comScore, Inc.(b)		159,837
	4,095	Electronic Arts, Inc.(b)		167,772
	3,458	Electronics for Imaging, Inc.(b)		158,100
	648	Equinix, Inc.		135,367
	2,886	Euronet Worldwide, Inc.(b)		154,892
	2,405	Facebook, Inc., Class A(b)		180,351
	2,142	IAC/InterActiveCorp.		144,992
	9,223	Integrated Device Technology, Inc.(b)		151,349
	9,062	Micron Technology, Inc.(b)		299,862
	3,705	Monolithic Power Systems, Inc.		163,724
	3,494	NetScout Systems, Inc.(b)		128,789
	3,080	NXP Semiconductor NV (Netherlands)(b)		211,473
	4,235	Proofpoint, Inc.(b)		186,509
	13,717	RF Micro Devices, Inc.(b)		178,458
	1,418	SanDisk Corp.		133,491
	6,295	Sanmina Corp.(b)		157,816
	3,729	Seagate Technology PLC		234,293
	5,706	Skyworks Solutions, Inc.		332,317
	2,103	Stratasys Ltd.(b)		253,117
	10,181	SunPower Corp.(b)		324,163
	5,815	Super Micro Computer, Inc.(b)		185,847

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	3,279	WebMD Health Corp.(b)	$	139,948
	1,635	Western Digital Corp.		160,835
	3,437	Yahoo!, Inc.(b)		158,274
	4,167	YY, Inc. ADR (China)(b)		345,278
				6,758,299
		Materials—0.9%
	7,508	Century Aluminum Co.(b)		219,834
		Telecommunication Services—0.8%
	1,836	SBA Communications Corp., Class A(b)		206,238
		Total Common Stocks and Other Equity Interests (Cost $22,540,159)		24,579,629
		Money Market Fund—0.2%
	48,019	Invesco Premier Portfolio—Institutional Class(c) (Cost $48,019)		48,019
		Total Investments (Cost $22,588,178)—100.2%		24,627,648
		Other assets less liabilities—(0.2)%		(46,156	)
		Net Assets—100.0%	$	24,581,492

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.

4

Portfolio Composition

PowerShares Dynamic Market Portfolio (PWC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Information Technology	18.9
Financials	14.5
Health Care	14.0
Consumer Discretionary	13.6
Industrials	10.9
Energy	9.9
Consumer Staples	9.1
Materials	3.8
Utilities	3.1
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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—13.6%
	22,556	Cato Corp. (The), Class A	$	804,573
	53,105	Expedia, Inc.		4,512,332
	13,937	Foot Locker, Inc.		780,611
	7,616	Hanesbrands, Inc.		804,326
	180,164	Hilton Worldwide Holdings, Inc.(b)		4,547,339
	65,731	Marriott International, Inc., Class A		4,979,123
	31,854	ServiceMaster Global Holdings, Inc.(b)		763,859
	13,398	Skechers U.S.A., Inc., Class A(b)		733,540
	24,993	Starz, Class A(b)		772,284
	12,203	Tenneco, Inc.(b)		638,949
	23,323	Tower International, Inc.(b)		566,749
	8,121	TRW Automotive Holdings Corp.(b)		823,063
	7,728	Visteon Corp.(b)		725,659
	23,651	Wynn Resorts Ltd.		4,493,927
				25,946,334
		Consumer Staples—9.1%
	119,013	Archer-Daniels-Midland Co.		5,593,611
	9,734	Constellation Brands, Inc., Class A(b)		891,050
	13,473	Dr Pepper Snapple Group, Inc.		933,005
	6,358	Keurig Green Mountain, Inc.		964,827
	116,398	Kroger Co. (The)		6,484,533
	11,464	Molson Coors Brewing Co., Class B		852,692
	28,380	Pilgrim’s Pride Corp.(b)		806,276
	9,137	Sanderson Farms, Inc.		767,325
				17,293,319

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy—9.9%
	24,326	Alliance Holdings GP LP	$	1,670,223
	109,687	Cameron International Corp.(b)		6,531,861
	39,093	Green Plains, Inc.		1,336,981
	120,589	Halliburton Co.		6,649,277
	40,582	NuStar GP Holdings LLC		1,589,191
	48,747	Superior Energy Services, Inc.		1,225,987
				19,003,520
		Financials—14.5%
	28,347	American Equity Investment Life Holding Co.		731,636
	11,695	American Financial Group, Inc.		699,712
	15,928	AmTrust Financial Services, Inc.		714,689
	16,494	Aspen Insurance Holdings Ltd.		719,633
	97,609	Blackstone Group LP (The)		2,939,983
	8,922	Cullen/Frost Bankers, Inc.		720,987
	31,087	Fidelity & Guaranty Life		738,316
	59,462	Lincoln National Corp.		3,256,139
	67,241	MBIA, Inc.(b)		656,272
	6,279	PartnerRe Ltd.		726,418
	13,143	Piper Jaffray Cos.(b)		742,054
	60,284	Principal Financial Group, Inc.		3,157,073
	36,486	Prudential Financial, Inc.		3,230,471
	8,452	Reinsurance Group of America, Inc.		712,081
	28,813	Symetra Financial Corp.		682,868
	83,725	Voya Financial, Inc.		3,286,206

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

5

PowerShares Dynamic Market Portfolio (PWC) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	63,624	Wells Fargo & Co.	$	3,377,798
	24,068	Zions Bancorporation		697,250
				27,789,586
		Health Care—14.0%
	12,542	Amsurg Corp.(b)		677,393
	28,968	Anacor Pharmaceuticals, Inc.(b)		851,949
	4,671	athenahealth, Inc.(b)		572,198
	8,635	Centene Corp.(b)		800,206
	43,613	Edwards Lifesciences Corp.(b)		5,273,684
	40,240	Gilead Sciences, Inc.(b)		4,506,880
	62,003	HCA Holdings, Inc.(b)		4,343,310
	14,293	Health Net, Inc.(b)		679,060
	17,128	HealthSouth Corp.		690,772
	14,102	Molina Healthcare, Inc.(b)		685,921
	35,248	Phibro Animal Health Corp., Class A		913,628
	12,021	Quintiles Transnational Holdings, Inc.(b)		703,709
	11,529	Team Health Holdings, Inc.(b)		721,024
	6,162	Teleflex, Inc.		703,208
	37,156	WellPoint, Inc.		4,707,294
				26,830,236
		Industrials—10.9%
	11,851	Avis Budget Group, Inc.(b)		660,693
	125,774	Delta Air Lines, Inc.		5,059,888
	11,186	Greenbrier Cos., Inc. (The)		699,572
	7,835	Huntington Ingalls Industries, Inc.		829,100
	6,707	Kirby Corp.(b)		741,660
	26,448	Korn/Ferry International(b)		738,693
	45,276	L-3 Communications Holdings, Inc.		5,499,223
	52,670	RPX Corp.(b)		740,014
	155,518	Southwest Airlines Co.		5,362,261
	16,537	Trinity Industries, Inc.		590,536
				20,921,640
		Information Technology—18.9%
	98,166	Amkor Technology, Inc.(b)		665,565
	24,846	Aspen Technology, Inc.(b)		917,563
	17,075	Computer Sciences Corp.		1,031,330
	137,915	Hewlett-Packard Co.		4,948,390
	38,907	Insight Enterprises, Inc.(b)		885,134
	150,080	Intel Corp.		5,104,221
	20,192	Lexmark International, Inc., Class A		871,487
	160,760	Micron Technology, Inc.(b)		5,319,548
	72,612	MoneyGram International, Inc.(b)		624,463
	37,659	OmniVision Technologies, Inc.(b)		1,008,508
	43,481	Sanmina Corp.(b)		1,090,069
	92,495	Skyworks Solutions, Inc.		5,386,909
	43,425	Take-Two Interactive Software, Inc.(b)		1,148,591
	15,125	Tech Data Corp.(b)		903,265
	108,775	Texas Instruments, Inc.		5,401,767
	63,808	Vishay Intertechnology, Inc.		862,046
				36,168,856

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials—3.8%
	59,905	Graphic Packaging Holding Co.(b)	$	726,648
	112,295	Mosaic Co. (The)		4,975,791
	1,883	NewMarket Corp.		730,623
	25,236	Westlake Chemical Partners LP(b)		760,865
				7,193,927
		Telecommunication Services—2.2%
	42,462	AT&T, Inc.		1,479,376
	36,216	CenturyLink, Inc.		1,502,240
	17,397	Consolidated Communications Holdings, Inc.		450,582
	62,373	Frontier Communications Corp.		407,920
	37,534	Windstream Holdings, Inc.		393,356
				4,233,474
		Utilities—3.1%
	115,762	Exelon Corp.		4,235,731
	20,898	NiSource, Inc.		878,970
	23,472	UGI Corp.		884,660
				5,999,361
		Total Common Stocks and Other Equity Interests (Cost $190,804,724)		191,380,253
		Money Market Fund—0.0%
	85,353	Invesco Premier Portfolio—Institutional Class(c) (Cost $85,353)		85,353
		Total Investments (Cost $190,890,077)—100.0%		191,465,606
		Other assets less liabilities—(0.0)%		(51,742	)
		Net Assets—100.0%	$	191,413,864

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 FTSE RAFI US 1000 Portfolio (PRF)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	20.9
Information Technology	11.9
Energy	11.7
Health Care	11.0
Industrials	10.7
Consumer Discretionary	10.6
Consumer Staples	10.0
Utilities	5.3
Telecommunication Services	4.0
Materials	3.9
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—10.6%
	20,263	Aaron’s, Inc.	$	501,712
	29,466	Abercrombie & Fitch Co., Class A		986,522
	8,924	Advance Auto Parts, Inc.		1,311,471
	16,441	Amazon.com, Inc.(b)		5,022,068
	83,654	American Eagle Outfitters, Inc.		1,076,627
	39,484	Apollo Education Group, Inc.(b)		1,131,611
	28,529	Ascena Retail Group, Inc.(b)		355,186
	20,262	Autoliv, Inc. (Sweden)(c)		1,858,836
	12,243	AutoNation, Inc.(b)		701,034
	3,651	AutoZone, Inc.(b)		2,020,902
	36,615	Barnes & Noble, Inc.(b)		798,939
	42,151	Bed Bath & Beyond, Inc.(b)		2,838,448
	225,221	Best Buy Co., Inc.		7,689,045
	35,468	Big Lots, Inc.		1,619,114
	22,255	BorgWarner, Inc.		1,268,980
	12,890	Brinker International, Inc.		691,420
	7,316	Cabela’s, Inc.(b)(c)		351,314
	94,152	Cablevision Systems Corp., Class A		1,753,110
	37,107	Caesars Entertainment Corp.(b)(c)		452,334
	74,347	Career Education Corp.(b)		431,213
	41,368	CarMax, Inc.(b)		2,312,885
	117,432	Carnival Corp.		4,714,895
	6,986	Carter’s, Inc.		545,816
	1,010	CBS Corp., Class A		54,833
	70,867	CBS Corp., Class B NVTG		3,842,409

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	14,921	Charter Communications, Inc., Class A(b)	$	2,363,337
	27,232	Chico’s FAS, Inc.		410,659
	1,243	Chipotle Mexican Grill, Inc.(b)		793,034
	27,338	Cinemark Holdings, Inc.		965,578
	36,091	Coach, Inc.		1,240,809
	369,231	Comcast Corp., Class A		20,436,936
	81,836	Comcast Corp., Class A Special		4,512,437
	27,174	Cooper Tire & Rubber Co.		875,275
	60,830	CST Brands, Inc.		2,326,747
	42,797	D.R. Horton, Inc.		975,344
	48,662	Dana Holding Corp.		995,625
	41,240	Darden Restaurants, Inc.(c)		2,135,407
	43,434	Delphi Automotive PLC (United Kingdom)		2,996,077
	11,750	DeVry Education Group, Inc.		568,817
	14,539	Dick’s Sporting Goods, Inc.		659,634
	9,898	Dillard’s, Inc., Class A		1,046,812
	97,772	DIRECTV(b)		8,485,632
	13,754	Discovery Communications, Inc., Class A(b)		486,204
	40	Discovery Communications, Inc., Class B(b)		1,510
	15,492	Discovery Communications, Inc., Class C(b)		542,065
	33,861	DISH Network Corp., Class A(b)		2,155,253
	44,203	Dollar General Corp.(b)		2,770,202
	29,952	Dollar Tree, Inc.(b)		1,814,193
	12,660	Expedia, Inc.		1,075,720
	25,971	Express, Inc.(b)		388,786

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

7

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	19,003	Family Dollar Stores, Inc.	$	1,487,745
	33,224	Foot Locker, Inc.		1,860,876
	1,275,677	Ford Motor Co.		17,974,289
	5,551	Fossil Group, Inc.(b)		564,315
	44,659	GameStop Corp., Class A(c)		1,909,619
	64,903	Gannett Co., Inc.		2,044,444
	49,294	Gap, Inc. (The)		1,867,750
	22,126	Garmin Ltd.(c)		1,227,550
	544,979	General Motors Co.		17,112,341
	6,731	Genesco, Inc.(b)		516,200
	17,600	Gentex Corp.		576,224
	32,407	Genuine Parts Co.		3,146,072
	10,376	GNC Holdings, Inc., Class A		431,330
	126,975	Goodyear Tire & Rubber Co. (The)		3,076,604
	1,241	Graham Holdings Co., Class B		972,448
	11,363	Group 1 Automotive, Inc.		970,741
	24,811	Guess?, Inc.		550,060
	47,658	H&R Block, Inc.		1,539,830
	13,678	Hanesbrands, Inc.		1,444,534
	29,110	Harley-Davidson, Inc.		1,912,527
	6,547	Harman International Industries, Inc.		702,755
	23,600	Hasbro, Inc.		1,357,708
	231,948	Home Depot, Inc. (The)		22,619,569
	73,421	International Game Technology		1,203,370
	83,766	Interpublic Group of Cos., Inc. (The)		1,624,223
	14,331	ITT Educational Services, Inc.(b)(c)		144,886
	532,835	J.C. Penney Co., Inc.(b)(c)		4,054,874
	17,621	Jarden Corp.(b)		1,146,951
	7,914	John Wiley & Sons, Inc., Class A		462,098
	144,908	Johnson Controls, Inc.		6,846,903
	74,970	Kohl’s Corp.		4,064,873
	65,901	L Brands, Inc.		4,752,780
	10,682	Lamar Advertising Co., Class A		551,725
	16,725	Lands’ End, Inc.(b)		793,936
	27,685	Las Vegas Sands Corp.		1,723,668
	25,268	Lear Corp.		2,337,290
	40,169	Leggett & Platt, Inc.		1,581,855
	17,350	Lennar Corp., Class A		747,438
	1,008	Lennar Corp., Class B		35,391
	53,937	Liberty Global PLC, Class A (United Kingdom)(b)		2,452,515
	295	Liberty Global PLC, Class B (United Kingdom)(b)		13,358
	42,036	Liberty Global PLC, Series C (United Kingdom)(b)		1,869,341
	114,444	Liberty Interactive Corp., Class A(b)		2,991,566
	330	Liberty Interactive Corp., Class B(b)		8,468
	8,528	Liberty Media Corp., Class A(b)		409,515
	46	Liberty Media Corp., Class B(b)		2,054
	17,685	Liberty Media Corp., Class C(b)		847,642
	39,345	Live Nation Entertainment, Inc.(b)		1,022,970
	28,307	LKQ Corp.(b)		808,731
	230,963	Lowe’s Cos., Inc.		13,211,084
	99,744	Macy’s, Inc.		5,767,198
	27,787	Marriott International, Inc., Class A		2,104,865
	70,550	Mattel, Inc.		2,191,988

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	178,523	McDonald’s Corp.	$	16,732,961
	10,743	Men’s Wearhouse, Inc. (The)		505,243
	62,187	MGM Resorts International(b)		1,445,848
	10,683	Mohawk Industries, Inc.(b)		1,517,413
	60,815	Murphy USA, Inc.(b)		3,484,699
	1,207	Netflix, Inc.(b)		474,073
	50,519	Newell Rubbermaid, Inc.		1,683,798
	119,230	News Corp., Class A(b)		1,845,680
	33,291	News Corp., Class B(b)		501,030
	60,237	NIKE, Inc., Class B		5,600,234
	31,987	Nordstrom, Inc.		2,322,576
	679	NVR, Inc.(b)		833,527
	301,770	Office Depot, Inc.(b)		1,575,239
	47,747	Omnicom Group, Inc.		3,431,099
	10,187	O’Reilly Automotive, Inc.(b)		1,791,690
	2,699	Panera Bread Co., Class A(b)		436,266
	71,459	Penn National Gaming, Inc.(b)		935,398
	16,301	Penske Automotive Group, Inc.		737,457
	18,609	PetSmart, Inc.		1,346,361
	4,807	Polaris Industries, Inc.		725,184
	1,402	Priceline Group, Inc. (The)(b)		1,691,106
	29,189	PulteGroup, Inc.		560,137
	8,390	PVH Corp.		959,396
	293,105	RadioShack Corp.(b)(c)		269,657
	7,473	Ralph Lauren Corp., Class A		1,231,849
	35,941	Regal Entertainment Group, Class A(c)		796,093
	41,412	Rent-A-Center, Inc.		1,282,530
	25,771	Ross Stores, Inc.		2,080,235
	34,848	Royal Caribbean Cruises Ltd.		2,368,619
	21,703	Sally Beauty Holdings, Inc.(b)		636,115
	7,404	Scripps Networks Interactive, Inc., Class A		571,885
	55,929	Sears Holdings Corp.(b)(c)		1,953,041
	17,323	SeaWorld Entertainment, Inc.		333,295
	42,125	Service Corp. International		921,274
	11,089	Signet Jewelers Ltd.		1,330,791
	181,443	Sirius XM Holdings, Inc.(b)(c)		622,349
	11,818	Six Flags Entertainment Corp.		476,265
	27,223	Sonic Automotive, Inc., Class A		677,580
	368,500	Staples, Inc.		4,672,580
	45,587	Starbucks Corp.		3,444,554
	22,375	Starwood Hotels & Resorts Worldwide, Inc.		1,715,267
	252,992	Target Corp.		15,639,965
	18,351	Tenneco, Inc.(b)		960,858
	8,494	Thor Industries, Inc.		449,248
	14,446	Tiffany & Co.		1,388,550
	55,335	Time Warner Cable, Inc.		8,145,865
	200,390	Time Warner, Inc.		15,924,993
	24,930	Time, Inc.(b)		563,169
	78,613	TJX Cos., Inc. (The)		4,977,775
	18,210	Toll Brothers, Inc.(b)		581,810
	8,180	Tractor Supply Co.		598,940
	40,110	TRW Automotive Holdings Corp.(b)		4,065,149
	8,035	Tupperware Brands Corp.		512,231
	202,821	Twenty-First Century Fox, Inc., Class A		6,993,268
	59,586	Twenty-First Century Fox, Inc., Class B		1,976,468
	16,825	Urban Outfitters, Inc.(b)		510,807

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

8

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	41,004	VF Corp.	$	2,775,151
	1,209	Viacom, Inc., Class A		88,330
	49,353	Viacom, Inc., Class B		3,586,976
	17,545	Visteon Corp.(b)		1,647,476
	199,915	Walt Disney Co. (The)		18,268,233
	60,481	Wendy’s Co. (The)		485,058
	24,421	Whirlpool Corp.		4,201,633
	12,766	Williams-Sonoma, Inc.		830,173
	19,386	Wyndham Worldwide Corp.		1,505,711
	10,976	Wynn Resorts Ltd.		2,085,550
	56,791	Yum! Brands, Inc.		4,079,298
				436,354,983
		Consumer Staples—10.0%
	460,859	Altria Group, Inc.		22,277,924
	9,459	Andersons, Inc. (The)		602,822
	299,824	Archer-Daniels-Midland Co.		14,091,728
	195,398	Avon Products, Inc.		2,032,139
	7,219	Brown-Forman Corp., Class A		656,135
	15,869	Brown-Forman Corp., Class B		1,470,580
	88,889	Bunge Ltd.		7,880,010
	37,372	Campbell Soup Co.		1,650,721
	12,024	Casey’s General Stores, Inc.		984,405
	43,055	Chiquita Brands International, Inc.(b)		621,284
	14,851	Church & Dwight Co., Inc.		1,075,361
	23,672	Clorox Co. (The)		2,355,364
	692,997	Coca-Cola Co. (The)		29,022,714
	51,900	Coca-Cola Enterprises, Inc.		2,249,865
	119,971	Colgate-Palmolive Co.		8,023,660
	138,937	ConAgra Foods, Inc.		4,772,486
	13,703	Constellation Brands, Inc., Class A(b)		1,254,373
	100	Constellation Brands, Inc., Class B(b)		9,134
	101,608	Costco Wholesale Corp.		13,551,459
	281,247	CVS Health Corp.		24,133,805
	23,106	Darling Ingredients, Inc.(b)		406,666
	127,576	Dean Foods Co.		1,876,643
	39,118	Dr Pepper Snapple Group, Inc.		2,708,922
	15,257	Energizer Holdings, Inc.		1,871,271
	19,220	Estee Lauder Cos., Inc. (The), Class A		1,444,960
	30,021	Flowers Foods, Inc.		570,399
	131,420	General Mills, Inc.		6,828,583
	12,666	Herbalife Ltd.(c)		664,458
	15,239	Hershey Co. (The)		1,461,573
	20,159	Hormel Foods Corp.		1,086,772
	17,650	Ingredion, Inc.		1,363,463
	24,303	J.M. Smucker Co. (The)		2,527,512
	51,302	Kellogg Co.		3,281,276
	6,191	Keurig Green Mountain, Inc.		939,484
	72,041	Kimberly-Clark Corp.		8,232,125
	73,682	Kraft Foods Group, Inc.		4,151,981
	259,129	Kroger Co. (The)		14,436,077
	78,100	Lorillard, Inc.		4,803,150
	1,981	McCormick & Co., Inc.		139,264
	18,073	McCormick & Co., Inc. NVTG		1,278,123
	15,557	Mead Johnson Nutrition Co.		1,544,966
	30,634	Molson Coors Brewing Co., Class B		2,278,557
	525,247	Mondelez International, Inc., Class A		18,520,209

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	300,561	PepsiCo, Inc.	$	28,904,951
	311,929	Philip Morris International, Inc.		27,764,800
	553,485	Procter & Gamble Co. (The)		48,302,636
	79,555	Reynolds American, Inc.		5,004,805
	372,717	Rite Aid Corp.(b)		1,956,764
	162,071	Safeway, Inc.		5,649,795
	506,121	SUPERVALU, Inc.(b)		4,367,824
	200,582	Sysco Corp.		7,730,430
	8,120	TreeHouse Foods, Inc.(b)		691,580
	89,983	Tyson Foods, Inc., Class A		3,630,814
	9,364	United Natural Foods, Inc.(b)		636,939
	11,817	Universal Corp.		525,857
	177,496	Walgreen Co.		11,398,793
	551,974	Wal-Mart Stores, Inc.		42,099,057
	16,358	WhiteWave Foods Co. (The)(b)		609,008
	32,686	Whole Foods Market, Inc.		1,285,540
				411,691,996
		Energy—11.7%
	355,570	Alpha Natural Resources, Inc.(b)(c)		696,917
	91,363	Anadarko Petroleum Corp.		8,385,296
	112,653	Apache Corp.		8,696,812
	294,123	Arch Coal, Inc.(c)		635,306
	13,135	Atwood Oceanics, Inc.(b)		533,938
	93,152	Baker Hughes, Inc.		4,933,330
	21,673	Bill Barrett Corp.(b)		329,430
	18,885	Cabot Oil & Gas Corp.		587,323
	40,225	Cameron International Corp.(b)		2,395,399
	207,799	Chesapeake Energy Corp.		4,608,982
	692,654	Chevron Corp.		83,083,847
	9,930	Cimarex Energy Co.		1,128,743
	30,282	Cloud Peak Energy, Inc.(b)		362,476
	9,386	Concho Resources, Inc.(b)		1,023,356
	599,803	ConocoPhillips		43,275,786
	47,281	CONSOL Energy, Inc.		1,739,941
	79,524	Cosan Ltd., Class A (Brazil)		842,159
	15,355	Delek US Holdings, Inc.		520,381
	106,660	Denbury Resources, Inc.		1,322,584
	117,489	Devon Energy Corp.		7,049,340
	44,675	Diamond Offshore Drilling, Inc.(c)		1,684,694
	13,102	Dresser-Rand Group, Inc.(b)		1,070,433
	12,578	Energen Corp.		851,531
	56,633	Ensco PLC, Class A		2,298,733
	53,799	EOG Resources, Inc.		5,113,595
	14,013	EQT Corp.		1,317,782
	22,735	Exterran Holdings, Inc.		894,168
	1,230,621	Exxon Mobil Corp.		119,013,357
	26,763	FMC Technologies, Inc.(b)		1,499,798
	157,564	Frontline Ltd. (Norway)(b)(c)		222,165
	133,891	Halliburton Co.		7,382,750
	25,539	Helix Energy Solutions Group, Inc.(b)		680,359
	12,739	Helmerich & Payne, Inc.		1,106,000
	105,222	Hess Corp.		8,923,878
	63,572	HollyFrontier Corp.		2,884,897
	67,515	Key Energy Services, Inc.(b)		205,246
	128,008	Kinder Morgan, Inc.(c)		4,953,910
	329,722	Marathon Oil Corp.		11,672,159

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

9

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	105,078	Marathon Petroleum Corp.	$	9,551,590
	126,434	McDermott International, Inc.(b)(c)		485,507
	94,129	Murphy Oil Corp.		5,025,547
	118,893	Nabors Industries Ltd.		2,122,240
	84,916	National Oilwell Varco, Inc.		6,168,298
	57,594	Newfield Exploration Co.(b)		1,878,140
	85,463	Noble Corp. PLC		1,787,886
	38,733	Noble Energy, Inc.		2,232,183
	180,247	Occidental Petroleum Corp.		16,029,366
	10,193	Oceaneering International, Inc.		716,262
	12,515	Oil States International, Inc.(b)		747,646
	46,559	ONEOK, Inc.		2,744,187
	28,487	Paragon Offshore PLC(b)(c)		138,732
	33,814	Patterson-UTI Energy, Inc.		778,736
	20,067	PBF Energy, Inc., Class A		523,147
	144,985	Peabody Energy Corp.(c)		1,512,194
	232,989	Phillips 66		18,289,636
	7,979	Pioneer Natural Resources Co.		1,508,510
	40,159	QEP Resources, Inc.		1,006,786
	9,152	Range Resources Corp.		625,997
	32,111	Rowan Cos. PLC, Class A		779,334
	123,223	SandRidge Energy, Inc.(b)(c)		480,570
	173,108	Schlumberger Ltd.		17,078,835
	9,066	SEACOR Holdings, Inc.(b)		747,492
	14,731	Seventy Seven Energy, Inc.(b)		192,534
	8,083	SM Energy Co.		455,073
	40,240	Southwestern Energy Co.(b)		1,308,202
	136,250	Spectra Energy Corp.		5,331,462
	43,760	Superior Energy Services, Inc.		1,100,564
	6,670	Targa Resources Corp.		857,962
	10,972	Teekay Corp. (Bermuda)		641,423
	64,369	Tesoro Corp.		4,596,590
	14,886	Tidewater, Inc.		548,847
	14,304	Unit Corp.(b)		692,600
	291,759	Valero Energy Corp.		14,614,208
	284,802	Weatherford International PLC(b)		4,676,449
	19,845	Western Refining, Inc.		904,734
	20,728	Whiting Petroleum Corp.(b)		1,269,383
	105,649	Williams Cos., Inc. (The)		5,864,576
	45,989	World Fuel Services Corp.		1,896,586
	129,158	WPX Energy, Inc.(b)		2,469,501
				484,306,316
		Financials—20.9%
	83,914	ACE Ltd.		9,171,800
	4,298	Affiliated Managers Group, Inc.(b)		858,697
	114,336	Aflac, Inc.		6,829,289
	12,627	Alexandria Real Estate Equities, Inc. REIT		1,048,041
	3,121	Alleghany Corp.(b)		1,386,598
	30,477	Allied World Assurance Co. Holdings AG		1,158,126
	146,818	Allstate Corp. (The)		9,521,147
	19,408	American Campus Communities, Inc. REIT		762,152
	109,759	American Capital Agency Corp. REIT		2,495,920
	26,026	American Capital Mortgage Investment Corp. REIT		509,849
	21,848	American Equity Investment Life Holding Co.		563,897

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	128,016	American Express Co.	$	11,515,039
	26,538	American Financial Group, Inc.		1,587,769
	405,976	American International Group, Inc.		21,748,134
	18,872	American Tower Corp. REIT		1,840,020
	30,350	Ameriprise Financial, Inc.		3,829,259
	613,443	Annaly Capital Management, Inc. REIT		6,999,385
	38,724	Aon PLC		3,330,264
	32,073	Apartment Investment & Management Co., Class A REIT		1,147,893
	27,710	Arch Capital Group Ltd.(b)		1,560,627
	23,166	Arthur J. Gallagher & Co.		1,105,018
	23,227	Aspen Insurance Holdings Ltd.		1,013,394
	51,159	Associated Banc-Corp.		961,789
	33,894	Assurant, Inc.		2,312,249
	41,535	Assured Guaranty Ltd.		958,628
	35,515	Astoria Financial Corp.		467,022
	16,267	AvalonBay Communities, Inc. REIT		2,535,049
	36,703	Axis Capital Holdings Ltd.		1,766,882
	19,558	BancorpSouth, Inc.		450,421
	4,108,590	Bank of America Corp.		70,503,404
	10,866	Bank of Hawaii Corp.		636,204
	316,505	Bank of New York Mellon Corp. (The)		12,255,074
	15,248	BankUnited, Inc.		455,915
	202,664	BB&T Corp.		7,676,912
	415,673	Berkshire Hathaway, Inc., Class B(b)		58,260,728
	36,692	BioMed Realty Trust, Inc. REIT		796,950
	19,846	BlackRock, Inc., Class A		6,769,669
	19,823	Boston Properties, Inc. REIT		2,512,565
	48,784	Brandywine Realty Trust REIT		752,737
	18,957	Brown & Brown, Inc.		603,970
	15,495	Camden Property Trust REIT		1,188,002
	153,257	Capital One Financial Corp.		12,685,082
	61,296	Capitol Federal Financial, Inc.		785,202
	43,884	Capstead Mortgage Corp. REIT		557,766
	42,825	CBL & Associates Properties, Inc. REIT		819,242
	39,431	CBRE Group, Inc., Class A(b)		1,261,792
	109,371	Charles Schwab Corp. (The)		3,135,667
	71,991	Chubb Corp. (The)		7,153,026
	41,530	Cincinnati Financial Corp.		2,096,019
	42,895	CIT Group, Inc.		2,098,852
	1,017,512	Citigroup, Inc.		54,467,417
	9,100	City National Corp.		716,261
	73,641	CME Group, Inc., Class A		6,171,852
	71,384	CNO Financial Group, Inc.		1,294,192
	40,584	Columbia Property Trust, Inc. REIT		1,023,934
	44,920	Comerica, Inc.		2,144,481
	21,323	Commerce Bancshares, Inc.		965,079
	22,274	Corporate Office Properties Trust REIT		608,971
	17,735	Corrections Corp. of America REIT		652,293
	19,061	Crown Castle International Corp. REIT		1,489,045
	11,073	Cullen/Frost Bankers, Inc.		894,809
	81,790	CYS Investments, Inc. REIT		730,385
	63,317	DCT Industrial Trust, Inc. REIT		542,627
	47,777	DDR Corp. REIT		866,675
	40,980	DiamondRock Hospitality Co. REIT		588,063
	24,089	Digital Realty Trust, Inc. REIT		1,661,900

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

10

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	74,566	Discover Financial Services	$	4,755,819
	23,029	Douglas Emmett, Inc. REIT		647,806
	68,075	Duke Realty Corp. REIT		1,290,702
	84,301	E*TRADE Financial Corp.(b)		1,879,912
	18,688	East West Bancorp, Inc.		686,971
	17,225	Eaton Vance Corp.		634,397
	14,379	Endurance Specialty Holdings Ltd.		833,263
	10,278	EPR Properties REIT		576,596
	37,387	Equity Commonwealth REIT		998,607
	52,786	Equity Residential REIT		3,671,794
	4,697	Essex Property Trust, Inc. REIT		947,667
	12,881	Everest Re Group Ltd.		2,198,143
	42,192	F.N.B. Corp.		539,636
	8,203	Federal Realty Investment Trust REIT		1,081,155
	33,129	Federated Investors, Inc., Class B		1,035,944
	219,275	Fifth Third Bancorp		4,383,307
	35,387	First American Financial Corp.		1,072,934
	64,291	First Horizon National Corp.		826,782
	136,587	First Niagara Financial Group, Inc.		1,023,037
	13,823	First Republic Bank		704,005
	32,182	FirstMerit Corp.		590,540
	55,627	FNF Group		1,659,910
	18,504	FNFV Group(b)		248,694
	54,063	Franklin Resources, Inc.		3,006,443
	56,935	Fulton Financial Corp.		676,388
	84,836	General Growth Properties, Inc. REIT		2,198,101
	243,557	Genworth Financial, Inc., Class A(b)		3,407,362
	126,355	Goldman Sachs Group, Inc. (The)		24,006,186
	19,354	Hancock Holding Co.		681,067
	15,317	Hanover Insurance Group, Inc. (The)		1,025,320
	214,408	Hartford Financial Services Group, Inc. (The)		8,486,269
	44,112	Hatteras Financial Corp. REIT		839,892
	25,097	HCC Insurance Holdings, Inc.		1,309,812
	89,009	HCP, Inc. REIT		3,913,726
	43,626	Health Care REIT, Inc. REIT		3,102,245
	20,746	Healthcare Realty Trust, Inc. REIT		549,147
	18,132	Highwoods Properties, Inc. REIT		777,319
	11,235	Home Properties, Inc. REIT		722,523
	50,667	Hospitality Properties Trust REIT		1,500,250
	107,805	Host Hotels & Resorts, Inc. REIT		2,512,935
	187,390	Hudson City Bancorp, Inc.		1,808,313
	208,099	Huntington Bancshares, Inc.		2,062,261
	30,586	Interactive Brokers Group, Inc., Class A		789,731
	5,448	IntercontinentalExchange, Inc.		1,134,764
	76,528	Invesco Ltd.(d)		3,097,088
	45,125	Invesco Mortgage Capital, Inc. REIT(d)		746,367
	40,187	Iron Mountain, Inc. REIT		1,449,545
	42,873	Janus Capital Group, Inc.(c)		642,666
	6,364	Jones Lang LaSalle, Inc.		860,476
	1,203,647	JPMorgan Chase & Co.		72,796,571
	17,119	Kemper Corp.		630,835
	273,408	KeyCorp		3,608,986
	10,915	Kilroy Realty Corp. REIT		739,382
	76,332	Kimco Realty Corp. REIT		1,904,483
	16,156	LaSalle Hotel Properties REIT		633,477

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	27,297	Legg Mason, Inc.	$	1,419,444
	48,000	Leucadia National Corp.		1,141,440
	49,383	Lexington Realty Trust REIT		541,238
	32,686	Liberty Property Trust REIT		1,136,492
	75,208	Lincoln National Corp.		4,118,390
	109,518	Loews Corp.		4,774,985
	11,413	LPL Financial Holdings, Inc.		472,384
	27,436	M&T Bank Corp.		3,352,130
	23,739	Macerich Co. (The) REIT		1,673,599
	43,240	Mack-Cali Realty Corp. REIT		809,885
	1,840	Markel Corp.(b)		1,271,238
	87,180	Marsh & McLennan Cos., Inc.		4,739,977
	36,087	McGraw Hill Financial, Inc.		3,265,152
	11,311	Mercury General Corp.		600,840
	292,002	MetLife, Inc.		15,838,188
	132,458	MFA Financial, Inc. REIT		1,109,998
	7,699	Mid-America Apartment Communities, Inc. REIT		544,011
	14,686	Moody’s Corp.		1,457,292
	386,064	Morgan Stanley		13,492,937
	12,885	MSCI, Inc.		601,214
	30,311	NASDAQ OMX Group, Inc. (The)		1,311,254
	17,537	National Retail Properties, Inc. REIT		668,510
	107,128	Navient Corp.		2,118,992
	162,516	New York Community Bancorp, Inc.(c)		2,592,130
	48,830	Northern Trust Corp.		3,237,429
	11,996	Ocwen Financial Corp.(b)		282,626
	84,409	Old Republic International Corp.		1,246,721
	15,328	OMEGA Healthcare Investors, Inc. REIT(c)		584,916
	21,577	PartnerRe Ltd.		2,496,243
	118,552	People’s United Financial, Inc.		1,733,230
	53,498	PHH Corp.(b)		1,267,368
	65,055	Piedmont Office Realty Trust, Inc., Class A REIT		1,265,320
	8,860	Platinum Underwriters Holdings Ltd.		554,902
	33,709	Plum Creek Timber Co., Inc. REIT		1,382,406
	138,769	PNC Financial Services Group, Inc. (The)		11,988,254
	43,829	Popular, Inc.(b)		1,397,269
	13,506	Primerica, Inc.		690,832
	73,250	Principal Financial Group, Inc.		3,836,102
	14,700	ProAssurance Corp.		687,666
	165,496	Progressive Corp. (The)		4,370,749
	75,224	Prologis, Inc. REIT		3,133,080
	8,354	Prosperity Bancshares, Inc.		504,498
	28,178	Protective Life Corp.		1,963,443
	151,547	Prudential Financial, Inc.		13,417,971
	15,414	Public Storage REIT		2,841,417
	17,983	Raymond James Financial, Inc.		1,009,386
	24,726	Rayonier, Inc. REIT		827,579
	16,583	Realogy Holdings Corp.(b)		680,069
	17,198	Realty Income Corp. REIT(c)		791,624
	16,520	Regency Centers Corp. REIT		1,002,764
	440,922	Regions Financial Corp.		4,378,355
	28,731	Reinsurance Group of America, Inc.		2,420,587
	10,172	RenaissanceRe Holdings Ltd.		1,051,073
	45,226	Retail Properties of America, Inc., Class A REIT		709,596

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	11,256	RLI Corp.	$	558,185
	20,398	RLJ Lodging Trust REIT		657,224
	41,477	Senior Housing Properties Trust REIT		936,965
	4,217	Signature Bank(b)		510,805
	30,350	Simon Property Group, Inc. REIT		5,439,023
	13,558	SL Green Realty Corp. REIT		1,568,661
	107,128	SLM Corp.		1,023,072
	13,469	StanCorp Financial Group, Inc.		936,904
	27,284	Starwood Property Trust, Inc. REIT		615,527
	87,408	State Street Corp.		6,595,808
	9,802	Stifel Financial Corp.(b)		465,693
	175,589	SunTrust Banks, Inc.		6,872,553
	60,131	Susquehanna Bancshares, Inc.		589,885
	4,886	SVB Financial Group(b)		547,183
	44,055	Symetra Financial Corp.		1,044,103
	36,288	Synovus Financial Corp.		920,264
	29,233	T. Rowe Price Group, Inc.		2,399,737
	7,221	Taubman Centers, Inc. REIT		549,157
	45,531	TCF Financial Corp.		703,454
	18,598	TD Ameritrade Holding Corp.		627,497
	31,259	Torchmark Corp.		1,655,477
	150,232	Travelers Cos., Inc. (The)		15,143,386
	20,680	Trustmark Corp.		503,144
	64,789	Two Harbors Investment Corp. REIT		656,313
	377,948	U.S. Bancorp		16,100,585
	46,730	UDR, Inc. REIT		1,412,648
	91,206	Unum Group		3,051,753
	26,777	Validus Holdings Ltd.		1,065,189
	76,356	Valley National Bancorp(c)		762,033
	50,505	Ventas, Inc. REIT		3,460,098
	31,427	Vornado Realty Trust REIT		3,440,628
	41,960	Voya Financial, Inc.		1,646,930
	34,093	W.R. Berkley Corp.		1,757,153
	8,270	Waddell & Reed Financial, Inc., Class A		394,810
	20,084	Washington REIT		567,574
	25,906	Washington Federal, Inc.		565,528
	15,322	Washington Prime Group, Inc. REIT		270,127
	19,011	Webster Financial Corp.		595,805
	23,267	Weingarten Realty Investors REIT		843,429
	1,219,050	Wells Fargo & Co.		64,719,365
	274,586	Weyerhaeuser Co. REIT		9,297,482
	1,283	White Mountains Insurance Group Ltd.		801,772
	34,873	Willis Group Holdings PLC		1,413,403
	95,327	XL Group PLC		3,229,679
	51,997	Zions Bancorporation		1,506,353
				860,392,230
		Health Care—11.0%
	504,078	Abbott Laboratories		21,972,760
	136,337	AbbVie, Inc.		8,651,946
	7,505	Actavis PLC(b)		1,821,764
	90,081	Aetna, Inc.		7,432,583
	31,061	Agilent Technologies, Inc.		1,717,052
	19,316	Alere, Inc.(b)		772,061
	2,979	Alexion Pharmaceuticals, Inc.(b)		570,061
	17,702	Allergan, Inc.		3,364,442
	114,782	AmerisourceBergen Corp.		9,803,531

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	66,913	Amgen, Inc.	$	10,851,950
	90,014	Baxter International, Inc.		6,313,582
	30,102	Becton, Dickinson and Co.		3,874,127
	9,332	Biogen Idec, Inc.(b)		2,996,319
	3,894	Bio-Rad Laboratories, Inc., Class A(b)		439,321
	91	Bio-Rad Laboratories, Inc., Class B(b)		10,342
	264,792	Boston Scientific Corp.(b)		3,516,438
	269,291	Bristol-Myers Squibb Co.		15,670,043
	8,174	C.R. Bard, Inc.		1,340,291
	158,476	Cardinal Health, Inc.		12,437,196
	46,853	CareFusion Corp.(b)		2,687,957
	29,128	Celgene Corp.(b)		3,119,318
	13,138	Centene Corp.(b)		1,217,498
	15,787	Cerner Corp.(b)		999,949
	54,823	Cigna Corp.		5,458,726
	53,369	Community Health Systems, Inc.(b)		2,933,694
	4,390	Cooper Cos., Inc. (The)		719,521
	6,568	Covance, Inc.(b)		524,783
	71,519	Covidien PLC		6,611,216
	35,548	DaVita HealthCare Partners, Inc.(b)		2,775,232
	18,873	DENTSPLY International, Inc.		958,182
	9,903	Edwards Lifesciences Corp.(b)		1,197,471
	233,899	Eli Lilly & Co.		15,514,521
	10,697	Endo International PLC(b)		715,843
	151,674	Express Scripts Holding Co.(b)		11,651,597
	63,297	Gilead Sciences, Inc.(b)		7,089,264
	197,137	HCA Holdings, Inc.(b)		13,809,447
	61,490	Health Net, Inc.(b)		2,921,390
	18,070	HealthSouth Corp.		728,763
	14,961	Henry Schein, Inc.(b)		1,795,769
	52,554	Hologic, Inc.(b)		1,376,389
	35,015	Hospira, Inc.(b)		1,880,305
	47,594	Humana, Inc.		6,608,427
	2,780	Illumina, Inc.(b)		535,372
	2,786	Intuitive Surgical, Inc.(b)		1,381,299
	488,387	Johnson & Johnson		52,638,351
	49,054	Kindred Healthcare, Inc.		1,066,925
	20,741	Laboratory Corp. of America Holdings(b)		2,266,784
	18,464	LifePoint Hospitals, Inc.(b)		1,292,480
	11,107	Magellan Health, Inc.(b)		672,196
	12,132	Mallinckrodt PLC(b)		1,118,328
	73,318	McKesson Corp.		14,913,614
	12,624	MEDNAX, Inc.(b)		788,116
	176,035	Medtronic, Inc.		11,998,546
	566,005	Merck & Co., Inc.		32,794,330
	2,424	Mettler-Toledo International, Inc.(b)		626,531
	12,887	Molina Healthcare, Inc.(b)		626,824
	44,405	Mylan, Inc.(b)		2,377,888
	23,368	Omnicare, Inc.		1,556,075
	29,950	Owens & Minor, Inc.		997,934
	16,136	Patterson Cos., Inc.		695,623
	53,078	PDL BioPharma, Inc.(c)		452,755
	15,021	PerkinElmer, Inc.		652,212
	4,533	Perrigo Co. PLC		731,853
	1,630,293	Pfizer, Inc.		48,827,275
	42,335	Quest Diagnostics, Inc.		2,686,579

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	13,421	ResMed, Inc.(c)	$	700,845
	32,092	St. Jude Medical, Inc.		2,059,344
	12,488	STERIS Corp.		771,758
	33,573	Stryker Corp.		2,938,645
	7,420	Teleflex, Inc.		846,770
	39,778	Tenet Healthcare Corp.(b)		2,229,557
	34,661	Thermo Fisher Scientific, Inc.		4,075,094
	241,633	UnitedHealth Group, Inc.		22,957,551
	14,171	Universal Health Services, Inc., Class B		1,469,674
	11,276	Varian Medical Systems, Inc.(b)		948,537
	15,853	VCA, Inc.(b)		722,421
	6,987	Waters Corp.(b)		774,160
	18,009	WellCare Health Plans, Inc.(b)		1,222,271
	132,889	WellPoint, Inc.		16,835,707
	21,736	Zimmer Holdings, Inc.		2,417,913
	63,239	Zoetis, Inc.		2,349,961
				451,869,169
		Industrials—10.7%
	102,882	3M Co.		15,820,165
	21,200	ABM Industries, Inc.		585,968
	56,605	ADT Corp. (The)		2,028,723
	44,552	AECOM Technology Corp.(b)		1,450,168
	15,476	AerCap Holdings NV (Netherlands)(b)		670,730
	38,895	AGCO Corp.		1,723,437
	15,410	Air Lease Corp.		563,852
	26,881	Alaska Air Group, Inc.		1,430,876
	14,345	Allegion PLC		761,576
	7,184	Alliant Techsystems, Inc.		840,241
	22,862	American Airlines Group, Inc.		945,344
	19,135	AMETEK, Inc.		997,890
	22,336	Armstrong World Industries, Inc.(b)		1,081,509
	48,882	Avis Budget Group, Inc.(b)		2,725,171
	11,633	B/E Aerospace, Inc.(b)		866,077
	15,774	Babcock & Wilcox Co. (The)		451,136
	101,795	Boeing Co. (The)		12,715,213
	19,578	Brink’s Co. (The)		411,138
	37,355	C.H. Robinson Worldwide, Inc.		2,585,340
	9,833	Carlisle Cos., Inc.		873,957
	150,072	Caterpillar, Inc.		15,218,802
	10,167	Chicago Bridge & Iron Co. NV		555,525
	17,662	Cintas Corp.		1,293,565
	24,911	Civeo Corp.		303,665
	10,204	Clean Harbors, Inc.(b)		506,425
	7,488	Colfax Corp.(b)		407,197
	20,982	Con-way, Inc.		909,989
	4,317	Copa Holdings SA, Class A (Panama)		504,744
	36,981	Covanta Holding Corp.		816,171
	8,369	Crane Co.		521,807
	205,100	CSX Corp.		7,307,713
	25,895	Cummins, Inc.		3,785,331
	8,135	Curtiss-Wright Corp.		563,023
	59,783	Danaher Corp.		4,806,553
	82,111	Deere & Co.		7,023,775
	178,192	Delta Air Lines, Inc.		7,168,664
	11,272	Deluxe Corp.		685,338
	14,044	Donaldson Co., Inc.		583,950

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	35,729	Dover Corp.	$	2,838,312
	187,711	DryShips, Inc. (Greece)(b)(c)		277,812
	6,683	Dun & Bradstreet Corp. (The)		820,739
	74,395	Eaton Corp. PLC		5,087,874
	18,365	EMCOR Group, Inc.		810,447
	146,239	Emerson Electric Co.		9,368,070
	8,901	EnerSys		558,983
	13,078	Equifax, Inc.		990,528
	6,185	Esterline Technologies Corp.(b)		724,325
	59,858	Exelis, Inc.		1,068,465
	32,221	Expeditors International of Washington, Inc.		1,374,548
	25,283	Fastenal Co.		1,113,463
	60,985	FedEx Corp.		10,208,889
	15,256	Flowserve Corp.		1,037,255
	42,459	Fluor Corp.		2,816,730
	22,805	Fortune Brands Home & Security, Inc.		986,316
	30,799	Foster Wheeler AG		955,693
	19,182	FTI Consulting, Inc.(b)		774,569
	9,270	GATX Corp.		587,718
	11,064	Generac Holdings, Inc.(b)		501,642
	36,055	General Cable Corp.		510,899
	76,766	General Dynamics Corp.		10,728,816
	2,744,050	General Electric Co.		70,823,931
	4,824	Genesee & Wyoming, Inc., Class A(b)		464,069
	55,680	GrafTech International Ltd.(b)		238,867
	35,447	Harsco Corp.		768,491
	129,029	Hertz Global Holdings, Inc.(b)		2,828,316
	10,970	Hexcel Corp.(b)		459,533
	110,232	Honeywell International, Inc.		10,595,500
	586	Hubbell, Inc., Class A		70,578
	7,373	Hubbell, Inc., Class B		836,172
	9,281	Huntington Ingalls Industries, Inc.		982,115
	9,280	IDEX Corp.		695,165
	4,846	IHS, Inc., Class A(b)		634,971
	73,297	Illinois Tool Works, Inc.		6,673,692
	60,493	Ingersoll-Rand PLC		3,788,072
	33,764	ITT Corp.		1,521,406
	10,911	J.B. Hunt Transport Services, Inc.		870,370
	39,461	Jacobs Engineering Group, Inc.(b)		1,872,424
	130,014	JetBlue Airways Corp.(b)		1,500,362
	24,732	Joy Global, Inc.		1,301,645
	10,346	Kansas City Southern		1,270,385
	20,164	KAR Auction Services, Inc.		612,179
	52,466	KBR, Inc.		1,001,051
	16,742	Kennametal, Inc.		646,409
	7,211	Kirby Corp.(b)		797,392
	30,367	L-3 Communications Holdings, Inc.		3,688,376
	5,410	Lennox International, Inc.		481,057
	7,587	Lincoln Electric Holdings, Inc.		549,906
	62,419	Lockheed Martin Corp.		11,895,189
	20,725	Manitowoc Co., Inc. (The)		431,909
	34,454	Manpowergroup, Inc.		2,299,805
	70,705	Masco Corp.		1,560,459
	45,907	Meritor, Inc.(b)		527,471
	8,354	Moog, Inc., Class A(b)		639,415
	118	Moog, Inc., Class B(b)		9,005

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	40,709	MRC Global, Inc.(b)	$	856,110
	6,677	MSC Industrial Direct Co., Inc., Class A		540,637
	49,390	Navistar International Corp.(b)		1,746,924
	34,776	Nielsen Holdings NV		1,477,632
	65,310	Norfolk Southern Corp.		7,225,898
	61,729	Northrop Grumman Corp.		8,516,133
	21,404	NOW, Inc.(b)(c)		643,404
	10,673	Old Dominion Freight Line, Inc.(b)		777,742
	21,356	Oshkosh Corp.		955,895
	32,288	Owens Corning		1,035,153
	63,635	PACCAR, Inc.		4,156,638
	11,010	Pall Corp.		1,006,534
	26,426	Parker Hannifin Corp.		3,356,895
	20,009	Pentair PLC (United Kingdom)		1,341,603
	86,727	Pitney Bowes, Inc.		2,145,626
	11,521	Precision Castparts Corp.		2,542,685
	34,964	Quanta Services, Inc.(b)		1,191,573
	124,144	R.R. Donnelley & Sons Co.		2,166,313
	69,341	Raytheon Co.		7,203,143
	9,328	Regal-Beloit Corp.		662,008
	17,742	Republic Airways Holdings, Inc.(b)		222,130
	90,139	Republic Services, Inc.		3,461,338
	20,009	Robert Half International, Inc.		1,096,093
	15,614	Rockwell Automation, Inc.		1,754,233
	19,491	Rockwell Collins, Inc.		1,640,168
	8,942	Roper Industries, Inc.		1,415,519
	21,117	Ryder System, Inc.		1,868,221
	14,103	Sensata Technologies Holding NV(b)		688,367
	12,191	SkyWest, Inc.		140,440
	8,993	Snap-on, Inc.		1,188,335
	128,519	Southwest Airlines Co.		4,431,335
	33,717	Spirit Aerosystems Holdings, Inc., Class A(b)		1,326,427
	11,090	SPX Corp.		1,051,221
	29,834	Stanley Black & Decker, Inc.		2,793,656
	39,471	Steelcase, Inc., Class A		699,426
	6,187	Stericycle, Inc.(b)		779,562
	5,764	Teledyne Technologies, Inc.(b)		597,323
	28,480	Terex Corp.		819,370
	60,770	Textron, Inc.		2,523,778
	17,691	Timken Co. (The)		760,536
	6,557	Towers Watson & Co., Class A		723,172
	4,244	TransDigm Group, Inc.		793,755
	22,140	Trinity Industries, Inc.		790,619
	11,587	Triumph Group, Inc.		806,803
	26,342	Tutor Perini Corp.(b)		737,839
	108,701	Tyco International Ltd.		4,666,534
	114,884	Union Pacific Corp.		13,378,242
	111,607	United Continental Holdings, Inc.(b)		5,893,966
	122,211	United Parcel Service, Inc., Class B		12,821,156
	13,822	United Rentals, Inc.(b)		1,521,249
	16,390	United Stationers, Inc.		684,610
	155,618	United Technologies Corp.		16,651,126
	36,791	UTi Worldwide, Inc.(b)		402,126
	3,803	Valmont Industries, Inc.(c)		517,855
	3,345	Vectrus, Inc.(b)		81,752
	2,408	Veritiv Corp.(b)(c)		108,625

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	7,357	W.W. Grainger, Inc.	$	1,815,708
	4,702	WABCO Holdings, Inc.(b)		457,881
	14,548	Waste Connections, Inc.		725,945
	141,320	Waste Management, Inc.		6,909,135
	67	Watsco, Inc., Class B		6,693
	5,675	Watsco, Inc.		576,694
	19,038	Werner Enterprises, Inc.		524,307
	11,871	WESCO International, Inc.(b)		978,289
	23,689	Xylem, Inc.		861,332
	25,813	YRC Worldwide, Inc.(b)(c)		553,431
				442,763,396
		Information Technology—11.9%
	77,110	Accenture PLC, Class A		6,255,163
	136,602	Activision Blizzard, Inc.		2,725,210
	37,175	Adobe Systems, Inc.(b)		2,606,711
	213,062	Advanced Micro Devices, Inc.(b)(c)		596,574
	12,660	Akamai Technologies, Inc.(b)		763,398
	3,528	Alliance Data Systems Corp.(b)		999,659
	33,042	Altera Corp.		1,135,653
	22,691	Amdocs Ltd.		1,078,730
	88,009	Amkor Technology, Inc.(b)		596,701
	25,404	Amphenol Corp., Class A		1,284,934
	42,234	Analog Devices, Inc.		2,095,651
	8,128	Anixter International, Inc.		692,262
	6,991	ANSYS, Inc.(b)		549,213
	36,561	AOL, Inc.(b)		1,591,500
	517,288	Apple, Inc.		55,867,104
	196,665	Applied Materials, Inc.		4,344,330
	61,005	Arrow Electronics, Inc.(b)		3,468,744
	16,496	Autodesk, Inc.(b)		949,180
	66,452	Automatic Data Processing, Inc.		5,434,445
	15,700	Avago Technologies Ltd. (Singapore)		1,354,125
	87,578	Avnet, Inc.		3,787,748
	23,101	Benchmark Electronics, Inc.(b)		547,956
	26,604	Blackhawk Network Holdings, Inc., Class B(b)		888,574
	38,398	Booz Allen Hamilton Holding Corp., Class A		1,011,787
	73,387	Broadcom Corp., Class A		3,073,448
	19,281	Broadridge Financial Solutions, Inc.		847,014
	78,119	Brocade Communications Systems, Inc.		838,217
	59,919	CA, Inc.		1,741,246
	9,227	CACI International, Inc., Class A(b)		759,290
	22,137	CDK Global, Inc.(b)		743,803
	12,228	Check Point Software Technologies Ltd. (Israel)(b)		907,929
	804,534	Cisco Systems, Inc.		19,686,947
	18,449	Citrix Systems, Inc.(b)		1,184,979
	40,900	Cognizant Technology Solutions Corp., Class A(b)		1,997,965
	49,704	Computer Sciences Corp.		3,002,122
	24,083	Convergys Corp.		485,754
	30,237	CoreLogic, Inc.(b)		948,535
	298,934	Corning, Inc.		6,107,222
	10,248	Cree, Inc.(b)		322,607
	21,160	Diebold, Inc.		749,699
	5,159	DST Systems, Inc.		497,070
	112,922	eBay, Inc.(b)		5,928,405

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	10,781	EchoStar Corp., Class A(b)	$	503,796
	29,576	Electronic Arts, Inc.(b)		1,211,729
	344,506	EMC Corp.		9,897,657
	5,058	Equinix, Inc.		1,056,616
	4,758	F5 Networks, Inc.(b)		585,139
	32,314	Facebook, Inc., Class A(b)		2,423,227
	43,870	Fairchild Semiconductor International, Inc.(b)		673,404
	42,115	Fidelity National Information Services, Inc.		2,459,095
	17,276	First Solar, Inc.(b)		1,017,556
	35,662	Fiserv, Inc.(b)		2,477,796
	464,575	Flextronics International Ltd.(b)		4,980,244
	18,101	FLIR Systems, Inc.		606,926
	35,644	Genpact Ltd.(b)		625,552
	6,963	Global Payments, Inc.		560,521
	17,027	Google, Inc., Class A(b)		9,669,122
	16,981	Google, Inc., Class C(b)		9,493,737
	22,928	Harris Corp.		1,595,789
	830,985	Hewlett-Packard Co.		29,815,742
	103,537	Ingram Micro, Inc., Class A(b)		2,778,933
	25,864	Insight Enterprises, Inc.(b)		588,406
	1,337,797	Intel Corp.		45,498,476
	190,377	International Business Machines Corp.		31,297,979
	16,698	Intuit, Inc.		1,469,591
	17,447	Itron, Inc.(b)		679,212
	104,047	Jabil Circuit, Inc.		2,179,785
	80,698	Juniper Networks, Inc.		1,700,307
	22,908	KLA-Tencor Corp.		1,813,168
	29,026	Lam Research Corp.		2,259,964
	33,760	Leidos Holdings, Inc.		1,234,603
	21,192	Lexmark International, Inc., Class A		914,647
	26,496	Linear Technology Corp.		1,135,089
	67,920	Marvell Technology Group Ltd.		912,845
	39,497	MasterCard, Inc., Class A		3,307,874
	53,117	Maxim Integrated Products, Inc.		1,558,453
	32,631	Microchip Technology, Inc.(c)		1,406,722
	149,232	Micron Technology, Inc.(b)		4,938,087
	1,109,454	Microsoft Corp.		52,088,865
	37,599	Motorola Solutions, Inc.		2,425,135
	31,323	NCR Corp.(b)		866,707
	48,787	NetApp, Inc.		2,088,084
	41,927	Nuance Communications, Inc.(b)		646,934
	62,851	NVIDIA Corp.		1,228,108
	16,870	NXP Semiconductor NV (Netherlands)(b)		1,158,294
	89,936	ON Semiconductor Corp.(b)		745,569
	402,385	Oracle Corp.		15,713,134
	53,800	Paychex, Inc.		2,525,372
	38,783	Polycom, Inc.(b)		507,282
	165,819	QUALCOMM, Inc.		13,018,450
	8,847	Red Hat, Inc.(b)		521,265
	19,270	Rovi Corp.(b)		402,358
	11,216	salesforce.com, inc.(b)		717,712
	32,628	SanDisk Corp.		3,071,600
	63,036	Sanmina Corp.(b)		1,580,312
	20,094	Science Applications International Corp.		982,798
	61,208	Seagate Technology PLC		3,845,699
	18,729	Skyworks Solutions, Inc.		1,090,777

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	31,489	SunEdison, Inc.(b)	$	614,350
	143,696	Symantec Corp.		3,566,535
	17,083	SYNNEX Corp.		1,181,802
	20,817	Synopsys, Inc.(b)		853,081
	74,975	TE Connectivity Ltd. (Switzerland)		4,583,222
	24,614	Tech Data Corp.(b)		1,469,948
	20,076	Teradata Corp.(b)		849,616
	33,028	Teradyne, Inc.		607,715
	155,747	Texas Instruments, Inc.		7,734,396
	22,963	Total System Services, Inc.		775,920
	17,660	Trimble Navigation Ltd.(b)		474,348
	26,329	Unisys Corp.(b)		675,076
	16,580	VeriFone Systems, Inc.(b)		617,771
	27,476	Visa, Inc., Class A		6,633,531
	57,879	Vishay Intertechnology, Inc.		781,945
	39,771	Western Digital Corp.		3,912,273
	114,474	Western Union Co. (The)		1,941,479
	491,482	Xerox Corp.		6,526,881
	30,174	Xilinx, Inc.		1,342,139
	101,043	Yahoo!, Inc.(b)		4,653,030
				490,794,906
		Materials—3.9%
	36,930	Air Products & Chemicals, Inc.		4,972,994
	9,193	Airgas, Inc.		1,025,387
	110,070	AK Steel Holding Corp.(b)(c)		833,230
	14,421	Albemarle Corp.		841,898
	490,410	Alcoa, Inc.		8,219,272
	39,679	Allegheny Technologies, Inc.		1,303,455
	10,392	AptarGroup, Inc.		646,798
	17,123	Ashland, Inc.		1,850,483
	30,436	Avery Dennison Corp.		1,425,927
	28,043	Ball Corp.		1,806,810
	31,916	Bemis Co., Inc.		1,227,809
	22,529	Berry Plastics Group, Inc.(b)		586,205
	14,625	Cabot Corp.		679,039
	25,405	Celanese Corp., Series A		1,492,036
	9,882	CF Industries Holdings, Inc.		2,569,320
	23,268	Chemtura Corp.(b)		541,912
	103,179	Cliffs Natural Resources, Inc.(c)		1,158,700
	53,799	Coeur Mining, Inc.(b)		199,056
	55,119	Commercial Metals Co.		953,007
	5,764	Compass Minerals International, Inc.		493,860
	38,425	Crown Holdings, Inc.(b)		1,841,710
	14,266	Cytec Industries, Inc.		665,224
	25,314	Domtar Corp.		1,039,646
	291,200	Dow Chemical Co. (The)		14,385,280
	177,616	E.I. du Pont de Nemours & Co.		12,282,146
	23,631	Eastman Chemical Co.		1,908,912
	24,177	Ecolab, Inc.		2,689,208
	13,760	FMC Corp.		789,136
	339,016	Freeport-McMoRan, Inc.		9,661,956
	81,432	Graphic Packaging Holding Co.(b)		987,770
	9,735	Greif, Inc., Class A		428,924
	2,613	Greif, Inc., Class B		131,225
	54,287	Huntsman Corp.		1,324,603
	10,351	International Flavors & Fragrances, Inc.		1,026,302

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	124,590	International Paper Co.	$	6,306,746
	106,096	LyondellBasell Industries NV, Class A		9,721,576
	6,709	Martin Marietta Materials, Inc.		784,416
	52,742	MeadWestvaco Corp.		2,329,614
	58,709	Monsanto Co.		6,753,883
	79,176	Mosaic Co. (The)		3,508,289
	1,625	NewMarket Corp.		630,516
	256,807	Newmont Mining Corp.		4,817,699
	104,761	Nucor Corp.		5,663,380
	24,479	Olin Corp.		593,371
	56,186	Owens-Illinois, Inc.(b)		1,447,913
	11,911	Packaging Corp. of America		858,545
	21,387	PPG Industries, Inc.		4,356,318
	41,639	Praxair, Inc.		5,246,098
	8,242	Rayonier Advanced Materials, Inc.(c)		235,144
	21,359	Reliance Steel & Aluminum Co.		1,441,305
	56,734	Resolute Forest Products, Inc.(b)		1,052,983
	23,996	Rock-Tenn Co., Class A		1,227,395
	11,210	Rockwood Holdings, Inc.		862,161
	26,628	RPM International, Inc.		1,206,248
	20,249	Schnitzer Steel Industries, Inc., Class A		476,864
	40,673	Sealed Air Corp.		1,474,396
	10,128	Sensient Technologies Corp.		599,375
	8,458	Sherwin-Williams Co. (The)		1,941,618
	12,674	Sigma-Aldrich Corp.		1,722,523
	10,687	Silgan Holdings, Inc.		525,373
	27,728	Sonoco Products Co.		1,133,243
	52,182	Southern Copper Corp.		1,501,798
	85,105	Steel Dynamics, Inc.		1,958,266
	8,898	Timkensteel Corp.		361,081
	112,922	United States Steel Corp.(c)		4,521,397
	12,629	Valspar Corp. (The)		1,037,599
	21,841	Vulcan Materials Co.		1,347,808
	7,341	W.R. Grace & Co.(b)		694,459
	60,436	Walter Energy, Inc.(c)		145,651
				160,474,291
		Telecommunication Services—4.0%
	2,373,112	AT&T, Inc.		82,679,222
	288,912	CenturyLink, Inc.		11,984,070
	150,459	Cincinnati Bell, Inc.(b)		552,185
	742,632	Frontier Communications Corp.		4,856,813
	68,326	Leap Wireless Corp.(b)		172,182
	29,877	Level 3 Communications, Inc.(b)		1,401,530
	101,795	Sprint Corp.(b)		603,644
	60,533	Telephone & Data Systems, Inc.		1,552,066
	18,598	T-Mobile US, Inc.(b)		542,876
	20,909	tw telecom, inc.(b)		894,487
	1,065,114	Verizon Communications, Inc.		53,521,978
	400,290	Windstream Holdings, Inc.(c)		4,195,039
				162,956,092
		Utilities—5.3%
	292,345	AES Corp. (The)		4,113,294
	31,900	AGL Resources, Inc.		1,719,729
	10,829	ALLETE, Inc.		565,707

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	32,812	Alliant Energy Corp.	$	2,031,391
	99,745	Ameren Corp.		4,223,203
	169,463	American Electric Power Co., Inc.		9,886,471
	42,541	American Water Works Co., Inc.		2,270,413
	23,144	Aqua America, Inc.		606,373
	33,177	Atmos Energy Corp.		1,758,381
	22,089	Avista Corp.		783,055
	11,101	Black Hills Corp.		607,558
	108,816	Calpine Corp.(b)		2,483,181
	144,017	CenterPoint Energy, Inc.		3,535,617
	14,090	Cleco Corp.		757,478
	81,632	CMS Energy Corp.		2,666,918
	117,793	Consolidated Edison, Inc.		7,463,365
	119,732	Dominion Resources, Inc.		8,536,892
	59,200	DTE Energy Co.		4,863,872
	196,840	Duke Energy Corp.		16,170,406
	31,386	Dynegy, Inc.(b)		957,273
	109,216	Edison International		6,834,737
	96,156	Entergy Corp.		8,079,027
	432,518	Exelon Corp.		15,825,834
	248,246	FirstEnergy Corp.		9,269,506
	52,555	Great Plains Energy, Inc.		1,415,306
	42,519	Hawaiian Electric Industries, Inc.(c)		1,197,335
	12,619	IDACORP, Inc.		797,899
	36,835	Integrys Energy Group, Inc.		2,677,168
	17,532	ITC Holdings Corp.		694,443
	44,878	MDU Resources Group, Inc.		1,264,662
	13,676	National Fuel Gas Co.		946,790
	14,089	New Jersey Resources Corp.		823,925
	97,938	NextEra Energy, Inc.		9,815,346
	84,084	NiSource, Inc.		3,536,573
	71,084	Northeast Utilities		3,507,995
	11,667	NorthWestern Corp.		616,484
	115,344	NRG Energy, Inc.		3,458,013
	45,373	OGE Energy Corp.		1,691,959
	126,306	Pepco Holdings, Inc.		3,453,206
	170,415	PG&E Corp.		8,575,283
	21,182	Piedmont Natural Gas Co., Inc.(c)		805,128
	41,269	Pinnacle West Capital Corp.		2,536,805
	28,146	PNM Resources, Inc.		812,012
	28,284	Portland General Electric Co.		1,029,821
	193,444	PPL Corp.		6,768,606
	186,282	Public Service Enterprise Group, Inc.		7,695,309
	43,823	Questar Corp.		1,056,573
	43,144	SCANA Corp.		2,368,174
	53,249	Sempra Energy		5,857,390
	288,454	Southern Co. (The)		13,372,727
	13,581	Southwest Gas Corp.		788,920
	98,048	TECO Energy, Inc.		1,922,721
	54,053	UGI Corp.		2,037,258
	15,634	UIL Holdings Corp.		643,183
	28,092	Vectren Corp.		1,262,735
	41,095	Westar Energy, Inc.		1,553,802
	21,906	WGL Holdings, Inc.		1,029,582
	48,222	Wisconsin Energy Corp.		2,394,705

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	169,609	Xcel Energy, Inc.	$	5,676,813
				220,094,332
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $3,327,492,836)—100.0%		4,121,697,711
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.7%
	31,064,642	Invesco Liquid Assets Portfolio—Institutional Class(e)(f) (Cost $31,064,642)		31,064,642
		Total Investments (Cost $3,358,557,478)—100.7%		4,152,762,353
		Other assets less liabilities—(0.7%)		(29,321,955	)
		Net Assets—100.0%	$	4,123,440,398

Investment Abbreviations:

NVTG—Non-voting Shares

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, 2014.

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

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

^(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	30,515,393	$	(30,515,393	)	$	—

* Amount does not include excess collateral received, if any.

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

17

Portfolio Composition

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

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	22.4
Consumer Discretionary	17.1
Information Technology	17.0
Industrials	16.9
Health Care	8.2
Energy	5.7
Materials	5.7
Consumer Staples	4.0
Utilities	1.7
Telecommunication Services	1.3
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—17.1%
	38,961	1-800-FLOWERS.COM, Inc., Class A(b)	$	312,857
	262,525	Aeropostale, Inc.(b)(c)		790,200
	21,765	AH Belo Corp., Class A		250,515
	20,759	AMC Entertainment Holdings, Inc., Class A		527,279
	18,856	AMC Networks, Inc., Class A(b)		1,143,616
	278,538	American Apparel, Inc.(b)(c)		199,155
	38,111	American Axle & Manufacturing Holdings, Inc.(b)		736,686
	7,741	American Public Education, Inc.(b)		239,894
	9,133	America’s Car-Mart, Inc.(b)		419,935
	51,793	ANN INC.(b)		1,988,333
	53,947	Aramark		1,505,661
	167,699	Arcos Dorados Holdings, Inc., Class A (Argentina)(c)		1,033,026
	7,788	Arctic Cat, Inc.		262,144
	31,782	Asbury Automotive Group, Inc.(b)		2,226,011
	11,020	Ascent Capital Group, Inc., Class A(b)		708,586
	15,816	Bally Technologies, Inc.(b)		1,271,606
	14,014	Bassett Furniture Industries, Inc.		243,563
	29,377	Beazer Homes USA, Inc.(b)		526,730
	53,748	bebe stores, inc.		123,083
	42,215	Belmond Ltd., Class A(b)		483,784
	27,667	Big 5 Sporting Goods Corp.		340,581
	1,497	Biglari Holdings, Inc.(b)		522,693
	20,494	BJ’s Restaurants, Inc.(b)		902,146

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	46,760	Bloomin’ Brands, Inc.(b)	$	884,232
	6,246	Blue Nile, Inc.(b)		221,733
	38,816	Blyth, Inc.(c)		325,666
	30,811	Bob Evans Farms, Inc.		1,505,117
	75,663	Bon-Ton Stores, Inc. (The)(c)		666,591
	114,105	Boyd Gaming Corp.(b)		1,317,913
	20,609	Bravo Brio Restaurant Group, Inc.(b)		285,847
	17,008	Bridgepoint Education, Inc.(b)		214,981
	10,732	Bright Horizons Family Solutions, Inc.(b)		478,218
	61,651	Brown Shoe Co., Inc.		1,639,300
	39,887	Brunswick Corp.		1,866,712
	35,919	Buckle, Inc. (The)(c)		1,771,884
	6,284	Buffalo Wild Wings, Inc.(b)		938,076
	31,283	Burger King Worldwide, Inc.(c)		1,022,328
	40,079	Burlington Stores, Inc.(b)		1,680,913
	57,416	Callaway Golf Co.		450,141
	7,229	Capella Education Co.		511,379
	13,785	Carmike Cinemas, Inc.(b)		441,809
	11,320	Carriage Services, Inc.		225,947
	42,146	Carrols Restaurant Group, Inc.(b)		324,946
	34,119	Cato Corp. (The), Class A		1,217,025
	3,246	Cavco Industries, Inc.(b)		236,536
	300,922	Central European Media Enterprises Ltd., Class A (Czech Republic)(b)(c)		731,240
	25,743	Cheesecake Factory, Inc. (The)		1,182,633

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

18

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	24,906	Children’s Place, Inc. (The)	$	1,226,620
	28,124	Choice Hotels International, Inc.		1,504,634
	42,289	Christopher & Banks Corp.(b)		276,147
	6,686	Churchill Downs, Inc.		681,838
	20,601	Citi Trends, Inc.(b)		466,613
	79,340	Clear Channel Outdoor Holdings, Inc., Class A		576,008
	13,875	ClubCorp Holdings, Inc.		264,457
	15,908	Columbia Sportswear Co.		613,094
	17,471	Conn’s, Inc.(b)(c)		543,523
	4,429	Container Store Group, Inc. (The)(b)(c)		81,671
	9,164	Cooper-Standard Holding, Inc.(b)		500,171
	38,516	Core-Mark Holding Co., Inc.		2,235,083
	603,838	Corinthian Colleges, Inc.(b)(c)		111,770
	16,740	Cracker Barrel Old Country Store, Inc.		1,930,959
	63,940	Crocs, Inc.(b)		746,819
	9,346	CSS Industries, Inc.		266,922
	64,831	CTC Media, Inc. (Russia)		412,325
	59,937	Cumulus Media, Inc., Class A(b)		231,357
	19,355	Deckers Outdoor Corp.(b)		1,692,788
	11,568	Del Frisco’s Restaurant Group, Inc.(b)		268,609
	11,562	Delta Apparel, Inc.(b)		121,401
	79,377	Denny’s Corp.(b)		684,230
	12,153	Destination Maternity Corp.		182,052
	66,673	Destination XL Group, Inc.(b)		349,367
	103,930	Dex Media, Inc.(b)(c)		809,615
	14,398	DineEquity, Inc.		1,280,846
	12,628	Dixie Group, Inc. (The)(b)		99,509
	18,551	Domino’s Pizza, Inc.		1,647,143
	8,029	Dorman Products, Inc.(b)		372,224
	36,391	DreamWorks Animation SKG, Inc., Class A(b)		810,791
	11,662	Drew Industries, Inc.		560,476
	47,159	DSW, Inc., Class A		1,398,264
	21,787	Dunkin’ Brands Group, Inc.		990,873
	24,067	E.W. Scripps Co. (The), Class A(b)		462,086
	67,675	Education Management Corp.(b)(c)		40,273
	20,546	Einstein Noah Restaurant Group, Inc.		416,056
	50,944	Emmis Communications Corp., Class A(b)		111,058
	33,990	Entercom Communications Corp., Class A(b)		349,417
	26,680	Entravision Communications Corp., Class A		137,669
	25,771	Ethan Allen Interiors, Inc.		729,319
	9,047	Extended Stay America, Inc.		208,624
	59,321	Federal-Mogul Holdings Corp.(b)		926,001
	7,579	Fiesta Restaurant Group, Inc.(b)		417,982
	43,860	Finish Line, Inc. (The), Class A		1,160,974
	20,609	Five Below, Inc.(b)		821,681
	6,864	Flexsteel Industries, Inc.		235,504
	23,009	Francesca’s Holdings Corp.(b)		274,037
	53,877	Fred’s, Inc., Class A		845,869
	35,993	Fuel Systems Solutions, Inc.(b)		332,215
	10,119	Gentherm, Inc.(b)		421,962
	12,290	G-III Apparel Group Ltd.(b)		975,211
	32,294	Gordmans Stores, Inc.(b)		101,726

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	11,167	Grand Canyon Education, Inc.(b)	$	534,899
	34,549	Gray Television, Inc.(b)		319,233
	79,736	Harte-Hanks, Inc.		519,081
	605	Haverty Furniture Cos., Inc., Class A		13,249
	15,092	Haverty Furniture Cos., Inc.		332,175
	22,527	Helen of Troy Ltd.(b)		1,393,295
	56,005	hhgregg, Inc.(b)(c)		290,106
	13,003	Hibbett Sports, Inc.(b)(c)		590,206
	52,417	Hilton Worldwide Holdings, Inc.(b)		1,323,005
	11,812	Hooker Furniture Corp.		180,605
	18,188	Houghton Mifflin Harcourt Co.(b)		363,942
	105,181	Hovnanian Enterprises, Inc., Class A(b)(c)		395,481
	32,589	HSN, Inc.		2,153,155
	33,473	Hyatt Hotels Corp., Class A(b)		1,982,271
	62,296	Iao Kun Group Holding Co., Ltd. (Hong Kong)(c)		127,084
	33,594	Iconix Brand Group, Inc.(b)		1,344,096
	22,668	International Speedway Corp., Class A		710,188
	16,841	Interval Leisure Group, Inc.		354,335
	9,602	iRobot Corp.(b)(c)		342,983
	47,857	Isle of Capri Casinos, Inc.(b)		355,578
	30,650	Jack in the Box, Inc.		2,177,376
	78,899	JAKKS Pacific, Inc.(b)(c)		503,376
	1,012	John Wiley & Sons, Inc., Class B		59,030
	7,195	Johnson Outdoors, Inc., Class A		216,210
	42,041	Journal Communications, Inc., Class A(b)		412,422
	24,460	K12, Inc.(b)		303,304
	27,316	Kate Spade & Co.(b)		741,083
	56,307	KB Home(c)		886,272
	136,336	Kingold Jewelry, Inc.(c)		163,603
	14,930	Kirkland’s, Inc.(b)		265,754
	17,954	Krispy Kreme Doughnuts, Inc.(b)		339,690
	32,240	La-Z-Boy, Inc.		737,006
	67,077	LeapFrog Enterprises, Inc.(b)		356,850
	153,597	Lee Enterprises, Inc.(b)(c)		572,917
	20,009	Libbey, Inc.(b)		575,259
	38,190	Life Time Fitness, Inc.(b)		2,129,856
	12,913	Lifetime Brands, Inc.		220,941
	15,608	LIN Media LLC, Class A(b)		373,499
	67,638	Lincoln Educational Services Corp.		179,241
	49,026	Lions Gate Entertainment Corp.		1,624,231
	18,042	Lithia Motors, Inc., Class A		1,400,420
	17,823	Loral Space & Communications, Inc.(b)		1,363,460
	22,204	Lululemon Athletica, Inc.(b)(c)		924,797
	5,549	Lumber Liquidators Holdings, Inc.(b)(c)		298,370
	13,751	M/I Homes, Inc.(b)		296,197
	27,468	Madison Square Garden Co. (The), Class A(b)		2,080,976
	31,531	Marcus Corp. (The)		540,126
	28,208	MarineMax, Inc.(b)		540,747
	24,443	Marriott Vacations Worldwide Corp.		1,697,322
	5,447	Mattress Firm Holding Corp.(b)		344,196
	207,918	McClatchy Co. (The), Class A(b)(c)		740,188
	40,290	MDC Holdings, Inc.		983,882
	19,054	Media General, Inc.(b)(c)		284,667
	36,823	Meredith Corp.		1,919,951

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

19

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	19,132	Meritage Homes Corp.(b)	$	703,866
	17,473	Michael Kors Holdings Ltd.(b)		1,373,203
	45,666	Modine Manufacturing Co.(b)		585,895
	11,201	Monro Muffler Brake, Inc.		598,581
	5,591	Morningstar, Inc.		381,586
	9,854	Movado Group, Inc.		347,846
	8,420	Multimedia Games Holding Co., Inc.(b)		293,858
	8,319	NACCO Industries, Inc., Class A		487,244
	70,188	National CineMedia, Inc.		1,115,989
	51,844	New York & Co., Inc.(b)		169,530
	102,296	New York Times Co. (The), Class A		1,313,481
	9,242	Nexstar Broadcasting Group, Inc., Class A(c)		416,999
	25,679	Norwegian Cruise Line Holdings Ltd.(b)		1,001,481
	28,184	Nutrisystem, Inc.		474,619
	36,386	Orbitz Worldwide, Inc.(b)		300,912
	23,018	Outerwall, Inc.(b)(c)		1,456,349
	15,760	Overstock.com, Inc.(b)		364,371
	8,712	Oxford Industries, Inc.		533,610
	150,799	Pacific Sunwear of California, Inc.(b)		229,214
	15,344	Papa John’s International, Inc.		717,485
	89,898	Pep Boys-Manny, Moe & Jack (The)(b)		856,728
	41,072	Perry Ellis International, Inc.(b)		839,922
	15,687	PetMed Express, Inc.(c)		207,225
	52,456	Pier 1 Imports, Inc.		676,682
	56,487	Pinnacle Entertainment, Inc.(b)		1,447,762
	21,573	Pool Corp.		1,287,908
	4,298	Popeyes Louisiana Kitchen, Inc.(b)		199,212
	163,950	Quiksilver, Inc.(b)(c)		286,913
	58,147	Radio One, Inc., Class D(b)		144,786
	14,325	RCI Hospitality Holdings, Inc.(b)		170,468
	8,553	Red Robin Gourmet Burgers, Inc.(b)		470,158
	123,673	Regis Corp.		2,099,968
	17,733	Remy International, Inc.		327,706
	8,534	Restoration Hardware Holdings, Inc.(b)		685,451
	13,651	Rocky Brands, Inc.		179,374
	217,942	Ruby Tuesday, Inc.(b)		1,673,795
	24,206	Ruth’s Hospitality Group, Inc.		294,587
	17,124	Ryland Group, Inc. (The)		613,210
	44,591	Scholastic Corp.		1,552,213
	60,965	Scientific Games Corp., Class A(b)(c)		717,558
	29,964	Sears Hometown and Outlet Stores, Inc.(b)		450,659
	36,087	Select Comfort Corp.(b)		927,075
	48,656	SGOCO Group Ltd. (China)(b)(c)		72,011
	12,835	Shoe Carnival, Inc.		236,164
	15,537	Shutterfly, Inc.(b)		649,913
	38,152	Sinclair Broadcast Group, Inc., Class A(c)		1,108,316
	35,110	Skechers U.S.A., Inc., Class A(b)		1,922,273
	41,424	Smith & Wesson Holding Corp.(b)(c)		420,868
	8,662	SodaStream International Ltd. (Israel)(b)(c)		190,910
	36,458	Sonic Corp.(b)		919,106
	26,119	Sotheby’s		1,035,880
	40,596	Spartan Motors, Inc.		230,991
	14,905	Speedway Motorsports, Inc.		291,691
	48,592	Stage Stores, Inc.		819,747
	15,107	Standard Motor Products, Inc.		597,029

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	66,262	Standard Pacific Corp.(b)	$	490,339
	39,308	Starz, Class A(b)		1,214,617
	276	Starz, Class B(b)		8,777
	35,999	Stein Mart, Inc.		481,667
	13,489	Steiner Leisure Ltd.(b)		568,966
	32,140	Steven Madden Ltd.(b)		1,007,589
	45,737	Stoneridge, Inc.(b)		594,124
	22,756	Strayer Education, Inc.(b)		1,665,512
	9,426	Sturm Ruger & Co., Inc.(c)		392,876
	38,452	Superior Industries International, Inc.		750,199
	23,222	Taylor Morrison Home Corp., Class A(b)		400,347
	20,476	Tempur Sealy International, Inc.(b)		1,077,857
	29,883	Texas Roadhouse, Inc.		862,722
	47,673	Tower International, Inc.(b)		1,158,454
	58,286	Town Sports International Holdings, Inc.		345,053
	162,537	TravelCenters of America LLC(b)		1,573,358
	10,272	TripAdvisor, Inc.(b)		910,716
	30,568	Tuesday Morning Corp.(b)		623,282
	17,170	Tumi Holdings, Inc.(b)		356,621
	16,931	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		2,045,434
	21,659	Under Armour, Inc., Class A(b)		1,420,397
	23,303	Unifi, Inc.(b)		651,785
	9,367	Universal Electronics, Inc.(b)		532,889
	22,284	Universal Technical Institute, Inc.		265,402
	17,960	Vail Resorts, Inc.		1,551,026
	39,738	ValueVision Media, Inc., Class A(b)		224,917
	10,164	Vera Bradley, Inc.(b)(c)		231,739
	17,738	Vitamin Shoppe, Inc.(b)		832,444
	47,708	VOXX International Corp.(b)		406,949
	51,678	Weight Watchers International, Inc.(b)(c)		1,346,212
	24,803	West Marine, Inc.(b)		244,062
	222,087	Wet Seal, Inc. (The), Class A(b)(c)		75,510
	7,714	Weyco Group, Inc.		240,291
	10,691	Winnebago Industries, Inc.(b)		226,756
	54,590	Wolverine World Wide, Inc.		1,481,573
	23,610	World Wrestling Entertainment, Inc., Class A(c)		291,584
	18,949	Zumiez, Inc.(b)		632,518
				174,338,242
		Consumer Staples—4.0%
	78,555	Adecoagro S.A. (Luxembourg)(b)		712,494
	150,186	Alliance One International, Inc.(b)		304,878
	37,511	B&G Foods, Inc.		1,105,074
	1,423	Boston Beer Co., Inc. (The), Class A(b)		354,327
	27,497	Boulder Brands, Inc.(b)		244,173
	11,402	Calavo Growers, Inc.		553,453
	11,767	Cal-Maine Foods, Inc.		1,033,025
	24,512	Central Garden & Pet Co.(b)		195,606
	76,393	Central Garden & Pet Co., Class A(b)		656,216
	8,400	Chefs’ Warehouse, Inc. (The)(b)		150,108
	5,404	Coca-Cola Bottling Co. Consolidated		488,738
	47,023	Coty, Inc., Class A(b)		780,582
	20,528	Diamond Foods, Inc.(b)		618,919
	33,022	Elizabeth Arden, Inc.(b)(c)		541,561
	69,401	Fresh Del Monte Produce, Inc.		2,228,466
	21,845	Fresh Market, Inc. (The)(b)		801,930

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

20

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	16,479	Hain Celestial Group, Inc. (The)(b)	$	1,783,852
	93,534	Harbinger Group, Inc.(b)		1,229,037
	22,472	Ingles Markets, Inc., Class A		604,497
	7,624	Inter Parfums, Inc.		216,522
	6,606	J & J Snack Foods Corp.		680,616
	15,405	John B. Sanfilippo & Son, Inc.		572,296
	11,994	Lancaster Colony Corp.		1,097,331
	8,644	Medifast, Inc.(b)		274,361
	24,022	Monster Beverage Corp.(b)		2,423,339
	13,498	National Beverage Corp.(b)		339,070
	18,701	Nu Skin Enterprises, Inc., Class A		987,974
	10,078	Nutraceutical International Corp.(b)		226,553
	27,918	Omega Protein Corp.(b)		403,415
	101,021	Pantry, Inc. (The)(b)		2,603,311
	48,467	Pilgrim’s Pride Corp.(b)		1,376,947
	40,970	Pinnacle Foods, Inc.		1,384,786
	27,745	Post Holdings, Inc.(b)		1,040,438
	8,046	PriceSmart, Inc.		716,335
	11,887	Revlon, Inc., Class A(b)		407,724
	175,717	Roundy’s, Inc.(c)		592,166
	16,235	Sanderson Farms, Inc.		1,363,415
	267	Seaboard Corp.(b)		820,456
	9,597	Seneca Foods Corp., Class A(b)		257,967
	1,469	Seneca Foods Corp., Class B(b)		45,936
	44,580	Snyders-Lance, Inc.		1,328,038
	58,262	SpartanNash Co.		1,305,651
	14,782	Spectrum Brands Holdings, Inc.		1,339,101
	11,290	Sprouts Farmers Market, Inc.(b)		328,652
	13,926	Tootsie Roll Industries, Inc., Class A(c)		412,906
	3,314	USANA Health Sciences, Inc.(b)(c)		377,730
	77,936	Vector Group Ltd.(c)		1,741,090
	9,542	Village Super Market, Inc., Class A		264,791
	6,785	WD-40 Co.		520,206
	14,105	Weis Markets, Inc.		629,647
				40,465,706
		Energy—5.7%
	4,263	Adams Resources & Energy, Inc.		179,259
	122,620	Aegean Marine Petroleum Network, Inc. (Greece)		1,036,139
	67,857	Alon USA Energy, Inc.		1,088,426
	4,853	Antero Resources Corp.(b)		254,491
	22,426	Approach Resources, Inc.(b)(c)		222,017
	47,067	Basic Energy Services, Inc.(b)		607,164
	8,478	Bonanza Creek Energy, Inc.(b)		383,545
	21,679	Bristow Group, Inc.		1,602,078
	34,868	C&J Energy Services, Inc.(b)		673,301
	266,216	Cal Dive International, Inc.(b)(c)		26,622
	54,025	Callon Petroleum Co.(b)		354,404
	7,689	CARBO Ceramics, Inc.(c)		397,291
	16,789	Carrizo Oil & Gas, Inc.(b)		872,021
	11,258	Cheniere Energy, Inc.(b)		844,350
	5,086	Clayton Williams Energy, Inc.(b)		422,850
	35,701	Clean Energy Fuels Corp.(b)(c)		260,974
	82,240	Cobalt International Energy, Inc.(b)		963,030
	61,504	Comstock Resources, Inc.		728,207
	9,929	Contango Oil & Gas Co.(b)		363,104

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	17,973	Continental Resources, Inc.(b)(c)	$	1,013,138
	7,514	Core Laboratories NV		1,048,428
	23,303	CVR Energy, Inc.(c)		1,132,060
	11,383	Dawson Geophysical Co.		193,397
	69,766	DHT Holdings, Inc.		464,642
	4,533	Diamondback Energy, Inc.(b)		310,239
	13,430	Dril-Quip, Inc.(b)		1,208,028
	68,334	Energy XXI Bermuda Ltd.(c)		525,488
	26,030	EnLink Midstream LLC		986,537
	15,206	Era Group, Inc.(b)		355,668
	256,734	EXCO Resources, Inc.(c)		783,039
	484,736	Forest Oil Corp.(b)(c)		392,636
	31,616	Forum Energy Technologies, Inc.(b)		863,117
	12,025	Frank’s International NV		207,191
	9,028	GasLog Ltd. (Monaco)		187,963
	4,207	Geospace Technologies Corp.(b)		129,534
	26,546	Golar LNG Ltd. (Norway)		1,489,496
	26,537	Goodrich Petroleum Corp.(b)(c)		218,665
	210,824	Gran Tierra Energy, Inc. (Canada)(b)		961,357
	48,865	Green Plains, Inc.		1,671,183
	15,670	Gulf Island Fabrication, Inc.		331,264
	5,482	Gulfmark Offshore, Inc., Class A		165,337
	15,326	Gulfport Energy Corp.(b)		769,059
	211,153	Halcon Resources Corp.(b)(c)		656,686
	58,332	Harvest Natural Resources, Inc.(b)		216,995
	288,392	Hercules Offshore, Inc.(b)(c)		475,847
	37,096	Hornbeck Offshore Services, Inc.(b)		1,137,363
	13,862	InterOil Corp.(b)(c)		785,144
	173,674	ION Geophysical Corp.(b)		486,287
	75,256	Kodiak Oil & Gas Corp.(b)		812,012
	22,976	Kosmos Energy Ltd.(b)		214,366
	19,964	Laredo Petroleum, Inc.(b)		378,517
	35,301	Magnum Hunter Resources Corp.(b)(c)		163,797
	10,806	Matador Resources Co.(b)		262,262
	17,428	Matrix Service Co.(b)		436,746
	71,612	Midstates Petroleum Co., Inc.(b)(c)		212,688
	17,318	Mitcham Industries, Inc.(b)		176,644
	7,423	Natural Gas Services Group, Inc.(b)		190,994
	86,981	Newpark Resources, Inc.(b)		994,193
	107,893	Nordic American Tankers Ltd.(c)		911,696
	33,147	Northern Oil and Gas, Inc.(b)(c)		374,561
	22,844	Nuverra Environmental Solutions, Inc.(b)(c)		216,333
	21,439	Oasis Petroleum, Inc.(b)		642,312
	70,124	Ocean Rig UDW, Inc. (Cyprus)(c)		964,205
	54,677	Pacific Drilling SA(b)		398,049
	31,201	Pacific Ethanol, Inc.(b)(c)		440,246
	151,016	Parker Drilling Co.(b)		670,511
	18,775	PDC Energy, Inc.(b)		820,843
	61,086	Penn Virginia Corp.(b)		523,507
	99,150	PetroQuest Energy, Inc.(b)		466,005
	1,285	PHI, Inc.(b)		54,625
	8,176	PHI, Inc. NVTG(b)		365,794
	107,091	Pioneer Energy Services Corp.(b)		983,095
	302,665	Quicksilver Resources, Inc.(b)(c)		165,437
	32,305	Renewable Energy Group, Inc.(b)		340,172
	60,602	Resolute Energy Corp.(b)(c)		210,895

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

21

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	6,088	REX American Resources Corp.(b)	$	442,963
	19,196	Rex Energy Corp.(b)		150,497
	28,711	Rosetta Resources, Inc.(b)		1,091,879
	34,925	RPC, Inc.		572,770
	7,252	Sanchez Energy Corp.(b)(c)		123,792
	28,681	Scorpio Tankers, Inc. (Monaco)		250,385
	23,374	SemGroup Corp., Class A		1,793,954
	84,250	Ship Finance International Ltd. (Norway)		1,448,257
	32,393	StealthGas, Inc. (Greece)(b)		272,101
	45,488	Stone Energy Corp.(b)		1,114,456
	132,957	Swift Energy Co.(b)(c)		910,755
	234,073	Teekay Tankers Ltd., Class A(c)		992,470
	34,853	Tesco Corp.		663,601
	104,720	TETRA Technologies, Inc.(b)		997,982
	151,435	Tsakos Energy Navigation Ltd.		1,025,215
	44,394	Ultra Petroleum Corp.(b)(c)		1,012,183
	60,619	VAALCO Energy, Inc.(b)		449,793
	240,965	Vantage Drilling Co.(b)(c)		233,134
	52,379	W&T Offshore, Inc.		476,125
	77,826	Warren Resources, Inc.(b)		269,278
	17,341	Westmoreland Coal Co.(b)		634,160
	120,278	Willbros Group, Inc.(b)		706,032
				58,467,348
		Financials—22.4%
	15,215	1st Source Corp.		476,077
	24,501	1st United Bancorp, Inc.		216,834
	34,546	Acadia Realty Trust REIT		1,077,835
	64,784	AG Mortgage Investment Trust, Inc. REIT		1,235,431
	8,903	Agree Realty Corp. REIT		272,521
	20,350	Alexander & Baldwin, Inc.		814,610
	1,454	Alexander’s, Inc. REIT		642,668
	2,916	Altisource Portfolio Solutions SA(b)(c)		217,709
	28,850	American Assets Trust, Inc. REIT		1,106,109
	9,427	American National Bankshares, Inc.		228,133
	5,818	American National Insurance Co.		663,717
	12,682	Ameris Bancorp		314,514
	13,295	AMERISAFE, Inc.		554,401
	10,782	AmREIT, Inc. REIT		265,668
	19,461	AmTrust Financial Services, Inc.(c)		873,215
	354,015	Anworth Mortgage Asset Corp. REIT		1,837,338
	32,469	Apollo Commercial Real Estate Finance, Inc. REIT		533,790
	57,371	Apollo Residential Mortgage, Inc. REIT		956,948
	42,363	Arbor Realty Trust, Inc. REIT		285,103
	35,860	Argo Group International Holdings Ltd.		2,000,988
	11,738	Arlington Asset Investment Corp., Class A(c)		321,386
	357,457	ARMOUR Residential REIT , Inc. REIT		1,415,530
	11,231	Arrow Financial Corp.		307,617
	95,081	Ashford Hospitality Trust, Inc. REIT		1,074,415
	35,550	Associated Estates Realty Corp. REIT		694,291
	1,295	Baldwin & Lyons, Inc., Class A		31,753
	10,575	Baldwin & Lyons, Inc., Class B		284,679
	12,317	Banc of California, Inc.		144,971
	6,575	BancFirst Corp.		427,375
	19,639	Bancorp, Inc. (The)(b)		185,785

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	46,727	Bank Mutual Corp.	$	307,931
	4,505	Bank of Marin Bancorp		224,890
	21,164	Bank of the Ozarks, Inc.		745,819
	12,123	Banner Corp.		523,956
	36,930	BBCN Bancorp, Inc.		522,190
	22,438	Beneficial Mutual Bancorp, Inc.(b)		301,342
	23,725	Berkshire Hills Bancorp, Inc.		611,630
	81,354	BGC Partners, Inc., Class A		689,882
	12,314	Blackstone Mortgage Trust, Inc., Class A REIT		343,807
	12,676	BNC Bancorp		215,619
	2,624	BofI Holding, Inc.(b)		202,100
	20,190	BOK Financial Corp.		1,384,226
	51,482	Boston Private Financial Holdings, Inc.		676,988
	7,462	Bridge Bancorp, Inc.		195,952
	21,484	Brixmor Property Group, Inc. REIT		523,350
	96,096	Brookline Bancorp, Inc.		921,561
	10,112	Bryn Mawr Bank Corp.		311,753
	5,472	C&F Financial Corp.		187,908
	53,856	Calamos Asset Management, Inc., Class A		737,827
	9,224	Camden National Corp.		377,354
	39,319	Campus Crest Communities, Inc. REIT		249,282
	9,111	Capital Bank Financial Corp., Class A(b)		235,884
	16,680	Capital City Bank Group, Inc.		252,035
	19,025	Cardinal Financial Corp.		365,280
	13,225	CareTrust REIT, Inc. REIT(b)		205,384
	33,632	Cash America International, Inc.		1,653,013
	45,379	Cathay General Bancorp		1,198,459
	25,517	CBOE Holdings, Inc.		1,503,972
	90,627	Cedar Realty Trust, Inc. REIT		623,514
	20,341	Centerstate Banks, Inc.		236,769
	19,263	Central Pacific Financial Corp.		364,071
	170,223	Chambers Street Properties REIT		1,397,531
	20,591	Charter Financial Corp.		233,502
	10,745	Chatham Lodging Trust REIT		275,287
	30,976	Chemical Financial Corp.		922,465
	27,399	Chesapeake Lodging Trust REIT		905,263
	476,273	Chimera Investment Corp. REIT		1,485,972
	12,043	Citizens & Northern Corp.		239,656
	33,030	Citizens, Inc.(b)(c)		240,789
	14,703	City Holding Co.		661,488
	29,306	CNA Financial Corp.		1,145,278
	9,920	CNB Financial Corp.		179,651
	23,825	CoBiz Financial, Inc.		286,376
	13,084	Cohen & Steers, Inc.(c)		560,780
	28,582	Colony Financial, Inc. REIT		636,807
	32,705	Columbia Banking System, Inc.		908,545
	32,639	Community Bank System, Inc.		1,245,178
	14,686	Community Trust Bancorp, Inc.		527,962
	9,729	ConnectOne Bancorp, Inc.		179,986
	25,313	Consumer Portfolio Services, Inc.(b)		178,710
	9,794	CoreSite Realty Corp. REIT		362,574
	79,257	Cousins Properties, Inc. REIT		1,031,134
	62,643	Cowen Group, Inc., Class A(b)		253,078
	15,122	Crawford & Co., Class A		133,376
	17,413	Crawford & Co., Class B		177,264

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

22

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	4,001	Credit Acceptance Corp.(b)(c)	$	590,388
	62,106	CubeSmart REIT		1,307,331
	17,050	Customers Bancorp, Inc.(b)		325,655
	69,050	CVB Financial Corp.		1,089,609
	20,659	CyrusOne, Inc. REIT		564,197
	2,379	Diamond Hill Investment Group, Inc.		318,762
	33,068	Dime Community Bancshares, Inc.		520,821
	12,857	Donegal Group, Inc., Class A		203,398
	1,301	Donegal Group, Inc., Class B		27,998
	17,197	Doral Financial Corp.(b)(c)		99,915
	40,728	DuPont Fabros Technology, Inc. REIT		1,261,346
	74,151	Dynex Capital, Inc. REIT		624,351
	8,378	Eagle Bancorp, Inc.(b)		301,022
	19,295	EastGroup Properties, Inc. REIT		1,328,654
	78,776	Education Realty Trust, Inc. REIT		887,018
	5,340	eHealth, Inc.(b)		133,233
	17,218	Empire State Realty Trust, Inc., Class A REIT		274,799
	39,709	Employers Holdings, Inc.		809,667
	13,778	Encore Capital Group, Inc.(b)(c)		627,037
	4,915	Enstar Group Ltd.(b)		727,764
	15,442	Enterprise Financial Services Corp.		291,082
	32,098	Equity Lifestyle Properties, Inc. REIT		1,576,012
	44,995	Equity One, Inc. REIT		1,079,880
	13,578	Erie Indemnity Co., Class A		1,152,365
	57,883	EverBank Financial Corp.		1,108,459
	9,378	Evercore Partners, Inc., Class A		485,499
	30,798	Excel Trust, Inc. REIT		400,374
	36,280	Extra Space Storage, Inc. REIT		2,110,045
	97,550	EZCORP, Inc., Class A(b)		1,100,364
	9,098	Farmers Capital Bank Corp.(b)		204,159
	14,687	FBL Financial Group, Inc., Class A		728,181
	7,659	FBR & Co.(b)		184,888
	8,368	Federal Agricultural Mortgage Corp., Class C		278,654
	73,712	FelCor Lodging Trust, Inc. REIT		790,930
	12,730	Fidelity & Guaranty Life		302,338
	4,593	Financial Engines, Inc.		183,123
	11,778	Financial Institutions, Inc.		296,099
	17,531	First Bancorp		317,662
	206,077	First BanCorp(b)		1,073,661
	69,295	First Busey Corp.		433,094
	13,754	First Cash Financial Services, Inc.(b)		812,586
	4,571	First Citizens BancShares, Inc., Class A		1,148,281
	102,987	First Commonwealth Financial Corp.		962,928
	21,299	First Community Bancshares, Inc.		348,665
	11,005	First Connecticut Bancorp, Inc.		172,118
	10,811	First Defiance Financial Corp.		331,141
	76,110	First Financial Bancorp		1,334,969
	28,857	First Financial Bankshares, Inc.(c)		917,075
	11,391	First Financial Corp.		395,040
	57,510	First Industrial Realty Trust, Inc. REIT		1,123,170
	18,866	First Interstate BancSystem, Inc., Class A		553,528
	24,168	First Merchants Corp.		547,405
	62,837	First Midwest Bancorp, Inc.		1,055,033
	7,663	First of Long Island Corp. (The)		201,843

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	67,713	First Potomac Realty Trust REIT	$	846,413
	23,705	Flagstar Bancorp, Inc.(b)		372,643
	31,115	Flushing Financial Corp.		626,656
	59,224	Forest City Enterprises, Inc., Class A(b)		1,237,189
	1,248	Forest City Enterprises, Inc., Class B(b)		25,971
	25,284	Forestar Group, Inc.(b)		441,206
	83,745	Franklin Street Properties Corp., Class C REIT		1,004,103
	24,940	FXCM, Inc., Class A		410,512
	21,738	Gain Capital Holdings, Inc.		186,077
	2,727	GAMCO Investors, Inc., Class A		225,305
	49,047	Geo Group, Inc. (The) REIT		1,958,937
	9,984	German American Bancorp, Inc.		298,222
	26,966	Getty Realty Corp. REIT		501,837
	107,353	GFI Group, Inc.		590,442
	54,660	Glacier Bancorp, Inc.		1,568,195
	16,021	Gladstone Commercial Corp. REIT		289,980
	107,839	Glimcher Realty Trust REIT		1,480,629
	7,665	Global Indemnity PLC(b)		222,132
	49,984	Government Properties Income Trust REIT		1,140,635
	60,285	Gramercy Property Trust, Inc. REIT		376,781
	11,953	Great Southern Bancorp, Inc.		454,334
	24,170	Green Dot Corp., Class A(b)		577,663
	19,724	Greenhill & Co., Inc.		887,580
	21,448	Greenlight Capital Re Ltd., Class A(b)		695,988
	30,927	Hallmark Financial Services, Inc.(b)		360,609
	16,800	Hanmi Financial Corp.		360,360
	3,682	HCI Group, Inc.		187,193
	115,230	Healthcare Trust of America, Inc., Class A REIT		1,479,553
	18,722	Heartland Financial USA, Inc.		498,005
	12,522	Heritage Financial Corp.		219,761
	170,192	Hersha Hospitality Trust REIT		1,240,700
	10,583	HFF, Inc., Class A		333,153
	16,380	Home BancShares, Inc.		522,850
	27,414	Home Loan Servicing Solutions Ltd.		526,623
	9,106	HomeStreet, Inc.		158,627
	14,188	HomeTrust Bancshares, Inc.(b)		219,205
	50,070	Horace Mann Educators Corp.		1,522,629
	8,116	Horizon Bancorp		208,744
	11,089	Howard Hughes Corp. (The)(b)		1,634,297
	16,401	Hudson Pacific Properties, Inc. REIT		447,911
	15,099	Hudson Valley Holding Corp.		343,351
	20,002	IBERIABANK Corp.		1,377,338
	24,567	Impac Mortgage Holdings, Inc. REIT(b)(c)		145,682
	17,981	Independent Bank Corp.		733,625
	13,794	Infinity Property & Casualty Corp.		1,007,100
	83,798	Inland Real Estate Corp. REIT		889,097
	68,721	International Bancshares Corp.		1,949,615
	21,593	Intervest Bancshares Corp.		210,532
	19,471	INTL FCStone, Inc.(b)		352,425
	53,400	Investment Technology Group, Inc.(b)		957,462
	46,644	Investors Bancorp, Inc.		501,423
	127,192	Investors Real Estate Trust REIT		1,068,413
	79,264	iStar Financial, Inc. REIT(b)		1,124,756
	5,099	Kansas City Life Insurance Co.		253,063

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	9,225	Kennedy-Wilson Holdings, Inc.	$	249,905
	21,996	Kite Realty Group Trust REIT		569,476
	32,634	Lakeland Bancorp, Inc.		358,648
	12,022	Lakeland Financial Corp.		498,192
	17,187	LTC Properties, Inc. REIT		720,823
	84,719	Maiden Holdings Ltd.		1,012,392
	16,708	MainSource Financial Group, Inc.		303,919
	7,788	MarketAxess Holdings, Inc.		503,494
	36,894	MB Financial, Inc.		1,164,006
	119,724	MBIA, Inc.(b)		1,168,506
	142,005	Meadowbrook Insurance Group, Inc.		904,572
	97,687	Medical Properties Trust, Inc. REIT		1,317,798
	7,690	Mercantile Bank Corp.		151,724
	5,136	Merchants Bancshares, Inc.		153,001
	4,280	Meta Financial Group, Inc.		160,543
	10,422	Metro Bancorp, Inc.(b)		260,967
	72,987	MGIC Investment Corp.(b)		651,044
	6,847	MidWestOne Financial Group, Inc.		182,678
	32,190	Monmouth Real Estate Investment Corp. REIT		360,528
	48,927	Montpelier Re Holdings Ltd. (Bermuda)		1,621,441
	4,926	National Bankshares, Inc.		154,233
	9,240	National Health Investors, Inc. REIT		609,008
	7,609	National Interstate Corp.		216,400
	112,681	National Penn Bancshares, Inc.		1,159,487
	3,161	National Western Life Insurance Co., Class A		856,631
	5,308	Nationstar Mortgage Holdings, Inc.(b)		186,417
	14,844	Navigators Group, Inc. (The)(b)		1,010,728
	43,631	NBT Bancorp, Inc.		1,120,444
	20,347	Nelnet, Inc., Class A		968,314
	48,901	New York Mortgage Trust, Inc. REIT(c)		381,917
	47,725	Newcastle Investment Corp. REIT		1,152,559
	17,187	NewStar Financial, Inc.(b)		235,118
	15,455	Nicholas Financial, Inc.(b)		188,706
	25,628	NMI Holdings, Inc., Class A(b)		229,371
	26,948	Northfield Bancorp, Inc.		383,740
	52,004	Northstar Asset Management Group, Inc.(b)		942,312
	63,604	NorthStar Realty Finance Corp. REIT		1,181,762
	102,076	Northwest Bancshares, Inc.		1,309,635
	10,773	OceanFirst Financial Corp.		178,509
	38,323	OFG Bancorp		596,689
	108,426	Old National Bancorp		1,577,598
	9,413	OmniAmerican Bancorp, Inc.		254,528
	12,490	One Liberty Properties, Inc. REIT		285,896
	32,696	OneBeacon Insurance Group Ltd., Class A		520,847
	12,303	Oppenheimer Holdings, Inc., Class A		302,039
	32,071	Oritani Financial Corp.		473,689
	14,288	Pacific Continental Corp.		206,033
	9,669	Pacific Premier Bancorp, Inc.(b)		156,541
	18,909	PacWest Bancorp		806,658
	12,861	Park National Corp.(c)		1,085,083
	31,119	Park Sterling Corp.		238,372
	29,804	Parkway Properties, Inc. REIT		597,570
	28,674	Pebblebrook Hotel Trust REIT		1,221,512

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	4,056	Penns Woods Bancorp, Inc.	$	196,838
	65,324	Pennsylvania Real Estate Investment Trust REIT		1,399,893
	63,549	PennyMac Mortgage Investment Trust REIT		1,372,023
	11,343	Peoples Bancorp, Inc.		279,605
	30,613	Phoenix Cos., Inc. (The)(b)		1,817,188
	13,888	PICO Holdings, Inc.(b)		306,925
	21,287	Pinnacle Financial Partners, Inc.		834,450
	20,797	Piper Jaffray Cos.(b)		1,174,199
	17,854	Portfolio Recovery Associates, Inc.(b)		1,129,266
	29,996	Post Properties, Inc. REIT		1,677,976
	33,590	Potlatch Corp. REIT		1,477,624
	40,155	PrivateBancorp, Inc.		1,297,810
	10,207	Provident Financial Holdings, Inc.		148,818
	66,691	Provident Financial Services, Inc.		1,215,777
	11,363	PS Business Parks, Inc. REIT		956,992
	52,911	Radian Group, Inc.		891,550
	103,145	RAIT Financial Trust REIT		756,053
	43,185	Ramco-Gershenson Properties Trust REIT		754,874
	85,460	Redwood Trust, Inc. REIT(c)		1,605,793
	7,983	Regional Management Corp.(b)		93,082
	23,619	Renasant Corp.		712,113
	11,723	Republic Bancorp, Inc., Class A		284,283
	161,284	Resource Capital Corp. REIT		853,192
	29,431	Retail Opportunity Investments Corp. REIT		480,903
	18,402	Rouse Properties, Inc. REIT(c)		335,100
	32,860	Ryman Hospitality Properties, Inc. REIT(c)		1,621,641
	29,072	S&T Bancorp, Inc.		802,096
	41,103	Sabra Health Care REIT, Inc. REIT		1,174,313
	11,285	Safeguard Scientifics, Inc.(b)		225,136
	19,021	Safety Insurance Group, Inc.		1,186,530
	22,947	Sandy Spring Bancorp, Inc.		592,033
	9,350	Saul Centers, Inc. REIT		513,783
	50,494	SEI Investments Co.		1,952,098
	19,713	Select Income REIT		483,166
	72,600	Selective Insurance Group, Inc.		1,874,532
	9,730	Sierra Bancorp		166,967
	27,253	Silver Bay Realty Trust Corp. REIT		461,393
	13,676	Simmons First National Corp., Class A		574,255
	8,998	South State Corp.		542,669
	18,009	Southside Bancshares, Inc.(c)		604,742
	16,045	Southwest Bancorp, Inc.		289,291
	17,361	Sovran Self Storage, Inc. REIT		1,477,247
	96,219	Spirit Realty Capital, Inc. REIT		1,145,006
	15,817	Springleaf Holdings, Inc.(b)		591,872
	24,740	St. Joe Co. (The)(b)		473,771
	14,510	STAG Industrial, Inc., Class A REIT		354,044
	16,413	State Auto Financial Corp.		343,524
	24,605	State Bank Financial Corp.		440,922
	38,933	Sterling Bancorp		547,398
	23,054	Stewart Information Services Corp.		814,267
	10,193	Stock Yards Bancorp, Inc.		339,223
	67,087	Strategic Hotels & Resorts, Inc. REIT(b)		862,068
	11,839	Suffolk Bancorp		271,823
	50,151	Summit Hotel Properties, Inc. REIT		583,758

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	23,059	Sun Communities, Inc. REIT	$	1,336,730
	100,598	Sunstone Hotel Investors, Inc. REIT		1,540,155
	54,888	SWS Group, Inc.(b)		405,622
	41,872	Tanger Factory Outlet Centers, Inc. REIT		1,497,761
	4,799	Tejon Ranch Co.(b)		144,834
	8,279	Terreno Realty Corp. REIT		174,356
	9,469	Territorial Bancorp, Inc.		203,394
	18,021	Texas Capital Bancshares, Inc.(b)		1,101,984
	49,077	TFS Financial Corp.		733,210
	12,861	Third Point Reinsurance Ltd.(b)		196,773
	9,013	Tompkins Financial Corp.		452,453
	27,655	TowneBank		419,250
	15,138	Trico Bancshares		398,129
	102,286	TrustCo Bank Corp. NY		746,688
	24,208	UMB Financial Corp.		1,442,313
	17,335	UMH Properties, Inc. REIT		175,084
	97,561	Umpqua Holdings Corp.		1,717,074
	20,678	Union Bankshares Corp.		464,841
	49,492	United Bankshares, Inc.		1,696,586
	19,808	United Community Banks, Inc.		357,138
	24,794	United Financial Bancorp, Inc.		347,860
	23,010	United Fire Group, Inc.		747,365
	6,652	Universal Health Realty Income Trust REIT		322,289
	26,818	Universal Insurance Holdings, Inc.		469,315
	23,108	Univest Corp. of Pennsylvania		474,176
	2,673	Urstadt Biddle Properties, Inc. REIT		49,130
	19,940	Urstadt Biddle Properties, Inc., Class A REIT		431,302
	20,228	ViewPoint Financial Group, Inc.		551,618
	1,386	Virtus Investment Partners, Inc.		248,385
	13,883	Walker & Dunlop, Inc.(b)		223,655
	30,405	Walter Investment Management Corp.(b)		690,802
	11,995	Washington Trust Bancorp, Inc.		460,248
	21,995	Waterstone Financial, Inc.		269,219
	32,100	WesBanco, Inc.		1,106,166
	22,954	Westamerica Bancorp.(c)		1,132,550
	31,537	Western Alliance Bancorp(b)		839,515
	16,919	Western Asset Mortgage Capital Corp. REIT(c)		254,123
	24,405	Westfield Financial, Inc.		172,543
	4,397	Westwood Holdings Group, Inc.		296,798
	14,186	Whitestone REIT(c)		212,790
	36,861	Wilshire Bancorp, Inc.		364,924
	35,756	Winthrop Realty Trust REIT		558,866
	26,262	Wintrust Financial Corp.		1,216,456
	8,158	World Acceptance Corp.(b)(c)		584,602
	5,075	WSFS Financial Corp.		399,149
	9,331	Yadkin Financial Corp.(b)		181,115
				228,074,193
		Health Care—8.2%
	6,486	Abaxis, Inc.		341,553
	5,529	Acadia Healthcare Co., Inc.(b)		343,075
	20,503	Accuray, Inc.(b)(c)		129,784
	9,004	Acorda Therapeutics, Inc.(b)		313,519
	47,135	Affymetrix, Inc.(b)		424,686

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	14,262	Air Methods Corp.(b)	$	673,594
	7,230	Akorn, Inc.(b)		322,097
	12,594	Albany Molecular Research, Inc.(b)		292,936
	11,682	Align Technology, Inc.(b)		614,707
	14,866	Alkermes PLC(b)		751,476
	10,508	Alliance HealthCare Services, Inc.(b)		253,558
	87,406	Allscripts Healthcare Solutions, Inc.(b)		1,199,210
	10,255	Almost Family, Inc.(b)		301,907
	87,893	Amedisys, Inc.(b)		2,294,007
	46,587	AMN Healthcare Services, Inc.(b)		798,967
	33,818	Amsurg Corp.(b)		1,826,510
	5,510	Analogic Corp.		401,899
	26,150	AngioDynamics, Inc.(b)		444,550
	2,108	athenahealth, Inc.(b)		258,230
	904	Atrion Corp.		298,329
	6,852	Auxilium Pharmaceuticals, Inc.(b)(c)		220,429
	10,794	BioMarin Pharmaceutical, Inc.(b)		890,505
	19,673	Bio-Reference Laboratories, Inc.(b)(c)		590,977
	84,373	BioScrip, Inc.(b)(c)		545,050
	50,079	Brookdale Senior Living, Inc.(b)		1,688,163
	49,254	Bruker Corp.(b)		1,021,035
	14,715	Cambrex Corp.(b)		310,192
	7,781	Cantel Medical Corp.		329,914
	12,327	Capital Senior Living Corp.(b)		277,358
	5,445	Cepheid, Inc.(b)		288,639
	28,951	Charles River Laboratories International, Inc.(b)		1,828,545
	11,544	Chemed Corp.		1,193,188
	5,316	Computer Programs & Systems, Inc.		334,802
	16,727	CONMED Corp.		702,367
	5,215	CorVel Corp.(b)		179,500
	42,029	Cross Country Healthcare, Inc.(b)		406,420
	19,360	Cubist Pharmaceuticals, Inc.(b)		1,399,534
	5,474	Cyberonics, Inc.(b)		287,385
	6,610	Cynosure, Inc., Class A(b)		167,167
	12,652	Emergent Biosolutions, Inc.(b)		286,188
	13,153	Ensign Group, Inc. (The)		509,284
	17,256	Envision Healthcare Holdings, Inc.(b)		603,097
	301,736	Enzon Pharmaceuticals, Inc.		268,545
	6,921	Exactech, Inc.(b)		147,417
	9,022	ExamWorks Group, Inc.(b)		349,873
	37,625	Exelixis, Inc.(b)(c)		63,963
	125,255	Five Star Quality Care, Inc.(b)		517,303
	110,131	Gentiva Health Services, Inc.(b)		2,169,581
	16,614	Globus Medical, Inc., Class A(b)		368,332
	20,064	Greatbatch, Inc.(b)		1,007,012
	32,264	Haemonetics Corp.(b)		1,216,998
	29,449	Hanger, Inc.(b)		704,715
	49,102	Healthways, Inc.(b)		761,081
	42,577	Hill-Rom Holdings, Inc.		1,893,825
	34,911	HMS Holdings Corp.(b)		810,983
	26,972	ICON PLC (Ireland)(b)		1,418,997
	8,526	ICU Medical, Inc.(b)		604,493
	13,419	IDEXX Laboratories, Inc.(b)		1,901,070
	49,048	Impax Laboratories, Inc.(b)		1,420,921
	11,510	Infinity Pharmaceuticals, Inc.(b)		156,766

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	16,103	Integra LifeSciences Holdings Corp.(b)	$	823,024
	52,134	Invacare Corp.		819,025
	8,433	IPC The Hospitalist Co., Inc.(b)		351,319
	3,058	Isis Pharmaceuticals, Inc.(b)		140,852
	5,680	Jazz Pharmaceuticals PLC(b)		959,011
	8,421	Landauer, Inc.		301,388
	16,550	LHC Group, Inc.(b)		402,993
	15,204	Luminex Corp.(b)		288,876
	31,376	Masimo Corp.(b)		791,930
	38,133	MedAssets, Inc.(b)		825,961
	23,091	Medicines Co. (The)(b)		584,664
	3,054	Medidata Solutions, Inc.(b)		137,766
	28,015	Meridian Bioscience, Inc.		519,398
	33,429	Merit Medical Systems, Inc.(b)		506,449
	16,472	Momenta Pharmaceuticals, Inc.(b)		179,710
	6,027	MWI Veterinary Supply, Inc.(b)		1,022,511
	22,704	Myriad Genetics, Inc.(b)(c)		896,581
	9,716	National Healthcare Corp.		585,972
	13,274	Natus Medical, Inc.(b)		451,316
	7,679	Neogen Corp.(b)		337,108
	19,928	NuVasive, Inc.(b)		815,055
	15,693	NxStage Medical, Inc.(b)		237,906
	13,438	Omnicell, Inc.(b)		434,182
	30,279	Orthofix International NV(b)		888,689
	27,148	PAREXEL International Corp.(b)		1,474,408
	58,225	PharMerica Corp.(b)		1,670,475
	29,898	Prestige Brands Holdings, Inc.(b)		1,058,987
	22,935	Providence Service Corp. (The)(b)		1,013,268
	44,104	QLT, Inc. (Canada)(b)		175,534
	41,248	Quality Systems, Inc.		623,257
	8,411	Quidel Corp.(b)		240,134
	9,395	Quintiles Transnational Holdings, Inc.(b)		549,983
	133,602	RadNet, Inc.(b)		1,242,499
	2,650	Regeneron Pharmaceuticals, Inc.(b)		1,043,358
	58,188	Rigel Pharmaceuticals, Inc.(b)		115,212
	64,521	RTI Surgical, Inc.(b)		328,412
	7,391	Salix Pharmaceuticals Ltd.(b)		1,063,195
	34,449	SciClone Pharmaceuticals, Inc.(b)		263,190
	3,189	Seattle Genetics, Inc.(b)		116,941
	67,347	Select Medical Holdings Corp.		971,144
	24,451	Sirona Dental Systems, Inc.(b)		1,920,626
	44,778	Skilled Healthcare Group, Inc., Class A(b)		310,312
	27,282	Spectrum Pharmaceuticals, Inc.(b)(c)		206,798
	7,719	Surgical Care Affiliates, Inc.(b)		236,819
	7,592	SurModics, Inc.(b)		164,367
	51,726	Symmetry Medical, Inc.(b)		512,087
	15,588	Syneron Medical Ltd. (Israel)(b)		145,904
	3,989	Taro Pharmaceutical Industries Ltd. (Israel)(b)		645,979
	26,877	Team Health Holdings, Inc.(b)		1,680,888
	11,474	Techne Corp.		1,044,708
	24,177	Thoratec Corp.(b)		657,131
	11,966	Tornier NV(b)		334,450
	59,156	Triple-S Management Corp., Class B(b)		1,309,714
	14,721	United Therapeutics Corp.(b)		1,928,009
	109,835	Universal American Corp.(b)		1,023,662

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	7,862	US Physical Therapy, Inc.	$	339,245
	11,732	Vertex Pharmaceuticals, Inc.(b)		1,321,493
	23,785	VIVUS, Inc.(b)(c)		80,631
	24,033	Volcano Corp.(b)		243,214
	30,744	West Pharmaceutical Services, Inc.		1,575,630
	19,420	Wright Medical Group, Inc.(b)		614,060
				83,673,618
		Industrials—16.9%
	27,064	A.O. Smith Corp.		1,443,864
	13,333	AAON, Inc.		261,993
	54,477	AAR Corp.		1,443,640
	40,581	Acacia Research Corp.(c)		730,458
	206,065	ACCO Brands Corp.(b)		1,695,915
	123,783	Accuride Corp.(b)		596,634
	17,689	Aceto Corp.		402,248
	41,027	Actuant Corp., Class A		1,300,146
	13,058	Acuity Brands, Inc.		1,820,677
	7,075	Advisory Board Co. (The)(b)		379,715
	53,239	Aegion Corp., Class A(b)		975,338
	8,779	Aerovironment, Inc.(b)		269,076
	74,823	Air Transport Services Group, Inc.(b)		612,052
	92,049	Aircastle Ltd.		1,756,295
	6,721	Alamo Group, Inc.		287,928
	19,038	Albany International Corp., Class A		719,256
	2,239	Allegiant Travel Co.		298,839
	34,320	Allison Transmission Holdings, Inc.		1,114,714
	13,817	Altra Industrial Motion Corp.		435,512
	6,836	AMERCO		1,853,376
	26,640	Ameresco, Inc., Class A(b)		219,514
	3,667	American Railcar Industries, Inc.		241,325
	6,570	American Science & Engineering, Inc.		363,321
	6,476	American Woodmark Corp.(b)		264,933
	16,199	Apogee Enterprises, Inc.		711,136
	28,490	Applied Industrial Technologies, Inc.		1,390,597
	51,392	ARC Document Solutions, Inc.(b)		521,629
	27,344	ArcBest Corp.		1,058,213
	16,828	Astec Industries, Inc.		637,949
	2,774	Astronics Corp.(b)		143,721
	56,124	Atlas Air Worldwide Holdings, Inc.(b)		2,072,098
	14,293	AZZ, Inc.		668,341
	37,415	Baltic Trading Ltd.(c)		140,306
	33,645	Barnes Group, Inc.		1,230,061
	2,671	Barrett Business Services, Inc.		62,795
	40,755	Beacon Roofing Supply, Inc.(b)		1,127,691
	48,662	Blount International, Inc.(b)		745,015
	92,623	Box Ships, Inc. (Greece)(b)(c)		100,033
	62,282	Brady Corp., Class A		1,484,803
	70,762	Briggs & Stratton Corp.		1,430,100
	20,392	Builders FirstSource, Inc.(b)		120,925
	10,600	CAI International, Inc.(b)		223,130
	56,554	Casella Waste Systems, Inc., Class A(b)		254,493
	70,367	CBIZ, Inc.(b)		649,487
	23,779	CDI Corp.		408,761
	19,407	Celadon Group, Inc.		377,660
	220,705	Cenveo, Inc.(b)		503,207
	12,817	Chart Industries, Inc.(b)		596,631

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	31,023	China Yuchai International Ltd.	$	564,308
	8,757	CIRCOR International, Inc.		658,089
	24,160	CLARCOR, Inc.		1,617,754
	22,251	Columbus McKinnon Corp.		633,041
	45,930	Comfort Systems USA, Inc.		705,485
	51,917	Commercial Vehicle Group, Inc.(b)		340,056
	37,020	Copart, Inc.(b)		1,237,949
	11,837	Corporate Executive Board Co. (The)		872,387
	17,639	Costamare, Inc. (Greece)(c)		362,834
	17,754	Courier Corp.		240,922
	12,446	CRA International, Inc.(b)		373,380
	14,859	Cubic Corp.		716,798
	34,883	Danaos Corp. (Greece)(b)(c)		191,159
	66,373	Diana Containerships, Inc. (Greece)(c)		134,737
	100,774	Diana Shipping, Inc. (Greece)(b)(c)		851,540
	19,852	DigitalGlobe, Inc.(b)		567,569
	21,805	Douglas Dynamics, Inc.		452,018
	16,496	Ducommun, Inc.(b)		435,659
	4,334	DXP Enterprises, Inc.(b)		287,301
	40,904	Dycom Industries, Inc.(b)		1,283,977
	9,242	Dynamic Materials Corp.		168,297
	12,817	Echo Global Logistics, Inc.(b)		334,908
	13,229	Encore Wire Corp.		501,908
	32,186	Engility Holdings, Inc.(b)		1,390,435
	47,601	Ennis, Inc.		705,923
	15,086	EnPro Industries, Inc.(b)		973,500
	22,893	ESCO Technologies, Inc.		870,392
	5,572	Exponent, Inc.		444,757
	41,121	Federal Signal Corp.		583,918
	14,288	Forward Air Corp.		683,967
	17,676	Franklin Electric Co., Inc.		660,022
	11,953	FreightCar America, Inc.		394,090
	22,587	Furmanite Corp.(b)		168,951
	18,196	G&K Services, Inc., Class A		1,147,622
	27,973	GenCorp, Inc.(b)(c)		474,422
	34,746	Gibraltar Industries, Inc.(b)		529,876
	33,977	Global Brass & Copper Holdings, Inc.		475,678
	21,927	Global Power Equipment Group, Inc.		298,865
	9,853	Gorman-Rupp Co. (The)		312,734
	10,134	GP Strategies Corp.(b)		336,043
	20,924	Graco, Inc.		1,642,534
	38,595	Granite Construction, Inc.		1,424,541
	71,341	Great Lakes Dredge & Dock Corp.(b)		498,674
	21,103	Greenbrier Cos., Inc. (The)(c)		1,319,782
	63,426	Griffon Corp.		779,506
	32,474	H&E Equipment Services, Inc.		1,214,203
	14,721	Hardinge, Inc.		165,170
	28,502	Hawaiian Holdings, Inc.(b)		494,225
	53,082	HD Supply Holdings, Inc.(b)		1,530,885
	37,518	Healthcare Services Group, Inc.		1,117,286
	33,707	Heartland Express, Inc.		847,394
	5,219	HEICO Corp.		283,079
	10,627	HEICO Corp., Class A		486,185
	24,946	Heidrick & Struggles International, Inc.		519,376
	41,387	Herman Miller, Inc.		1,324,384
	49,671	Hillenbrand, Inc.		1,653,548

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	46,665	HNI Corp.	$	2,176,922
	18,765	Houston Wire & Cable Co.		254,453
	40,358	Hub Group, Inc., Class A(b)		1,464,592
	6,972	Hurco Cos., Inc.		268,631
	13,151	Huron Consulting Group, Inc.(b)		915,441
	6,665	Hyster-Yale Materials Handling, Inc.		523,136
	16,337	ICF International, Inc.(b)		593,687
	49,071	InnerWorkings, Inc.(b)		445,565
	30,903	Insperity, Inc.		975,299
	14,756	Insteel Industries, Inc.		351,783
	41,366	Interface, Inc.		663,097
	9,834	International Shipholding Corp.		197,073
	26,625	Intersections, Inc.(c)		106,500
	18,825	Jinpan International Ltd. (China)		144,576
	21,916	John Bean Technologies Corp.		656,823
	10,171	Kadant, Inc.		420,469
	27,159	Kaman Corp.		1,169,467
	73,333	Kelly Services, Inc., Class A		1,292,861
	13,350	KEYW Holding Corp. (The)(b)(c)		135,502
	22,366	Kforce, Inc.		517,773
	34,539	Kimball International, Inc., Class B		621,011
	41,386	Knight Transportation, Inc.		1,210,954
	51,287	Knightsbridge Shipping Ltd. (Bermuda)(c)		450,300
	48,460	Knoll, Inc.		963,869
	35,490	Korn/Ferry International(b)		991,236
	67,702	Kratos Defense & Security Solutions, Inc.(b)		471,883
	27,719	Landstar System, Inc.		2,051,483
	54,528	Layne Christensen Co.(b)		392,602
	8,444	LB Foster Co., Class A		456,736
	5,312	Lindsay Corp.(c)		465,862
	17,127	LMI Aerospace, Inc.(b)		225,734
	9,770	LS Starrett Co. (The), Class A		144,401
	32,902	LSI Industries, Inc.		235,578
	16,248	Lydall, Inc.(b)		502,551
	28,301	Macquarie Infrastructure Co. LLC		2,027,484
	21,284	Marten Transport Ltd.		417,592
	13,118	Masonite International Corp.(b)		709,159
	47,245	MasTec, Inc.(b)		1,353,097
	276,447	Matson, Inc.		7,875,975
	21,881	Matthews International Corp., Class A		1,008,276
	19,728	McGrath RentCorp		720,664
	132,547	Metalico, Inc.(b)(c)		82,179
	73,901	MFC Industrial Ltd. (Canada)(c)		459,664
	12,026	Middleby Corp. (The)(b)		1,064,301
	12,514	Miller Industries, Inc.		247,402
	12,808	Mistras Group, Inc.(b)		211,204
	27,974	Mobile Mini, Inc.		1,226,100
	23,594	MSA Safety, Inc.		1,355,947
	39,242	Mueller Industries, Inc.		1,273,795
	97,787	Mueller Water Products, Inc., Class A		965,158
	12,050	Multi-Color Corp.		594,065
	28,098	MYR Group, Inc.(b)		728,862
	9,914	National Presto Industries, Inc.(c)		625,177
	59,434	Navigant Consulting, Inc.(b)		914,689
	123,815	Navios Maritime Holdings, Inc.(c)		729,270

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	14,282	NCI Building Systems, Inc.(b)	$	283,783
	10,766	NN, Inc.		269,150
	21,095	Nordson Corp.		1,614,822
	12,799	Nortek, Inc.(b)		1,065,901
	13,495	Northwest Pipe Co.(b)		482,851
	20,742	On Assignment, Inc.(b)		603,592
	48,618	Orbital Sciences Corp.(b)		1,278,653
	36,225	Orion Marine Group, Inc.(b)		397,026
	43,751	Paragon Shipping, Inc., Class A (Greece)(b)(c)		159,691
	8,513	Park-Ohio Holdings Corp.		452,125
	49,132	Pike Corp.(b)		586,636
	15,311	Ply Gem Holdings, Inc.(b)		173,780
	27,734	PMFG, Inc.(b)		145,881
	35,436	Polypore International, Inc.(b)		1,556,349
	7,843	Powell Industries, Inc.		357,092
	2,642	Preformed Line Products Co.		150,568
	13,528	Primoris Services Corp.		388,524
	69,088	Quad Graphics, Inc.		1,523,390
	34,146	Quality Distribution, Inc.(b)		442,532
	34,433	Quanex Building Products Corp.		689,349
	17,266	Raven Industries, Inc.		437,693
	10,566	RBC Bearings, Inc.		641,885
	36,429	Resources Connection, Inc.		563,557
	26,606	Rexnord Corp.(b)		786,207
	22,309	Roadrunner Transportation Systems, Inc.(b)		459,788
	24,947	Rollins, Inc.		795,061
	10,477	RPX Corp.(b)		147,202
	39,975	Rush Enterprises, Inc., Class A(b)		1,523,048
	7,908	Rush Enterprises, Inc., Class B(b)		255,666
	48,476	Safe Bulkers, Inc. (Greece)(c)		258,862
	23,463	Saia, Inc.(b)		1,150,156
	65,378	Seaspan Corp.(c)		1,333,711
	22,402	Simpson Manufacturing Co., Inc.		741,058
	21,258	SP Plus Corp.(b)		463,850
	5,253	Sparton Corp.(b)		142,356
	5,167	Spirit Airlines, Inc.(b)		377,759
	9,309	Standex International Corp.		802,901
	44,218	Star Bulk Carriers Corp. (Greece)(b)(c)		456,330
	23,458	Sterling Construction Co., Inc.(b)		206,900
	6,417	Sun Hydraulics Corp.		255,461
	59,313	Swift Transportation Co.(b)		1,465,031
	35,249	TAL International Group, Inc.(b)		1,520,289
	13,653	Team, Inc.(b)		575,337
	42,151	Tecumseh Products Co.(b)		155,537
	9,892	Tennant Co.		729,337
	62,636	Tetra Tech, Inc.		1,679,271
	17,956	Textainer Group Holdings Ltd.(c)		618,405
	12,394	Thermon Group Holdings, Inc.(b)		302,042
	49,435	Titan International, Inc.		522,034
	50,739	Titan Machinery, Inc.(b)(c)		698,169
	22,888	Toro Co. (The)		1,412,876
	7,102	Trex Co., Inc.(b)		305,386
	30,144	TriMas Corp.(b)		954,359
	36,471	TrueBlue, Inc.(b)		901,563

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	9,850	Twin Disc, Inc.	$	256,297
	9,016	UniFirst Corp.		1,005,825
	21,159	Universal Forest Products, Inc.		1,057,315
	9,883	US Ecology, Inc.		496,917
	17,964	USA Truck, Inc.(b)		303,592
	29,823	USG Corp.(b)(c)		801,046
	27,335	Verisk Analytics, Inc., Class A(b)		1,704,337
	28,693	Viad Corp.		731,958
	6,102	VSE Corp.		367,829
	36,139	Wabash National Corp.(b)		372,232
	19,329	Wabtec Corp.		1,668,093
	3,123	WageWorks, Inc.(b)		178,042
	16,941	Watts Water Technologies, Inc., Class A		1,027,133
	32,682	Wesco Aircraft Holdings, Inc.(b)		580,106
	29,331	West Corp.		938,592
	39,779	Woodward, Inc.		2,037,083
	15,257	Xerium Technologies, Inc.(b)		227,634
				172,492,317
		Information Technology—17.0%
	6,020	3D Systems Corp.(b)(c)		227,556
	42,062	ACI Worldwide, Inc.(b)		809,273
	11,314	Actua Corp.(b)		212,703
	33,491	Actuate Corp.(b)		143,676
	29,710	Acxiom Corp.(b)		559,736
	36,228	ADTRAN, Inc.		768,396
	17,474	Advanced Energy Industries, Inc.(b)		345,636
	14,732	Advent Software, Inc.		509,138
	15,199	Agilysys, Inc.(b)		171,749
	25,022	Alpha & Omega Semiconductor Ltd.(b)		231,954
	18,774	American Software, Inc., Class A		181,357
	45,670	ARRIS Group, Inc.(b)		1,371,013
	18,382	Aruba Networks, Inc.(b)		396,684
	4,017	Aspen Technology, Inc.(b)		148,348
	219,747	Atmel Corp.(b)		1,630,523
	9,372	AVG Technologies NV(b)		167,946
	146,191	Aviat Networks, Inc.(b)		257,296
	61,144	AVX Corp.		882,919
	103,621	Axcelis Technologies, Inc.(b)		225,894
	6,776	Badger Meter, Inc.		385,690
	18,180	Bankrate, Inc.(b)		197,435
	2,850	Bel Fuse, Inc., Class A		72,390
	12,080	Bel Fuse, Inc., Class B		341,743
	21,104	Belden, Inc.		1,502,394
	26,736	Black Box Corp.		587,925
	17,871	Blackbaud, Inc.		795,259
	23,178	Blucora, Inc.(b)		392,867
	8,830	Bottomline Technologies (de), Inc.(b)		221,545
	5,599	BroadSoft, Inc.(b)		128,217
	57,230	Brooks Automation, Inc.		705,646
	31,702	Cabot Microelectronics Corp.(b)		1,528,987
	93,782	Cadence Design Systems, Inc.(b)		1,683,387
	32,190	Calix, Inc.(b)		347,974
	13,457	Canadian Solar, Inc. (Canada)(b)(c)		429,278
	14,911	Cardtronics, Inc.(b)		572,433
	3,967	Cass Information Systems, Inc.		188,591
	6,602	Cavium, Inc.(b)		338,749

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	72,081	CDW Corp.	$	2,222,978
	10,321	CEVA, Inc.(b)		168,232
	57,517	Checkpoint Systems, Inc.(b)		762,675
	19,431	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		417,378
	115,214	Ciber, Inc.(b)		376,750
	22,892	Ciena Corp.(b)		383,670
	43,535	Cirrus Logic, Inc.(b)		840,225
	20,025	Cognex Corp.(b)		792,189
	14,592	Coherent, Inc.(b)		950,669
	31,536	Cohu, Inc.		321,667
	31,569	CommScope Holding Co., Inc.(b)		679,996
	7,176	CommVault Systems, Inc.(b)		318,184
	12,523	Computer Task Group, Inc.		110,202
	141,565	Compuware Corp.		1,436,885
	7,635	comScore, Inc.(b)		321,739
	25,091	Comtech Telecommunications Corp.		955,214
	10,185	Comverse, Inc.(b)		222,033
	4,646	Concur Technologies, Inc.(b)		596,175
	9,267	Constant Contact, Inc.(b)		327,681
	38,186	Conversant, Inc.(b)		1,346,056
	3,382	CoStar Group, Inc.(b)		544,806
	19,854	Covisint Corp.(b)		57,378
	11,500	Cray, Inc.(b)		398,590
	30,397	CSG Systems International, Inc.		805,824
	23,025	CTS Corp.		423,660
	74,664	Cypress Semiconductor Corp.(b)		739,920
	41,037	Daktronics, Inc.		546,202
	14,690	Datalink Corp.(b)		185,829
	12,049	Dealertrack Technologies, Inc.(b)		566,905
	5,896	Demand Media, Inc.(b)		41,508
	37,397	Dice Holdings, Inc.(b)		372,848
	32,581	Digi International, Inc.(b)		269,771
	31,278	Digital River, Inc.(b)		799,778
	29,372	Diodes, Inc.(b)		758,679
	30,614	Dolby Laboratories, Inc., Class A		1,283,339
	30,383	DSP Group, Inc.(b)		294,411
	11,057	DTS, Inc.(b)		329,277
	343,480	EarthLink Holdings Corp.		1,229,658
	26,205	Eastman Kodak Co.(b)(c)		565,242
	19,685	Ebix, Inc.(c)		290,354
	19,088	Electro Rent Corp.		290,901
	41,564	Electro Scientific Industries, Inc.		295,104
	18,011	Electronics for Imaging, Inc.(b)		823,463
	99,770	Emulex Corp.(b)		564,698
	11,424	EnerNOC, Inc.(b)		168,732
	70,444	Entegris, Inc.(b)		956,630
	79,477	Entropic Communications, Inc.(b)		198,693
	4,401	EPAM Systems, Inc.(b)		210,104
	26,950	EPIQ Systems, Inc.		432,278
	5,959	ePlus, Inc.(b)		363,916
	33,882	Euronet Worldwide, Inc.(b)		1,818,447
	17,126	EVERTEC, Inc.		388,760
	16,333	Exar Corp.(b)		155,980
	13,746	ExlService Holdings, Inc.(b)		384,751
	43,863	Extreme Networks, Inc.(b)		157,468

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	21,418	Fabrinet (Thailand)(b)	$	390,022
	14,234	FactSet Research Systems, Inc.		1,870,917
	14,326	Fair Isaac Corp.		892,510
	6,375	FARO Technologies, Inc.(b)		357,000
	8,968	FEI Co.		755,823
	42,858	Finisar Corp.(b)		716,586
	10,116	FleetCor Technologies, Inc.(b)		1,523,065
	40,501	FormFactor, Inc.(b)		322,793
	9,216	Forrester Research, Inc.		371,220
	24,010	Fortinet, Inc.(b)		625,461
	36,749	Freescale Semiconductor Ltd.(b)(c)		730,938
	18,484	Gartner, Inc.(b)		1,491,844
	38,525	Global Cash Access Holdings, Inc.(b)		280,847
	25,996	GSI Group, Inc.(b)		334,049
	3,206	Guidewire Software, Inc.(b)		160,108
	32,946	Hackett Group, Inc. (The)		230,951
	104,736	Harmonic, Inc.(b)		698,589
	26,855	Heartland Payment Systems, Inc.		1,387,061
	13,243	Hollysys Automation Technologies Ltd. (China)(b)		324,851
	6,196	HomeAway, Inc.(b)		216,240
	79,069	Hutchinson Technology, Inc.(b)		282,276
	24,119	IAC/InterActiveCorp.		1,632,615
	6,996	iGATE Corp.(b)		259,202
	49,955	II-VI, Inc.(b)		673,893
	43,318	Imation Corp.(b)		126,922
	47,516	Infinera Corp.(b)(c)		690,407
	31,429	Informatica Corp.(b)		1,120,758
	67,001	Integrated Device Technology, Inc.(b)		1,099,486
	27,579	Integrated Silicon Solution, Inc.		374,523
	2,027	Interactive Intelligence Group, Inc.(b)		97,823
	33,344	InterDigital, Inc.		1,648,194
	42,962	Internap Network Services Corp.(b)		344,126
	56,543	International Rectifier Corp.(b)		2,248,715
	124,462	Intersil Corp., Class A		1,654,100
	13,646	InterXion Holding NV (Netherlands)(b)		373,082
	22,529	Intralinks Holdings, Inc.(b)		194,651
	8,224	InvenSense, Inc.(b)(c)		133,311
	7,487	IPG Photonics Corp.(b)		549,621
	33,180	Ixia(b)		319,523
	17,512	IXYS Corp.		204,365
	16,222	j2 Global, Inc.		877,448
	23,681	Jack Henry & Associates, Inc.		1,416,597
	120,933	JDS Uniphase Corp.(b)		1,627,758
	84,805	Kemet Corp.(b)		407,064
	16,265	Key Tronic Corp.(b)		133,698
	81,416	Kulicke & Soffa Industries, Inc. (Singapore)(b)		1,174,019
	55,461	Lattice Semiconductor Corp.(b)		372,143
	3,999	LinkedIn Corp., Class A(b)		915,611
	41,413	Lionbridge Technologies, Inc.(b)		200,025
	13,159	Liquidity Services, Inc.(b)		168,172
	8,256	Littelfuse, Inc.		805,290
	12,746	LivePerson, Inc.(b)		183,542
	4,251	LogMeIn, Inc.(b)		204,261
	49,881	Magnachip Semiconductor Corp. (South Korea)(b)		555,176

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	11,341	Manhattan Associates, Inc.(b)	$	454,888
	46,721	ManTech International Corp., Class A		1,315,663
	16,419	MAXIMUS, Inc.		795,665
	15,993	Mellanox Technologies Ltd. (Israel)(b)(c)		716,326
	67,902	Mentor Graphics Corp.		1,438,843
	3,117	MercadoLibre, Inc. (Argentina)(c)		424,380
	35,185	Mercury Systems, Inc.(b)		491,886
	15,332	Methode Electronics, Inc.		603,774
	32,540	Micrel, Inc.		395,036
	55,701	Microsemi Corp.(b)		1,452,125
	3,212	MicroStrategy, Inc., Class A(b)		516,747
	35,020	MKS Instruments, Inc.		1,274,728
	105,078	ModusLink Global Solutions, Inc.(b)(c)		367,773
	15,731	MoneyGram International, Inc.(b)		135,287
	8,900	Monolithic Power Systems, Inc.		393,291
	146,322	Monster Worldwide, Inc.(b)		564,803
	15,072	Move, Inc.(b)		315,758
	7,185	MTS Systems Corp.		474,282
	14,683	Multi-Fineline Electronix, Inc.(b)		149,032
	88,845	Nam Tai Property, Inc. (China)(c)		490,424
	10,799	Nanometrics, Inc.(b)		146,218
	45,808	National Instruments Corp.		1,451,197
	53,709	Net 1 UEPS Technologies, Inc. (South Africa)(b)		684,253
	35,963	NETGEAR, Inc.(b)		1,224,181
	15,439	NetScout Systems, Inc.(b)		569,082
	41,502	NeuStar, Inc., Class A(b)(c)		1,096,068
	28,499	Newport Corp.(b)		509,847
	21,269	NIC, Inc.		391,988
	84,557	Novatel Wireless, Inc.(b)		240,987
	84,890	Oclaro, Inc.(b)		133,277
	67,951	OmniVision Technologies, Inc.(b)		1,819,728
	17,820	Oplink Communications, Inc.		371,547
	42,975	Orbotech Ltd. (Israel)(b)		689,319
	11,086	OSI Systems, Inc.(b)		785,776
	21,469	Park Electrochemical Corp.		553,900
	14,199	PC Connection, Inc.		338,646
	7,418	Pegasystems, Inc.		160,748
	16,370	Perficient, Inc.(b)		271,415
	28,082	Pericom Semiconductor Corp.(b)		306,936
	95,528	Photronics, Inc.(b)		858,797
	21,170	Plantronics, Inc.		1,098,088
	40,048	Plexus Corp.(b)		1,655,985
	136,927	PMC—Sierra, Inc.(b)		1,066,661
	6,565	Power Integrations, Inc.		330,613
	28,974	PRGX Global, Inc.(b)		153,272
	39,063	Progress Software Corp.(b)		1,011,732
	39,097	PTC, Inc.(b)		1,491,551
	9,436	Qlik Technologies, Inc.(b)		267,511
	106,972	QLogic Corp.(b)		1,263,339
	401,482	Quantum Corp.(b)		513,897
	48,615	QuinStreet, Inc.(b)		196,891
	38,247	Rackspace Hosting, Inc.(b)		1,467,155
	72,374	Radisys Corp.(b)		180,935
	16,003	Radware Ltd. (Israel)(b)		303,897
	29,358	Rambus, Inc.(b)		336,149

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	16,994	RealD, Inc.(b)	$	192,372
	34,491	RealNetworks, Inc.(b)		237,988
	10,170	RealPage, Inc.(b)		202,078
	158,676	RF Micro Devices, Inc.(b)		2,064,375
	5,891	Rightside Group Ltd.(b)		55,788
	48,638	Riverbed Technology, Inc.(b)		923,636
	32,640	Rofin-Sinar Technologies, Inc.(b)		730,810
	9,913	Rogers Corp.(b)		677,752
	15,075	Rosetta Stone, Inc.(b)		144,268
	13,926	Rubicon Technology, Inc.(b)(c)		61,692
	24,206	Rudolph Technologies, Inc.(b)		212,529
	46,983	Sapient Corp.(b)		813,746
	46,800	ScanSource, Inc.(b)		1,786,824
	22,295	Seachange International, Inc.(b)		150,714
	31,915	Semtech Corp.(b)		810,003
	20,611	ShoreTel, Inc.(b)		166,743
	43,439	Sigma Designs, Inc.(b)		173,322
	22,274	Silicon Graphics International Corp.(b)		193,338
	32,553	Silicon Image, Inc.(b)		174,484
	16,748	Silicon Laboratories, Inc.(b)		763,541
	15,155	SINA Corp. (China)(b)		620,900
	18,771	Sohu.com, Inc. (China)(b)		912,083
	10,562	SolarWinds, Inc.(b)		502,223
	18,176	Solera Holdings, Inc.		944,243
	73,317	Sonus Networks, Inc.(b)		254,410
	77,614	Spansion, Inc., Class A(b)		1,597,296
	54,700	Speed Commerce, Inc.(b)(c)		162,459
	26,926	SS&C Technologies Holdings, Inc.(b)		1,301,064
	148,760	STR Holdings, Inc.(b)		190,413
	8,118	Stratasys Ltd.(b)		977,082
	19,089	SunPower Corp.(b)(c)		607,794
	25,028	Super Micro Computer, Inc.(b)		799,895
	51,931	Sykes Enterprises, Inc.(b)		1,118,594
	10,360	Synaptics, Inc.(b)		708,935
	9,939	Synchronoss Technologies, Inc.(b)		513,548
	5,564	Syntel, Inc.(b)		481,898
	68,878	Take-Two Interactive Software, Inc.(b)		1,821,823
	103,350	TeleCommunication Systems, Inc., Class A(b)		297,648
	22,280	TeleTech Holdings, Inc.(b)		575,047
	6,787	Tessco Technologies, Inc.		215,487
	35,850	Tessera Technologies, Inc.		1,089,482
	68,172	TIBCO Software, Inc.(b)		1,593,180
	22,180	TiVo, Inc.(b)		289,449
	97,137	TriQuint Semiconductor, Inc.(b)		2,101,073
	109,525	TTM Technologies, Inc.(b)		756,818
	3,880	Tyler Technologies, Inc.(b)		434,250
	1,468	Ultimate Software Group, Inc. (The)(b)		220,949
	15,915	Ultra Clean Holdings, Inc.(b)		139,734
	15,800	Ultratech, Inc.(b)		302,254
	120,581	United Online, Inc.		1,352,919
	6,758	Universal Display Corp.(b)(c)		211,390
	42,738	Vantiv, Inc., Class A(b)		1,321,459
	30,688	Veeco Instruments, Inc.(b)		1,104,461
	16,388	Verint Systems, Inc.(b)		942,146
	26,107	VeriSign, Inc.(b)		1,560,154

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	19,692	ViaSat, Inc.(b)	$	1,233,507
	8,499	Virtusa Corp.(b)		348,289
	17,375	Vishay Precision Group, Inc.(b)		295,201
	13,851	Vistaprint NV(b)(c)		926,078
	13,157	VMware, Inc., Class A(b)		1,099,530
	14,559	WebMD Health Corp.(b)(c)		621,378
	14,454	WEX, Inc.(b)		1,641,396
	1,923	Workday, Inc., Class A(b)		183,608
	28,318	Xcerra Corp.(b)		240,420
	13,153	XO Group, Inc.(b)		167,438
	34,677	Yandex NV, Class A (Russia)(b)		992,456
	22,709	Zebra Technologies Corp., Class A(b)		1,674,789
	234,973	Zynga, Inc., Class A(b)		599,181
				172,970,212
		Materials—5.7%
	39,625	A. Schulman, Inc.		1,403,121
	26,813	A.M. Castle & Co.(b)(c)		197,076
	10,406	AEP Industries, Inc.(b)		478,572
	87,408	Allied Nevada Gold Corp.(b)(c)		121,497
	9,600	American Vanguard Corp.		110,784
	15,530	Ampco-Pittsburgh Corp.		338,399
	44,357	Axiall Corp.		1,787,587
	8,055	Balchem Corp.		521,158
	43,607	Boise Cascade Co.(b)		1,572,468
	4,457	Caesarstone Sdot-Yam Ltd. (Israel)		248,968
	33,260	Calgon Carbon Corp.(b)		699,458
	28,853	Carpenter Technology Corp.		1,444,093
	89,913	Century Aluminum Co.(b)		2,632,653
	71,357	China Green Agriculture, Inc. (China)(c)		146,282
	22,775	Clearwater Paper Corp.(b)		1,465,571
	38,476	Constellium NV, Class A (Netherlands)(b)		779,139
	3,448	Deltic Timber Corp.		224,430
	11,305	Eagle Materials, Inc.		988,396
	87,995	Ferro Corp.(b)		1,154,494
	10,015	Flotek Industries, Inc.(b)		221,932
	16,331	FutureFuel Corp.		217,529
	30,476	Globe Specialty Metals, Inc.		573,254
	29,528	Gold Resource Corp.(c)		114,864
	170,025	Golden Minerals Co.(b)(c)		93,514
	89,184	Gulf Resources, Inc. (China)(b)		119,507
	29,850	H.B. Fuller Co.		1,252,804
	10,057	Handy & Harman Ltd.(b)		355,113
	10,464	Hawkins, Inc.		402,969
	10,433	Haynes International, Inc.		485,030
	40,920	Headwaters, Inc.(b)		519,684
	287,524	Hecla Mining Co.		626,802
	28,833	Horsehead Holding Corp.(b)		452,966
	22,412	Innophos Holdings, Inc.		1,277,484
	13,308	Innospec, Inc.		537,244
	61,634	Intrepid Potash, Inc.(b)(c)		828,977
	20,556	Kaiser Aluminum Corp.		1,429,670
	29,420	KapStone Paper and Packaging Corp.(b)		904,959
	24,956	Koppers Holdings, Inc.		985,263
	47,861	Kraton Performance Polymers, Inc.(b)		856,233
	32,306	Kronos Worldwide, Inc.		434,193
	30,427	Landec Corp.(b)		383,076

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	54,360	Louisiana-Pacific Corp.(b)	$	793,656
	17,085	LSB Industries, Inc.(b)		641,200
	27,556	Materion Corp.		1,087,084
	155,003	McEwen Mining, Inc.(b)(c)		192,204
	23,937	Mercer International, Inc.(b)		301,127
	21,470	Minerals Technologies, Inc.		1,646,964
	127,045	Molycorp, Inc.(b)(c)		175,322
	24,515	Myers Industries, Inc.		366,254
	12,250	Neenah Paper, Inc.		747,373
	147,166	Noranda Aluminum Holding Corp.		649,002
	21,932	Olympic Steel, Inc.		441,272
	55,671	OM Group, Inc.		1,449,116
	60,663	OMNOVA Solutions, Inc.(b)		426,461
	44,358	P.H. Glatfelter Co.		1,119,152
	13,105	Penford Corp.(b)		247,029
	44,745	PolyOne Corp.		1,656,012
	8,636	Quaker Chemical Corp.		708,843
	139,509	Rentech, Inc.(b)		221,819
	19,221	Royal Gold, Inc.		1,098,480
	31,053	RTI International Metals, Inc.(b)		731,298
	20,548	Schweitzer-Mauduit International, Inc.		884,797
	27,942	Scotts Miracle-Gro Co. (The), Class A		1,655,284
	16,414	Stepan Co.		726,812
	104,476	Stillwater Mining Co.(b)		1,371,770
	69,554	SunCoke Energy, Inc.(b)		1,662,341
	13,572	Taminco Corp.(b)		351,379
	21,554	Tredegar Corp.		409,957
	58,927	Tronox Ltd., Class A		1,424,855
	8,179	Universal Stainless & Alloy Products, Inc.(b)		210,282
	7,841	US Concrete, Inc.(b)		193,673
	19,855	US Silica Holdings, Inc.		891,490
	148,633	Verso Paper Corp.(b)(c)		431,036
	45,027	Wausau Paper Corp.		445,317
	17,751	Westlake Chemical Corp.		1,252,333
	41,535	Worthington Industries, Inc.		1,605,328
	24,672	Zep, Inc.		396,232
				57,999,767
		Telecommunication Services—1.3%
	235,553	Alaska Communications Systems Group, Inc.(b)		317,997
	8,550	Atlantic Tele-Network, Inc.		574,474
	8,842	Cogent Communications Group, Inc.		300,097
	61,649	Consolidated Communications Holdings, Inc.(c)		1,596,709
	61,761	FairPoint Communications, Inc.(b)		1,025,233
	66,623	General Communication, Inc., Class A(b)		781,488
	9,500	Hawaiian Telcom Holdco, Inc.(b)		255,550
	24,973	IDT Corp., Class B		411,555
	39,194	Inteliquent, Inc.		659,635
	44,613	Intelsat SA(b)		868,169
	88,307	Iridium Communications, Inc.(b)(c)		838,916
	17,514	Lumos Networks Corp.		301,241
	55,048	NTELOS Holdings Corp.(c)		554,884
	51,089	Premiere Global Services, Inc.(b)		534,902
	16,676	SBA Communications Corp., Class A(b)		1,873,215
	17,482	Shenandoah Telecommunications Co.		517,292

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services (continued)
	47,968	Spok Holdings, Inc.	$	779,000
	30,699	United States Cellular Corp.(b)		1,118,058
	120,841	Vonage Holdings Corp.(b)		420,527
				13,728,942
		Utilities—1.7%
	30,560	American States Water Co.		1,093,437
	7,176	Artesian Resources Corp., Class A		159,810
	42,948	California Water Service Group		1,117,936
	13,840	Chesapeake Utilities Corp.		670,271
	8,311	Connecticut Water Service, Inc.		308,920
	14,019	Consolidated Water Co. Ltd. (Cayman Islands)		168,088
	40,918	El Paso Electric Co.		1,548,337
	62,602	Empire District Electric Co. (The)(c)		1,780,401
	15,906	Genie Energy Ltd., Class B(b)		115,318
	34,967	Laclede Group, Inc. (The)		1,775,275
	31,830	MGE Energy, Inc.		1,415,480
	16,726	Middlesex Water Co.		377,171
	41,407	Northwest Natural Gas Co.		1,943,230
	6,638	NRG Yield, Inc., Class A		331,701
	13,720	Ormat Technologies, Inc.		397,194
	40,536	Otter Tail Corp.		1,256,616
	6,567	Pattern Energy Group, Inc., Class A		188,998
	14,072	SJW Corp.		449,741
	28,450	South Jersey Industries, Inc.		1,668,308
	18,096	Unitil Corp.		630,465
	9,316	York Water Co. (The)		204,766
				17,601,463
		Total Common Stocks and Other Equity Interests (Cost $887,944,243)		1,019,811,808
		Warrants—0.0%
		Energy—0.0%
	4,742	Magnum Hunter Resources Corp., expiring 05/15/16(b) (Cost $0)		0
		Money Market Fund—0.0%
	472,367	Invesco Premier Portfolio—Institutional Class(d) (Cost $472,367)		472,367
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $888,416,610)—100.0%		1,020,284,175

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—5.3%
	53,725,656	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $53,725,656)	$	53,725,656
		Total Investments (Cost $942,142,266)—105.3%		1,074,009,831
		Other assets less liabilities—(5.3)%		(53,834,167	)
		Net Assets—100.0%	$	1,020,175,664

Investment Abbreviations:

NVTG—Non-voting Shares

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	52,554,319	$	(52,554,319	)	$	—

* Amount does not include excess collateral received, if any.

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

32

Statements of Assets and Liabilities

October 31, 2014

(Unaudited)

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)			PowerShares Dynamic Market Portfolio (PWC)			PowerShares FTSE RAFI US 1000 Portfolio (PRF)			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Assets:
Unaffiliated investments, at value(a)	$	24,579,629		$	191,380,253		$	4,117,854,256		$	1,019,811,808
Affiliated investments, at value		48,019			85,353			34,908,097			54,198,023
Total investments, at value		24,627,648			191,465,606			4,152,762,353			1,074,009,831
Receivables:
Dividends		7,404			81,287			4,886,617			415,743
Foreign tax reclaims		184			—			2,074			709
Investments sold		—			42,067			962,376			—
Securities lending		—			—			54,518			125,159
Shares sold		—			—			40,174,597			9,702,133
Other assets		2,953			5,749			8,082			1,565
Total Assets		24,638,189			191,594,709			4,198,850,617			1,084,255,140
Liabilities:
Due to custodian		296			—			1,767,268			14,365
Payables:
Shares repurchased		—			—			40,077,182			—
Investments purchased		—			—			—			9,648,761
Collateral upon return of securities loaned		—			—			31,064,642			53,725,656
Accrued advisory fees		1,641			76,310			884,139			210,863
Accrued trustees’ and officer’s fees		13,021			25,959			80,040			30,503
Accrued expenses		41,739			78,576			1,536,948			449,328
Total Liabilities		56,697			180,845			75,410,219			64,079,476
Net Assets	$	24,581,492		$	191,413,864		$	4,123,440,398		$	1,020,175,664
Net Assets Consist of:
Shares of beneficial interest	$	99,327,484		$	536,277,242		$	3,497,291,497		$	907,316,694
Undistributed net investment income (loss)		(36,227	)		(20,108	)		8,886,821			1,515,280
Undistributed net realized gain (loss)		(76,749,235	)		(345,418,799	)		(176,942,795	)		(20,523,875	)
Net unrealized appreciation		2,039,470			575,529			794,204,875			131,867,565
Net Assets	$	24,581,492		$	191,413,864		$	4,123,440,398		$	1,020,175,664
Shares outstanding (unlimited amount authorized, $0.01 par value)		350,000			2,650,000			45,950,000			10,300,000
Net asset value	$	70.23		$	72.23		$	89.74		$	99.05
Market price	$	70.22		$	72.20		$	89.76		$	99.11
Unaffiliated investments, at cost	$	22,540,159		$	190,804,724		$	3,324,327,244		$	887,944,243
Affiliated investments, at cost	$	48,019		$	85,353		$	34,230,234		$	54,198,023
Total investments, at cost	$	22,588,178		$	190,890,077		$	3,358,557,478		$	942,142,266
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	30,515,393		$	52,554,319

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

33

Statements of Operations

For the six months ended October 31, 2014

(Unaudited)

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)			PowerShares Dynamic Market Portfolio (PWC)			PowerShares FTSE RAFI US 1000 Portfolio (PRF)			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Investment Income:
Unaffiliated dividend income	$	48,937		$	1,281,095		$	41,270,038		$	6,685,134
Affiliated dividend income		4			9			74,875			24
Securities lending income		—			—			335,883			802,574
Foreign withholding tax		(99	)		—			(2,868	)		(5,680	)
Total Income		48,842			1,281,104			41,677,928			7,482,052
Expenses:
Advisory fees		60,050			475,086			5,342,068			1,433,003
Accounting & administration fees		18,467			18,693			330,105			97,422
Professional fees		14,123			14,159			41,028			19,949
Sub-licensing		6,084			28,505			1,657,883			444,726
Custodian & transfer agent fees		4,951			4,731			36,442			20,239
Trustees’ and officer’s fees		3,923			5,467			35,589			12,691
Other expenses		7,694			11,280			55,845			28,098
Total Expenses		115,292			557,921			7,498,960			2,056,128
Less: Waivers		(43,274	)		(101	)		(310,682	)		(129,248	)
Net Expenses		72,018			557,820			7,188,278			1,926,880
Net Investment Income (Loss)		(23,176	)		723,284			34,489,650			5,555,172
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(2,207,518	)		(8,310,266	)		655,837			1,805,612
In-kind redemptions		(50,554	)		20,313,708			6,675,447			11,832,373
Foreign currencies		—			—			—			(1,288	)
Net realized gain (loss)		(2,258,072	)		12,003,442			7,331,284			13,636,697
Change in net unrealized appreciation (depreciation) on:
Investment securities		4,265,348			(5,715,663	)		175,181,056			13,779,572
Foreign currencies		—			—			—			(938	)
Net change in unrealized appreciation (depreciation)		4,265,348			(5,715,663	)		175,181,056			13,778,634
Net realized and unrealized gain		2,007,276			6,287,779			182,512,340			27,415,331
Net increase in net assets resulting from operations	$	1,984,100		$	7,011,063		$	217,001,990		$	32,970,503

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

34

(This Page Intentionally Left Blank)

Statements of Changes in Net Assets

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)						PowerShares Dynamic Market Portfolio (PWC)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income (loss)	$	(23,176	)	$	81,140		$	723,284		$	1,507,145
Net realized gain (loss)		(2,258,072	)		7,845,444			12,003,442			42,915,167
Net change in unrealized appreciation (depreciation)		4,265,348			(5,108,462	)		(5,715,663	)		(7,584,688	)
Net increase in net assets resulting from operations		1,984,100			2,818,122			7,011,063			36,837,624
Distributions to Shareholders from:
Net investment income		—			(102,874	)		(977,311	)		(1,443,855	)
Shareholder Transactions:
Proceeds from shares sold		3,332,048			38,073,218			266,091,061			310,118,300
Value of shares repurchased		(6,468,984	)		(37,214,086	)		(266,929,760	)		(299,950,822	)
Net increase (decrease) in net assets resulting from shares transactions		(3,136,936	)		859,132			(838,699	)		10,167,478
Increase (Decrease) in Net Assets		(1,152,836	)		3,574,380			5,195,053			45,561,247
Net Assets:
Beginning of period		25,734,328			22,159,948			186,218,811			140,657,564
End of period	$	24,581,492		$	25,734,328		$	191,413,864		$	186,218,811
Undistributed net investment income (loss) at end of period	$	(36,227	)	$	(13,051	)	$	(20,108	)	$	233,919
Changes in Shares Outstanding:
Shares sold		50,000			600,000			3,650,000			4,900,000
Shares repurchased		(100,000	)		(600,000	)		(3,650,000	)		(4,750,000	)
Shares outstanding, beginning of period		400,000			400,000			2,650,000			2,500,000
Shares outstanding, end of period		350,000			400,000			2,650,000			2,650,000

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

36

PowerShares FTSE RAFI US 1000 Portfolio (PRF)						PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	34,489,650		$	45,938,852		$	5,555,172		$	8,550,955
	7,331,284			119,763,331			13,636,697			79,175,946
	175,181,056			316,724,319			13,778,634			69,309,882
	217,001,990			482,426,502			32,970,503			157,036,783
	(32,968,148	)		(42,658,537	)		(5,968,065	)		(7,637,848	)
	651,056,116			1,350,714,852			72,529,207			443,192,650
	(17,346,016	)		(263,236,412	)		(38,086,976	)		(197,623,306	)
	633,710,100			1,087,478,440			34,442,231			245,569,344
	817,743,942			1,527,246,405			61,444,669			394,968,279
	3,305,696,456			1,778,450,051			958,730,995			563,762,716
$	4,123,440,398		$	3,305,696,456		$	1,020,175,664		$	958,730,995
$	8,886,821		$	7,365,319		$	1,515,280		$	1,928,173
	7,450,000			17,000,000			750,000			4,700,000
	(200,000	)		(3,200,000	)		(400,000	)		(2,000,000	)
	38,700,000			24,900,000			9,950,000			7,250,000
	45,950,000			38,700,000			10,300,000			9,950,000

37

Financial Highlights

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	64.34		$	55.40		$	51.32		$	53.76		$	45.15		$	32.83
Net investment income (loss)(a)		(0.07	)		0.21			0.71	(b)		0.10			0.07			0.01
Net realized and unrealized gain (loss) on investments		5.96			9.00			4.18			(2.50	)		8.65			12.36
Total from investment operations		5.89			9.21			4.89			(2.40	)		8.72			12.37
Distributions to shareholders from:
Net investment income		—			(0.27	)		(0.81	)		(0.04	)		(0.11	)		(0.05	)
Net asset value at end of period	$	70.23		$	64.34		$	55.40		$	51.32		$	53.76		$	45.15
Market price at end of period(c)	$	70.22		$	64.32		$	55.32		$	51.30		$	53.75		$	45.15
Net Asset Value Total Return(d)		9.15	%		16.64	%		9.75	%		(4.46	)%		19.34	%		37.73	%
Market Price Total Return(d)		9.17	%		16.77	%		9.63	%		(4.48	)%		19.31	%		37.73	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	24,581		$	25,734		$	22,160		$	28,224		$	40,321		$	40,635
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(e)		0.60	%(f)		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.96	%(e)		0.91	%(f)		0.95	%		0.93	%		0.91	%		0.85	%
Net investment income (loss), after Waivers		(0.19	)%(e)		0.32	%		1.42	%(b)		0.22	%		0.15	%		0.01	%
Portfolio turnover rate(g)		92	%		296	%		118	%		99	%		75	%		90	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Annualized.

^(f)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment 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.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares Dynamic Market Portfolio (PWC)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	70.27		$	56.26		$	46.78		$	48.26		$	40.38		$	31.42
Net investment income(a)		0.27			0.60			0.82			0.44			0.57			0.33
Net realized and unrealized gain (loss) on investments		2.05			13.99			9.51			(1.52	)		7.94			8.97
Total from investment operations		2.32			14.59			10.33			(1.08	)		8.51			9.30
Distributions to shareholders from:
Net investment income		(0.36	)		(0.58	)		(0.85	)		(0.40	)		(0.63	)		(0.34	)
Net asset value at end of period	$	72.23		$	70.27		$	56.26		$	46.78		$	48.26		$	40.38
Market price at end of period(b)	$	72.20		$	70.27		$	56.23		$	46.75		$	48.24		$	40.38
Net Asset Value Total Return(c)		3.30	%		26.09	%		22.39	%		(2.12	)%		21.34	%		29.75	%
Market Price Total Return(c)		3.26	%		26.15	%		22.40	%		(2.14	)%		21.29	%		29.80	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	191,414		$	186,219		$	140,658		$	128,644		$	188,207		$	230,151
Ratio to average net assets of:
Expenses, after Waivers		0.59	%(d)		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.59	%(d)		0.60	%		0.60	%		0.62	%		0.64	%		0.60	%
Net investment income, after Waivers		0.76	%(d)		0.94	%		1.68	%		1.00	%		1.38	%		0.92	%
Portfolio turnover rate(e)		123	%		244	%		166	%		133	%		107	%		98	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

38

Financial Highlights (continued)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	85.42		$	71.42		$	59.73		$	60.72		$	52.93		$	34.78
Net investment income(a)		0.83			1.45			1.31			1.12			1.07			0.62
Net realized and unrealized gain (loss) on investments		4.28			13.89			11.66			(0.99	)		7.63			18.21
Total from investment operations		5.11			15.34			12.97			0.13			8.70			18.83
Distributions to shareholders from:
Net investment income		(0.79	)		(1.34	)		(1.28	)		(1.12	)		(0.91	)		(0.68	)
Net asset value at end of period	$	89.74		$	85.42		$	71.42		$	59.73		$	60.72		$	52.93
Market price at end of period(b)	$	89.76		$	85.37		$	71.42		$	59.72		$	60.71		$	52.96
Net Asset Value Total Return(c)		5.99	%		21.68	%		22.06	%		0.41	%		16.72	%		54.57	%
Market Price Total Return(c)		6.08	%		21.61	%		22.09	%		0.41	%		16.63	%		54.66	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	4,123,440		$	3,305,696		$	1,778,450		$	1,388,661		$	1,208,246		$	648,428
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.41	%(d)		0.41	%		0.43	%		0.43	%		0.44	%		0.45	%
Net investment income, after Waivers		1.87	%(d)		1.84	%		2.10	%		2.00	%		2.01	%		1.38	%
Portfolio turnover rate(e)		1	%		12	%		13	%		6	%		9	%		24	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

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

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	96.35		$	77.76		$	66.71		$	70.66		$	59.82		$	34.96
Net investment income(a)		0.55			0.98			1.13			0.73			0.50			0.32
Net realized and unrealized gain (loss) on investments		2.74			18.52			11.08			(4.04	)		10.80			24.88
Total from investment operations		3.29			19.50			12.21			(3.31	)		11.30			25.20
Distributions to shareholders from:
Net investment income		(0.59	)		(0.91	)		(1.16	)		(0.64	)		(0.46	)		(0.34	)
Net asset value at end of period	$	99.05		$	96.35		$	77.76		$	66.71		$	70.66		$	59.82
Market price at end of period(b)	$	99.11		$	96.38		$	77.67		$	66.72		$	70.64		$	59.79
Net Asset Value Total Return(c)		3.42	%		25.22	%		18.56	%		(4.60	)%		19.04	%		72.38	%(d)
Market Price Total Return(c)		3.45	%		25.40	%		18.41	%		(4.56	)%		19.06	%		72.59	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,020,176		$	958,731		$	563,763		$	463,645		$	409,826		$	284,135
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(e)		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.42	%(e)		0.42	%		0.43	%		0.44	%		0.46	%		0.51	%
Net investment income, after Waivers		1.12	%(e)		1.08	%		1.64	%		1.17	%		0.82	%		0.67	%
Portfolio turnover rate(f)		2	%		31	%		30	%		15	%		19	%		16	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.17 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.

39

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2014

(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, 2014, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)	“DWA NASDAQ Momentum Portfolio”
PowerShares Dynamic Market Portfolio (PWC)	“Dynamic Market Portfolio”
PowerShares FTSE RAFI US 1000 Portfolio (PRF)	“FTSE RAFI US 1000 Portfolio”
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)	“FTSE RAFI US 1500 Small-Mid Portfolio”

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

The market 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 in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
DWA NASDAQ Momentum Portfolio	Dorsey Wright NASDAQ Technical LeadersTM Index
Dynamic Market Portfolio	Dynamic Market IntellidexSM Index
FTSE RAFI US 1000 Portfolio	FTSE RAFI US 1000 Index
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE RAFI US 1500 Small-Mid Index

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and 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. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

40

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of each Fund’s investments.

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

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the 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 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

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numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

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

Momentum Investing Risk. DWA NASDAQ Momentum Portfolio employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.

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

C. Federal Income Taxes

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

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These 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-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 year-end.

G. Securities Lending

During the six-month period ended October 31, 2014, FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% 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 of DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets. Each of FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust on behalf of each Fund. For the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2015. 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 DWA NASDAQ Momentum Portfolio and the Dynamic Market Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2015. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2015. The Expense Agreement cannot be terminated during its term.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration.

For the six-month period ended October 31, 2014, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA NASDAQ Momentum Portfolio	$	43,274
Dynamic Market Portfolio		101
FTSE RAFI US 1000 Portfolio		310,682
FTSE RAFI US 1500 Small-Mid Portfolio		129,248

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

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For the following Funds, the amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at October 31, 2014 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/15		4/30/16		4/30/17		10/31/17
FTSE RAFI US 1000 Portfolio	$	1,667,961	$	201,557	$	519,689	$	637,211	$	309,504
FTSE RAFI US 1500 Small-Mid Portfolio		684,986		70,292		211,738		273,970		128,986

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

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

Fund	Licensor
DWA NASDAQ Momentum Portfolio	Dorsey Wright & Associates, Inc.
Dynamic Market 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 by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.

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

Note 4. Investments in Affiliates

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 with the Funds. 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, 2014.

FTSE RAFI US 1000 Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value October 31, 2014		Dividend Income
Invesco Ltd.	$	2,251,609	$	492,131	$	(13,104	)	$	360,632		$	5,820	$	3,097,088	$	33,779
Invesco Mortgage Capital, Inc. REIT		628,892		127,910		(3,091	)		(7,528	)		184		746,367		41,009
Total Investments in Affiliates	$	2,880,501	$	620,041	$	(16,195	)	$	353,104		$	6,004	$	3,843,455	$	74,788

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),

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unobservable inputs may be used. Unobservable inputs reflect a Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the Funds listed below, as of October 31, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
FTSE RAFI US 1000 Portfolio
Equity Securities	$	4,152,590,171	$	—	$	172,182	$	4,152,762,353
FTSE RAFI US 1500 Small-Mid Portfolio
Equity Securities	$	1,074,009,831	$	0	$	—	$	1,074,009,831

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 eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of April 30, 2014, which expire as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short-term		Long-term		Total*		Utilized		Expired
DWA NASDAQ Momentum Portfolio	$	21,767,708	$	11,353,752	$	15,764,010	$	14,947,690	$	3,683,431	$	6,964,855	$	—	$	74,481,446	$	1,207,581	$	5,449,844
Dynamic Market Portfolio		65,552,628		39,899,556		96,635,542		104,214,879		15,461,574		35,227,451		167,125		357,158,755		179,727		13,686,812
FTSE RAFI US 1000 Portfolio		44,432		1,148,192		44,806,580		49,808,238		38,490,195		—		6,179,055		140,476,692		—		—
FTSE RAFI US 1500 Small-Mid Portfolio		5,818		128,460		8,229,508		5,168,127		2,475,894		—		44,504		16,052,311		1,644,991		—

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the six-month period ended October 31, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
DWA NASDAQ Momentum Portfolio	$	22,723,919	$	22,754,025
Dynamic Market Portfolio		234,472,769		237,215,153
FTSE RAFI US 1000 Portfolio		43,538,185		40,491,795
FTSE RAFI US 1500 Small-Mid Portfolio		24,092,996		22,547,771

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For the six-month period ended October 31, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA NASDAQ Momentum Portfolio	$	3,336,776	$	6,474,813
Dynamic Market Portfolio		265,809,887		264,122,078
FTSE RAFI US 1000 Portfolio		649,105,262		17,316,646
FTSE RAFI US 1500 Small-Mid Portfolio		72,114,573		37,885,123

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

At October 31, 2014, 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)
DWA NASDAQ Momentum Portfolio	$	22,597,895	$	2,029,753	$	2,326,987	$	(297,234	)
Dynamic Market Portfolio		191,153,563		312,043		8,803,849		(8,491,806	)
FTSE RAFI US 1000 Portfolio		3,401,522,767		751,239,586		835,704,061		(84,464,475	)
FTSE RAFI US 1500 Small-Mid Portfolio		957,849,657		116,160,174		190,336,859		(74,176,685	)

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and Officer of the Funds. 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

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 in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

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

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

Note 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.

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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, 2014.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value May 1, 2014		Ending Account Value October 31, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)
Actual	$	1,000.00	$	1,091.51		0.60	%	$	3.16
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares Dynamic Market Portfolio (PWC)
Actual		1,000.00		1,033.03		0.59			3.02
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		1,059.92		0.39			2.02
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		1,034.08		0.39			2.00
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, 2014. 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.

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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.

©2014 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, 2014

2014 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

Fundamental Pure and Style Portfolios
Schedules of Investments
PowerShares Dynamic Large Cap Growth Portfolio (PWB)	3
PowerShares Dynamic Large Cap Value Portfolio (PWV)	5
PowerShares Fundamental Pure Large Core Portfolio (PXLC)	7
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)	9
PowerShares Fundamental Pure Large Value Portfolio (PXLV)	11
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)	13
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)	16
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)	18
PowerShares Fundamental Pure Small Core Portfolio (PXSC)	22
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)	28
PowerShares Fundamental Pure Small Value Portfolio (PXSV)	33
PowerShares Zacks Micro Cap Portfolio (PZI)	42
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
Fees and Expenses	72

2

Portfolio Composition

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Information Technology	23.5
Consumer Discretionary	22.4
Health Care	14.7
Industrials	10.8
Financials	7.7
Consumer Staples	7.7
Energy	7.7
Materials	4.1
Telecommunication Services	1.4
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—22.4%
	5,755	Chipotle Mexican Grill, Inc.(b)	$	3,671,690
	166,500	Comcast Corp., Class A		9,215,775
	154,241	Hilton Worldwide Holdings, Inc.(b)		3,893,043
	97,460	Home Depot, Inc. (The)		9,504,299
	74,373	Lowe’s Cos., Inc.		4,254,135
	56,273	Marriott International, Inc., Class A		4,262,680
	116,010	NIKE, Inc., Class B		10,785,450
	3,138	Priceline Group, Inc. (The)(b)		3,785,087
	60,908	VF Corp.		4,122,253
	101,386	Walt Disney Co. (The)		9,264,653
				62,759,065
		Consumer Staples—7.7%
	42,148	Brown-Forman Corp., Class B		3,905,855
	114,697	CVS Health Corp.		9,842,150
	40,852	Mead Johnson Nutrition Co.		4,057,012
	107,914	Mondelez International, Inc., Class A		3,805,048
				21,610,065
		Energy—7.7%
	56,485	Baker Hughes, Inc.		2,991,445
	64,391	Energy Transfer Equity LP		3,757,859
	35,542	EOG Resources, Inc.		3,378,267
	57,764	Halliburton Co.		3,185,107
	83,112	Schlumberger Ltd.		8,199,830
				21,512,508

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—7.7%
	66,394	Berkshire Hathaway, Inc., Class B(b)	$	9,305,783
	136,984	Charles Schwab Corp. (The)		3,927,331
	48,137	McGraw Hill Financial, Inc.		4,355,436
	41,738	Moody’s Corp.		4,141,662
				21,730,212
		Health Care—14.7%
	17,206	Actavis PLC(b)		4,176,584
	23,860	Allergan, Inc.		4,534,832
	26,565	Biogen Idec, Inc.(b)		8,529,490
	179,914	Bristol-Myers Squibb Co.		10,469,196
	84,704	Gilead Sciences, Inc.(b)		9,486,848
	20,025	McKesson Corp.		4,073,285
				41,270,235
		Industrials—10.8%
	100,371	American Airlines Group, Inc.		4,150,341
	26,915	Cummins, Inc.		3,934,435
	26,409	FedEx Corp.		4,420,867
	122,005	Southwest Airlines Co.		4,206,732
	87,526	Tyco International Ltd.		3,757,491
	93,625	United Parcel Service, Inc., Class B		9,822,199
				30,292,065
		Information Technology—23.5%
	54,316	Adobe Systems, Inc.(b)		3,808,638
	169,030	Applied Materials, Inc.		3,733,873
	53,292	Automatic Data Processing, Inc.		4,358,220

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

3

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	85,401	Cognizant Technology Solutions Corp., Class A(b)	$	4,171,839
	121,793	Facebook, Inc., Class A(b)		9,133,257
	15,648	Google, Inc., Class A(b)		8,886,030
	120,203	MasterCard, Inc., Class A		10,067,001
	119,797	Micron Technology, Inc.(b)		3,964,083
	39,868	SanDisk Corp.		3,753,173
	62,307	TE Connectivity Ltd. (Switzerland)		3,808,827
	42,880	Visa, Inc., Class A		10,352,518
				66,037,459
		Materials—4.1%
	34,013	Ecolab, Inc.		3,783,266
	29,688	Praxair, Inc.		3,740,391
	17,906	Sherwin-Williams Co. (The)		4,110,501
				11,634,158
		Telecommunication Services—1.4%
	129,835	T-Mobile US, Inc.(b)		3,789,884
		Total Common Stocks and Other Equity Interests (Cost $250,174,966)		280,635,651
		Money Market Fund—0.1%
	296,427	Invesco Premier Portfolio—Institutional Class(c) (Cost $296,427)		296,427
		Total Investments (Cost $250,471,393)—100.1%		280,932,078
		Other assets less liabilities—(0.1%)		(217,813	)
		Net Assets—100.0%	$	280,714,265

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.

4

Portfolio Composition

PowerShares Dynamic Large Cap Value Portfolio (PWV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	18.7
Information Technology	18.3
Energy	16.0
Health Care	14.4
Industrials	9.5
Consumer Staples	7.9
Telecommunication Services	6.8
Utilities	3.1
Consumer Discretionary	2.8
Materials	2.5
Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Value Portfolio (PWV)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—2.8%
	155,773	DIRECTV(b)	$	13,519,539
	216,190	Macy’s, Inc.		12,500,106
				26,019,645
		Consumer Staples—7.9%
	270,086	Archer-Daniels-Midland Co.		12,694,042
	264,156	Kroger Co. (The)		14,716,131
	225,574	Lorillard, Inc.		13,872,801
	416,187	Wal-Mart Stores, Inc.		31,742,582
				73,025,556
		Energy—16.0%
	242,733	Chevron Corp.		29,115,823
	386,877	ConocoPhillips		27,913,176
	315,929	Exxon Mobil Corp.		30,553,494
	133,203	Hess Corp.		11,296,946
	323,022	Marathon Oil Corp.		11,434,979
	147,968	Marathon Petroleum Corp.		13,450,291
	154,752	Phillips 66		12,148,032
	248,738	Valero Energy Corp.		12,459,286
				148,372,027
		Financials—18.7%
	126,652	ACE Ltd.		13,843,064
	219,003	Allstate Corp. (The)		14,202,344
	240,217	American International Group, Inc.		12,868,425
	164,108	Capital One Financial Corp.		13,583,219
	215,914	Discover Financial Services		13,770,995
	528,547	JPMorgan Chase & Co.		31,966,523

Number of Shares			Value
		Common Stocks (continued)
		Financials (continued)
	246,013	MetLife, Inc.	$	13,343,745
	150,133	Prudential Financial, Inc.		13,292,776
	142,184	Travelers Cos., Inc. (The)		14,332,147
	610,848	Wells Fargo & Co.		32,429,920
				173,633,158
		Health Care—14.4%
	163,964	Aetna, Inc.		13,528,669
	114,932	Becton, Dickinson and Co.		14,791,748
	182,152	Express Scripts Holding Co.(b)		13,992,917
	104,602	Humana, Inc.		14,523,988
	522,745	Merck & Co., Inc.		30,287,845
	1,069,144	Pfizer, Inc.		32,020,863
	115,584	WellPoint, Inc.		14,643,337
				133,789,367
		Industrials—9.5%
	123,472	Caterpillar, Inc.		12,521,296
	109,262	General Dynamics Corp.		15,270,457
	1,209,473	General Electric Co.		31,216,498
	77,397	Lockheed Martin Corp.		14,749,546
	105,858	Northrop Grumman Corp.		14,604,170
				88,361,967
		Information Technology—18.3%
	1,257,388	Cisco Systems, Inc.		30,768,284
	645,570	Corning, Inc.		13,188,995
	354,384	Hewlett-Packard Co.		12,715,298
	899,834	Intel Corp.		30,603,354

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

5

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Information Technology (continued)
	163,398	International Business Machines Corp.	$	26,862,631
	756,608	Oracle Corp.		29,545,543
	215,191	Seagate Technology PLC		13,520,451
	130,735	Western Digital Corp.		12,860,402
				170,064,958
		Materials—2.5%
	251,480	Dow Chemical Co. (The)		12,423,112
	117,767	LyondellBasell Industries NV, Class A		10,790,990
				23,214,102
		Telecommunication Services—6.8%
	898,803	AT&T, Inc.		31,314,297
	630,714	Verizon Communications, Inc.		31,693,378
				63,007,675
		Utilities—3.1%
	250,774	American Electric Power Co., Inc.		14,630,155
	227,705	Edison International		14,249,779
				28,879,934
		Total Investments(Cost $827,054,907)—100.0%		928,368,389
		Other assets less liabilities—0.0%		(201,263	)
		Net Assets—100.0%	$	928,167,126

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.

6

Portfolio Composition

PowerShares Fundamental Pure Large Core Portfolio (PXLC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	17.0
Health Care	16.4
Industrials	16.3
Consumer Staples	13.7
Consumer Discretionary	12.8
Information Technology	10.3
Energy	5.7
Utilities	4.0
Materials	3.8
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Core Portfolio (PXLC)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—12.8%
	3,135	CBS Corp., Class B	$	169,980
	4,049	DIRECTV(b)		351,413
	53,527	Ford Motor Co.		754,195
	23,639	General Motors Co.		742,265
	10,485	Home Depot, Inc. (The)		1,022,497
	6,550	Johnson Controls, Inc.		309,488
	3,387	L Brands, Inc.		244,270
	8,202	McDonald’s Corp.		768,773
	2,122	Omnicom Group, Inc.		152,487
	2,330	Time Warner Cable, Inc.		342,999
	11,510	Twenty-First Century Fox, Inc., Class A		396,865
				5,255,232
		Consumer Staples—13.7%
	12,920	Archer-Daniels-Midland Co.		607,240
	5,422	Colgate-Palmolive Co.		362,623
	12,651	CVS Health Corp.		1,085,582
	5,963	General Mills, Inc.		309,838
	3,684	Lorillard, Inc.		226,566
	13,784	PepsiCo, Inc.		1,325,607
	13,413	Philip Morris International, Inc.		1,193,891
	8,025	Walgreen Co.		515,366
				5,626,713
		Energy—5.7%
	4,024	Anadarko Petroleum Corp.		369,323
	5,049	Apache Corp.		389,783
	4,157	Marathon Petroleum Corp.		377,871

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	7,982	Occidental Petroleum Corp.	$	709,839
	6,346	Spectra Energy Corp.		248,319
	4,875	Williams Cos., Inc. (The)		270,611
				2,365,746
		Financials—17.0%
	3,447	ACE Ltd.		376,757
	5,205	Aflac, Inc.		310,895
	6,603	American Express Co.		593,940
	27,918	Annaly Capital Management, Inc. REIT		318,544
	17,381	Berkshire Hathaway, Inc., Class B(b)		2,436,121
	7,427	Capital One Financial Corp.		614,733
	3,984	Marsh & McLennan Cos., Inc.		216,610
	6,190	PNC Financial Services Group, Inc. (The)		534,754
	6,748	Prudential Financial, Inc.		597,468
	3,745	State Street Corp.		282,598
	17,055	U.S. Bancorp		726,543
				7,008,963
		Health Care—16.4%
	5,828	AbbVie, Inc.		369,845
	4,106	Aetna, Inc.		338,786
	5,037	AmerisourceBergen Corp.		430,210
	4,094	Baxter International, Inc.		287,153
	12,325	Bristol-Myers Squibb Co.		717,192
	22,131	Johnson & Johnson		2,385,279
	3,184	McKesson Corp.		647,658

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

7

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	8,150	Medtronic, Inc.	$	555,504
	10,812	UnitedHealth Group, Inc.		1,027,248
				6,758,875
		Industrials—16.3%
	4,670	3M Co.		718,106
	4,960	Boeing Co. (The)		619,554
	6,762	Caterpillar, Inc.		685,734
	9,250	CSX Corp.		329,578
	3,901	Deere & Co.		333,692
	6,641	Emerson Electric Co.		425,422
	2,723	FedEx Corp.		455,830
	4,950	Honeywell International, Inc.		475,794
	3,640	Illinois Tool Works, Inc.		331,422
	2,404	Lockheed Martin Corp.		458,130
	2,937	Norfolk Southern Corp.		324,950
	2,912	PACCAR, Inc.		190,212
	5,539	United Parcel Service, Inc., Class B		581,096
	7,179	United Technologies Corp.		768,153
				6,697,673
		Information Technology—10.3%
	60,517	Intel Corp.		2,058,183
	8,515	International Business Machines Corp.		1,399,866
	6,333	Micron Technology, Inc.(b)		209,559
	7,088	Texas Instruments, Inc.		351,990
	4,576	Yahoo!, Inc.(b)		210,725
				4,230,323
		Materials—3.8%
	1,678	Air Products & Chemicals, Inc.		225,959
	8,116	E.I. du Pont de Nemours & Co.		561,221
	3,826	Mosaic Co. (The)		169,530
	11,099	Newmont Mining Corp.		208,217
	917	PPG Industries, Inc.		186,784
	1,848	Praxair, Inc.		232,830
				1,584,541
		Utilities—4.0%
	12,106	AES Corp. (The)		170,331
	8,943	Duke Energy Corp.		734,667
	4,344	NextEra Energy, Inc.		435,356
	8,653	PPL Corp.		302,769
				1,643,123
		Total Common Stocks and Other Equity Interests (Cost $34,017,473)		41,171,189
		Money Market Fund—0.1%
	36,030	Invesco Premier Portfolio—Institutional Class(c) (Cost $36,030)		36,030
		Total Investments (Cost $34,053,503)—100.1%		41,207,219
		Other assets less liabilities—(0.1%)		(22,732	)
		Net Assets—100.0%	$	41,184,487

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.

8

Portfolio Composition

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Information Technology	36.2
Health Care	14.5
Financials	11.8
Consumer Discretionary	10.8
Energy	10.3
Consumer Staples	7.7
Industrials	3.8
Materials	2.8
Telecommunication Services	2.0
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—10.8%
	3,394	Amazon.com, Inc.(b)	$	1,036,731
	88,566	Comcast Corp., Class A		4,902,128
	15,752	NIKE, Inc., Class B		1,464,463
	15,490	TJX Cos., Inc. (The)		980,827
	10,618	Viacom, Inc., Class B		771,716
	38,597	Walt Disney Co. (The)		3,526,994
	11,990	Yum! Brands, Inc.		861,242
				13,544,101
		Consumer Staples—7.7%
	143,211	Coca-Cola Co. (The)		5,997,676
	20,783	Costco Wholesale Corp.		2,771,829
	15,342	Kraft Foods Group, Inc.		864,522
				9,634,027
		Energy—10.3%
	20,149	Baker Hughes, Inc.		1,067,091
	11,200	EOG Resources, Inc.		1,064,560
	27,424	Halliburton Co.		1,512,159
	26,192	Kinder Morgan, Inc.		1,013,630
	17,795	National Oilwell Varco, Inc.		1,292,629
	41,329	Phillips 66		3,244,327
	37,520	Schlumberger Ltd.		3,701,723
				12,896,119
		Financials—11.8%
	3,586	BlackRock, Inc., Class A		1,223,220
	15,567	CME Group, Inc., Class A		1,304,670
	15,288	Discover Financial Services		975,069

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	6,599	Simon Property Group, Inc. REIT	$	1,182,607
	3,302	Washington Prime Group, Inc. REIT		58,214
	189,295	Wells Fargo & Co.		10,049,672
				14,793,452
		Health Care—14.5%
	14,041	Amgen, Inc.		2,277,169
	11,571	Cigna Corp.		1,152,125
	15,040	Covidien PLC		1,390,298
	30,665	Express Scripts Holding Co.(b)		2,355,685
	12,876	Gilead Sciences, Inc.(b)		1,442,112
	10,922	Humana, Inc.		1,516,520
	123,932	Merck & Co., Inc.		7,180,620
	7,260	Thermo Fisher Scientific, Inc.		853,558
				18,168,087
		Industrials—3.8%
	5,480	Cummins, Inc.		801,067
	12,844	Danaher Corp.		1,032,658
	4,455	NOW, Inc.(b)		133,917
	24,374	Union Pacific Corp.		2,838,352
				4,805,994
		Information Technology—36.2%
	16,575	Accenture PLC, Class A		1,344,564
	104,076	Apple, Inc.		11,240,208
	13,607	Automatic Data Processing, Inc.		1,112,780
	4,535	CDK Global, Inc.(b)		152,376

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

9

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	165,806	Cisco Systems, Inc.	$	4,057,273
	64,786	Corning, Inc.		1,323,578
	24,571	eBay, Inc.(b)		1,289,978
	71,827	EMC Corp.		2,063,590
	3,562	Google, Inc., Class A(b)		2,022,753
	3,562	Google, Inc., Class C(b)		1,991,443
	243,232	Microsoft Corp.		11,419,742
	82,796	Oracle Corp.		3,233,184
	35,269	QUALCOMM, Inc.		2,768,969
	5,805	Visa, Inc., Class A		1,401,501
				45,421,939
		Materials—2.8%
	23,163	LyondellBasell Industries NV, Class A		2,122,426
	12,369	Monsanto Co.		1,422,930
				3,545,356
		Telecommunication Services—2.0%
	62,530	CenturyLink, Inc.		2,593,744
		Total Common Stocks and Other Equity Interests (Cost $99,441,038)		125,402,819
		Money Market Fund—0.1%
	130,788	Invesco Premier Portfolio—Institutional Class(c) (Cost $130,788)		130,788
		Total Investments (Cost $99,571,826)—100.0%		125,533,607
		Other assets less liabilities—0.0%		(50,833	)
		Net Assets—100.0%	$	125,482,774

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 Fundamental Pure Large Value Portfolio (PXLV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	24.5
Energy	19.8
Consumer Staples	12.4
Telecommunication Services	9.0
Health Care	8.7
Utilities	8.0
Industrials	7.2
Consumer Discretionary	4.7
Materials	2.9
Information Technology	2.7
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Value Portfolio (PXLV)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—4.7%
	5,451	Best Buy Co., Inc.	$	186,097
	3,044	Carnival Corp.		122,217
	1,710	Kohl’s Corp.		92,716
	5,568	Lowe’s Cos., Inc.		318,490
	2,354	Macy’s, Inc.		136,108
	8,917	Staples, Inc.		113,067
	6,002	Target Corp.		371,044
	4,549	Time Warner, Inc.		361,509
	568	Time, Inc.(b)		12,831
				1,714,079
		Consumer Staples—12.4%
	11,511	Altria Group, Inc.		556,442
	2,033	Bunge Ltd.		180,225
	3,291	ConAgra Foods, Inc.		113,046
	1,860	Kellogg Co.		118,966
	1,777	Kimberly-Clark Corp.		203,058
	6,382	Kroger Co. (The)		355,541
	12,655	Mondelez International, Inc., Class A		446,215
	13,600	Procter & Gamble Co. (The)		1,186,872
	2,020	Reynolds American, Inc.		127,078
	4,109	Safeway, Inc.		143,240
	4,850	Sysco Corp.		186,919
	12,415	Wal-Mart Stores, Inc.		946,892
				4,564,494

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy—19.8%
	4,607	Chesapeake Energy Corp.	$	102,183
	16,987	Chevron Corp.		2,037,591
	14,724	ConocoPhillips		1,062,337
	2,703	Devon Energy Corp.		162,180
	30,445	Exxon Mobil Corp.		2,944,336
	2,535	Hess Corp.		214,993
	7,969	Marathon Oil Corp.		282,103
	2,301	Murphy Oil Corp.		122,850
	329	Seventy Seven Energy, Inc.(b)		4,300
	6,901	Valero Energy Corp.		345,671
				7,278,544
		Financials—24.5%
	3,562	Allstate Corp. (The)		230,996
	9,715	American International Group, Inc.		520,433
	99,002	Bank of America Corp.		1,698,874
	7,724	Bank of New York Mellon Corp. (The)		299,073
	4,908	BB&T Corp.		185,915
	1,748	Chubb Corp. (The)		173,681
	23,447	Citigroup, Inc.		1,255,118
	5,253	Fifth Third Bancorp		105,007
	5,732	Genworth Financial, Inc., Class A(b)		80,191
	2,899	Goldman Sachs Group, Inc. (The)		550,781
	4,946	Hartford Financial Services Group, Inc. (The)		195,763
	28,593	JPMorgan Chase & Co.		1,729,305
	6,569	KeyCorp		86,711

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

11

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,849	Lincoln National Corp.	$	101,251
	2,614	Loews Corp.		113,970
	6,766	MetLife, Inc.		366,988
	9,537	Morgan Stanley		333,318
	3,977	Progressive Corp. (The)		105,033
	10,693	Regions Financial Corp.		106,181
	4,191	SunTrust Banks, Inc.		164,036
	3,543	Travelers Cos., Inc. (The)		357,134
	6,859	Weyerhaeuser Co. REIT		232,246
				8,992,005
		Health Care—8.7%
	12,483	Abbott Laboratories		544,134
	3,808	Cardinal Health, Inc.		298,852
	5,978	Eli Lilly & Co.		396,521
	4,886	HCA Holdings, Inc.(b)		342,264
	40,292	Pfizer, Inc.		1,206,745
	3,268	WellPoint, Inc.		414,023
				3,202,539
		Industrials—7.2%
	1,807	General Dynamics Corp.		252,547
	66,617	General Electric Co.		1,719,385
	1,498	Northrop Grumman Corp.		206,664
	1,707	Raytheon Co.		177,323
	2,640	Tyco International Ltd.		113,335
	55	Veritiv Corp.(b)		2,481
	3,281	Waste Management, Inc.		160,408
				2,632,143
		Information Technology—2.7%
	4,825	Applied Materials, Inc.		106,584
	672	Blackhawk Network Holdings, Inc., Class B(b)		22,445
	19,594	Hewlett-Packard Co.		703,033
	11,196	Xerox Corp.		148,683
				980,745
		Materials—2.9%
	12,177	Alcoa, Inc.		204,087
	7,053	Dow Chemical Co. (The)		348,418
	7,890	Freeport-McMoRan, Inc.		224,865
	2,941	International Paper Co.		148,873
	2,459	Nucor Corp.		132,934
				1,059,177
		Telecommunication Services—9.0%
	57,814	AT&T, Inc.		2,014,240
	26,034	Verizon Communications, Inc.		1,308,208
				3,322,448
		Utilities—8.0%
	2,546	Ameren Corp.		107,797
	4,102	American Electric Power Co., Inc.		239,311
	3,510	CenterPoint Energy, Inc.		86,170
	2,903	Consolidated Edison, Inc.		183,934
	2,949	Dominion Resources, Inc.		210,264
	1,421	DTE Energy Co.		116,749
	2,665	Edison International		166,776
	2,303	Entergy Corp.		193,498

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	10,666	Exelon Corp.	$	390,269
	6,046	FirstEnergy Corp.		225,758
	4,193	PG&E Corp.		210,992
	4,747	Public Service Enterprise Group, Inc.		196,098
	1,201	Sempra Energy		132,110
	7,005	Southern Co. (The)		324,752
	4,159	Xcel Energy, Inc.		139,202
				2,923,680
		Total Common Stocks and Other Equity Interests (Cost $33,788,609)		36,669,854
		Money Market Fund—0.0%
	8,458	Invesco Premier Portfolio—Institutional Class(c) (Cost $8,458)		8,458
		Total Investments (Cost $33,797,067)—99.9%		36,678,312
		Other assets less liabilities—0.1%		26,776
		Net Assets—100.0%	$	36,705,088

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 Mid Core Portfolio (PXMC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	25.0
Consumer Discretionary	15.5
Industrials	14.3
Information Technology	13.1
Health Care	10.4
Materials	6.4
Utilities	5.2
Consumer Staples	5.0
Energy	4.4
Telecommunication Services	0.7
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—15.5%
	887	Advance Auto Parts, Inc.	$	130,353
	355	AutoZone, Inc.(b)		196,500
	4,096	Bed Bath & Beyond, Inc.(b)		275,825
	2,338	BorgWarner, Inc.		133,313
	4,236	CarMax, Inc.(b)		236,835
	2,720	Cinemark Holdings, Inc.		96,070
	5,068	Dana Holding Corp.		103,691
	3,617	DISH Network Corp., Class A(b)		230,222
	4,809	Dollar General Corp.(b)		301,380
	1,280	Expedia, Inc.		108,762
	2,018	Family Dollar Stores, Inc.		157,989
	1,373	Hanesbrands, Inc.		145,003
	8,882	Interpublic Group of Cos., Inc. (The)		172,222
	1,746	Jarden Corp.(b)		113,647
	2,010	Lennar Corp., Class A		86,591
	1,741	Murphy USA, Inc.(b)		99,759
	3,199	Nordstrom, Inc.		232,279
	1,856	PetSmart, Inc.		134,282
	2,227	SeaWorld Entertainment, Inc.		42,847
	2,388	Starwood Hotels & Resorts Worldwide, Inc.		183,064
	1,431	Tiffany & Co.		137,548
	4,524	VF Corp.		306,184
	1,483	Williams-Sonoma, Inc.		96,439
	2,001	Wyndham Worldwide Corp.		155,418
				3,876,223

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples—5.0%
	1,819	Brown-Forman Corp., Class B	$	168,567
	1,207	Casey’s General Stores, Inc.		98,817
	1,398	Constellation Brands, Inc., Class A(b)		127,973
	1,493	Energizer Holdings, Inc.		183,116
	2,086	Hormel Foods Corp.		112,456
	1,998	Ingredion, Inc.		154,346
	2,619	J.M. Smucker Co. (The)		272,376
	1,922	McCormick & Co., Inc.		135,924
				1,253,575
		Energy—4.4%
	1,007	Cimarex Energy Co.		114,466
	4,978	CONSOL Energy, Inc.		183,190
	10,628	Denbury Resources, Inc.		131,787
	1,322	Energen Corp.		89,499
	4,714	LinnCo LLC		112,995
	1,209	Oil States International, Inc.(b)		72,226
	4,032	QEP Resources, Inc.		101,082
	12,416	SandRidge Energy, Inc.(b)		48,422
	4,902	Superior Energy Services, Inc.		123,285
	912	Targa Resources Corp.		117,311
				1,094,263
		Financials—25.0%
	1,307	Alexandria Real Estate Equities, Inc. REIT		108,481
	297	Alleghany Corp.(b)		131,951

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

13

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	3,148	Ameriprise Financial, Inc.	$	397,183
	2,387	Arthur J. Gallagher & Co.		113,860
	3,883	BioMed Realty Trust, Inc. REIT		84,339
	2,072	Boston Properties, Inc. REIT		262,626
	1,631	Camden Property Trust REIT		125,049
	3,927	CBRE Group, Inc., Class A(b)		125,664
	11,750	Charles Schwab Corp. (The)		336,872
	8,536	E*TRADE Financial Corp.(b)		190,353
	5,559	Equity Residential REIT		386,684
	867	Federal Realty Investment Trust REIT		114,271
	3,485	First American Financial Corp.		105,665
	14,997	First Niagara Financial Group, Inc.		112,328
	5,611	FNF Group		167,432
	1,853	FNFV Group(b)		24,904
	5,592	Franklin Resources, Inc.		310,971
	10,591	General Growth Properties, Inc. REIT		274,413
	4,603	Hatteras Financial Corp. REIT		87,641
	7,765	Invesco Ltd.(c)		314,250
	642	Jones Lang LaSalle, Inc.		86,805
	1,418	LPL Financial Holdings, Inc.		58,691
	2,531	Macerich Co. (The) REIT		178,435
	196	Markel Corp.(b)		135,414
	13,617	MFA Financial, Inc. REIT		114,110
	2,743	NASDAQ OMX Group, Inc. (The)		118,662
	10,764	Navient Corp.		212,912
	1,658	Public Storage REIT		305,636
	2,068	Raymond James Financial, Inc.		116,077
	2,655	Rayonier, Inc. REIT		88,863
	1,547	Reinsurance Group of America, Inc.		130,335
	1,387	SL Green Realty Corp. REIT		160,476
	10,704	SLM Corp.		102,223
	4,909	UDR, Inc. REIT		148,399
	3,360	Vornado Realty Trust REIT		367,853
	3,914	Voya Financial, Inc.		153,624
				6,253,452
		Health Care—10.4%
	2,228	Alere, Inc.(b)		89,053
	3,076	Becton, Dickinson and Co.		395,881
	835	C.R. Bard, Inc.		136,915
	1,351	Centene Corp.(b)		125,197
	5,341	Community Health Systems, Inc.(b)		293,595
	3,466	DaVita HealthCare Partners, Inc.(b)		270,591
	1,892	DENTSPLY International, Inc.		96,057
	1,505	Henry Schein, Inc.(b)		180,645
	4,591	Mylan, Inc.(b)		245,848
	2,190	Omnicare, Inc.		145,832
	4,057	Tenet Healthcare Corp.(b)		227,395
	1,416	Universal Health Services, Inc., Class B		146,853
	2,190	Zimmer Holdings, Inc.		243,616
				2,597,478
		Industrials—14.3%
	2,814	Alaska Air Group, Inc.		149,789
	733	Alliant Techsystems, Inc.		85,732
	3,769	C.H. Robinson Worldwide, Inc.		260,852
	1,054	Carlisle Cos., Inc.		93,680
	2,422	Civeo Corp.		29,524
	4,623	Delta Air Lines, Inc.		185,983

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	3,113	Dover Corp.	$	247,297
	1,805	EMCOR Group, Inc.		79,655
	1,328	Equifax, Inc.		100,583
	3,303	Expeditors International of Washington, Inc.		140,906
	4,227	Fluor Corp.		280,419
	2,247	Fortune Brands Home & Security, Inc.		97,183
	788	Hubbell, Inc., Class B		89,367
	921	Huntington Ingalls Industries, Inc.		97,460
	3,833	Jacobs Engineering Group, Inc.(b)		181,876
	2,550	Joy Global, Inc.		134,206
	2,697	Parker Hannifin Corp.		342,600
	4,500	Quanta Services, Inc.(b)		153,360
	8,469	Republic Services, Inc.		325,210
	1,652	Rockwell Automation, Inc.		185,602
	927	Snap-on, Inc.		122,494
	794	W.W. Grainger, Inc.		195,959
				3,579,737
		Information Technology—13.1%
	334	Alliance Data Systems Corp.(b)		94,639
	2,284	Amdocs Ltd.		108,581
	4,408	Analog Devices, Inc.		218,725
	1,656	Autodesk, Inc.(b)		95,286
	9,466	Brocade Communications Systems, Inc.		101,570
	5,888	CA, Inc.		171,105
	2,969	Electronic Arts, Inc.(b)		121,640
	3,544	Fiserv, Inc.(b)		246,237
	2,310	Harris Corp.		160,776
	8,073	Juniper Networks, Inc.		170,098
	2,435	KLA-Tencor Corp.		192,730
	3,024	Lam Research Corp.		235,449
	3,372	Microchip Technology, Inc.		145,367
	6,716	NVIDIA Corp.		131,231
	8,875	ON Semiconductor Corp.(b)		73,574
	5,733	Paychex, Inc.		269,107
	3,327	SanDisk Corp.		313,204
	2,066	Synopsys, Inc.(b)		84,665
	11,789	Western Union Co. (The)		199,941
	3,226	Xilinx, Inc.		143,493
				3,277,418
		Materials—6.4%
	1,111	Airgas, Inc.		123,921
	1,448	Albemarle Corp.		84,534
	2,557	Celanese Corp., Series A		150,173
	9,639	Cliffs Natural Resources, Inc.		108,246
	2,278	Eastman Chemical Co.		184,017
	7,439	Graphic Packaging Holding Co.(b)		90,235
	1,044	International Flavors & Fragrances, Inc.		103,513
	688	Martin Marietta Materials, Inc.		80,441
	1,202	Packaging Corp. of America		86,640
	886	Rayonier Advanced Materials, Inc.		25,277
	1,232	Rockwood Holdings, Inc.		94,753
	4,099	Sealed Air Corp.		148,589
	910	Sherwin-Williams Co. (The)		208,900
	1,171	Valspar Corp. (The)		96,209
				1,585,448

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

14

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—0.7%
	2,668	Level 3 Communications, Inc.(b)	$	125,156
	9,860	Sprint Corp.(b)		58,470
				183,626
		Utilities—5.2%
	2,992	AGL Resources, Inc.		161,299
	3,323	American Water Works Co., Inc.		177,348
	7,242	Northeast Utilities		357,393
	11,592	NRG Energy, Inc.		347,528
	5,005	Wisconsin Energy Corp.		248,548
				1,292,116
		Total Common Stocks and Other Equity Interests (Cost $21,160,149)		24,993,336
		Money Market Fund—0.2%
	59,787	Invesco Premier Portfolio—Institutional Class(d) (Cost $59,787)		59,787
		Total Investments (Cost $21,219,936)—100.2%		25,053,123
		Other assets less liabilities—(0.2%)		(53,440	)
		Net Assets—100.0%	$	24,999,683

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

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

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

15

Portfolio Composition

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	24.3
Information Technology	17.6
Consumer Discretionary	12.5
Health Care	12.2
Energy	12.1
Industrials	11.1
Materials	5.7
Consumer Staples	4.4
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—12.5%
	20,009	Coach, Inc.	$	687,909
	9,692	Dick’s Sporting Goods, Inc.		439,726
	11,709	Discovery Communications, Inc., Class A(b)		413,913
	11,709	Discovery Communications, Inc., Class C(b)		409,698
	15,763	Dollar Tree, Inc.(b)		954,765
	15,803	Las Vegas Sands Corp.		983,895
	14,515	Lear Corp.		1,342,637
	5,079	Liberty Media Corp., Class A(b)		243,894
	10,171	Liberty Media Corp., Class C(b)		487,496
	16,193	LKQ Corp.(b)		462,634
	5,409	O’Reilly Automotive, Inc.(b)		951,335
	5,172	PVH Corp.		591,418
	4,201	Ralph Lauren Corp., Class A		692,493
	14,162	Ross Stores, Inc.		1,143,157
	6,666	Wynn Resorts Ltd.		1,266,607
				11,071,577
		Consumer Staples—4.4%
	8,654	Church & Dwight Co., Inc.		626,636
	10,277	Estee Lauder Cos., Inc. (The), Class A		772,625
	8,287	Hershey Co. (The)		794,806
	9,241	Mead Johnson Nutrition Co.		917,724
	20,128	Whole Foods Market, Inc.		791,634
				3,903,425
		Energy—12.1%
	22,394	Cameron International Corp.(b)		1,333,563
	5,270	Concho Resources, Inc.(b)		574,588
	7,534	EQT Corp.		708,497

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	14,515	FMC Technologies, Inc.(b)	$	813,421
	7,516	Helmerich & Payne, Inc.		652,539
	36,749	HollyFrontier Corp.		1,667,670
	22,322	Noble Energy, Inc.		1,286,417
	5,824	Oceaneering International, Inc.		409,252
	15,493	PBF Energy, Inc., Class A		403,902
	4,474	Pioneer Natural Resources Co.		845,854
	5,019	Range Resources Corp.		343,300
	22,248	Southwestern Energy Co.(b)		723,282
	11,646	Whiting Petroleum Corp.(b)		713,201
	5,532	World Fuel Services Corp.		228,140
				10,703,626
		Financials—24.3%
	2,336	Affiliated Managers Group, Inc.(b)		466,709
	11,310	American Campus Communities, Inc. REIT		444,144
	62,529	American Capital Agency Corp. REIT		1,421,909
	10,530	American Tower Corp. REIT		1,026,675
	9,120	AvalonBay Communities, Inc. REIT		1,421,261
	10,421	Crown Castle International Corp. REIT		814,089
	46,615	CYS Investments, Inc. REIT		416,272
	14,274	Digital Realty Trust, Inc. REIT		984,763
	2,741	Essex Property Trust, Inc. REIT		553,024
	8,732	First Republic Bank		444,721
	51,486	HCP, Inc. REIT		2,263,839
	25,856	Health Care REIT, Inc. REIT		1,838,620
	2,975	IntercontinentalExchange, Inc.		619,663
	23,390	Invesco Mortgage Capital, Inc. REIT(c)		386,871
	25,462	Leucadia National Corp.		605,486

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

16

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	7,893	Moody’s Corp.	$	783,222
	42,007	Prologis, Inc. REIT		1,749,592
	9,060	Realogy Holdings Corp.(b)		371,551
	10,344	Realty Income Corp. REIT		476,134
	24,614	Senior Housing Properties Trust REIT		556,030
	17,093	T. Rowe Price Group, Inc.		1,403,164
	12,552	TD Ameritrade Holding Corp.		423,505
	29,335	Ventas, Inc. REIT		2,009,741
				21,480,985
		Health Care—12.2%
	4,478	Actavis PLC(b)		1,086,990
	17,703	Agilent Technologies, Inc.		978,622
	14,519	Catamaran Corp.(b)		692,121
	9,307	Cerner Corp.(b)		589,505
	6,639	Endo International PLC(b)		444,282
	25,452	Hologic, Inc.(b)		666,588
	1,521	Intuitive Surgical, Inc.(b)		754,112
	6,915	MEDNAX, Inc.(b)		431,703
	17,621	St. Jude Medical, Inc.		1,130,740
	19,431	Stryker Corp.		1,700,795
	6,296	Varian Medical Systems, Inc.(b)		529,619
	3,882	Waters Corp.(b)		430,126
	35,731	Zoetis, Inc.		1,327,764
				10,762,967
		Industrials—11.1%
	10,758	AMETEK, Inc.		561,030
	6,501	B/E Aerospace, Inc.(b)		483,999
	14,799	Fastenal Co.		651,748
	9,028	Flowserve Corp.		613,814
	5,926	J.B. Hunt Transport Services, Inc.		472,717
	5,889	Kansas City Southern		723,110
	22,197	Nielsen Holdings NV		943,151
	6,246	Pall Corp.		571,009
	4,898	Roper Industries, Inc.		775,353
	18,998	Stanley Black & Decker, Inc.		1,778,973
	4,005	Towers Watson & Co., Class A		441,711
	2,333	TransDigm Group, Inc.		436,341
	15,912	United Continental Holdings, Inc.(b)		840,313
	13,386	Xylem, Inc.		486,715
				9,779,984
		Information Technology—17.6%
	54,636	Activision Blizzard, Inc.		1,089,988
	19,466	Adobe Systems, Inc.(b)		1,364,956
	7,296	Akamai Technologies, Inc.(b)		439,949
	19,267	Altera Corp.		662,207
	14,028	Amphenol Corp., Class A		709,536
	41,908	Broadcom Corp., Class A		1,755,107
	10,614	Citrix Systems, Inc.(b)		681,737
	23,475	Cognizant Technology Solutions Corp., Class A(b)		1,146,754
	2,591	Equinix, Inc.		541,260
	21,236	Fidelity National Information Services, Inc.		1,239,970
	10,067	First Solar, Inc.(b)		592,946
	10,041	Intuit, Inc.		883,708
	15,190	Linear Technology Corp.		650,740
	26,590	NetApp, Inc.		1,138,052

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	11,542	Teradata Corp.(b)	$	488,458
	22,303	Western Digital Corp.		2,193,946
				15,579,314
		Materials—5.7%
	5,823	CF Industries Holdings, Inc.		1,513,980
	13,266	Ecolab, Inc.		1,475,577
	7,546	FMC Corp.		432,763
	13,264	Rock-Tenn Co., Class A		678,454
	6,947	Sigma-Aldrich Corp.		944,167
				5,044,941
		Total Common Stocks and Other Equity Interests (Cost $72,444,588)		88,326,819
		Money Market Fund—0.1%
	90,228	Invesco Premier Portfolio—Institutional Class(d) (Cost $90,228)		90,228
		Total Investments (Cost $72,534,816)—100.0%		88,417,047
		Other assets less liabilities—0.0%		(37,699	)
		Net Assets—100.0%	$	88,379,348

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

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

17

Portfolio Composition

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	21.3
Consumer Discretionary	19.4
Industrials	14.9
Utilities	9.8
Information Technology	7.7
Materials	7.2
Consumer Staples	6.3
Energy	5.7
Health Care	5.2
Telecommunication Services	2.4
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

October 31, 2014

(Unaudited)

Number of Shares			Value
	Common Stocks and Other Equity Interests—99.9%
	Consumer Discretionary—19.4%
3,845	Abercrombie & Fitch Co., Class A	$	128,731
10,276	American Eagle Outfitters, Inc.		132,252
5,031	Apollo Education Group, Inc.(b)		144,188
3,191	AutoNation, Inc.(b)		182,717
4,507	Big Lots, Inc.		205,745
12,834	Cablevision Systems Corp., Class A		238,969
4,954	Caesars Entertainment Corp.(b)(c)		60,389
1,838	Charter Communications, Inc., Class A(b)		291,121
7,474	CST Brands, Inc.		285,880
5,713	D.R. Horton, Inc.		130,199
5,480	Darden Restaurants, Inc.		283,754
1,082	Dillard’s, Inc., Class A		114,432
4,432	Foot Locker, Inc.		248,236
5,482	GameStop Corp., Class A		234,410
8,520	Gannett Co., Inc.		268,380
6,246	Gap, Inc. (The)		236,661
4,089	Genuine Parts Co.		396,960
15,312	Goodyear Tire & Rubber Co. (The)		371,010
159	Graham Holdings Co., Class B		124,592
3,177	Guess?, Inc.		70,434
6,322	H&R Block, Inc.		204,264
3,778	Harley-Davidson, Inc.		248,215
3,105	Hasbro, Inc.		178,631
9,499	International Game Technology		155,689
56,019	J.C. Penney Co., Inc.(b)(c)		426,305
1,370	Lands’ End, Inc.(b)		65,034

Number of Shares			Value
	Common Stocks and Other Equity Interests (continued)
	Consumer Discretionary (continued)
5,213	Leggett & Platt, Inc.	$	205,288
14,437	Liberty Interactive Corp., Class A(b)		377,383
2,052	Liberty Ventures, Series A(b)		72,025
3,154	Marriott International, Inc., Class A		238,916
9,319	Mattel, Inc.		289,541
8,474	MGM Resorts International(b)		197,020
1,271	Mohawk Industries, Inc.(b)		180,533
6,547	Newell Rubbermaid, Inc.		218,212
19,701	News Corp., Class A(b)		304,971
81	NVR, Inc.(b)		99,434
35,747	Office Depot, Inc.(b)		186,599
4,818	Rent-A-Center, Inc.		149,213
4,003	Royal Caribbean Cruises Ltd.		272,084
4,555	Sears Holdings Corp.(b)(c)		159,061
5,368	Service Corp. International		117,398
2,274	Tenneco, Inc.(b)		119,067
5,074	TRW Automotive Holdings Corp.(b)		514,250
2,222	Visteon Corp.(b)		208,646
3,159	Whirlpool Corp.		543,506
			9,880,345
	Consumer Staples—6.3%
25,745	Avon Products, Inc.		267,748
5,328	Campbell Soup Co.		235,338
3,025	Clorox Co. (The)		300,987

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

18

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

October 31, 2014

(Unaudited)

Number of Shares			Value
	Common Stocks and Other Equity Interests (continued)
	Consumer Staples (continued)
6,201	Coca-Cola Enterprises, Inc.	$	268,813
16,612	Dean Foods Co.		244,362
5,119	Dr Pepper Snapple Group, Inc.		354,491
4,491	Molson Coors Brewing Co., Class B		334,041
67,643	Rite Aid Corp.(b)		355,126
46,362	SUPERVALU, Inc.(b)		400,104
11,134	Tyson Foods, Inc., Class A		449,257
			3,210,267
	Energy—5.7%
45,943	Alpha Natural Resources, Inc.(b)(c)		90,048
37,320	Arch Coal, Inc.(c)		80,611
6,023	Diamond Offshore Drilling, Inc.(c)		227,127
2,885	Exterran Holdings, Inc.		113,467
15,860	McDermott International, Inc.(b)(c)		60,902
6,803	Newfield Exploration Co.(b)		221,846
5,959	ONEOK, Inc.		351,224
4,381	Patterson-UTI Energy, Inc.		100,895
18,757	Peabody Energy Corp.(c)		195,636
4,203	Rowan Cos. PLC, Class A		102,007
1,218	SEACOR Holdings, Inc.(b)		100,424
8,623	Tesoro Corp.		615,768
2,152	Tidewater, Inc.		79,344
1,982	Unit Corp.(b)		95,969
2,904	Western Refining, Inc.		132,393
17,042	WPX Energy, Inc.(b)		325,843
			2,893,504
	Financials—21.3%
7,986	American Capital Ltd.(b)		118,432
3,197	American Financial Group, Inc.		191,276
98	American National Insurance Co.		11,180
4,231	Apartment Investment & Management Co., Class A REIT		151,427
6,679	Associated Banc-Corp.		125,565
4,163	Assurant, Inc.		284,000
6,402	Brandywine Realty Trust REIT		98,783
5,859	CBL & Associates Properties, Inc. REIT		112,083
5,843	Cincinnati Financial Corp.		294,896
5,441	CIT Group, Inc.		266,228
9,733	CNO Financial Group, Inc.		176,459
5,625	Columbia Property Trust, Inc. REIT		141,919
5,739	Comerica, Inc.		273,980
2,527	Commerce Bancshares, Inc.		114,372
1,487	Cullen/Frost Bankers, Inc.		120,164
6,007	DDR Corp. REIT		108,967
9,183	Duke Realty Corp. REIT		174,110
4,801	Equity Commonwealth REIT		128,235
4,617	Federated Investors, Inc., Class B		144,374
7,895	First Horizon National Corp.		101,530
1,895	Hanover Insurance Group, Inc. (The)		126,851
3,344	HCC Insurance Holdings, Inc.		174,523
6,671	Hospitality Properties Trust REIT		197,528
14,381	Host Hotels & Resorts, Inc. REIT		335,221
26,820	Hudson City Bancorp, Inc.		258,813
27,026	Huntington Bancshares, Inc.		267,828
5,233	Iron Mountain, Inc. REIT		188,754

Number of Shares			Value
	Common Stocks and Other Equity Interests (continued)
	Financials (continued)
1,022	Kemper Corp.	$	37,661
9,951	Kimco Realty Corp. REIT		248,277
3,456	Legg Mason, Inc.		179,712
4,367	Liberty Property Trust REIT		151,841
3,751	M&T Bank Corp.		458,297
5,467	Mack-Cali Realty Corp. REIT		102,397
4,564	McGraw Hill Financial, Inc.		412,951
21,169	New York Community Bancorp, Inc.		337,646
5,832	Northern Trust Corp.		386,662
10,952	Old Republic International Corp.		161,761
15,627	People’s United Financial, Inc.		228,467
6,641	PHH Corp.(b)		157,325
8,633	Piedmont Office Realty Trust, Inc., Class A REIT		167,912
4,451	Plum Creek Timber Co., Inc. REIT		182,535
9,424	Principal Financial Group, Inc.		493,535
3,514	Protective Life Corp.		244,856
2,140	Regency Centers Corp. REIT		129,898
7,567	Retail Properties of America, Inc., Class A REIT		118,726
1,688	StanCorp Financial Group, Inc.		117,417
4,337	Synovus Financial Corp.		109,986
5,793	TCF Financial Corp.		89,502
4,056	Torchmark Corp.		214,806
11,667	Unum Group		390,378
10,113	Valley National Bancorp(c)		100,928
4,352	W.R. Berkley Corp.		224,302
3,224	Weingarten Realty Investors REIT		116,870
12,542	XL Group PLC		424,923
6,336	Zions Bancorporation		183,554
			10,860,623
	Health Care—5.2%
32,029	Boston Scientific Corp.(b)		425,345
5,773	CareFusion Corp.(b)		331,197
7,832	Health Net, Inc.(b)		372,098
4,256	Hospira, Inc.(b)		228,547
4,295	Kindred Healthcare, Inc.		93,416
2,578	Laboratory Corp. of America Holdings(b)		281,750
2,431	LifePoint Hospitals, Inc.(b)		170,170
3,928	Owens & Minor, Inc.		130,881
5,429	Quest Diagnostics, Inc.		344,524
991	Teleflex, Inc.		113,093
2,288	WellCare Health Plans, Inc.(b)		155,287
			2,646,308
	Industrials—14.9%
7,114	ADT Corp. (The)		254,966
5,644	AECOM Technology Corp.(b)		183,712
4,474	AGCO Corp.		198,243
11,903	American Airlines Group, Inc.		492,189
2,565	Armstrong World Industries, Inc.(b)		124,197
7,412	Avis Budget Group, Inc.(b)		413,219
2,109	Cintas Corp.		154,463
2,726	Con-way, Inc.		118,227
7,570	Exelis, Inc.		135,125
4,446	General Cable Corp.		63,000
3,961	Harsco Corp.		85,874

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

19

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	16,901	Hertz Global Holdings, Inc.(b)	$	370,470
	7,428	Ingersoll-Rand PLC		465,141
	4,340	ITT Corp.		195,560
	14,417	JetBlue Airways Corp.(b)		166,372
	6,539	KBR, Inc.		124,764
	2,153	Kennametal, Inc.		83,127
	3,892	L-3 Communications Holdings, Inc.		472,722
	4,085	Manpowergroup, Inc.		272,674
	8,983	Masco Corp.		198,255
	4,499	MRC Global, Inc.(b)		94,614
	4,599	Navistar International Corp.(b)		162,667
	3,009	Oshkosh Corp.		134,683
	4,338	Owens Corning		139,076
	10,829	Pitney Bowes, Inc.		267,909
	16,413	R.R. Donnelley & Sons Co.		286,407
	2,542	Robert Half International, Inc.		139,251
	2,622	Rockwell Collins, Inc.		220,641
	2,708	Ryder System, Inc.		239,577
	4,018	Spirit Aerosystems Holdings, Inc., Class A(b)		158,068
	1,315	SPX Corp.		124,649
	3,389	Terex Corp.		97,502
	7,903	Textron, Inc.		328,212
	2,537	Timken Co. (The)		109,066
	3,865	Trinity Industries, Inc.		138,019
	1,937	United Rentals, Inc.(b)		213,186
	420	Vectrus, Inc.(b)		10,265
	1,682	WESCO International, Inc.(b)		138,614
				7,574,706
		Information Technology—7.7%
	30,123	Advanced Micro Devices, Inc.(b)(c)		84,344
	1,034	Anixter International, Inc.		88,066
	4,487	AOL, Inc.(b)		195,319
	5,748	Arrow Electronics, Inc.(b)		326,831
	4,059	Booz Allen Hamilton Holding Corp., Class A		106,955
	1,282	CACI International, Inc., Class A(b)		105,496
	6,253	Computer Sciences Corp.		377,681
	3,759	CoreLogic, Inc.(b)		117,920
	1,696	Insight Enterprises, Inc.(b)		38,584
	12,959	Jabil Circuit, Inc.		271,491
	4,947	Leidos Holdings, Inc.		180,912
	2,645	Lexmark International, Inc., Class A		114,158
	7,115	Maxim Integrated Products, Inc.		208,754
	4,449	Motorola Solutions, Inc.		286,960
	3,914	NCR Corp.(b)		108,300
	7,759	Sanmina Corp.(b)		194,518
	2,545	Science Applications International Corp.		124,476
	17,980	Symantec Corp.		446,264
	1,683	SYNNEX Corp.		116,430
	1,958	Tech Data Corp.(b)		116,932
	3,146	Total System Services, Inc.		106,303
	3,279	Unisys Corp.(b)		84,074
	7,056	Vishay Intertechnology, Inc.		95,327
				3,896,095
		Materials—7.2%
	4,815	Allegheny Technologies, Inc.		158,173

Number of Shares			Value
	Common Stocks and Other Equity Interests (continued)
	Materials (continued)
2,130	Ashland, Inc.	$	230,189
3,852	Avery Dennison Corp.		180,466
3,442	Ball Corp.		221,768
3,994	Bemis Co., Inc.		153,649
1,875	Cabot Corp.		87,056
7,323	Commercial Metals Co.		126,615
4,670	Crown Holdings, Inc.(b)		223,833
8,487	Huntsman Corp.		207,083
6,782	MeadWestvaco Corp.		299,561
6,831	Owens-Illinois, Inc.(b)		176,035
2,634	Reliance Steel & Aluminum Co.		177,742
3,383	RPM International, Inc.		153,250
3,714	Sonoco Products Co.		151,791
6,126	Southern Copper Corp.		176,306
10,315	Steel Dynamics, Inc.		237,348
1,268	Timkensteel Corp.		51,456
12,041	United States Steel Corp.		482,122
2,772	Vulcan Materials Co.		171,060
			3,665,503
	Telecommunication Services—2.4%
80,357	Frontier Communications Corp.		525,535
6,529	Telephone & Data Systems, Inc.		167,403
52,123	Windstream Holdings, Inc.		546,249
			1,239,187
	Utilities—9.8%
4,225	Alliant Energy Corp.		261,570
3,505	Atmos Energy Corp.		185,765
14,531	Calpine Corp.(b)		331,597
10,351	CMS Energy Corp.		338,167
7,158	Great Plains Energy, Inc.		192,765
3,732	Hawaiian Electric Industries, Inc.(c)		105,093
3,415	Integrys Energy Group, Inc.		248,202
4,920	MDU Resources Group, Inc.		138,646
1,897	National Fuel Gas Co.		131,329
10,827	NiSource, Inc.		455,384
5,836	OGE Energy Corp.		217,624
16,294	Pepco Holdings, Inc.		445,478
5,242	Pinnacle West Capital Corp.		322,226
3,644	Portland General Electric Co.		132,678
5,432	Questar Corp.		130,965
5,663	SCANA Corp.		310,842
1,216	Southwest Gas Corp.		70,637
12,565	TECO Energy, Inc.		246,400
6,855	UGI Corp.		258,365
2,748	Vectren Corp.		123,523
5,334	Westar Energy, Inc.		201,679
2,864	WGL Holdings, Inc.		134,608
			4,983,543
	Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $42,304,895)—99.9%		50,850,081

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, 2014

(Unaudited)

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.3%
	1,178,834	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $1,178,834)	$	1,178,834
		Total Investments (Cost $43,483,729)—102.2%		52,028,915
		Other assets less liabilities—(2.2%)		(1,141,439	)
		Net Assets—100.0%	$	50,887,476

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	1,139,209	$	(1,139,209	)	$	—

* Amount does not include excess collateral received, if any.

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

21

Portfolio Composition

PowerShares Fundamental Pure Small Core Portfolio (PXSC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	22.2
Industrials	20.5
Consumer Discretionary	16.9
Information Technology	11.6
Health Care	9.3
Materials	5.8
Consumer Staples	5.3
Energy	5.0
Utilities	1.7
Telecommunication Services	0.9
Money Market Fund Plus Other Assets Less Liabilities	0.8

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Core Portfolio (PXSC)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.2%
		Consumer Discretionary—16.9%
	3,030	Aaron’s, Inc.	$	75,023
	265	America’s Car-Mart, Inc.(b)		12,185
	4,007	Ascena Retail Group, Inc.(b)		49,887
	587	Bally Technologies, Inc.(b)		47,195
	610	BJ’s Restaurants, Inc.(b)		26,852
	1,460	Bloomin’ Brands, Inc.(b)		27,609
	671	Bravo Brio Restaurant Group, Inc.(b)		9,307
	365	Bright Horizons Family Solutions, Inc.(b)		16,264
	1,488	Buckle, Inc. (The)		73,403
	1,032	Cabela’s, Inc.(b)		49,557
	228	Capella Education Co.		16,129
	303	Carriage Services, Inc.		6,048
	1,043	Carter’s, Inc.		81,490
	880	Cheesecake Factory, Inc. (The)		40,427
	3,941	Chico’s FAS, Inc.		59,430
	936	Choice Hotels International, Inc.		50,076
	193	Collectors Universe, Inc.		4,748
	387	Conn’s, Inc.(b)		12,040
	141	Container Store Group, Inc. (The)(b)		2,600
	1,720	Core-Mark Holding Co., Inc.		99,812
	598	Cracker Barrel Old Country Store, Inc.		68,979
	237	Culp, Inc.		4,496
	1,717	DeVry Education Group, Inc.		83,120
	467	DineEquity, Inc.		41,544
	701	Domino’s Pizza, Inc.		62,242

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	382	Drew Industries, Inc.	$	18,359
	893	Entravision Communications Corp., Class A		4,608
	319	Extended Stay America, Inc.		7,356
	245	Fiesta Restaurant Group, Inc.(b)		13,512
	1,450	Finish Line, Inc. (The), Class A		38,381
	849	Genesco, Inc.(b)		65,110
	2,342	Gentex Corp.		76,677
	614	Houghton Mifflin Harcourt Co.(b)		12,286
	674	HSN, Inc.		44,531
	543	Interval Leisure Group, Inc.		11,425
	364	Jamba, Inc.(b)		4,859
	555	Kirkland’s, Inc.(b)		9,879
	986	La-Z-Boy, Inc.		22,540
	2,307	LeapFrog Enterprises, Inc.(b)		12,273
	1,337	Life Time Fitness, Inc.(b)		74,564
	493	LIN Media LLC, Class A(b)		11,797
	4,298	Live Nation Entertainment, Inc.(b)		111,748
	900	Madison Square Garden Co. (The), Class A(b)		68,184
	448	MDC Partners, Inc., Class A		9,274
	160	Motorcar Parts of America, Inc.(b)		4,646
	331	Movado Group, Inc.		11,684
	312	Multimedia Games Holding Co., Inc.(b)		10,889
	1,880	National CineMedia, Inc.		29,892
	1,578	Norwegian Cruise Line Holdings Ltd.(b)		61,542
	838	Outerwall, Inc.(b)		53,020

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

22

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	552	Overstock.com, Inc.(b)	$	12,762
	261	Oxford Industries, Inc.		15,986
	508	Papa John’s International, Inc.		23,754
	756	Pool Corp.		45,133
	4,416	PulteGroup, Inc.		84,743
	411	Remy International, Inc.		7,595
	2,985	Sally Beauty Holdings, Inc.(b)		87,490
	1,156	Select Comfort Corp.(b)		29,698
	503	Shoe Carnival, Inc.		9,255
	1,316	Sinclair Broadcast Group, Inc., Class A		38,230
	608	Skullcandy, Inc.(b)		5,071
	1,110	Sotheby’s		44,023
	589	Standard Motor Products, Inc.		23,277
	2,269	Standard Pacific Corp.(b)		16,791
	1,519	Starz, Class A(b)		46,937
	91	Strattec Security Corp.		9,438
	807	Taylor Morrison Home Corp., Class A(b)		13,913
	384	Tilly’s, Inc., Class A(b)		2,734
	1,057	Tupperware Brands Corp.		67,384
	392	Universal Electronics, Inc.(b)		22,301
	2,280	Urban Outfitters, Inc.(b)		69,221
	602	Vail Resorts, Inc.		51,989
	1,849	Wolverine World Wide, Inc.		50,182
	674	Zumiez, Inc.(b)		22,498
				2,609,904
		Consumer Staples—5.3%
	1,181	Andersons, Inc. (The)		75,265
	1,288	B&G Foods, Inc.		37,944
	348	Calavo Growers, Inc.		16,892
	700	Diamond Foods, Inc.(b)		21,105
	4,248	Flowers Foods, Inc.		80,712
	732	Fresh Market, Inc. (The)(b)		26,872
	2,439	Harbinger Group, Inc.(b)		32,048
	245	J & J Snack Foods Corp.		25,242
	414	Lancaster Colony Corp.		37,877
	322	Nature’s Sunshine Products, Inc.		4,798
	1,326	Pinnacle Foods, Inc.		44,819
	536	Sanderson Farms, Inc.		45,013
	8	Seaboard Corp.(b)		24,583
	1,719	Snyder’s-Lance, Inc.		51,209
	390	Tootsie Roll Industries, Inc., Class A		11,564
	1,037	TreeHouse Foods, Inc.(b)		88,321
	1,353	United Natural Foods, Inc.(b)		92,031
	124	USANA Health Sciences, Inc.(b)		14,134
	2,305	WhiteWave Foods Co. (The)(b)		85,815
				816,244
		Energy—5.0%
	1,716	Atwood Oceanics, Inc.(b)		69,755
	860	Bristow Group, Inc.		63,554
	166	Clayton Williams Energy, Inc.(b)		13,801
	2,285	Delek US Holdings, Inc.		77,439
	1,721	Dresser-Rand Group, Inc.(b)		140,606
	464	Dril-Quip, Inc.(b)		41,737
	546	Era Group, Inc.(b)		12,771
	685	Goodrich Petroleum Corp.(b)		5,644

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	1,515	Green Plains, Inc.	$	51,813
	773	Gulfmark Offshore, Inc., Class A		23,314
	514	Hallador Energy Co.		6,168
	553	Matrix Service Co.(b)		13,858
	2,176	Midstates Petroleum Co., Inc.(b)		6,463
	248	Natural Gas Services Group, Inc.(b)		6,381
	802	Nuverra Environmental Solutions, Inc.(b)		7,595
	232	Panhandle Oil and Gas, Inc., Class A		4,770
	676	PDC Energy, Inc.(b)		29,555
	224	REX American Resources Corp.(b)		16,298
	975	Rosetta Resources, Inc.(b)		37,079
	875	SemGroup Corp., Class A		67,156
	877	SM Energy Co.		49,375
	642	TGC Industries, Inc.(b)		2,016
	9,427	Vantage Drilling Co.(b)		9,121
	510	Westmoreland Coal Co.(b)		18,651
				774,920
		Financials—22.2%
	1,218	Acadia Realty Trust REIT		38,002
	258	Access National Corp.		4,347
	320	Agree Realty Corp. REIT		9,795
	54	Alexander’s, Inc. REIT		23,868
	3,542	American Capital Mortgage Investment Corp. REIT		69,388
	3,071	American Equity Investment Life Holding Co.		79,263
	402	AmREIT, Inc. REIT		9,905
	2,046	Apollo Residential Mortgage, Inc. REIT		34,127
	393	Arlington Asset Investment Corp., Class A		10,760
	64	Artisan Partners Asset Management, Inc., Class A		3,103
	346	Banc of California, Inc.		4,072
	588	Bancorp, Inc. (The)(b)		5,562
	155	Bank of Kentucky Financial Corp. (The)		7,271
	149	Bank of Marin Bancorp		7,438
	2,203	BankUnited, Inc.		65,870
	854	Berkshire Hills Bancorp, Inc.		22,016
	4,316	BGC Partners, Inc., Class A		36,600
	255	Bridge Bancorp, Inc.		6,696
	163	Bridge Capital Holdings(b)		3,932
	2,505	Brown & Brown, Inc.		79,809
	309	Bryn Mawr Bank Corp.		9,526
	87	BSB Bancorp, Inc.(b)		1,661
	685	Centerstate Banks, Inc.		7,973
	294	CNB Financial Corp.		5,324
	1,200	Community Bank System, Inc.		45,780
	241	ConnectOne Bancorp, Inc.		4,458
	2,428	Corrections Corp. of America REIT		89,302
	3,313	Cowen Group, Inc., Class A(b)		13,385
	2,074	CubeSmart REIT		43,658
	73	Diamond Hill Investment Group, Inc.		9,781
	2,620	East West Bancorp, Inc.		96,311
	657	EastGroup Properties, Inc. REIT		45,241
	2,338	Eaton Vance Corp.		86,109
	2,817	Education Realty Trust, Inc. REIT		31,719
	160	eHealth, Inc.(b)		3,992
	547	Empire State Realty Trust, Inc., Class A REIT		8,730

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,684	Equity One, Inc. REIT	$	40,416
	329	Erie Indemnity Co., Class A		27,922
	2,992	EZCORP, Inc., Class A(b)		33,750
	350	Fidelity Southern Corp.		5,373
	2,599	First Financial Bancorp		45,586
	1,041	First Financial Bankshares, Inc.		33,083
	1,890	First Industrial Realty Trust, Inc. REIT		36,912
	301	First of Long Island Corp. (The)		7,928
	239	Fox Chase Bancorp, Inc.		3,915
	211	Franklin Financial Corp.(b)		4,380
	1,721	Geo Group, Inc. (The) REIT		68,737
	318	German American Bancorp, Inc.		9,499
	547	Gladstone Commercial Corp. REIT		9,901
	903	Gladstone Investment Corp.		6,637
	3,771	Glimcher Realty Trust REIT		51,776
	2,991	Healthcare Realty Trust, Inc. REIT		79,172
	1,209	Hercules Technology Growth Capital, Inc.		19,054
	780	Heritage Financial Corp.		13,689
	6,613	Hersha Hospitality Trust REIT		48,209
	2,480	Highwoods Properties, Inc. REIT		106,318
	139	Home Bancorp, Inc.(b)		3,168
	1,521	Home Properties, Inc. REIT		97,816
	432	HomeStreet, Inc.		7,525
	802	IBERIABANK Corp.		55,226
	654	Independent Bank Corp.		26,683
	416	Lakeland Financial Corp.		17,239
	2,138	LaSalle Hotel Properties REIT		83,831
	601	LTC Properties, Inc. REIT		25,206
	4,939	MBIA, Inc.(b)		48,205
	121	Meta Financial Group, Inc.		4,539
	226	MidSouth Bancorp, Inc.		4,280
	180	MidWestOne Financial Group, Inc.		4,802
	1,175	Monmouth Real Estate Investment Corp. REIT		13,160
	310	National Health Investors, Inc. REIT		20,432
	4,013	National Penn Bancshares, Inc.		41,294
	2,465	National Retail Properties, Inc. REIT		93,966
	399	NewStar Financial, Inc.(b)		5,458
	410	Nicholas Financial, Inc.(b)		5,006
	254	OmniAmerican Bancorp, Inc.		6,868
	307	Pacific Premier Bancorp, Inc.(b)		4,970
	1,005	Parkway Properties, Inc. REIT		20,150
	460	PICO Holdings, Inc.(b)		10,166
	683	Pinnacle Financial Partners, Inc.		26,774
	1,052	Post Properties, Inc. REIT		58,849
	1,280	PrivateBancorp, Inc.		41,370
	1,868	ProAssurance Corp.		87,385
	1,112	Prosperity Bancshares, Inc.		67,154
	387	PS Business Parks, Inc. REIT		32,593
	1,736	Radian Group, Inc.		29,252
	5,638	Resource Capital Corp. REIT		29,825
	639	Rouse Properties, Inc. REIT		11,636
	373	Safeguard Scientifics, Inc.(b)		7,441
	2,991	Santander Consumer USA Holdings, Inc.		55,334
	278	Saul Centers, Inc. REIT		15,276
	2,096	SEI Investments Co.		81,031
	708	Select Income REIT		17,353

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	564	Southside Bancshares, Inc.	$	18,939
	603	Sovran Self Storage, Inc. REIT		51,309
	3,307	Spirit Realty Capital, Inc. REIT		39,353
	1,379	Sterling Bancorp		19,389
	1,871	Summit Hotel Properties, Inc. REIT		21,778
	4,875	Symetra Financial Corp.		115,538
	970	Taubman Centers, Inc. REIT		73,769
	276	Territorial Bancorp, Inc.		5,928
	1,386	TFS Financial Corp.		20,707
	358	Tompkins Financial Corp.		17,972
	912	UMB Financial Corp.		54,337
	634	UMH Properties, Inc. REIT		6,403
	680	Union Bankshares Corp.		15,286
	1,460	United Financial Bancorp, Inc.		20,484
	210	Universal Health Realty Income Trust REIT		10,175
	427	Walker & Dunlop, Inc.(b)		6,879
	1,054	Western Alliance Bancorp(b)		28,057
	1,172	Wintrust Financial Corp.		54,287
	197	WSFS Financial Corp.		15,494
				3,434,378
		Health Care—9.3%
	150	Addus HomeCare Corp.(b)		2,981
	318	Almost Family, Inc.(b)		9,362
	2,594	Alphatec Holdings, Inc.(b)		3,943
	183	Analogic Corp.		13,348
	858	AngioDynamics, Inc.(b)		14,586
	31	Atrion Corp.		10,230
	587	Bio-Rad Laboratories, Inc., Class A(b)		66,225
	1,528	Bruker Corp.(b)		31,675
	449	Capital Senior Living Corp.(b)		10,103
	453	Chemed Corp.		46,822
	182	Computer Programs & Systems, Inc.		11,462
	553	CONMED Corp.		23,220
	148	CorVel Corp.(b)		5,094
	864	Covance, Inc.(b)		69,034
	210	Cynosure, Inc., Class A(b)		5,311
	587	Emergent Biosolutions, Inc.(b)		13,278
	1,042	Envision Healthcare Holdings, Inc.(b)		36,418
	301	Exactech, Inc.(b)		6,411
	664	Greatbatch, Inc.(b)		33,326
	1,074	Haemonetics Corp.(b)		40,511
	968	Hanger, Inc.(b)		23,164
	2,162	HealthSouth Corp.		87,193
	270	ICU Medical, Inc.(b)		19,143
	1,668	Impax Laboratories, Inc.(b)		48,322
	538	Integra LifeSciences Holdings Corp.(b)		27,497
	299	Landauer, Inc.		10,701
	985	Meridian Bioscience, Inc.		18,262
	1,159	Merit Medical Systems, Inc.(b)		17,559
	468	Omnicell, Inc.(b)		15,121
	2,108	Patterson Cos., Inc.		90,876
	2,036	PerkinElmer, Inc.		88,403
	978	Prestige Brands Holdings, Inc.(b)		34,641
	1,413	Quality Systems, Inc.		21,350
	298	Quidel Corp.(b)		8,508
	765	Quintiles Transnational Holdings, Inc.(b)		44,783

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	2,213	Rigel Pharmaceuticals, Inc.(b)	$	4,382
	2,089	RTI Surgical, Inc.(b)		10,633
	5,095	Select Medical Holdings Corp.		73,470
	790	Sirona Dental Systems, Inc.(b)		62,055
	1,664	STERIS Corp.		102,835
	75	Utah Medical Products, Inc.		4,260
	2,210	VCA, Inc.(b)		100,710
	668	VIVUS, Inc.(b)		2,265
	996	West Pharmaceutical Services, Inc.		51,045
	801	Wright Medical Group, Inc.(b)		25,328
				1,445,846
		Industrials—20.5%
	1,157	A.O. Smith Corp.		61,726
	433	AAON, Inc.		8,508
	497	Aceto Corp.		11,302
	1,349	Actuant Corp., Class A		42,750
	462	Acuity Brands, Inc.		64,417
	1,716	Aegion Corp.(b)		31,437
	175	Alamo Group, Inc.		7,497
	498	Altra Industrial Motion Corp.		15,697
	151	AMERCO		40,939
	764	Ameresco, Inc., Class A(b)		6,295
	155	American Railcar Industries, Inc.		10,201
	2,053	Babcock & Wilcox Co. (The)		58,716
	106	Barrett Business Services, Inc.		2,492
	1,442	Beacon Roofing Supply, Inc.(b)		39,900
	1,831	Blount International, Inc.(b)		28,033
	505	CAI International, Inc.(b)		10,630
	625	Celadon Group, Inc.		12,163
	297	CIRCOR International, Inc.		22,320
	888	CLARCOR, Inc.		59,461
	1,403	Copart, Inc.(b)		46,916
	404	Corporate Executive Board Co. (The)		29,775
	500	Cubic Corp.		24,120
	1,000	Curtiss-Wright Corp.		69,210
	800	DigitalGlobe, Inc.(b)		22,872
	1,919	Donaldson Co., Inc.		79,792
	1,121	EnerSys		70,399
	212	Erickson, Inc.(b)		2,976
	755	ESCO Technologies, Inc.		28,705
	756	Esterline Technologies Corp.(b)		88,535
	176	Exponent, Inc.		14,048
	469	Forward Air Corp.		22,451
	628	Franklin Electric Co., Inc.		23,450
	1,524	Generac Holdings, Inc.(b)		69,098
	520	Global Power Equipment Group, Inc.		7,088
	335	Gorman-Rupp Co. (The)		10,633
	303	GP Strategies Corp.(b)		10,047
	716	Graco, Inc.		56,206
	115	Graham Corp.		3,853
	2,153	Griffon Corp.		26,460
	1,985	HD Supply Holdings, Inc.(b)		57,247
	1,236	Healthcare Services Group, Inc.		36,808
	1,642	Hillenbrand, Inc.		54,662
	1,262	Hub Group, Inc., Class A(b)		45,798
	427	Huron Consulting Group, Inc.(b)		29,723

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,248	IDEX Corp.	$	93,488
	1,630	InnerWorkings, Inc.(b)		14,800
	2,794	KAR Auction Services, Inc.		84,826
	1,988	Kratos Defense & Security Solutions, Inc.(b)		13,856
	915	Landstar System, Inc.		67,719
	1,307	Lincoln Electric Holdings, Inc.		94,731
	731	Marten Transport Ltd.		14,342
	906	Mobile Mini, Inc.		39,710
	1,328	Moog, Inc., Class A(b)		101,645
	892	MSC Industrial Direct Co., Inc., Class A		72,225
	883	MYR Group, Inc.(b)		22,905
	699	Nordson Corp.		53,508
	1,566	Orbital Sciences Corp.(b)		41,186
	119	Patrick Industries, Inc.(b)		5,084
	261	Powell Industries, Inc.		11,883
	227	PowerSecure International, Inc.(b)		2,536
	356	RBC Bearings, Inc.		21,627
	1,242	Regal-Beloit Corp.		88,145
	4,466	Southwest Airlines Co.		153,988
	517	SP Plus Corp.(b)		11,281
	140	Sparton Corp.(b)		3,794
	240	Stock Building Supply Holdings, Inc.(b)		3,766
	1,920	Swift Transportation Co.(b)		47,424
	1,244	TAL International Group, Inc.(b)		53,654
	239	TASER International, Inc.(b)		4,503
	453	Team, Inc.(b)		19,089
	771	Teledyne Technologies, Inc.(b)		79,899
	330	Tennant Co.		24,331
	2,182	Tetra Tech, Inc.		58,499
	446	Thermon Group Holdings, Inc.(b)		10,869
	1,750	Titan International, Inc.		18,480
	1,708	Titan Machinery, Inc.(b)		23,502
	772	Toro Co. (The)		47,656
	266	Trex Co., Inc.(b)		11,438
	302	UniFirst Corp.		33,691
	166	Universal Truckload Services, Inc.		4,369
	339	US Ecology, Inc.		17,045
	1,222	Wabash National Corp.(b)		12,587
	635	WABCO Holdings, Inc.(b)		61,836
	782	Watsco, Inc.		79,467
	1,084	Wesco Aircraft Holdings, Inc.(b)		19,241
	1,262	Woodward, Inc.		64,627
				3,174,608
		Information Technology—11.6%
	1,604	ARRIS Group, Inc.(b)		48,152
	135	Aspen Technology, Inc.(b)		4,986
	249	Badger Meter, Inc.		14,173
	614	Blackbaud, Inc.		27,323
	2,536	Broadridge Financial Solutions, Inc.		111,406
	169	Cass Information Systems, Inc.		8,034
	772	Ciena Corp.(b)		12,939
	491	Coherent, Inc.(b)		31,989
	421	Computer Task Group, Inc.		3,705
	329	Comverse, Inc.(b)		7,172
	1,032	CSG Systems International, Inc.		27,358
	465	Dealertrack Technologies, Inc.(b)		21,878

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	323	Demand Media, Inc.(b)	$	2,274
	1,038	Dolby Laboratories, Inc., Class A		43,513
	611	DST Systems, Inc.		58,870
	358	DTS, Inc.(b)		10,661
	1,477	EchoStar Corp., Class A(b)		69,020
	605	Electronics for Imaging, Inc.(b)		27,661
	2,950	Entropic Communications, Inc.(b)		7,375
	900	EPIQ Systems, Inc.		14,436
	640	Exar Corp.(b)		6,112
	1,596	Extreme Networks, Inc.(b)		5,730
	210	FARO Technologies, Inc.(b)		11,760
	318	Forrester Research, Inc.		12,809
	1,100	Global Payments, Inc.		88,550
	920	Heartland Payment Systems, Inc.		47,518
	1,539	II-VI, Inc.(b)		20,761
	1,641	Infinera Corp.(b)		23,844
	1,117	Intralinks Holdings, Inc.(b)		9,651
	4,469	JDS Uniphase Corp.(b)		60,153
	294	KVH Industries, Inc.(b)		3,798
	2,011	Lattice Semiconductor Corp.(b)		13,494
	1,942	Limelight Networks, Inc.(b)		4,738
	390	Manhattan Associates, Inc.(b)		15,643
	1,504	ManTech International Corp., Class A		42,353
	2,391	Mentor Graphics Corp.		50,665
	1,139	Mercury Systems, Inc.(b)		15,923
	107	MicroStrategy, Inc., Class A(b)		17,214
	472	MoneyGram International, Inc.(b)		4,059
	270	MTS Systems Corp.		17,823
	472	Nanometrics, Inc.(b)		6,391
	1,636	National Instruments Corp.		51,828
	1,183	NETGEAR, Inc.(b)		40,269
	1,346	NeuStar, Inc., Class A(b)		35,548
	2,567	Oclaro, Inc.(b)		4,030
	956	PC Connection, Inc.		22,801
	495	PC-Tel, Inc.		3,811
	554	Perficient, Inc.(b)		9,185
	801	Plantronics, Inc.		41,548
	1,288	PTC, Inc.(b)		49,137
	1,137	Rambus, Inc.(b)		13,019
	323	Rightside Group Ltd.(b)		3,059
	345	Rogers Corp.(b)		23,588
	548	Rosetta Stone, Inc.(b)		5,244
	593	Rubicon Technology, Inc.(b)		2,627
	706	Seachange International, Inc.(b)		4,773
	1,228	Semtech Corp.(b)		31,167
	589	ServiceSource International, Inc.(b)		2,250
	585	Silicon Laboratories, Inc.(b)		26,670
	656	SunPower Corp.(b)		20,887
	2,222	Take-Two Interactive Software, Inc.(b)		58,772
	1,195	Telenav, Inc.(b)		8,628
	4,440	Teradyne, Inc.		81,696
	232	Tessco Technologies, Inc.		7,366
	1,089	Tessera Technologies, Inc.		33,095
	2,143	TIBCO Software, Inc.(b)		50,082
	4,492	TriQuint Semiconductor, Inc.(b)		97,162
	947	Veeco Instruments, Inc.(b)		34,082
				1,794,238

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials—5.8%
	1,470	AptarGroup, Inc.	$	91,493
	1,452	Axiall Corp.		58,516
	3,009	Berry Plastics Group, Inc.(b)		78,294
	1,041	Calgon Carbon Corp.(b)		21,892
	132	Chase Corp.		4,735
	720	Clearwater Paper Corp.(b)		46,332
	759	Compass Minerals International, Inc.		65,031
	128	Deltic Timber Corp.		8,332
	356	Eagle Materials, Inc.		31,125
	719	FutureFuel Corp.		9,577
	299	Hawkins, Inc.		11,514
	765	Innophos Holdings, Inc.		43,605
	520	Innospec, Inc.		20,992
	2,131	Intrepid Potash, Inc.(b)		28,662
	288	KMG Chemicals, Inc.		5,098
	967	Landec Corp.(b)		12,175
	2,088	Louisiana-Pacific Corp.(b)		30,485
	693	LSB Industries, Inc.(b)		26,008
	205	NewMarket Corp.		79,542
	1,622	OMNOVA Solutions, Inc.(b)		11,403
	1,490	PolyOne Corp.		55,145
	279	Quaker Chemical Corp.		22,900
	712	Schweitzer-Mauduit International, Inc.		30,659
	560	Stepan Co.		24,797
	3,514	Stillwater Mining Co.(b)		46,139
	770	Taminco Corp.(b)		19,935
	309	Trecora Resources(b)		4,063
	155	UFP Technologies, Inc.(b)		3,413
	833	Zep, Inc.		13,378
				905,240
		Telecommunication Services—0.9%
	277	Atlantic Tele-Network, Inc.		18,612
	983	IDT Corp., Class B		16,200
	1,414	Inteliquent, Inc.		23,798
	3,839	Iridium Communications, Inc.(b)		36,470
	572	Shenandoah Telecommunications Co.		16,925
	5,661	Vonage Holdings Corp.(b)		19,700
				131,705
		Utilities—1.7%
	1,062	American States Water Co.		37,998
	3,862	Aqua America, Inc.		101,185
	438	Chesapeake Utilities Corp.		21,212
	280	Connecticut Water Service, Inc.		10,408
	2,105	UIL Holdings Corp.		86,600
	333	York Water Co. (The)		7,319
				264,722
		Total Common Stocks and Other Equity Interests (Cost $13,587,231)		15,351,805

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, 2014

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.3%
	52,911	Invesco Premier Portfolio—Institutional Class(c) (Cost $52,911)	$	52,911
		Total Investments (Cost $13,640,142)—99.5%		15,404,716
		Other assets less liabilities—0.5%		70,510
		Net Assets—100.0%	$	15,475,226

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.

27

Portfolio Composition

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	27.6
Information Technology	22.6
Industrials	13.2
Consumer Discretionary	13.1
Health Care	11.8
Energy	4.4
Consumer Staples	3.0
Materials	2.9
Utilities	1.2
Telecommunication Services	0.2
Money Market Funds Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—13.1%
	1,842	AMC Networks, Inc., Class A(b)	$	111,717
	840	American Public Education, Inc.(b)		26,032
	1,556	Black Diamond, Inc.(b)		12,075
	2,981	Bridgepoint Education, Inc.(b)		37,680
	649	Buffalo Wild Wings, Inc.(b)		96,883
	338	Cavco Industries, Inc.(b)		24,630
	729	Churchill Downs, Inc.		74,343
	372	Chuy’s Holdings, Inc.(b)		11,126
	5,908	Cumulus Media, Inc., Class A(b)		22,805
	1,810	Deckers Outdoor Corp.(b)		158,303
	1,152	Del Frisco’s Restaurant Group, Inc.(b)		26,749
	651	Diamond Resorts International, Inc.(b)		16,900
	1,086	Dorman Products, Inc.(b)		50,347
	5,180	DSW, Inc., Class A		153,587
	2,831	Dunkin’ Brands Group, Inc.		128,754
	2,134	Five Below, Inc.(b)		85,083
	2,003	Fossil Group, Inc.(b)		203,625
	2,544	Francesca’s Holdings Corp.(b)		30,299
	1,089	Gentherm, Inc.(b)		45,411
	1,278	G-III Apparel Group Ltd.(b)		101,409
	4,347	GNC Holdings, Inc., Class A		180,705
	1,144	Grand Canyon Education, Inc.(b)		54,798
	6,334	Groupon, Inc.(b)		46,302
	1,256	Hibbett Sports, Inc.(b)		57,010
	6,086	Hilton Worldwide Holdings, Inc.(b)		153,611

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	3,529	Iconix Brand Group, Inc.(b)	$	141,195
	1,002	iRobot Corp.(b)		35,791
	2,353	K12, Inc.(b)		29,177
	2,353	Krispy Kreme Doughnuts, Inc.(b)		44,519
	708	LifeLock, Inc.(b)		11,972
	3,814	Lions Gate Entertainment Corp.		126,358
	618	Lumber Liquidators Holdings, Inc.(b)		33,230
	669	Mattress Firm Holding Corp.(b)		42,274
	1,240	Monro Muffler Brake, Inc.		66,266
	574	Morningstar, Inc.		39,175
	954	Nexstar Broadcasting Group, Inc., Class A		43,044
	1,119	Panera Bread Co., Class A(b)		180,875
	5,116	Pier 1 Imports, Inc.		65,996
	569	Popeyes Louisiana Kitchen, Inc.(b)		26,373
	1,125	Restoration Hardware Holdings, Inc.(b)		90,360
	2,834	Scripps Networks Interactive, Inc., Class A		218,898
	1,643	Shutterfly, Inc.(b)		68,727
	3,760	Six Flags Entertainment Corp.		151,528
	3,974	Smith & Wesson Holding Corp.(b)(c)		40,376
	3,002	Steven Madden Ltd.(b)		94,113
	928	Sturm Ruger & Co., Inc.(c)		38,679
	3,745	Texas Roadhouse, Inc.		108,118
	1,742	Tumi Holdings, Inc.(b)		36,181
	1,689	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		204,048
	980	Vera Bradley, Inc.(b)		22,344

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

28

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	2,147	Vitamin Shoppe, Inc.(b)	$	100,759
	591	WCI Communities, Inc.(b)		11,087
				3,981,647
		Consumer Staples—3.0%
	188	Boston Beer Co., Inc. (The), Class A(b)		46,812
	2,899	Boulder Brands, Inc.(b)		25,743
	788	Chefs’ Warehouse, Inc. (The)(b)		14,082
	4,607	Coty, Inc., Class A(b)		76,476
	9,100	Darling Ingredients, Inc.(b)		160,160
	1,715	Hain Celestial Group, Inc. (The)(b)		185,649
	1,099	Inter Parfums, Inc.		31,212
	872	Medifast, Inc.(b)		27,677
	2,096	Nu Skin Enterprises, Inc., Class A		110,732
	747	PriceSmart, Inc.		66,505
	1,337	Spectrum Brands Holdings, Inc.		121,119
	1,875	Sprouts Farmers Market, Inc.(b)		54,581
				920,748
		Energy—4.4%
	539	Antero Resources Corp.(b)		28,265
	2,643	Approach Resources, Inc.(b)(c)		26,166
	967	Bonanza Creek Energy, Inc.(b)		43,747
	6,704	BPZ Resources, Inc.(b)(c)		8,313
	3,536	C&J Energy Services, Inc.(b)		68,280
	803	CARBO Ceramics, Inc.(c)		41,491
	1,747	Carrizo Oil & Gas, Inc.(b)		90,739
	3,780	Clean Energy Fuels Corp.(b)(c)		27,632
	8,685	Cobalt International Energy, Inc.(b)		101,701
	1,094	Contango Oil & Gas Co.(b)		40,008
	1,840	Continental Resources, Inc.(b)		103,721
	367	Diamondback Energy, Inc.(b)		25,117
	3,666	Forum Energy Technologies, Inc.(b)		100,082
	404	Geospace Technologies Corp.(b)		12,439
	1,687	Gulfport Energy Corp.(b)		84,654
	17,329	Halcon Resources Corp.(b)(c)		53,893
	7,765	Kodiak Oil & Gas Corp.(b)		83,784
	1,926	Laredo Petroleum, Inc.(b)		36,517
	3,412	Magnum Hunter Resources Corp.(b)(c)		15,832
	1,073	Matador Resources Co.(b)		26,042
	2,147	Miller Energy Resources, Inc.(b)		7,471
	3,652	Northern Oil and Gas, Inc.(b)(c)		41,268
	2,009	Oasis Petroleum, Inc.(b)		60,190
	3,115	Renewable Energy Group, Inc.(b)		32,801
	6,406	Resolute Energy Corp.(b)		22,293
	2,146	Rex Energy Corp.(b)		16,825
	424	RigNet, Inc.(b)		18,423
	3,671	RPC, Inc.		60,204
	500	RSP Permian, Inc.(b)		12,235
	774	Sanchez Energy Corp.(b)(c)		13,212
	1,586	Triangle Petroleum Corp.(b)		12,291
				1,315,636
		Financials—27.6%
	3,073	American Assets Trust, Inc. REIT		117,819
	3,765	American Homes 4 Rent, Class A REIT		66,000
	1,995	AmTrust Financial Services, Inc.(c)		89,516

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	3,404	Apollo Commercial Real Estate Finance, Inc. REIT	$	55,962
	899	Ares Commercial Real Estate Corp. REIT		10,932
	36,954	ARMOUR Residential REIT, Inc. REIT		146,338
	3,531	Associated Estates Realty Corp. REIT		68,960
	690	Aviv REIT, Inc. REIT		23,274
	2,115	Bank of the Ozarks, Inc.		74,533
	3,999	BBCN Bancorp, Inc.		56,546
	1,235	BNC Bancorp		21,007
	262	BofI Holding, Inc.(b)		20,179
	4,238	Campus Crest Communities, Inc. REIT		26,869
	2,246	Capital Bank Financial Corp., Class A(b)		58,149
	1,908	Cardinal Financial Corp.		36,634
	1,462	CareTrust REIT, Inc. REIT(b)		22,705
	2,526	CBOE Holdings, Inc.		148,882
	18,360	Chambers Street Properties REIT		150,736
	1,185	Chatham Lodging Trust REIT		30,360
	2,860	Chesapeake Lodging Trust REIT		94,494
	52,350	Chimera Investment Corp. REIT		163,332
	3,146	Colony Financial, Inc. REIT		70,093
	3,336	Columbia Banking System, Inc.		92,674
	1,000	CoreSite Realty Corp. REIT		37,020
	254	Credit Acceptance Corp.(b)		37,480
	1,722	Customers Bancorp, Inc.(b)		32,890
	2,167	CyrusOne, Inc. REIT		59,181
	4,175	DuPont Fabros Technology, Inc. REIT		129,300
	7,230	Dynex Capital, Inc. REIT		60,877
	727	Eagle Bancorp, Inc.(b)		26,121
	1,288	Encore Capital Group, Inc.(b)		58,617
	3,559	Equity Lifestyle Properties, Inc. REIT		174,747
	6,893	EverBank Financial Corp.		132,001
	803	Evercore Partners, Inc., Class A		41,571
	3,163	Excel Trust, Inc. REIT		41,119
	3,940	Extra Space Storage, Inc. REIT		229,150
	1,505	Fidelity & Guaranty Life		35,744
	800	Fidus Investment Corp.		13,584
	468	Financial Engines, Inc.		18,659
	1,298	First Cash Financial Services, Inc.(b)		76,686
	685	First Connecticut Bancorp, Inc.		10,713
	475	First NBC Bank Holding Co.(b)		17,447
	5,319	Government Properties Income Trust REIT		121,380
	2,194	Green Dot Corp., Class A(b)		52,437
	1,354	GSV Capital Corp.(b)		13,147
	7,842	Hancock Holding Co.		275,960
	330	HCI Group, Inc.		16,777
	12,197	Healthcare Trust of America, Inc., Class A REIT		156,609
	1,036	HFF, Inc., Class A		32,613
	1,592	Home BancShares, Inc.		50,817
	1,031	Howard Hughes Corp. (The)(b)		151,949
	2,167	Hudson Pacific Properties, Inc. REIT		59,181
	1,916	INTL FCStone, Inc.(b)		34,680
	3,776	Investors Bancorp, Inc.		40,592
	1,064	Kennedy-Wilson Holdings, Inc.		28,824
	4,489	Kilroy Realty Corp. REIT		304,085
	898	MarketAxess Holdings, Inc.		58,056
	10,194	Medical Properties Trust, Inc. REIT		137,517

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,185	Medley Capital Corp.	$	25,390
	3,227	Mid-America Apartment Communities, Inc. REIT		228,020
	5,027	MSCI, Inc.		234,560
	616	Nationstar Mortgage Holdings, Inc.(b)		21,634
	5,329	New York Mortgage Trust, Inc. REIT(c)		41,619
	976	Northfield Bancorp, Inc.		13,898
	5,690	Northstar Asset Management Group, Inc.(b)		103,103
	5,691	NorthStar Realty Finance Corp. REIT		105,739
	4,279	Ocwen Financial Corp.(b)		100,813
	6,609	OMEGA Healthcare Investors, Inc. REIT(c)		252,199
	2,846	Oritani Financial Corp.		42,035
	1,829	Park Sterling Corp.		14,010
	3,017	Pebblebrook Hotel Trust REIT		128,524
	6,378	PennyMac Mortgage Investment Trust REIT		137,701
	2,100	Portfolio Recovery Associates, Inc.(b)		132,825
	674	Regional Management Corp.(b)		7,859
	3,075	Retail Opportunity Investments Corp. REIT		50,245
	8,260	RLJ Lodging Trust REIT		266,137
	1,613	Signature Bank(b)		195,383
	942	South State Corp.		56,812
	1,549	STAG Industrial, Inc. REIT		37,796
	11,145	Starwood Property Trust, Inc. REIT		251,431
	3,997	Stifel Financial Corp.(b)		189,897
	2,287	Sun Communities, Inc. REIT		132,577
	2,080	SVB Financial Group(b)		232,939
	4,393	Tanger Factory Outlet Centers, Inc. REIT		157,138
	525	Tejon Ranch Co.(b)		15,844
	908	Terreno Realty Corp. REIT		19,122
	1,792	Texas Capital Bancshares, Inc.(b)		109,581
	28,447	Two Harbors Investment Corp. REIT		288,168
	1,900	ViewPoint Financial Group, Inc.		51,813
	180	Virtus Investment Partners, Inc.		32,258
	3,562	Waddell & Reed Financial, Inc., Class A		170,050
	3,188	Walter Investment Management Corp.(b)		72,431
	417	Westwood Holdings Group, Inc.		28,148
	1,497	Whitestone REIT		22,455
				8,383,679
		Health Care—11.8%
	646	Abaxis, Inc.		34,018
	453	Abiomed, Inc.(b)		14,854
	597	Acadia Healthcare Co., Inc.(b)		37,044
	2,494	Accuray, Inc.(b)		15,787
	1,025	Acorda Therapeutics, Inc.(b)		35,690
	1,584	Air Methods Corp.(b)		74,812
	836	Akorn, Inc.(b)		37,244
	1,305	Align Technology, Inc.(b)		68,669
	9,564	Allscripts Healthcare Solutions, Inc.(b)		131,218
	682	AMAG Pharmaceuticals, Inc.(b)		22,513
	400	Anika Therapeutics, Inc.(b)		16,056
	900	Auxilium Pharmaceuticals, Inc.(b)		28,953
	1,789	Bio-Reference Laboratories, Inc.(b)		53,742
	889	Cantel Medical Corp.		37,694
	587	Cepheid, Inc.(b)		31,117
	1,752	Cooper Cos., Inc. (The)		287,153
	1,236	CryoLife, Inc.		12,681

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	2,054	Cubist Pharmaceuticals, Inc.(b)	$	148,484
	528	Cyberonics, Inc.(b)		27,720
	1,492	Ensign Group, Inc. (The)		57,770
	980	ExamWorks Group, Inc.(b)		38,004
	3,583	Exelixis, Inc.(b)		6,091
	1,954	Globus Medical, Inc., Class A(b)		43,320
	397	HealthStream, Inc.(b)		12,291
	3,193	HMS Holdings Corp.(b)		74,173
	1,327	IDEXX Laboratories, Inc.(b)		187,996
	1,743	Infinity Pharmaceuticals, Inc.(b)		23,740
	856	IPC The Hospitalist Co., Inc.(b)		35,661
	344	Isis Pharmaceuticals, Inc.(b)		15,845
	1,559	Luminex Corp.(b)		29,621
	3,620	Masimo Corp.(b)		91,369
	4,036	MedAssets, Inc.(b)		87,420
	2,427	Medicines Co. (The)(b)		61,452
	370	Medidata Solutions, Inc.(b)		16,691
	5,799	Merge Healthcare, Inc.(b)		15,947
	1,619	Momenta Pharmaceuticals, Inc.(b)		17,663
	626	MWI Veterinary Supply, Inc.(b)		106,204
	2,879	Myriad Genetics, Inc.(b)(c)		113,692
	1,336	Natus Medical, Inc.(b)		45,424
	814	Neogen Corp.(b)		35,735
	690	Neurocrine Biosciences, Inc.(b)		12,779
	2,017	NuVasive, Inc.(b)		82,495
	1,445	NxStage Medical, Inc.(b)		21,906
	2,733	PAREXEL International Corp.(b)		148,429
	786	PhotoMedex, Inc.(b)		3,018
	371	Premier, Inc., Class A(b)		12,384
	5,279	ResMed, Inc.(c)		275,669
	769	Salix Pharmaceuticals Ltd.(b)		110,621
	3,568	SciClone Pharmaceuticals, Inc.(b)		27,260
	322	Seattle Genetics, Inc.(b)		11,808
	526	Spectranetics Corp. (The)(b)		16,711
	2,499	Spectrum Pharmaceuticals, Inc.(b)(c)		18,942
	3,236	Targacept, Inc.(b)		7,572
	2,750	Team Health Holdings, Inc.(b)		171,985
	1,275	Techne Corp.		116,089
	2,429	Thoratec Corp.(b)		66,020
	1,391	United Therapeutics Corp.(b)		182,179
	760	US Physical Therapy, Inc.		32,794
	451	Vascular Solutions, Inc.(b)		13,264
	2,560	Volcano Corp.(b)		25,907
				3,589,390
		Industrials—13.2%
	3,991	Acacia Research Corp.(c)		71,838
	742	Advisory Board Co. (The)(b)		39,823
	6,302	Air Lease Corp.		230,590
	755	Allegiant Travel Co.		100,770
	4,049	Allison Transmission Holdings, Inc.		131,512
	560	Argan, Inc.		19,494
	450	Astronics Corp.(b)		23,314
	1,436	AZZ, Inc.		67,147
	1,304	Chart Industries, Inc.(b)		60,701
	3,966	Clean Harbors, Inc.(b)		196,833
	2,322	Colfax Corp.(b)		126,270

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	455	DXP Enterprises, Inc.(b)	$	30,162
	1,573	Echo Global Logistics, Inc.(b)		41,102
	1,948	Genesee & Wyoming, Inc., Class A(b)		187,398
	1,302	HEICO Corp.		70,620
	652	Heritage-Crystal Clean, Inc.(b)		11,827
	4,354	Hexcel Corp.(b)		182,389
	748	Hyster-Yale Materials Handling, Inc.		58,711
	1,215	KEYW Holding Corp. (The)(b)		12,332
	2,660	Kirby Corp.(b)		294,143
	533	Lindsay Corp.(c)		46,744
	755	Manitex International, Inc.(b)		8,630
	5,023	MasTec, Inc.(b)		143,859
	1,443	Middleby Corp. (The)(b)		127,706
	997	Mistras Group, Inc.(b)		16,441
	1,041	Multi-Color Corp.		51,321
	3,279	Old Dominion Freight Line, Inc.(b)		238,941
	2,430	On Assignment, Inc.(b)		70,713
	7,211	Pendrell Corp.(b)		12,042
	1,648	Performant Financial Corp.(b)		14,222
	1,654	Primoris Services Corp.		47,503
	203	Proto Labs, Inc.(b)		13,270
	1,802	Raven Industries, Inc.		45,681
	2,359	Roadrunner Transportation Systems, Inc.(b)		48,619
	2,233	Rollins, Inc.		71,166
	2,628	RPX Corp.(b)		36,923
	2,421	Spirit Airlines, Inc.(b)		176,999
	979	Sun Hydraulics Corp.		38,974
	4,413	Triumph Group, Inc.		307,277
	1,479	Valmont Industries, Inc.(c)		201,395
	332	WageWorks, Inc.(b)		18,927
	5,604	Waste Connections, Inc.		279,640
	789	XPO Logistics, Inc.(b)		31,497
				4,005,466
		Information Technology—22.6%
	4,269	ACI Worldwide, Inc.(b)		82,136
	1,096	Actua Corp.(b)		20,605
	1,309	Advent Software, Inc.		45,239
	398	Ambarella, Inc.(b)(c)		17,627
	2,322	Aruba Networks, Inc.(b)		50,109
	1,761	Bankrate, Inc.(b)		19,124
	1,897	Bazaarvoice, Inc.(b)		14,133
	508	Blackhawk Network Holdings, Inc., Class A(b)		17,556
	2,131	Blucora, Inc.(b)		36,120
	1,024	Bottomline Technologies (de), Inc.(b)		25,692
	637	BroadSoft, Inc.(b)		14,587
	472	CalAmp Corp.(b)		9,100
	3,148	Calix, Inc.(b)		34,030
	1,786	Cardtronics, Inc.(b)		68,565
	698	Cavium, Inc.(b)		35,814
	1,064	CEVA, Inc.(b)		17,343
	4,444	Cirrus Logic, Inc.(b)		85,769
	2,174	Cognex Corp.(b)		86,003
	741	CommVault Systems, Inc.(b)		32,856
	801	comScore, Inc.(b)		33,754
	529	Concur Technologies, Inc.(b)		67,881
	967	Constant Contact, Inc.(b)		34,193

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	440	CoStar Group, Inc.(b)	$	70,880
	1,184	Cray, Inc.(b)		41,037
	1,570	Datalink Corp.(b)		19,861
	2,189	Ebix, Inc.		32,288
	516	Ellie Mae, Inc.(b)		19,804
	1,009	EnerNOC, Inc.(b)		14,903
	339	Envestnet, Inc.(b)		15,058
	761	EPAM Systems, Inc.(b)		36,330
	1,931	ExlService Holdings, Inc.(b)		54,049
	1,507	FactSet Research Systems, Inc.		198,080
	929	FEI Co.		78,296
	4,762	Finisar Corp.(b)		79,621
	7,539	FLIR Systems, Inc.		252,783
	2,541	Fortinet, Inc.(b)		66,193
	2,095	Gartner, Inc.(b)		169,087
	413	Guidewire Software, Inc.(b)		20,625
	1,794	Higher One Holdings, Inc.(b)		4,611
	925	HomeAway, Inc.(b)		32,283
	2,857	IAC/InterActiveCorp.		193,390
	822	iGATE Corp.(b)		30,455
	713	Infoblox, Inc.(b)		11,508
	3,671	Informatica Corp.(b)		130,908
	883	Inphi Corp.(b)		13,669
	237	Interactive Intelligence Group, Inc.(b)		11,438
	3,771	InterDigital, Inc.		186,401
	1,140	InvenSense, Inc.(b)(c)		18,479
	825	IPG Photonics Corp.(b)		60,563
	3,662	Ixia(b)		35,265
	1,567	j2 Global, Inc.		84,759
	3,156	Jack Henry & Associates, Inc.		188,792
	1,425	Liquidity Services, Inc.(b)		18,212
	877	Littelfuse, Inc.		85,543
	1,585	LivePerson, Inc.(b)		22,824
	473	LogMeIn, Inc.(b)		22,728
	1,924	MAXIMUS, Inc.		93,237
	1,553	Maxwell Technologies, Inc.(b)		18,108
	5,632	Microsemi Corp.(b)		146,826
	990	Monolithic Power Systems, Inc.		43,748
	887	Monotype Imaging Holdings, Inc.		25,377
	1,833	NeoPhotonics Corp.(b)		5,939
	1,387	NetScout Systems, Inc.(b)		51,125
	2,282	NIC, Inc.		42,057
	16,578	Nuance Communications, Inc.(b)		255,799
	199	NVE Corp.(b)		14,264
	1,207	OSI Systems, Inc.(b)		85,552
	211	Palo Alto Networks, Inc.(b)		22,303
	335	Pandora Media, Inc.(b)		6,459
	772	Pegasystems, Inc.		16,729
	735	Power Integrations, Inc.		37,015
	939	Procera Networks, Inc.(b)		7,033
	1,070	QLIK Technologies, Inc.(b)		30,335
	4,009	Rackspace Hosting, Inc.(b)		153,785
	1,847	RealD, Inc.(b)		20,908
	1,061	RealPage, Inc.(b)		21,082
	5,165	Riverbed Technology, Inc.(b)		98,083
	8,073	Rovi Corp.(b)		168,564

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,022	Ruckus Wireless, Inc.(b)	$	13,266
	5,586	Sapient Corp.(b)		96,750
	2,216	ShoreTel, Inc.(b)		17,927
	8,132	Skyworks Solutions, Inc.		473,608
	1,085	SolarWinds, Inc.(b)		51,592
	1,945	Solera Holdings, Inc.		101,043
	198	SPS Commerce, Inc.(b)		11,543
	2,698	SS&C Technologies Holdings, Inc.(b)		130,367
	411	Stamps.com, Inc.(b)		15,166
	821	Stratasys Ltd.(b)		98,816
	2,456	Super Micro Computer, Inc.(b)		78,494
	1,086	Synaptics, Inc.(b)		74,315
	1,062	Synchronoss Technologies, Inc.(b)		54,874
	562	Syntel, Inc.(b)		48,675
	788	Tangoe, Inc.(b)		11,560
	2,721	TiVo, Inc.(b)		35,509
	397	Tyler Technologies, Inc.(b)		44,432
	142	Ultimate Software Group, Inc. (The)(b)		21,372
	1,580	Ultratech, Inc.(b)		30,225
	684	Universal Display Corp.(b)(c)		21,396
	4,128	Vantiv, Inc., Class A(b)		127,638
	6,669	VeriFone Systems, Inc.(b)		248,487
	1,651	Verint Systems, Inc.(b)		94,916
	1,927	ViaSat, Inc.(b)		120,707
	902	Virtusa Corp.(b)		36,964
	629	Web.com Group, Inc.(b)		12,913
	1,473	WEX, Inc.(b)		167,274
	127	Yelp, Inc., Class A(b)		7,620
	176	Zillow, Inc., Class A(b)(c)		19,136
	24,097	Zynga, Inc., Class A(b)		61,447
				6,861,319
		Materials—2.9%
	8,937	Allied Nevada Gold Corp.(b)(c)		12,422
	1,247	American Vanguard Corp.		14,390
	798	Balchem Corp.		51,631
	1,197	Flotek Industries, Inc.(b)		26,526
	3,401	Globe Specialty Metals, Inc.		63,973
	4,499	Gold Resource Corp.		17,501
	30,147	Hecla Mining Co.		65,721
	2,766	KapStone Paper and Packaging Corp.(b)		85,082
	11,701	Molycorp, Inc.(b)(c)		16,147
	16,111	Rentech, Inc.(b)		25,617
	2,099	Royal Gold, Inc.		119,958
	5,839	Tronox Ltd., Class A		141,187
	2,229	US Silica Holdings, Inc.		100,082
	1,902	Westlake Chemical Corp.		134,186
				874,423
		Telecommunication Services—0.2%
	1,406	8x8, Inc.(b)		11,051
	2,049	Boingo Wireless, Inc.(b)		14,364
	759	Cogent Communications Group, Inc.		25,760
	1,680	ORBCOMM, Inc.(b)		10,618
				61,793
		Utilities—1.2%
	7,738	ITC Holdings Corp.		306,502
	699	NRG Yield, Inc., Class A		34,929

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	518	Pattern Energy Group, Inc., Class A	$	14,908
				356,339
		Total Common Stocks and Other Equity Interests (Cost $26,155,479)		30,350,440
		Warrant—0.0%
		Energy—0.0%
	637	Magnum Hunter Resources Corp., expiring 05/15/16 (Cost $0)		0
		Money Market Fund—0.2%
	57,050	Invesco Premier Portfolio—Institutional Class(d) (Cost $57,050)		57,050
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $26,212,529)—100.2%		30,407,490
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.5%
	1,072,449	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $1,072,449)		1,072,449
		Total Investments (Cost $27,284,978)—103.7%		31,479,939
		Other assets less liabilities—(3.7%)		(1,129,546	)
		Net Assets—100.0%	$	30,350,393

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	1,052,434	$	(1,052,434	)	$	—

* Amount does not include excess collateral received, if any.

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

32

Portfolio Composition

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	25.1
Industrials	19.5
Consumer Discretionary	17.7
Information Technology	12.4
Materials	7.0
Utilities	6.1
Health Care	4.3
Energy	3.5
Consumer Staples	3.0
Telecommunication Services	1.4
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—17.7%
	3,562	1-800-FLOWERS.COM, Inc., Class A(b)	$	28,603
	26,455	Aeropostale, Inc.(b)(c)		79,630
	2,398	AH Belo Corp., Class A		27,601
	2,094	AMC Entertainment Holdings, Inc., Class A		53,188
	3,583	American Axle & Manufacturing Holdings, Inc.(b)		69,259
	4,623	ANN INC.(b)		177,477
	5,199	Aramark		145,104
	714	Arctic Cat, Inc.		24,033
	2,908	Asbury Automotive Group, Inc.(b)		203,676
	902	Ascent Capital Group, Inc., Class A(b)		57,999
	11,573	Barnes & Noble, Inc.(b)		252,523
	1,510	Bassett Furniture Industries, Inc.		26,244
	2,919	Beazer Homes USA, Inc.(b)		52,338
	5,801	bebe stores, Inc.		13,284
	2,612	Big 5 Sporting Goods Corp.		32,154
	126	Biglari Holdings, Inc.(b)		43,994
	556	Blue Nile, Inc.(b)		19,738
	2,813	Blyth, Inc.(c)		23,601
	2,713	Bob Evans Farms, Inc.		132,530
	9,940	Bon-Ton Stores, Inc. (The)(c)		87,571
	10,514	Boyd Gaming Corp.(b)		121,437
	4,670	Brinker International, Inc.		250,499
	5,187	Brown Shoe Co., Inc.		137,922
	3,535	Brunswick Corp.		165,438

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	1,848	Build-A-Bear Workshop, Inc.(b)	$	31,324
	2,642	Burger King Worldwide, Inc.(c)		86,341
	4,276	Burlington Stores, Inc.(b)		179,335
	6,158	Callaway Golf Co.		48,279
	25,300	Career Education Corp.(b)		146,740
	1,283	Carmike Cinemas, Inc.(b)		41,120
	3,701	Cato Corp. (The), Class A		132,015
	2,776	Children’s Place, Inc. (The)		136,718
	4,188	Christopher & Banks Corp.(b)		27,348
	3,384	Cinedigm Corp., Class A(b)		5,245
	2,671	Citi Trends, Inc.(b)		60,498
	8,178	Clear Channel Outdoor Holdings, Inc., Class A		59,372
	1,285	ClubCorp Holdings, Inc.		24,492
	1,754	Columbia Sportswear Co.		67,599
	8,941	Cooper Tire & Rubber Co.		287,990
	792	Cooper-Standard Holding, Inc.(b)		43,227
	6,085	Crocs, Inc.(b)		71,073
	1,324	CSS Industries, Inc.		37,813
	6,892	Denny’s Corp.(b)		59,409
	1,111	Destination Maternity Corp.		16,643
	4,478	Destination XL Group, Inc.(b)		23,465
	835	Dixie Group, Inc. (The)(b)		6,580
	3,460	DreamWorks Animation SKG, Inc., Class A(b)		77,089
	2,297	E.W. Scripps Co. (The), Class A(b)		44,102
	5,326	Education Management Corp.(b)(c)		3,169

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

33

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	1,894	Einstein Noah Restaurant Group, Inc.	$	38,353
	2,900	Entercom Communications Corp., Class A(b)		29,812
	2,353	Ethan Allen Interiors, Inc.		66,590
	8,602	Express, Inc.(b)		128,772
	4,904	Federal-Mogul Holdings Corp.(b)		76,551
	536	Flexsteel Industries, Inc.		18,390
	5,417	Fred’s, Inc., Class A		85,047
	2,507	Fuel Systems Solutions, Inc.(b)		23,140
	3,006	Gray Television, Inc.(b)		27,775
	3,808	Group 1 Automotive, Inc.		325,317
	9,612	Harte-Hanks, Inc.		62,574
	1,400	Haverty Furniture Cos., Inc.		30,814
	5,855	hhgregg, Inc.(b)		30,329
	1,253	Hooker Furniture Corp.		19,158
	10,100	Hovnanian Enterprises, Inc., Class A(b)(c)		37,976
	3,060	Hyatt Hotels Corp., Class A(b)		181,213
	2,444	International Speedway Corp., Class A		76,571
	5,398	Isle of Capri Casinos, Inc.(b)		40,107
	5,498	ITT Educational Services, Inc.(b)(c)		55,585
	3,130	Jack in the Box, Inc.		222,355
	2,855	John Wiley & Sons, Inc., Class A		166,703
	3,917	Journal Communications, Inc., Class A(b)		38,426
	2,506	Kate Spade & Co.(b)		67,988
	5,744	KB Home		90,411
	3,620	Lamar Advertising Co., Class A		186,973
	14,237	Lee Enterprises, Inc.(b)(c)		53,104
	1,854	Libbey, Inc.(b)		53,303
	1,397	Lifetime Brands, Inc.		23,903
	1,757	Lithia Motors, Inc., Class A		136,378
	1,891	Loral Space & Communications, Inc.(b)		144,662
	2,093	Luby’s, Inc.(b)		10,444
	1,254	M/I Homes, Inc.(b)		27,011
	2,886	Marcus Corp. (The)		49,437
	2,492	MarineMax, Inc.(b)		47,772
	2,792	Marriott Vacations Worldwide Corp.		193,876
	16,739	McClatchy Co. (The), Class A(b)		59,591
	4,143	MDC Holdings, Inc.		101,172
	1,891	Media General, Inc.(b)		28,252
	4,178	Men’s Wearhouse, Inc. (The)		196,491
	3,527	Meredith Corp.		183,898
	1,891	Meritage Homes Corp.(b)		69,570
	5,026	Modine Manufacturing Co.(b)		64,484
	710	Monarch Casino & Resort, Inc.(b)		11,552
	1,412	Morgans Hotel Group Co.(b)		11,282
	869	NACCO Industries, Inc., Class A		50,897
	1,310	Nautilus, Inc.(b)		17,528
	5,171	New York & Co., Inc.(b)		16,909
	10,722	New York Times Co. (The), Class A		137,670
	3,325	Nutrisystem, Inc.		55,993
	3,588	Orbitz Worldwide, Inc.(b)		29,673
	10,211	Pacific Sunwear of California, Inc.(b)		15,521
	5,431	Penske Automotive Group, Inc.		245,698
	8,985	Pep Boys-Manny, Moe & Jack (The)(b)		85,627
	3,697	Perry Ellis International, Inc.(b)		75,604
	2,271	PetMed Express, Inc.(c)		30,000
	4,936	Pinnacle Entertainment, Inc.(b)		126,510

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	15,260	Quiksilver, Inc.(b)	$	26,705
	4,983	Radio One, Inc., Class D(b)		12,408
	98,858	RadioShack Corp.(b)(c)		90,949
	1,678	Reading International, Inc., Class A(b)		16,730
	966	Red Robin Gourmet Burgers, Inc.(b)		53,101
	13,263	Regal Entertainment Group, Class A(c)		293,775
	10,004	Regis Corp.		169,868
	18,566	Ruby Tuesday, Inc.(b)		142,587
	2,312	Ruth’s Hospitality Group, Inc.		28,137
	1,688	Ryland Group, Inc. (The)		60,447
	320	Saga Communications, Inc., Class A		12,832
	1,376	Salem Communications Corp., Class A		10,609
	3,667	Scholastic Corp.		127,648
	5,062	Scientific Games Corp., Class A(b)		59,580
	3,317	Sears Hometown and Outlet Stores, Inc.(b)		49,888
	640	Shiloh Industries, Inc.(b)		10,906
	3,027	Skechers U.S.A., Inc., Class A(b)		165,728
	8,693	Sonic Automotive, Inc., Class A		216,369
	3,470	Sonic Corp.(b)		87,479
	4,883	Spartan Motors, Inc.		27,784
	1,679	Speedway Motorsports, Inc.		32,858
	5,156	Stage Stores, Inc.		86,982
	3,524	Stein Mart, Inc.		47,151
	4,313	Stoneridge, Inc.(b)		56,026
	2,847	Strayer Education, Inc.(b)		208,372
	3,881	Superior Industries International, Inc.		75,718
	1,368	Systemax, Inc.(b)		20,930
	1,781	Tempur Sealy International, Inc.(b)		93,752
	3,249	Thor Industries, Inc.		171,840
	6,823	Toll Brothers, Inc.(b)		217,995
	4,774	Tower International, Inc.(b)		116,008
	4,063	Town Sports International Holdings, Inc.		24,053
	18,002	TravelCenters of America LLC(b)		174,259
	3,817	Tuesday Morning Corp.(b)		77,829
	1,976	Unifi, Inc.(b)		55,269
	2,931	Universal Technical Institute, Inc.		34,908
	3,734	ValueVision Media, Inc., Class A(b)		21,134
	3,927	VOXX International Corp., Class A(b)		33,497
	4,729	Weight Watchers International, Inc.(b)(c)		123,190
	22,203	Wendy’s Co. (The)		178,068
	2,718	West Marine, Inc.(b)		26,745
	20,723	Wet Seal, Inc. (The), Class A(b)(c)		7,046
	704	Weyco Group, Inc.		21,930
	969	Winnebago Industries, Inc.(b)		20,552
	2,267	World Wrestling Entertainment, Inc., Class A(c)		27,997
				12,041,210
		Consumer Staples—3.0%
	20,553	Alliance One International, Inc.(b)		41,722
	1,196	Cal-Maine Foods, Inc.		104,997
	14,279	Central Garden & Pet Co., Class A(b)		122,657
	16,253	Chiquita Brands International, Inc.(b)		234,531
	635	Coca-Cola Bottling Co. Consolidated		57,429
	3,002	Elizabeth Arden, Inc.(b)(c)		49,233
	6,783	Fresh Del Monte Produce, Inc.		217,802
	4,580	Ingles Markets, Inc., Class A		123,202
	1,211	John B. Sanfilippo & Son, Inc.		44,989

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

34

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	1,239	National Beverage Corp.(b)	$	31,124
	798	Nutraceutical International Corp.(b)		17,939
	400	Oil-Dri Corp. of America		12,072
	2,466	Omega Protein Corp.(b)		35,634
	3,395	Pilgrim’s Pride Corp.(b)		96,452
	3,019	Post Holdings, Inc.(b)		113,212
	982	Revlon, Inc., Class A(b)		33,682
	18,089	Roundy’s, Inc.		60,960
	1,265	Seneca Foods Corp., Class A(b)		34,003
	5,293	SpartanNash Co.		118,616
	4,178	Universal Corp.		185,921
	7,799	Vector Group Ltd.(c)		174,230
	1,022	Village Super Market, Inc., Class A		28,360
	691	WD-40 Co.		52,979
	1,645	Weis Markets, Inc.		73,433
				2,065,179
		Energy—3.5%
	3,855	Abraxas Petroleum Corp.(b)		15,921
	516	Adams Resources & Energy, Inc.		21,698
	5,430	Alon USA Energy, Inc.		87,097
	5,412	Basic Energy Services, Inc.(b)		69,815
	7,394	Bill Barrett Corp.(b)		112,389
	4,685	Callon Petroleum Co.(b)		30,734
	10,676	Cloud Peak Energy, Inc.(b)		127,792
	6,053	Comstock Resources, Inc.		71,667
	2,043	CVR Energy, Inc.		99,249
	1,102	Dawson Geophysical Co.		18,723
	3,256	EP Energy Corp., Class A(b)		47,538
	16,275	EXCO Resources, Inc.(c)		49,639
	51,500	Forest Oil Corp.(b)		41,715
	1,554	Gulf Island Fabrication, Inc.		32,851
	5,098	Harvest Natural Resources, Inc.(b)		18,965
	9,741	Helix Energy Solutions Group, Inc.(b)		259,500
	29,000	Hercules Offshore, Inc.(b)(c)		47,850
	2,888	Hornbeck Offshore Services, Inc.(b)		88,546
	15,538	ION Geophysical Corp.(b)		43,506
	22,496	Key Energy Services, Inc.(b)		68,388
	1,493	Mitcham Industries, Inc.(b)		15,229
	7,947	Newpark Resources, Inc.(b)		90,834
	15,266	Parker Drilling Co.(b)		67,781
	7,593	Penn Virginia Corp.(b)		65,072
	7,768	PetroQuest Energy, Inc.(b)		36,510
	1,208	PHI, Inc.(b)		54,046
	9,830	Pioneer Energy Services Corp.(b)		90,239
	28,570	Quicksilver Resources, Inc.(b)		15,616
	4,904	Stone Energy Corp.(b)		120,148
	12,213	Swift Energy Co.(b)(c)		83,659
	2,653	Tesco Corp.		50,513
	9,637	TETRA Technologies, Inc.(b)		91,841
	4,157	Ultra Petroleum Corp.(b)(c)		94,780
	5,693	VAALCO Energy, Inc.(b)		42,242
	5,855	W&T Offshore, Inc.		53,222
	7,118	Warren Resources, Inc.(b)		24,628
	8,859	Willbros Group, Inc.(b)		52,002
				2,401,945

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—25.1%
	1,151	1st Source Corp.	$	36,015
	6,530	AG Mortgage Investment Trust, Inc. REIT		124,527
	2,199	Alexander & Baldwin, Inc.		88,026
	871	American National Bankshares, Inc.		21,078
	1,169	American Residential Properties, Inc. REIT(b)		22,211
	1,174	Ameris Bancorp		29,115
	1,164	AMERISAFE, Inc.		48,539
	792	Ames National Corp.		19,642
	33,664	Anworth Mortgage Asset Corp. REIT		174,716
	3,432	Arbor Realty Trust, Inc. REIT		23,097
	1,075	Armada Hoffler Properties, Inc. REIT		10,083
	1,269	Arrow Financial Corp.		34,758
	11,581	Ashford Hospitality Trust, Inc. REIT		130,865
	12,710	Astoria Financial Corp.		167,136
	1,317	Baldwin & Lyons, Inc., Class B		35,454
	508	BancFirst Corp.		33,020
	7,404	BancorpSouth, Inc.		170,514
	4,490	Bank Mutual Corp.		29,589
	4,087	Bank of Hawaii Corp.		239,294
	1,715	BankFinancial Corp.		20,460
	1,199	Banner Corp.		51,821
	523	Bar Harbor Bankshares		15,219
	671	BBX Capital Corp., Class A(b)		12,346
	2,055	Beneficial Mutual Bancorp, Inc.(b)		27,599
	1,015	Blackstone Mortgage Trust, Inc., Class A REIT		28,339
	1,963	BOK Financial Corp.		134,583
	4,484	Boston Private Financial Holdings, Inc.		58,965
	2,322	Brixmor Property Group, Inc. REIT		56,564
	8,897	Brookline Bancorp, Inc.		85,322
	4,423	Calamos Asset Management, Inc., Class A		60,595
	925	Camden National Corp.		37,842
	1,600	Capital City Bank Group, Inc.		24,176
	20,950	Capitol Federal Financial, Inc.		268,369
	16,087	Capstead Mortgage Corp. REIT		204,466
	3,335	Cash America International, Inc.		163,915
	4,861	Cathay General Bancorp		128,379
	8,642	Cedar Realty Trust, Inc. REIT		59,457
	1,759	Central Pacific Financial Corp.		33,245
	302	Century Bancorp, Inc., Class A		11,470
	1,908	Charter Financial Corp.		21,637
	2,854	Chemical Financial Corp.		84,992
	1,114	Citizens & Northern Corp.		22,169
	3,245	Citizens, Inc.(b)		23,656
	1,405	City Holding Co.		63,211
	3,358	City National Corp.		264,308
	2,532	CNA Financial Corp.		98,951
	2,156	CoBiz Financial, Inc.		25,915
	1,171	Cohen & Steers, Inc.(c)		50,189
	1,459	Community Trust Bancorp, Inc.		52,451
	2,403	Consumer Portfolio Services, Inc.(b)		16,965
	8,874	Corporate Office Properties Trust REIT		242,615
	7,801	Cousins Properties, Inc. REIT		101,491
	3,525	Crawford & Co., Class B		35,884
	6,799	CVB Financial Corp.		107,288
	23,640	DCT Industrial Trust, Inc. REIT		202,595
	15,666	DiamondRock Hospitality Co. REIT		224,807

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	3,147	Dime Community Bancshares, Inc.	$	49,565
	1,126	Donegal Group, Inc., Class A		17,813
	8,589	Douglas Emmett, Inc. REIT		241,609
	688	EMC Insurance Group, Inc.		22,044
	2,814	Employers Holdings, Inc.		57,377
	606	Enterprise Bancorp, Inc.		14,259
	1,422	Enterprise Financial Services Corp.		26,805
	3,801	EPR Properties REIT		213,236
	902	ESB Financial Corp.		16,831
	16,169	F.N.B. Corp.		206,802
	1,397	FBL Financial Group, Inc., Class A		69,263
	755	FBR & Co.(b)		18,226
	987	Federal Agricultural Mortgage Corp., Class C		32,867
	5,961	FelCor Lodging Trust, Inc. REIT		63,962
	1,296	Financial Institutions, Inc.		32,581
	1,970	First Bancorp		35,696
	724	First Bancorp, Inc.		12,808
	7,959	First Busey Corp.		49,744
	519	First Citizens BancShares, Inc., Class A		130,378
	10,651	First Commonwealth Financial Corp.		99,587
	1,833	First Community Bancshares, Inc.		30,006
	958	First Defiance Financial Corp.		29,344
	1,128	First Financial Corp.		39,119
	1,050	First Financial Northwest, Inc.		12,180
	1,743	First Interstate BancSystem, Inc.		51,140
	2,360	First Merchants Corp.		53,454
	5,953	First Midwest Bancorp, Inc.		99,951
	6,216	First Potomac Realty Trust REIT		77,700
	11,850	FirstMerit Corp.		217,447
	2,187	Flagstar Bancorp, Inc.(b)		34,380
	2,764	Flushing Financial Corp.		55,667
	6,485	Forest City Enterprises, Inc., Class A(b)		135,472
	2,311	Forestar Group, Inc.(b)		40,327
	8,263	Franklin Street Properties Corp. REIT		99,073
	19,920	Fulton Financial Corp.		236,650
	2,671	FXCM, Inc., Class A		43,965
	257	GAMCO Investors, Inc., Class A		21,233
	311	Gaming and Leisure Properties, Inc. REIT		9,719
	2,616	Getty Realty Corp. REIT		48,684
	12,768	GFI Group, Inc.		70,224
	4,958	Glacier Bancorp, Inc.		142,245
	5,463	Gramercy Property Trust, Inc. REIT		34,144
	1,267	Great Southern Bancorp, Inc.		48,159
	1,888	Greenhill & Co., Inc.		84,960
	961	Guaranty Bancorp		15,155
	2,505	Hallmark Financial Services, Inc.(b)		29,208
	1,529	Hanmi Financial Corp.		32,797
	1,449	Heartland Financial USA, Inc.		38,543
	1,150	HomeTrust Bancshares, Inc.(b)		17,767
	4,582	Horace Mann Educators Corp.		139,339
	742	Horizon Bancorp		19,084
	1,712	Hudson Valley Holding Corp.		38,931
	529	Independence Holding Co.		7,485
	1,133	Independent Bank Corp.		13,675
	1,202	Infinity Property & Casualty Corp.		87,758
	7,959	Inland Real Estate Corp. REIT		84,445

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	10,670	Interactive Brokers Group, Inc., Class A	$	275,499
	6,548	International Bancshares Corp.		185,767
	2,004	Intervest Bancshares Corp., Class A		19,539
	4,828	Investment Technology Group, Inc.(b)		86,566
	11,858	Investors Real Estate Trust REIT		99,607
	6,762	iStar Financial, Inc. REIT(b)		95,953
	12,489	Janus Capital Group, Inc.(c)		187,210
	1,420	JMP Group, Inc.		10,366
	557	Kansas City Life Insurance Co.		27,644
	2,046	Kite Realty Group Trust REIT		52,971
	3,035	Lakeland Bancorp, Inc.		33,355
	643	LCNB Corp.		9,645
	15,228	Lexington Realty Trust REIT		166,899
	1,904	MainSource Financial Group, Inc.		34,634
	522	Marlin Business Services Corp.		11,035
	4,169	MB Financial, Inc.		131,532
	10,323	Meadowbrook Insurance Group, Inc.		65,758
	614	Mercantile Bank Corp.		12,114
	523	Merchants Bancshares, Inc.		15,580
	4,124	Mercury General Corp.		219,067
	1,197	Metro Bancorp, Inc.(b)		29,973
	6,407	MGIC Investment Corp.(b)		57,150
	577	National Bankshares, Inc.		18,066
	672	National Interstate Corp.		19,112
	300	National Western Life Insurance Co., Class A		81,300
	1,331	Navigators Group, Inc. (The)(b)		90,628
	3,947	NBT Bancorp, Inc.		101,359
	2,368	Nelnet, Inc., Class A		112,693
	4,633	Newcastle Investment Corp. REIT		111,887
	611	Northrim BanCorp, Inc.		17,658
	8,799	Northwest Bancshares, Inc.		112,891
	1,449	OceanFirst Financial Corp.		24,010
	10,053	Old National Bancorp		146,271
	1,139	One Liberty Properties, Inc. REIT		26,072
	5,244	OneBeacon Insurance Group Ltd., Class A		83,537
	1,828	Oppenheimer Holdings, Inc., Class A		44,877
	1,346	Pacific Continental Corp.		19,409
	6,916	PacWest Bancorp		295,037
	1,470	Park National Corp.		124,024
	702	Peapack Gladstone Financial Corp.		12,811
	366	Penns Woods Bancorp, Inc.		17,762
	6,369	Pennsylvania Real Estate Investment Trust REIT		136,488
	1,198	Peoples Bancorp, Inc.		29,531
	2,785	Phoenix Cos., Inc. (The)(b)		165,318
	1,794	Piper Jaffray Cos.(b)		101,289
	3,450	Potlatch Corp. REIT		151,765
	560	Preferred Bank		14,885
	5,248	Primerica, Inc.		268,435
	717	Provident Financial Holdings, Inc.		10,454
	5,953	Provident Financial Services, Inc.		108,523
	9,353	RAIT Financial Trust REIT		68,557
	4,147	Ramco-Gershenson Properties Trust REIT		72,490
	9,954	Redwood Trust, Inc. REIT		187,036
	2,090	Renasant Corp.		63,014
	1,358	Republic Bancorp, Inc., Class A		32,932

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,336	Resource America, Inc., Class A	$	12,745
	4,457	RLI Corp.		221,023
	2,733	Ryman Hospitality Properties, Inc. REIT(c)		134,874
	3,300	S&T Bancorp, Inc.		91,047
	3,831	Sabra Health Care REIT, Inc. REIT		109,452
	1,728	Safety Insurance Group, Inc.		107,793
	2,170	Sandy Spring Bancorp, Inc.		55,986
	6,714	Selective Insurance Group, Inc.		173,355
	1,056	Sierra Bancorp		18,121
	2,414	Silver Bay Realty Trust Corp. REIT		40,869
	1,327	Simmons First National Corp., Class A		55,721
	1,396	Southwest Bancorp, Inc.		25,170
	1,857	Springleaf Holdings, Inc.(b)		69,489
	1,315	St. Joe Co. (The)(b)		25,182
	1,750	State Auto Financial Corp.		36,628
	2,292	State Bank Financial Corp.		41,073
	2,062	Stewart Information Services Corp.		72,830
	1,058	Stock Yards Bancorp, Inc.		35,210
	7,121	Strategic Hotels & Resorts, Inc. REIT(b)		91,505
	1,140	Suffolk Bancorp		26,174
	9,243	Sunstone Hotel Investors, Inc. REIT		141,510
	22,416	Susquehanna Bancshares, Inc.		219,901
	4,959	SWS Group, Inc.(b)		36,647
	2,859	TowneBank		43,342
	1,132	Trico Bancshares		29,772
	9,934	TrustCo Bank Corp. NY		72,518
	7,649	Trustmark Corp.		186,100
	13,039	Umpqua Holdings Corp.		229,486
	4,920	United Bankshares, Inc.		168,658
	2,313	United Community Banks, Inc.		41,703
	4,366	United Community Financial Corp.		22,354
	1,759	United Fire Group, Inc.		57,132
	3,193	Universal Insurance Holdings, Inc.		55,878
	2,089	Univest Corp. of Pennsylvania		42,866
	2,048	Urstadt Biddle Properties, Inc., Class A REIT		44,298
	7,559	Washington Real Estate Investment Trust REIT		213,617
	9,303	Washington Federal, Inc.		203,084
	1,124	Washington Trust Bancorp, Inc.		43,128
	6,832	Webster Financial Corp.		214,115
	3,017	WesBanco, Inc.		103,966
	1,135	West Bancorporation, Inc.		18,818
	2,165	Westamerica Bancorp.		106,821
	1,951	Western Asset Mortgage Capital Corp. REIT(c)		29,304
	2,955	Westfield Financial, Inc.		20,892
	355	White Mountains Insurance Group Ltd.		221,847
	3,246	Wilshire Bancorp, Inc.		32,135
	3,454	Winthrop Realty Trust REIT		53,986
	711	World Acceptance Corp.(b)(c)		50,950
	745	Yadkin Financial Corp.(b)		14,460
				17,072,338
		Health Care—4.3%
	5,096	Affymetrix, Inc.(b)		45,915
	1,501	Albany Molecular Research, Inc.(b)		34,913
	921	Alliance HealthCare Services, Inc.(b)		22,224
	7,780	Amedisys, Inc.(b)		203,058
	4,325	AMN Healthcare Services, Inc.(b)		74,174

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	3,178	Amsurg Corp.(b)	$	171,644
	8,274	BioScrip, Inc.(b)		53,450
	9,232	Brookdale Senior Living, Inc.(b)		311,211
	1,443	Cambrex Corp.(b)		30,418
	2,564	Charles River Laboratories International, Inc.(b)		161,942
	3,376	Cross Country Healthcare, Inc.(b)		32,646
	11,401	Five Star Quality Care, Inc.(b)		47,086
	8,598	Gentiva Health Services, Inc.(b)		169,381
	5,286	Healthways, Inc.(b)		81,933
	4,629	Hill-Rom Holdings, Inc.		205,898
	4,824	Invacare Corp.		75,785
	1,682	LHC Group, Inc.(b)		40,957
	3,921	Magellan Health, Inc.(b)		237,299
	4,784	Molina Healthcare, Inc.(b)		232,694
	1,048	National Healthcare Corp.		63,205
	2,095	OraSure Technologies, Inc.(b)		18,750
	20,318	PDL BioPharma, Inc.(c)		173,313
	5,073	PharMerica Corp.(b)		145,544
	1,636	Providence Service Corp. (The)(b)		72,278
	5,317	Skilled Healthcare Group, Inc., Class A(b)		36,847
	758	Surgical Care Affiliates, Inc.(b)		23,255
	660	SurModics, Inc.(b)		14,289
	4,655	Symmetry Medical, Inc.(b)		46,084
	9,359	Universal American Corp.(b)		87,226
				2,913,419
		Industrials—19.5%
	4,730	AAR Corp.		125,345
	7,339	ABM Industries, Inc.		202,850
	22,598	ACCO Brands Corp.(b)		185,982
	10,574	Accuride Corp.(b)		50,967
	1,012	Aerovironment, Inc.(b)		31,018
	8,226	Air Transport Services Group, Inc.(b)		67,289
	8,226	Aircastle Ltd.		156,952
	2,247	Albany International Corp., Class A		84,892
	611	American Science & Engineering, Inc.		33,788
	715	American Woodmark Corp.(b)		29,251
	1,719	Apogee Enterprises, Inc.		75,464
	2,986	Applied Industrial Technologies, Inc.		145,747
	5,419	ARC Document Solutions, Inc.(b)		55,003
	2,726	ArcBest Corp.		105,496
	1,607	Astec Industries, Inc.		60,921
	5,661	Atlas Air Worldwide Holdings, Inc.(b)		209,004
	3,461	Baltic Trading Ltd.(c)		12,979
	3,109	Barnes Group, Inc.		113,665
	5,666	Brady Corp., Class A		135,077
	6,906	Briggs & Stratton Corp.		139,570
	6,690	Brink’s Co. (The)		140,490
	2,140	Builders FirstSource, Inc.(b)		12,690
	6,453	Casella Waste Systems, Inc., Class A(b)		29,038
	6,433	CBIZ, Inc.(b)		59,377
	2,744	CDI Corp.		47,169
	25,556	Cenveo, Inc.(b)		58,268
	1,842	Columbus McKinnon Corp.		52,405
	4,178	Comfort Systems USA, Inc.		64,174
	3,978	Commercial Vehicle Group, Inc.(b)		26,056
	1,897	Courier Corp.		25,742

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	14,446	Covanta Holding Corp.	$	318,823
	1,483	CRA International, Inc.(b)		44,490
	2,984	Crane Co.		186,052
	4,158	Deluxe Corp.		252,806
	2,323	Douglas Dynamics, Inc.		48,156
	1,395	Ducommun, Inc.(b)		36,842
	2,476	Dun & Bradstreet Corp. (The)		304,078
	3,696	Dycom Industries, Inc.(b)		116,017
	911	Dynamic Materials Corp.		16,589
	1,091	Encore Wire Corp.		41,393
	2,911	Engility Holdings, Inc.(b)		125,755
	4,177	Ennis, Inc.		61,945
	1,308	EnPro Industries, Inc.(b)		84,405
	3,830	Federal Signal Corp.		54,386
	541	Franklin Covey Co.(b)		10,609
	1,199	FreightCar America, Inc.		39,531
	5,173	FTI Consulting, Inc.(b)		208,886
	1,986	Furmanite Corp.(b)		14,855
	1,698	G&K Services, Inc., Class A		107,093
	4,221	GATX Corp.		267,611
	2,498	GenCorp, Inc.(b)(c)		42,366
	3,130	Gibraltar Industries, Inc.(b)		47,732
	4,372	Global Brass & Copper Holdings, Inc.		61,208
	15,073	GrafTech International Ltd.(b)		64,663
	4,199	Granite Construction, Inc.		154,985
	6,562	Great Lakes Dredge & Dock Corp.(b)		45,868
	1,885	Greenbrier Cos., Inc. (The)(c)		117,888
	3,462	H&E Equipment Services, Inc.		129,444
	1,261	Hardinge, Inc.		14,148
	10,374	Hawaiian Holdings, Inc.(b)		179,885
	3,425	Heartland Express, Inc.		86,104
	2,394	Heidrick & Struggles International, Inc.		49,843
	3,753	Herman Miller, Inc.		120,096
	3,504	Hill International, Inc.(b)		13,596
	4,091	HNI Corp.		190,845
	2,131	Houston Wire & Cable Co.		28,896
	742	Hurco Cos., Inc.		28,589
	2,208	ICF International, Inc.(b)		80,239
	3,378	Insperity, Inc.		106,610
	1,262	Insteel Industries, Inc.		30,086
	3,137	Interface, Inc.		50,286
	1,171	International Shipholding Corp.		23,467
	1,895	John Bean Technologies Corp.		56,793
	964	Kadant, Inc.		39,852
	2,473	Kaman Corp.		106,487
	6,634	Kelly Services, Inc., Class A		116,957
	2,165	Kforce, Inc.		50,120
	3,131	Kimball International, Inc., Class B		56,295
	4,475	Knight Transportation, Inc.		130,938
	4,703	Knoll, Inc.		93,543
	3,810	Korn/Ferry International(b)		106,413
	4,751	Layne Christensen Co.(b)		34,207
	821	LB Foster Co., Class A		44,408
	2,166	Lennox International, Inc.		192,601
	1,705	LMI Aerospace, Inc.(b)		22,472
	3,167	LSI Industries, Inc.		22,676

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,478	Lydall, Inc.(b)	$	45,715
	2,393	Macquarie Infrastructure Co. LLC		171,435
	7,810	Manitowoc Co., Inc. (The)		162,760
	1,169	Masonite International Corp.(b)		63,196
	6,185	Matson, Inc.		176,211
	2,296	Matthews International Corp., Class A		105,800
	2,052	McGrath RentCorp		74,960
	15,064	Meritor, Inc.(b)		173,085
	1,290	Miller Industries, Inc.		25,503
	2,161	MSA Safety, Inc.		124,193
	4,373	Mueller Industries, Inc.		141,948
	9,734	Mueller Water Products, Inc., Class A		96,075
	1,094	National Presto Industries, Inc.(c)		68,988
	5,257	Navigant Consulting, Inc.(b)		80,905
	1,338	NCI Building Systems, Inc.(b)		26,586
	1,245	NN, Inc.		31,125
	1,059	Nortek, Inc.(b)		88,194
	1,098	Northwest Pipe Co.(b)		39,286
	3,019	Orion Marine Group, Inc.(b)		33,088
	611	P.A.M. Transportation Services, Inc.(b)		26,261
	898	Park-Ohio Holdings Corp.		47,693
	422	Patriot Transportation Holding, Inc.(b)		17,876
	1,226	PGT, Inc.(b)		11,531
	4,947	Pike Corp.(b)		59,067
	1,550	Ply Gem Holdings, Inc.(b)		17,593
	3,232	Polypore International, Inc.(b)		141,949
	312	Preformed Line Products Co.		17,781
	7,340	Quad Graphics, Inc.		161,847
	3,103	Quality Distribution, Inc.(b)		40,215
	3,071	Quanex Building Products Corp.		61,481
	24,351	Republic Airways Holdings, Inc.(b)		304,875
	3,538	Resources Connection, Inc.		54,733
	2,817	Rexnord Corp.(b)		83,242
	4,919	Rush Enterprises, Inc., Class A(b)		187,414
	2,171	Saia, Inc.(b)		106,422
	2,532	Simpson Manufacturing Co., Inc.		83,759
	20,171	SkyWest, Inc.		232,370
	874	Standex International Corp.		75,383
	13,805	Steelcase, Inc., Class A		244,625
	2,420	Sterling Construction Co., Inc.(b)		21,344
	1,506	TRC Cos., Inc.(b)		10,964
	2,662	TriMas Corp.(b)		84,279
	3,214	TrueBlue, Inc.(b)		79,450
	10,334	Tutor Perini Corp.(b)		289,455
	1,086	Twin Disc, Inc.		28,258
	5,838	United Stationers, Inc.		243,853
	1,788	Universal Forest Products, Inc.		89,346
	3,966	USG Corp.(b)		106,527
	11,639	UTi Worldwide, Inc.(b)		127,214
	2,513	Viad Corp.		64,107
	1,088	Vicor Corp.(b)		14,808
	772	VSE Corp.		46,536
	1,815	Watts Water Technologies, Inc., Class A		110,043
	7,146	Werner Enterprises, Inc.		196,801
	3,532	West Corp.		113,024
	869	Willis Lease Finance Corp.(b)		19,822

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	2,079	Xerium Technologies, Inc.(b)	$	31,019
	10,600	YRC Worldwide, Inc.(b)		227,264
				13,226,881
		Information Technology—12.4%
	2,935	Actuate Corp.(b)		12,591
	2,947	Acxiom Corp.(b)		55,521
	3,857	ADTRAN, Inc.		81,807
	1,670	Advanced Energy Industries, Inc.(b)		33,033
	1,430	Agilysys, Inc.(b)		16,159
	2,455	Alpha & Omega Semiconductor Ltd.(b)		22,758
	1,691	American Software, Inc., Class A		16,335
	32,743	Amkor Technology, Inc.(b)		221,998
	6,309	ANADIGICS, Inc.(b)		4,479
	1,269	Applied Micro Circuits Corp.(b)		8,210
	21,874	Atmel Corp.(b)		162,305
	4,905	AVX Corp.		70,828
	9,657	Axcelis Technologies, Inc.(b)		21,052
	1,187	Bel Fuse, Inc., Class B		33,580
	1,947	Belden, Inc.		138,607
	8,357	Benchmark Electronics, Inc.(b)		198,228
	2,775	Black Box Corp.		61,022
	5,263	Brooks Automation, Inc.		64,893
	3,059	Cabot Microelectronics Corp.(b)		147,536
	8,710	Cadence Design Systems, Inc.(b)		156,344
	6,597	CDW Corp.		203,451
	5,219	Checkpoint Systems, Inc.(b)		69,204
	14,719	Ciber, Inc.(b)		48,131
	2,910	Cohu, Inc.		29,682
	3,971	CommScope Holding Co., Inc.(b)		85,535
	13,994	Compuware Corp.		142,039
	2,211	Comtech Telecommunications Corp.		84,173
	8,294	Convergys Corp.		167,290
	3,312	Conversant, Inc.(b)		116,748
	1,962	Covisint Corp.(b)		5,670
	2,108	CTS Corp.		38,787
	6,456	Cypress Semiconductor Corp.(b)		63,979
	3,016	Daktronics, Inc.		40,143
	3,231	Dice Holdings, Inc.(b)		32,213
	6,907	Diebold, Inc.		244,715
	2,965	Digi International, Inc.(b)		24,550
	3,178	Digital River, Inc.(b)		81,261
	2,857	Diodes, Inc.(b)		73,796
	2,065	Dot Hill Systems Corp.(b)		8,157
	3,062	DSP Group, Inc.(b)		29,671
	33,837	EarthLink Holdings Corp.		121,136
	2,929	Eastman Kodak Co.(b)(c)		63,179
	2,271	Electro Rent Corp.		34,610
	3,314	Electro Scientific Industries, Inc.		23,529
	9,277	Emulex Corp.(b)		52,508
	7,712	Entegris, Inc.(b)		104,729
	582	ePlus, Inc.(b)		35,543
	2,814	Euronet Worldwide, Inc.(b)		151,027
	1,460	Fair Isaac Corp.		90,958
	15,420	Fairchild Semiconductor International, Inc.(b)		236,697
	4,242	FormFactor, Inc.(b)		33,809
	5,398	Freescale Semiconductor Ltd.(b)		107,366

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	6,739	Global Cash Access Holdings, Inc.(b)	$	49,127
	2,641	GSI Group, Inc.(b)		33,937
	1,397	GSI Technology, Inc.(b)		6,720
	2,497	Hackett Group, Inc. (The)		17,504
	9,404	Harmonic, Inc.(b)		62,725
	7,956	Imation Corp.(b)		23,311
	6,151	Integrated Device Technology, Inc.(b)		100,938
	2,559	Integrated Silicon Solution, Inc.		34,751
	3,625	Internap Network Services Corp.(b)		29,036
	5,343	International Rectifier Corp.(b)		212,491
	14,700	Intersil Corp., Class A		195,363
	1,551	Intevac, Inc.(b)		11,477
	5,808	Itron, Inc.(b)		226,105
	1,967	IXYS Corp.		22,955
	10,192	Kemet Corp.(b)		48,922
	2,655	Kofax Ltd. (United Kingdom)(b)		16,859
	3,212	Kopin Corp.(b)		12,206
	3,213	Lionbridge Technologies, Inc.(b)		15,519
	1,410	Methode Electronics, Inc.		55,526
	3,287	Micrel, Inc.		39,904
	3,502	MKS Instruments, Inc.		127,473
	7,814	ModusLink Global Solutions, Inc.(b)(c)		27,349
	16,221	Monster Worldwide, Inc.(b)		62,613
	1,266	Move, Inc.(b)		26,523
	1,729	Multi-Fineline Electronix, Inc.(b)		17,549
	1,295	NCI, Inc., Class A(b)		13,183
	2,545	Newport Corp.(b)		45,530
	6,902	OmniVision Technologies, Inc.(b)		184,836
	1,471	Oplink Communications, Inc.		30,670
	1,977	Park Electrochemical Corp.		51,007
	2,586	Pericom Semiconductor Corp.(b)		28,265
	9,998	Photronics, Inc.(b)		89,882
	3,808	Plexus Corp.(b)		157,461
	10,923	PMC - Sierra, Inc.(b)		85,090
	13,712	Polycom, Inc.(b)		179,353
	2,661	PRGX Global, Inc.(b)		14,077
	3,453	Progress Software Corp.(b)		89,433
	9,413	QLogic Corp.(b)		111,168
	31,233	Quantum Corp.(b)		39,978
	4,730	QuinStreet, Inc.(b)		19,156
	3,461	RealNetworks, Inc.(b)		23,881
	16,692	RF Micro Devices, Inc.(b)		217,163
	1,194	Richardson Electronics Ltd.		11,952
	3,058	Rofin-Sinar Technologies, Inc.(b)		68,469
	2,228	Rudolph Technologies, Inc.(b)		19,562
	4,190	ScanSource, Inc.(b)		159,974
	3,487	Sigma Designs, Inc.(b)		13,913
	2,114	Silicon Graphics International Corp.(b)		18,350
	3,458	Silicon Image, Inc.(b)		18,535
	10,244	Sonus Networks, Inc.(b)		35,547
	6,508	Spansion, Inc., Class A(b)		133,935
	4,502	Speed Commerce, Inc.(b)(c)		13,371
	11,972	SunEdison, Inc.(b)		233,574
	4,669	Sykes Enterprises, Inc.(b)		100,570
	1,953	TeleTech Holdings, Inc.(b)		50,407
	9,701	TTM Technologies, Inc.(b)		67,034
	1,901	Ultra Clean Holdings, Inc.(b)		16,691

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	11,067	United Online, Inc.	$	124,172
	1,850	VASCO Data Security International, Inc.(b)		46,842
	489	Viasystems Group, Inc.(b)		7,760
	1,504	Vishay Precision Group, Inc.(b)		25,553
	1,376	WebMD Health Corp.(b)		58,728
	2,530	Xcerra Corp.(b)		21,480
	1,192	XO Group, Inc.(b)		15,174
	2,353	Zebra Technologies Corp., Class A(b)		173,534
				8,463,715
		Materials—7.0%
	3,624	A. Schulman, Inc.		128,326
	3,424	A.M. Castle & Co.(b)(c)		25,166
	958	AEP Industries, Inc.(b)		44,058
	37,208	AK Steel Holding Corp.(b)(c)		281,665
	1,661	Ampco-Pittsburgh Corp.		36,193
	3,766	Boise Cascade Co.(b)		135,802
	2,975	Carpenter Technology Corp.		148,899
	7,489	Century Aluminum Co.(b)		219,278
	8,224	Chemtura Corp.(b)		191,537
	18,731	Coeur Mining, Inc.(b)		69,305
	5,037	Cytec Industries, Inc.		234,875
	7,773	Ferro Corp.(b)		101,982
	4,154	Greif, Inc., Class A		183,025
	2,677	H.B. Fuller Co.		112,354
	752	Handy & Harman Ltd.(b)		26,553
	952	Haynes International, Inc.		44,259
	3,697	Headwaters, Inc.(b)		46,952
	2,631	Horsehead Holding Corp.(b)		41,333
	1,866	Kaiser Aluminum Corp.		129,780
	2,551	Koppers Holdings, Inc.		100,713
	4,341	Kraton Performance Polymers, Inc.(b)		77,661
	2,579	Kronos Worldwide, Inc.		34,662
	2,417	Materion Corp.		95,351
	1,892	Minerals Technologies, Inc.		145,135
	2,833	Myers Industries, Inc.		42,325
	1,196	Neenah Paper, Inc.		72,968
	21,313	Noranda Aluminum Holding Corp.		93,990
	9,206	Olin Corp.		223,153
	1,618	Olympic Steel, Inc.		32,554
	5,125	OM Group, Inc.		133,404
	4,097	P.H. Glatfelter Co.		103,367
	841	Penford Corp.(b)		15,853
	2,676	RTI International Metals, Inc.(b)		63,020
	6,588	Schnitzer Steel Industries, Inc., Class A		155,147
	3,163	Scotts Miracle-Gro Co. (The), Class A		187,376
	3,677	Sensient Technologies Corp.		217,605
	3,819	Silgan Holdings, Inc.		187,742
	6,055	SunCoke Energy, Inc.(b)		144,715
	46,133	Thompson Creek Metals Co., Inc.(b)		87,191
	2,449	Tredegar Corp.		46,580
	796	Universal Stainless & Alloy Products, Inc.(b)		20,465
	1,260	US Concrete, Inc.(b)		31,122
	19,675	Walter Energy, Inc.(c)		47,417
	4,843	Wausau Paper Corp.		47,897
	3,551	Worthington Industries, Inc.		137,246
				4,746,001

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—1.4%
	52,904	Cincinnati Bell, Inc.(b)	$	194,158
	6,653	Consolidated Communications Holdings, Inc.(c)		172,313
	5,814	FairPoint Communications, Inc.(b)		96,512
	4,700	General Communication, Inc., Class A(b)		55,131
	1,226	Hawaiian Telcom Holdco, Inc.(b)		32,979
	26,440	Leap Wireless Corp.(b)		66,629
	1,618	Lumos Networks Corp.		27,830
	4,967	NTELOS Holdings Corp.(c)		50,067
	4,777	Premiere Global Services, Inc.(b)		50,015
	5,455	Spok Holdings, Inc.		88,589
	2,373	United States Cellular Corp.(b)		86,425
				920,648
		Utilities—6.1%
	3,950	ALLETE, Inc.		206,348
	781	Artesian Resources Corp., Class A		17,393
	55,661	Atlantic Power Corp.(c)		123,567
	7,643	Avista Corp.		270,944
	4,003	Black Hills Corp.		219,084
	3,881	California Water Service Group		101,022
	5,073	Cleco Corp.		272,724
	10,092	Dynegy, Inc.(b)		307,806
	3,639	El Paso Electric Co.		137,700
	5,879	Empire District Electric Co. (The)		167,199
	1,047	Genie Energy Ltd., Class B(b)		7,591
	4,604	IDACORP, Inc.		291,111
	3,286	Laclede Group, Inc. (The)		166,830
	2,941	MGE Energy, Inc.		130,786
	1,517	Middlesex Water Co.		34,208
	5,124	New Jersey Resources Corp.		299,652
	3,747	Northwest Natural Gas Co.		175,847
	4,176	NorthWestern Corp.		220,660
	1,004	Ormat Technologies, Inc.		29,066
	4,262	Otter Tail Corp.		132,122
	7,714	Piedmont Natural Gas Co., Inc.(c)		293,209
	10,123	PNM Resources, Inc.		292,049
	1,422	SJW Corp.		45,447
	2,617	South Jersey Industries, Inc.		153,461
	1,582	Unitil Corp.		55,117
				4,150,943
		Total Common Stocks and Other Equity Interests (Cost $59,551,633)		68,002,279
		Money Market Fund—0.1%
	64,551	Invesco Premier Portfolio—Institutional Class(d) (Cost $64,551)		64,551
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $59,616,184)—100.1%		68,066,830

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, 2014

(Unaudited)

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.6%
	2,444,020	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $2,444,020)	$	2,444,020
		Total Investments (Cost $62,060,204)—103.7%		70,510,850
		Other assets less liabilities—(3.7%)		(2,487,387	)
		Net Assets—100.0%	$	68,023,463

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	2,365,693	$	(2,365,693	)	$	—

* Amount does not include excess collateral received, if any.

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

41

Portfolio Composition

PowerShares Zacks Micro Cap Portfolio (PZI)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Financials	39.1
Industrials	13.5
Information Technology	13.4
Consumer Discretionary	11.4
Energy	8.2
Health Care	6.8
Materials	2.7
Telecommunication Services	2.2
Consumer Staples	2.2
Utilities	0.5
Pharmaceuticals	0.0
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Zacks Micro Cap Portfolio (PZI)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.4%
	7,780	AH Belo Corp., Class A	$	89,548
	244	Biglari Holdings, Inc.(b)		85,195
	10,981	Black Diamond, Inc.(b)		85,213
	6,347	Build-A-Bear Workshop, Inc.(b)		107,582
	16,341	Career Education Corp.(b)		94,778
	2,680	Carmike Cinemas, Inc.(b)		85,894
	1,221	Cavco Industries, Inc.(b)		88,974
	16,182	Century Casinos, Inc.(b)		88,030
	9,043	China Automotive Systems, Inc. (China)(b)		83,105
	15,176	China XD Plastics Co. Ltd. (China)(b)(c)		80,888
	3,756	Citi Trends, Inc.(b)		85,073
	9,575	Dixie Group, Inc. (The)(b)		75,451
	6,883	Escalade, Inc.		78,742
	2,461	Flexsteel Industries, Inc.		84,437
	11,310	Gaiam, Inc., Class A(b)		85,617
	10,535	Gray Television, Inc.(b)		97,343
	11,692	JAKKS Pacific, Inc.(b)(c)		74,595
	9,848	Journal Communications, Inc., Class A(b)		96,609
	6,391	Kandi Technologies Group, Inc. (China)(b)(c)		105,579
	9,966	Lakes Entertainment, Inc.(b)		85,209
	5,422	Lifetime Brands, Inc.		92,770
	4,188	M/I Homes, Inc.(b)		90,210
	5,037	Manchester United PLC (United Kingdom) Class A(b)		80,491

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	5,254	Marcus Corp. (The)	$	90,001
	4,927	MarineMax, Inc.(b)		94,451
	24,707	McClatchy Co. (The), Class A(b)		87,957
	6,994	Modine Manufacturing Co.(b)		89,733
	3,051	Motorcar Parts of America, Inc.(b)		88,601
	22,316	Quantum Fuel Systems Technologies Worldwide, Inc.(b)(c)		88,818
	26,105	Radio One, Inc., Class D(b)		65,002
	7,533	RCI Hospitality Holdings, Inc.(b)		89,643
	9,883	Reading International, Inc., Class A(b)		98,534
	10,909	Salem Communications Corp., Class A		84,108
	4,880	Shiloh Industries, Inc.(b)		83,155
	10,657	Skullcandy, Inc.(b)		88,879
	1,020	Strattec Security Corp.		105,794
	4,736	Superior Industries International, Inc.		92,399
	6,657	Systemax, Inc.(b)		101,852
	8,402	TravelCenters of America LLC(b)		81,331
	4,278	Tuesday Morning Corp.(b)		87,228
	3,205	Unifi, Inc.(b)		89,644
	1,681	Universal Electronics, Inc.(b)		95,632
	4,502	WCI Communities, Inc.(b)		84,458
	3,756	William Lyon Homes, Class A(b)		88,867
	14,877	ZAGG, Inc.(b)		99,973
				3,997,393

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

42

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples—2.2%
	5,301	Amira Nature Foods Ltd. (United Arab Emirates)(b)(c)	$	92,290
	10,325	Central Garden & Pet Co., Class A(b)		88,692
	2,902	Diamond Foods, Inc.(b)		87,495
	2,565	John B. Sanfilippo & Son, Inc.		95,290
	6,641	Omega Protein Corp.(b)		95,962
	4,104	Pantry, Inc. (The)(b)		105,760
	4,268	SpartanNash Co.		95,646
	6,878	SunOpta, Inc. (Canada)(b)		97,393
				758,528
		Energy—8.2%
	16,309	Advantage Oil & Gas Ltd. (Canada)(b)		69,639
	2,856	American Midstream Partners LP(c)		81,396
	7,616	Ardmore Shipping Corp. (Ireland)		77,150
	9,423	Callon Petroleum Co.(b)		61,815
	8,318	Capital Product Partners LP (Greece)(c)		76,775
	2,497	Contango Oil & Gas Co.(b)		91,315
	13,476	DHT Holdings, Inc.		89,750
	13,498	Emerald Oil, Inc.(b)(c)		42,924
	7,346	Enduro Royalty Trust		64,718
	3,817	Era Group, Inc.(b)		89,280
	14,142	Gastar Exploration, Inc.(b)		56,568
	22,620	Harvest Natural Resources, Inc.(b)		84,146
	3,325	KNOT Offshore Partners LP (United Kingdom)(c)		80,033
	38,974	Magellan Petroleum Corp.(b)		70,153
	3,442	Matrix Service Co.(b)		86,257
	18,867	Miller Energy Resources, Inc.(b)(c)		65,657
	3,449	Natural Gas Services Group, Inc.(b)		88,743
	3,481	New Source Energy Partners LP(c)		64,085
	6,652	Niska Gas Storage Partners LLC, Class U		38,515
	10,442	Nordic American Tankers Ltd.(c)		88,235
	12,890	North American Energy Partners, Inc. (Canada)		69,735
	5,947	Pacific Ethanol, Inc.(b)		83,912
	16,805	Parker Drilling Co.(b)		74,614
	2,017	PHI, Inc.(b)		90,241
	3,504	QEP Midstream Partners LP		56,590
	13,240	Resolute Energy Corp.(b)(c)		46,075
	1,139	REX American Resources Corp.(b)		82,874
	6,941	Rhino Resource Partners LP		24,849
	3,888	Southcross Energy Partners LP		77,255
	9,112	StealthGas, Inc. (Greece)(b)		76,541
	8,647	Swift Energy Co.(b)(c)		59,232
	22,256	Teekay Tankers Ltd., Class A(c)		94,365
	4,182	Tesco Corp.		79,625
	7,540	Triangle Petroleum Corp.(b)(c)		58,435
	13,012	Tsakos Energy Navigation Ltd.		88,091
	26,023	US Energy Corp. Wyoming(b)		67,920
	3,418	USA Compression Partners LP		77,930
	9,766	VAALCO Energy, Inc.(b)		72,464
	11,927	Vertex Energy, Inc.(b)		75,379
	15,663	Warren Resources, Inc.(b)		54,194
				2,877,475
		Financials—39.1%
	2,915	1st Source Corp.		91,210
	4,664	AG Mortgage Investment Trust, Inc. REIT		88,943

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	4,526	American Residential Properties, Inc. REIT(b)	$	85,994
	3,782	Ameris Bancorp		93,794
	17,331	Anworth Mortgage Asset Corp. REIT		89,948
	5,284	Apollo Commercial Real Estate Finance, Inc. REIT		86,869
	5,380	Apollo Residential Mortgage, Inc. REIT		89,738
	12,317	Arbor Realty Trust, Inc. REIT		82,893
	7,101	Ares Commercial Real Estate Corp. REIT		86,348
	3,267	Arlington Asset Investment Corp., Class A		89,451
	5,998	Atlas Financial Holdings, Inc. (Canada)(b)		88,950
	3,361	Baldwin & Lyons, Inc., Class B		90,478
	7,138	Banc of California, Inc.		84,014
	1,796	Bank of Kentucky Financial Corp. (The)		84,250
	7,998	BankFinancial Corp.		95,416
	2,158	Banner Corp.		93,269
	4,763	BBX Capital Corp., Class A(b)		87,639
	3,534	Berkshire Hills Bancorp, Inc.		91,107
	9,721	BlackRock Kelso Capital Corp.		85,739
	5,301	BNC Bancorp		90,170
	9,709	Brookline Bancorp, Inc.		93,109
	7,366	Calamos Asset Management, Inc., Class A		100,914
	3,476	Capital Bank Financial Corp., Class A(b)		89,994
	6,131	Capital City Bank Group, Inc.		92,639
	2,321	Capital Southwest Corp.		85,088
	4,863	Cardinal Financial Corp.		93,370
	14,070	Cedar Realty Trust, Inc. REIT		96,802
	8,021	Centerstate Banks, Inc.		93,364
	4,630	Central Pacific Financial Corp.		87,507
	7,758	Charter Financial Corp.		87,976
	3,597	Chatham Lodging Trust REIT		92,155
	2,468	Community Trust Bancorp, Inc.		88,725
	4,358	ConnectOne Bancorp, Inc.		80,623
	11,098	CorEnergy Infrastructure Trust, Inc. REIT		83,346
	2,526	CoreSite Realty Corp. REIT		93,513
	22,137	Cowen Group, Inc., Class A(b)		89,434
	4,622	Customers Bancorp, Inc.(b)		88,280
	3,453	CyrusOne, Inc. REIT		94,301
	5,765	Dime Community Bancshares, Inc.		90,799
	10,274	Dynex Capital, Inc. REIT		86,507
	2,609	Eagle Bancorp, Inc.(b)		93,741
	3,736	Ellington Financial LLC		84,023
	5,128	Ellington Residential Mortgage REIT		91,432
	2,874	EMC Insurance Group, Inc.		92,083
	7,053	Excel Trust, Inc. REIT		91,689
	3,017	FBR & Co.(b)		72,830
	2,583	Federal Agricultural Mortgage Corp., Class C		86,014
	2,955	Federated National Holding Co.		98,874
	3,693	Financial Institutions, Inc.		92,842
	33,339	First Acceptance Corp.(b)		85,348
	5,182	First Bancorp		93,898
	1,891	First Business Financial Services, Inc.		88,745
	9,894	First Commonwealth Financial Corp.		92,509
	3,073	First Defiance Financial Corp.		94,126
	8,131	First Financial Northwest, Inc.		94,320
	4,108	First Merchants Corp.		93,046
	2,535	First NBC Bank Holding Co.(b)		93,111

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	3,925	Firsthand Technology Value Fund, Inc.	$	88,352
	7,906	Five Oaks Investment Corp. REIT		87,994
	4,544	Flushing Financial Corp.		91,516
	4,461	Franklin Financial Corp.(b)		92,610
	5,238	FXCM, Inc., Class A		86,218
	5,737	Garrison Capital, Inc.		84,621
	9,466	Gladstone Capital Corp.		86,993
	11,676	Gladstone Investment Corp.		85,819
	3,290	Global Indemnity PLC(b)		95,344
	5,205	Golub Capital BDC, Inc.		90,203
	14,412	Gramercy Property Trust, Inc. REIT		90,075
	8,293	GSV Capital Corp.(b)		80,525
	8,052	Hallmark Financial Services, Inc.(b)		93,886
	4,118	Hanmi Financial Corp.		88,331
	6,007	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		83,978
	5,741	Hercules Technology Growth Capital, Inc.		90,478
	4,112	Heritage Financial Group, Inc.		87,133
	11,859	Heritage Oaks Bancorp		93,330
	3,655	Home Bancorp, Inc.(b)		83,297
	5,682	HomeTrust Bancshares, Inc.(b)		87,787
	6,168	Horizon Technology Finance Corp.		86,907
	12,871	Imperial Holdings, Inc.(b)		80,701
	6,246	Independence Holding Co.		88,381
	8,576	Independence Realty Trust, Inc. REIT		84,302
	6,964	Independent Bank Corp.		84,056
	2,324	Independent Bank Corp.		94,819
	1,750	Independent Bank Group, Inc.		78,208
	1,297	Infinity Property & Casualty Corp.		94,694
	8,684	Intervest Bancshares Corp.		84,669
	4,793	INTL FCStone, Inc.(b)		86,753
	5,267	Investment Technology Group, Inc.(b)		94,437
	6,912	JAVELIN Mortgage Investment Corp. REIT		87,368
	1,872	Kansas City Life Insurance Co.		92,907
	2,214	Lakeland Financial Corp.		91,748
	5,809	LNB Bancorp, Inc.		81,558
	7,492	Maiden Holdings Ltd.		89,529
	4,812	MainSource Financial Group, Inc.		87,530
	7,861	Meridian Bancorp, Inc.(b)		89,144
	7,715	MVC Capital, Inc.		86,948
	4,342	National Bank Holdings Corp., Class A		85,060
	336	National Western Life Insurance Co., Class A		91,056
	1,350	Navigators Group, Inc. (The)(b)		91,922
	5,651	New Mountain Finance Corp.		82,957
	11,482	New York Mortgage Trust, Inc. REIT(c)		89,674
	10,937	NewBridge Bancorp(b)		97,230
	6,095	Northfield Bancorp, Inc.		86,793
	5,542	OFG Bancorp		86,289
	6,878	OFS Capital Corp.		80,473
	4,099	Oppenheimer Holdings, Inc., Class A		100,630
	6,256	Orchid Island Capital, Inc.(c)		86,771
	7,609	PennantPark Investment Corp.		82,786
	3,495	Peoples Bancorp, Inc.		86,152
	1,481	Phoenix Cos., Inc. (The)(b)		87,912
	6,051	Physicians Realty Trust REIT		92,822
	4,161	PICO Holdings, Inc.(b)		91,958

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,589	Piper Jaffray Cos.(b)	$	89,715
	9,978	Preferred Apartment Communities, Inc., Class A REIT		84,813
	3,686	Preferred Bank		97,974
	11,173	RAIT Financial Trust REIT		81,898
	3,069	Renasant Corp.		92,530
	17,046	Resource Capital Corp. REIT		90,173
	5,998	Rexford Industrial Realty, Inc. REIT		92,669
	3,539	S&T Bancorp, Inc.		97,641
	4,512	Safeguard Scientifics, Inc.(b)		90,014
	1,540	Safety Insurance Group, Inc.		96,065
	3,627	Sandy Spring Bancorp, Inc.		93,577
	5,121	Silver Bay Realty Trust Corp. REIT		86,699
	2,155	Simmons First National Corp., Class A		90,488
	2,497	Southside Bancshares, Inc.		83,849
	5,062	Southwest Bancorp, Inc.		91,268
	5,112	State Bank Financial Corp.		91,607
	4,998	Steel Partners Holdings LP(b)		84,216
	5,977	Stellus Capital Investment Corp.		81,825
	6,491	Sterling Bancorp		91,264
	2,828	Stewart Information Services Corp.		99,885
	4,277	Suffolk Bancorp		98,200
	7,701	Summit Hotel Properties, Inc. REIT		89,640
	5,166	TCP Capital Corp.		87,254
	4,409	Terreno Realty Corp. REIT		92,854
	1,883	Tompkins Financial Corp.		94,527
	6,113	TowneBank		92,673
	3,670	Trico Bancshares		96,521
	5,043	United Community Banks, Inc.		90,925
	6,542	United Financial Bancorp, Inc.		91,784
	2,989	United Fire Group, Inc.		97,083
	5,534	United Insurance Holdings Corp.		108,466
	6,420	Universal Insurance Holdings, Inc.		112,350
	7,187	Waterstone Financial, Inc.		87,969
	2,714	WesBanco, Inc.		93,524
	5,617	Western Asset Mortgage Capital Corp. REIT		84,367
	8,994	Wilshire Bancorp, Inc.		89,041
	5,509	Winthrop Realty Trust REIT		86,106
	1,159	WSFS Financial Corp.		91,155
	4,571	Yadkin Financial Corp.(b)		88,723
	4,810	ZAIS Financial Corp. REIT		87,253
				13,645,516
		Health Care—6.8%
	10,403	Affymetrix, Inc.(b)		93,731
	3,761	Albany Molecular Research, Inc.(b)		87,481
	3,055	Almost Family, Inc.(b)		89,939
	4,116	Amedisys, Inc.(b)		107,428
	6,051	AngioDynamics, Inc.(b)		102,867
	2,935	ANI Pharmaceuticals, Inc.(b)		99,673
	2,264	Anika Therapeutics, Inc.(b)		90,877
	5,620	Arrowhead Research Corp.(b)(c)		36,642
	5,640	AtriCure, Inc.(b)		98,362
	16,976	China Cord Blood Corp. (Hong Kong)(b)		86,408
	8,936	Cross Country Healthcare, Inc.(b)		86,411
	8,411	CryoLife, Inc.		86,297
	36,251	Idera Pharmaceuticals, Inc.(b)(c)		92,440

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	7,029	Invacare Corp.	$	110,425
	6,988	Merit Medical Systems, Inc.(b)		105,868
	2,813	Natus Medical, Inc.(b)		95,642
	11,498	OraSure Technologies, Inc.(b)		102,907
	2,681	Orthofix International NV(b)		78,687
	10,809	Pernix Therapeutics Holdings, Inc.(b)		105,388
	3,398	PharMerica Corp.(b)		97,489
	3,746	Prothena Corp. PLC (Ireland)(b)		82,150
	8,227	Symmetry Medical, Inc.(b)		81,447
	3,927	Tekmira Pharmaceuticals Corp. (Canada)(b)		65,502
	12,119	Tonix Pharmaceuticals Holding Corp.(b)		91,741
	4,172	Triple-S Management Corp., Class B(b)		92,368
	10,325	Universal American Corp.(b)		96,229
				2,364,399
		Industrials—13.5%
	12,031	ACCO Brands Corp.(b)		99,015
	4,297	Aceto Corp.		97,714
	2,761	Aerovironment, Inc.(b)		84,625
	11,403	Air Transport Services Group, Inc.(b)		93,277
	2,025	Alamo Group, Inc.		86,751
	10,249	ARC Document Solutions, Inc.(b)		104,027
	2,487	Argan, Inc.		86,572
	25,543	Arotech Corp.(b)(c)		75,352
	20,052	Baltic Trading Ltd.(c)		75,195
	11,083	Broadwind Energy, Inc.(b)		70,710
	10,548	CBIZ, Inc.(b)		97,358
	4,478	China Yuchai International Ltd.		81,455
	3,775	Columbus McKinnon Corp.		107,399
	4,466	Covenant Transportation Group, Inc., Class A(b)		92,625
	3,264	CRA International, Inc.(b)		97,920
	16,151	Danaos Corp. (Greece)(b)		88,507
	3,029	Ducommun, Inc.(b)		79,996
	2,663	Engility Holdings, Inc.(b)		115,042
	2,493	FreightCar America, Inc.		82,194
	19,533	Fuel Tech, Inc.(b)		79,109
	8,402	Gencor Industries, Inc.(b)		81,415
	9,359	General Finance Corp.(b)		80,675
	6,064	Gibraltar Industries, Inc.(b)		92,476
	7,288	Griffon Corp.		89,569
	6,172	Hawaiian Holdings, Inc.(b)		107,022
	4,042	Heidrick & Struggles International, Inc.		84,154
	10,455	Highpower International, Inc. (China)(b)(c)		67,644
	20,754	Hill International, Inc.(b)		80,525
	2,204	Hurco Cos., Inc.		84,920
	2,696	ICF International, Inc.(b)		97,973
	10,482	Jinpan International Ltd. (China)(c)		80,502
	2,126	Kadant, Inc.		87,889
	5,298	Kelly Services, Inc., Class A		93,404
	5,516	Kimball International, Inc., Class B		99,178
	9,380	Knightsbridge Tankers Ltd. (Bermuda)(c)		82,356
	5,998	LS Starrett Co. (The), Class A		88,650
	3,073	Lydall, Inc.(b)		95,048
	7,353	Manitex International, Inc.(b)		84,045
	4,661	Marten Transport Ltd.		91,449
	3,447	MYR Group, Inc.(b)		89,415
	5,968	Navigant Consulting, Inc.(b)		91,847

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	13,836	Navios Maritime Holdings, Inc.(c)	$	81,494
	3,107	NN, Inc.		77,675
	2,434	Northwest Pipe Co.(b)		87,089
	15,517	Orion Energy Systems, Inc.(b)		89,223
	2,290	P.A.M. Transportation Services, Inc.(b)		98,424
	7,472	Republic Airways Holdings, Inc.(b)		93,549
	5,955	Resources Connection, Inc.		92,124
	12,465	Safe Bulkers, Inc. (Greece)		66,563
	2,758	SIFCO Industries, Inc.		93,827
	10,670	SkyWest, Inc.		122,918
	7,533	Star Bulk Carriers Corp. (Greece)(b)(c)		77,741
	4,046	Willis Lease Finance Corp.(b)		92,289
				4,717,915
		Information Technology—13.4%
	5,182	Actua Corp.(b)		97,422
	8,831	Alpha & Omega Semiconductor Ltd.(b)		81,863
	7,758	Amtech Systems, Inc.(b)		81,692
	5,156	Applied Optoelectronics, Inc.(b)		83,218
	9,664	Autobytel, Inc.(b)		89,295
	3,355	Bel Fuse, Inc., Class B		94,913
	7,899	Brooks Automation, Inc.		97,395
	21,123	Camtek Ltd. (Israel)(b)(c)		69,917
	8,195	Cascade Microtech, Inc.(b)		88,014
	3,670	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		78,832
	24,203	Ciber, Inc.(b)		79,144
	7,439	Communications Systems, Inc.		88,003
	2,235	Comtech Telecommunications Corp.		85,086
	5,224	CTS Corp.		96,122
	5,854	Ebix, Inc.(c)		86,347
	14,590	EMCORE Corp.(b)		75,284
	16,805	Emulex Corp.(b)		95,116
	4,895	EnerNOC, Inc.(b)		72,299
	4,727	EPIQ Systems, Inc.		75,821
	5,686	Fabrinet (Thailand)(b)		103,542
	11,578	FormFactor, Inc.(b)		92,277
	7,225	GSI Group, Inc.(b)		92,841
	22,682	Hutchinson Technology, Inc.(b)		80,975
	6,042	Integrated Silicon Solution, Inc.		82,050
	12,446	Intevac, Inc.(b)		92,100
	10,249	Intralinks Holdings, Inc.(b)		88,551
	7,906	IXYS Corp.		92,263
	20,149	Kemet Corp.(b)		96,715
	11,069	Lattice Semiconductor Corp.(b)		74,273
	9,520	Maxwell Technologies, Inc.(b)(c)		111,003
	42,139	MeetMe, Inc.(b)(c)		83,435
	7,540	Mercury Systems, Inc.(b)		105,409
	23,253	ModusLink Global Solutions, Inc.(b)		81,386
	15,094	Monster Worldwide, Inc.(b)		58,263
	8,729	NCI, Inc., Class A(b)		88,861
	4,685	Newport Corp.(b)		83,815
	5,328	Orbotech Ltd. (Israel)(b)		85,461
	3,867	PC Connection, Inc.		92,228
	8,497	PCM, Inc.(b)		82,081
	8,523	Pericom Semiconductor Corp.(b)		93,156
	10,312	Photronics, Inc.(b)		92,705

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	19,533	Rubicon Technology, Inc.(b)	$	86,531
	12,483	ShoreTel, Inc.(b)		100,988
	3,105	Sierra Wireless, Inc. (Canada)(b)		85,015
	4,155	Sykes Enterprises, Inc.(b)		89,499
	9,664	TechTarget, Inc.(b)		92,195
	29,754	TeleCommunication Systems, Inc., Class A(b)		85,692
	12,390	Telenav, Inc.(b)		89,456
	8,163	Tower Semiconductor Ltd. (Israel)(b)(c)		79,997
	12,190	TTM Technologies, Inc.(b)		84,233
	9,275	Ultra Clean Holdings, Inc.(b)		81,435
	5,557	Vishay Precision Group, Inc.(b)		94,413
	8,480	Xcerra Corp.(b)		71,995
	30,746	Zhone Technologies, Inc.(b)(c)		70,101
				4,680,723
		Materials—2.7%
	4,151	Ampco-Pittsburgh Corp.		90,450
	5,854	Core Molding Technologies, Inc.(b)		77,858
	5,022	Horsehead Holding Corp.(b)		78,896
	2,707	Materion Corp.		106,791
	42,354	McEwen Mining, Inc.(b)		52,519
	8,514	Mercer International, Inc.(b)		107,106
	22,996	Nevsun Resources Ltd. (Canada)		77,956
	18,366	Noranda Aluminum Holding Corp.		80,994
	17,116	Primero Mining Corp. (Canada)(b)		58,537
	3,452	Schnitzer Steel Industries, Inc., Class A		81,295
	13,609	Silver Standard Resources, Inc. (Canada)(b)		59,471
	2,821	SunCoke Energy Partners LP		73,290
				945,163
		Pharmaceuticals—0.0%
	27,615	Chelsea Therapeutics International Ltd.(b)		2,209
		Telecommunication Services—2.2%
	1,540	Atlantic Tele-Network, Inc.		103,473
	7,609	General Communication, Inc., Class A(b)		89,254
	3,231	Hawaiian Telcom Holdco, Inc.(b)		86,914
	6,668	Inteliquent, Inc.		112,222
	9,380	Iridium Communications, Inc.(b)(c)		89,110
	14,437	ORBCOMM, Inc.(b)		91,242
	3,346	Shenandoah Telecommunications Co.		99,008
	6,381	Spok Holdings, Inc.		103,627
				774,850
		Utilities—0.5%
	7,107	Consolidated Water Co. Ltd. (Cayman Islands)		85,213
	14,538	Star Gas Partners LP		90,717
				175,930
		Total Common Stocks and Other Equity Interests (Cost $34,052,461)		34,940,101

Number of Shares			Value
		Money Market Fund—0.2%
	60,782	Invesco Premier Portfolio—Institutional Class(d) (Cost $60,782)	$	60,782
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $34,113,243)—100.2%		35,000,883
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.9%
	1,714,856	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $1,714,856)		1,714,856
		Total Investments (Cost $35,828,099)—105.1%		36,715,739
		Other assets less liabilities—(5.1%)		(1,775,577	)
		Net Assets—100.0%	$	34,940,162

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	1,643,164	$	(1,643,164	)	$	—

* Amount does not include excess collateral received, if any.

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

46

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

October 31, 2014

(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)	$	280,635,651		$	928,368,389		$	41,171,189		$	125,402,819
Affiliated investments, at value		296,427			—			36,030			130,788
Total investments, at value		280,932,078			928,368,389			41,207,219			125,533,607
Foreign currencies, at value		—			—			—			—
Receivables:
Investments sold		2,777,249			—			—			—
Dividends		176,365			1,183,933			42,587			42,188
Expenses absorbed		—			—			—			—
Foreign tax reclaims		—			—			—			—
Securities lending		—			—			—			—
Shares sold		—			3,011,046			—			—
Other assets		1,313			3,944			1,282			1,375
Total Assets		283,887,005			932,567,312			41,251,088			125,577,170
Liabilities:
Due to custodian		173,098			708,926			946			379
Payables:
Investments purchased		—			3,004,372			—			—
Collateral upon return of securities loaned		—			—			—			—
Shares repurchased		2,749,812			—			—			—
Accrued advisory fees		114,878			376,525			4,046			26,234
Accrued trustees’ and officer’s fees		26,867			32,963			12,138			7,766
Accrued expenses		108,085			277,400			49,471			60,017
Total Liabilities		3,172,740			4,400,186			66,601			94,396
Net Assets	$	280,714,265		$	928,167,126		$	41,184,487		$	125,482,774
Net Assets Consist of:
Shares of beneficial interest	$	488,100,697		$	930,079,715		$	43,971,708		$	100,075,158
Undistributed net investment income		33,047			2,051,608			71,508			176,105
Undistributed net realized gain (loss)		(237,880,164	)		(105,277,679	)		(10,012,445	)		(730,270	)
Net unrealized appreciation		30,460,685			101,313,482			7,153,716			25,961,781
Net Assets	$	280,714,265		$	928,167,126		$	41,184,487		$	125,482,774
Shares outstanding (unlimited amount authorized, $0.01 par value)		9,950,000			30,250,000			1,050,000			3,900,000
Net asset value	$	28.21		$	30.68		$	39.22		$	32.18
Market price	$	28.20		$	30.68		$	39.16		$	32.20
Unaffiliated investments, at cost	$	250,174,966		$	827,054,907		$	34,017,473		$	99,441,038
Affiliated investments, at cost	$	296,427		$	—		$	36,030		$	130,788
Total investments, at cost	$	250,471,393		$	827,054,907		$	34,053,503		$	99,571,826
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)
$	36,669,854		$	24,679,086		$	87,939,948		$	50,850,081		$	15,351,805		$	30,350,440		$	68,002,279		$	34,940,101
	8,458			374,037			477,099			1,178,834			52,911			1,129,499			2,508,571			1,775,638
	36,678,312			25,053,123			88,417,047			52,028,915			15,404,716			31,479,939			70,510,850			36,715,739
	—			—			—			136,078			—			—			—			—
	—			—			—			—			118,684			15,390			2,502			6,790
	76,121			8,135			58,690			54,517			6,014			13,984			26,783			23,621
	—			—			—			—			4,883			1,091			—			—
	—			—			—			—			—			—			—			465
	—			—			—			3,122			—			2,519			9,057			11,752
	—			—			—			—			—			—			—			—
	1,292			688			1,697			1,291			1,244			1,261			1,296			1,036
	36,755,725			25,061,946			88,477,434			52,223,923			15,535,541			31,514,184			70,550,488			36,759,403
	354			667			2,245			82,560			440			1,162			2,715			1,787
	—			—			—			—			—			24,438			—			—
	—			—			—			1,178,834			—			1,072,449			2,444,020			1,714,856
	—			—			—			—			—			—			—			—
	2,542			252			15,818			5,284			—			—			1,838			7,165
	6,687			11,627			19,011			12,978			11,251			12,498			14,080			13,850
	41,054			49,717			61,012			56,791			48,624			53,244			64,372			81,583
	50,637			62,263			98,086			1,336,447			60,315			1,163,791			2,527,025			1,819,241
$	36,705,088		$	24,999,683		$	88,379,348		$	50,887,476		$	15,475,226		$	30,350,393		$	68,023,463		$	34,940,162
$	33,778,909		$	30,454,098		$	243,236,950		$	87,162,439		$	23,692,159		$	76,643,733		$	104,535,824		$	125,047,553
	111,687			28,557			117,133			100,460			13,250			118,886			168,659			52,904
	(66,753	)		(9,316,159	)		(170,856,966	)		(44,919,772	)		(9,994,757	)		(50,607,187	)		(45,131,666	)		(91,047,935	)
	2,881,245			3,833,187			15,882,231			8,544,349			1,764,574			4,194,961			8,450,646			887,640
$	36,705,088		$	24,999,683		$	88,379,348		$	50,887,476		$	15,475,226		$	30,350,393		$	68,023,463		$	34,940,162
	1,200,000			650,000			2,850,000			1,900,000			450,000			1,250,000			2,700,000			2,150,000
$	30.59		$	38.46		$	31.01		$	26.78		$	34.39		$	24.28		$	25.19		$	16.25
$	30.59		$	38.45		$	30.99		$	26.79		$	34.38		$	24.28		$	25.20		$	16.23
$	33,788,609		$	20,923,034		$	72,038,766		$	42,304,895		$	13,587,231		$	26,155,479		$	59,551,633		$	34,052,461
$	8,458		$	296,902		$	496,050		$	1,178,834		$	52,911		$	1,129,499		$	2,508,571		$	1,775,638
$	33,797,067		$	21,219,936		$	72,534,816		$	43,483,729		$	13,640,142		$	27,284,978		$	62,060,204		$	35,828,099
$	—		$	—		$	—		$	136,915		$	—		$	—		$	—		$	—
$	—		$	—		$	—		$	1,139,209		$	—		$	1,052,434		$	2,365,693		$	1,643,164

49

Statements of Operations

For the six months ended October 31, 2014

(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	$	1,518,070		$	11,306,170		$	482,480		$	1,123,986
Affiliated dividend income		11			44			3			7
Securities lending income		—			—			—			—
Foreign withholding tax		—			—			—			—
Total Income		1,518,081			11,306,214			482,483			1,123,993
Expenses:
Advisory fees		692,035			2,168,060			61,707			167,809
Sub-licensing		41,522			130,084			11,604			30,893
Accounting & administration fees		28,183			79,592			18,467			18,467
Professional fees		14,979			19,029			13,006			14,245
Trustees’ and officer’s fees		6,229			11,248			4,080			4,730
Custodian & transfer agent fees		3,562			9,711			3,301			3,532
Other expenses		13,536			26,874			7,460			7,682
Total Expenses		800,046			2,444,598			119,625			247,358
Less: Waivers		(124	)		(355	)		(36,676	)		(21,765	)
Net Expenses		799,922			2,444,243			82,949			225,593
Net Investment Income		718,159			8,861,971			399,534			898,400
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(6,171,199	)		(3,905,629	)		5,769			221
In-kind redemptions		25,594,477			46,626,018			804,152			394,967
Foreign currencies		—			—			—			—
Net realized gain (loss)		19,423,278			42,720,389			809,921			395,188
Change in net unrealized appreciation (depreciation) on:
Investment securities		7,095,630			(10,568,919	)		1,394,444			9,492,012
Foreign currencies		—			—			—			—
Net change in unrealized appreciation (depreciation)		7,095,630			(10,568,919	)		1,394,444			9,492,012
Net realized and unrealized gain (loss)		26,518,908			32,151,470			2,204,365			9,887,200
Net increase in net assets resulting from operations	$	27,237,067		$	41,013,441		$	2,603,899		$	10,785,600

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 Micro Cap Portfolio (PZI)
$	422,931		$	253,941		$	780,535		$	468,022		$	100,223		$	174,902		$	503,007		$	328,056
	2			5,025			24,629			—			4			5			5			6
	—			—			—			17,272			—			14,051			54,281			124,208
	—			—			(1,755	)		—			(25	)		(68	)		(1,229	)		(1,297	)
	422,933			258,966			803,409			485,294			100,202			188,890			556,064			450,973
	43,751			46,045			134,205			69,123			21,870			43,975			96,016			118,923
	5,144			9,007			26,521			12,467			4,598			8,688			19,014			23,843
	18,467			18,467			18,467			18,467			18,467			18,467			18,467			18,467
	12,814			12,940			13,497			13,031			12,945			13,053			13,247			13,750
	3,913			3,991			4,553			4,114			3,841			3,979			4,312			4,248
	3,807			4,604			4,597			10,764			7,451			9,404			22,941			10,396
	6,757			7,492			9,603			8,142			7,780			8,597			10,718			9,712
	94,653			102,546			211,443			136,108			76,952			106,163			184,715			199,339
	(35,838	)		(40,668	)		(31,029	)		(43,152	)		(47,587	)		(47,077	)		(55,643	)		(32,858	)
	58,815			61,878			180,414			92,956			29,365			59,086			129,072			166,481
	364,118			197,088			622,995			392,338			70,837			129,804			426,992			284,492
	(1,884	)		211,940			694,373			212,292			125,932			52,787			141,142			(3,424,946	)
	—			1,310,618			965,582			—			—			—			—			3,940,443
	—			—			—			—			—			—			(188	)		—
	(1,884	)		1,522,558			1,659,955			212,292			125,932			52,787			140,954			515,497
	1,103,743			13,822			1,334,143			1,280,290			574,195			480,029			1,213,132			(688,585	)
	—			—			—			(14,517	)		—			—			(9	)		—
	1,103,743			13,822			1,334,143			1,265,773			574,195			480,029			1,213,123			(688,585	)
	1,101,859			1,536,380			2,994,098			1,478,065			700,127			532,816			1,354,077			(173,088	)
$	1,465,977		$	1,733,468		$	3,617,093		$	1,870,403		$	770,964		$	662,620		$	1,781,069		$	111,404

51

Statements of Changes in Net Assets

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)						PowerShares Dynamic Large Cap Value Portfolio (PWV)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income	$	718,159		$	1,071,782		$	8,861,971		$	14,117,950
Net realized gain (loss)		19,423,278			61,188,563			42,720,389			93,058,616
Net change in unrealized appreciation (depreciation)		7,095,630			(17,475,378	)		(10,568,919	)		14,932,987
Net increase in net assets resulting from operations		27,237,067			44,784,967			41,013,441			122,109,553
Distributions to Shareholders from:
Net investment income		(882,603	)		(1,108,791	)		(8,399,934	)		(13,897,107	)
Capital gains		—			—			—			—
Total distributions to shareholders		(882,603	)		(1,108,791	)		(8,399,934	)		(13,897,107	)
Shareholder Transactions:
Proceeds from shares sold		153,418,721			323,660,690			397,871,489			868,969,018
Value of shares repurchased		(184,733,478	)		(294,559,223	)		(303,405,773	)		(750,918,793	)
Net increase (decrease) in net assets resulting from shares transactions		(31,314,757	)		29,101,467			94,465,716			118,050,225
Increase (Decrease) in Net Assets		(4,960,293	)		72,777,643			127,079,223			226,262,671
Net Assets:
Beginning of period		285,674,558			212,896,915			801,087,903			574,825,232
End of period	$	280,714,265		$	285,674,558		$	928,167,126		$	801,087,903
Undistributed net investment income at end of period	$	33,047		$	197,491		$	2,051,608		$	1,589,571
Changes in Shares Outstanding:
Shares sold		5,650,000			13,350,000			13,050,000			32,150,000
Shares repurchased		(6,850,000	)		(12,200,000	)		(9,950,000	)		(27,800,000	)
Shares outstanding, beginning of period		11,150,000			10,000,000			27,150,000			22,800,000
Shares outstanding, end of period		9,950,000			11,150,000			30,250,000			27,150,000

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, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	399,534		$	628,419		$	898,400		$	1,734,307		$	364,118		$	286,110		$	197,088		$	312,711
	809,921			3,306,997			395,188			2,797,144			(1,884	)		741,217			1,522,558			2,534,338
	1,394,444			2,610,982			9,492,012			13,154,514			1,103,743			1,060,399			13,822			2,159,025
	2,603,899			6,546,398			10,785,600			17,685,965			1,465,977			2,087,726			1,733,468			5,006,074
	(358,974	)		(612,506	)		(924,593	)		(2,133,201	)		(299,443	)		(263,618	)		(208,420	)		(309,864	)
	—			—			—			(65,835	)		—			(7,335	)		—			—
	(358,974	)		(612,506	)		(924,593	)		(2,199,036	)		(299,443	)		(270,953	)		(208,420	)		(309,864	)
	1,927,148			21,427,256			10,864,638			30,772,536			20,837,863			8,206,110			—			17,246,882
	(3,757,982	)		(14,464,293	)		(1,564,595	)		(22,754,152	)		(29	)		(2,871,073	)		(7,392,512	)		(10,844,266	)
	(1,830,834	)		6,962,963			9,300,043			8,018,384			20,837,834			5,335,037			(7,392,512	)		6,402,616
	414,091			12,896,855			19,161,050			23,505,313			22,004,368			7,151,810			(5,867,464	)		11,098,826
	40,770,396			27,873,541			106,321,724			82,816,411			14,700,720			7,548,910			30,867,147			19,768,321
$	41,184,487		$	40,770,396		$	125,482,774		$	106,321,724		$	36,705,088		$	14,700,720		$	24,999,683		$	30,867,147
$	71,508		$	30,948		$	176,105		$	202,298		$	111,687		$	47,012		$	28,557		$	39,889
	50,000			600,000			350,000			1,100,000			700,000			300,000			—			500,000
	(100,000	)		(400,000	)		(50,001	)		(800,000	)		(1	)		(100,000	)		(200,000	)		(300,000	)
	1,100,000			900,000			3,600,001			3,300,001			500,001			300,001			850,000			650,000
	1,050,000			1,100,000			3,900,000			3,600,001			1,200,000			500,001			650,000			850,000

53

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)						PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income	$	622,995		$	1,029,330		$	392,338		$	572,308
Net realized gain		1,659,955			6,742,034			212,292			3,996,687
Net change in unrealized appreciation (depreciation)		1,334,143			5,747,374			1,265,773			3,640,616
Net increase in net assets resulting from operations		3,617,093			13,518,738			1,870,403			8,209,611
Distributions to Shareholders from:
Net investment income		(703,536	)		(1,178,058	)		(351,409	)		(549,786	)
Shareholder Transactions:
Proceeds from shares sold		—			24,086,636			6,659,517			18,202,301
Value of shares repurchased		(6,089,348	)		(26,973,280	)		—			(11,473,851	)
Net increase (decrease) in net assets resulting from shares transactions		(6,089,348	)		(2,886,644	)		6,659,517			6,728,450
Increase (Decrease) in Net Assets		(3,175,791	)		9,454,036			8,178,511			14,388,275
Net Assets:
Beginning of period		91,555,139			82,101,103			42,708,965			28,320,690
End of period	$	88,379,348		$	91,555,139		$	50,887,476		$	42,708,965
Undistributed net investment income at end of period	$	117,133		$	197,674		$	100,460		$	59,531
Changes in Shares Outstanding:
Shares sold		—			800,000			250,000			750,000
Shares repurchased		(200,000	)		(900,000	)		—			(450,000	)
Shares outstanding, beginning of period		3,050,000			3,150,000			1,650,000			1,350,000
Shares outstanding, end of period		2,850,000			3,050,000			1,900,000			1,650,000

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, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	70,837		$	166,719		$	129,804		$	252,303		$	426,992		$	751,850		$	284,492		$	701,465
	125,932			2,710,573			52,787			2,796,204			140,954			8,481,682			515,497			10,130,819
	574,195			(109,024	)		480,029			2,457,284			1,213,123			3,919,701			(688,585	)		(1,734,740	)
	770,964			2,768,268			662,620			5,505,791			1,781,069			13,153,233			111,404			9,097,544
	(79,384	)		(198,389	)		(184,438	)		(268,388	)		(334,642	)		(729,968	)		(597,123	)		(512,267	)
	—			9,749,513			—			8,700,003			1,201,255			28,894,203			11,123,940			48,525,479
	—			(12,825,382	)		—			(10,711,283	)		—			(24,025,732	)		(37,479,590	)		(37,384,029	)
	—			(3,075,869	)		—			(2,011,280	)		1,201,255			4,868,471			(26,355,650	)		11,141,450
	691,580			(505,990	)		478,182			3,226,123			2,647,682			17,291,736			(26,841,369	)		19,726,727
	14,783,646			15,289,636			29,872,211			26,646,088			65,375,781			48,084,045			61,781,531			42,054,804
$	15,475,226		$	14,783,646		$	30,350,393		$	29,872,211		$	68,023,463		$	65,375,781		$	34,940,162		$	61,781,531
$	13,250		$	21,797		$	118,886		$	173,520		$	168,659		$	76,309		$	52,904		$	365,535
	—			300,000			—			350,000			50,000			1,150,000			650,000			3,050,000
	—			(400,000	)		—			(450,000	)		—			(950,000	)		(2,300,000	)		(2,350,000	)
	450,000			550,000			1,250,000			1,350,000			2,650,000			2,450,000			3,800,000			3,100,000
	450,000			450,000			1,250,000			1,250,000			2,700,000			2,650,000			2,150,000			3,800,000

55

Financial Highlights

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	25.62		$	21.29		$	18.73		$	17.63		$	14.91		$	11.03
Net investment income(a)		0.07			0.10			0.21			0.15			0.11			0.06
Net realized and unrealized gain on investments		2.61			4.34			2.55			1.09			2.72			3.91
Total from investment operations		2.68			4.44			2.76			1.24			2.83			3.97
Distributions to shareholders from:
Net investment income		(0.09	)		(0.11	)		(0.20	)		(0.14	)		(0.11	)		(0.09	)
Net asset value at end of period	$	28.21		$	25.62		$	21.29		$	18.73		$	17.63		$	14.91
Market price at end of period(b)	$	28.20		$	25.62		$	21.28		$	18.72		$	17.63		$	14.91
Net Asset Value Total Return(c)		10.46	%		20.91	%		14.91	%		7.18	%		19.08	%		36.15	%
Market Price Total Return(c)		10.42	%		20.96	%		14.92	%		7.12	%		19.08	%		36.15	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	280,714		$	285,675		$	212,897		$	191,013		$	196,574		$	230,334
Ratio to average net assets of:
Expenses, after Waivers		0.58	%(d)		0.58	%		0.59	%		0.61	%		0.63	%		0.61	%
Expenses, prior to Waivers		0.58	%(d)		0.58	%		0.59	%		0.62	%		0.64	%		0.61	%
Net investment income, after Waivers		0.52	%(d)		0.43	%		1.08	%		0.89	%		0.73	%		0.45	%
Portfolio turnover rate(e)		75	%		123	%		47	%		64	%		45	%		67	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares Dynamic Large Cap Value Portfolio (PWV)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	29.51		$	25.21		$	20.73		$	20.35		$	18.05		$	13.54
Net investment income(a)		0.31			0.55			0.52			0.46			0.40			0.39
Net realized and unrealized gain on investments		1.15			4.30			4.48			0.38			2.33			4.52
Total from investment operations		1.46			4.85			5.00			0.84			2.73			4.91
Distributions to shareholders from:
Net investment income		(0.29	)		(0.55	)		(0.52	)		(0.46	)		(0.43	)		(0.40	)
Net asset value at end of period	$	30.68		$	29.51		$	25.21		$	20.73		$	20.35		$	18.05
Market price at end of period(b)	$	30.68		$	29.49		$	25.22		$	20.71		$	20.36		$	18.05
Net Asset Value Total Return(c)		4.96	%		19.48	%		24.55	%		4.34	%		15.50	%		36.69	%
Market Price Total Return(c)		5.03	%		19.35	%		24.72	%		4.20	%		15.49	%		36.67	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	928,167		$	801,088		$	574,825		$	419,740		$	422,319		$	349,265
Ratio to average net assets of:
Expenses, after Waivers		0.56	%(d)		0.57	%		0.59	%		0.59	%		0.61	%		0.63	%
Expenses, prior to Waivers		0.56	%(d)		0.57	%		0.59	%		0.59	%		0.61	%		0.60	%
Net investment income, after Waivers		2.04	%(d)		2.04	%		2.36	%		2.39	%		2.22	%		2.46	%
Portfolio turnover rate(e)		36	%		103	%		58	%		41	%		40	%		47	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	37.06		$	30.97		$	26.66		$	26.42		$	23.26		$	17.56
Net investment income(a)		0.36			0.63			0.65			0.57			0.37			0.27
Net realized and unrealized gain on investments		2.13			6.03			4.35			0.32			3.16			5.74
Total from investment operations		2.49			6.66			5.00			0.89			3.53			6.01
Distributions to shareholders from:
Net investment income		(0.33	)		(0.57	)		(0.69	)		(0.65	)		(0.37	)		(0.31	)
Net asset value at end of period	$	39.22		$	37.06		$	30.97		$	26.66		$	26.42		$	23.26
Market price at end of period(b)	$	39.16		$	37.08		$	30.98		$	26.66		$	26.42		$	23.26
Net Asset Value Total Return(c)		6.71	%		21.69	%		19.10	%		3.64	%		15.40	%		34.56	%
Market Price Total Return(c)		6.50	%		21.72	%		19.15	%		3.64	%		15.40	%		34.64	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	41,184		$	40,770		$	27,874		$	25,326		$	35,673		$	38,376
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.39	%		0.43	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.56	%(d)		0.60	%		0.80	%		0.90	%		0.99	%		0.88	%
Net investment income, after Waivers		1.88	%(d)		1.85	%		2.38	%		2.32	%		1.61	%		1.32	%
Portfolio turnover rate(e)		1	%		38	%		43	%		58	%		41	%		62	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,						For the Period June 13, 2011(a) Through April 30, 2012
				2014			2013
Per Share Operating Performance:
Net asset value at beginning of period	$	29.53		$	25.10		$	22.20		$	20.00
Net investment income(b)		0.24			0.50			0.39			0.28
Net realized and unrealized gain on investments		2.66			4.57			2.87			2.09
Total from investment operations		2.90			5.07			3.26			2.37
Distributions to shareholders from:
Net investment income		(0.25	)		(0.62	)		(0.36	)		(0.17	)
Capital gains		—			(0.02	)		—			—
Total distributions		(0.25	)		(0.64	)		(0.36	)		(0.17	)
Net asset value at end of period	$	32.18		$	29.53		$	25.10		$	22.20
Market price at end of period(c)	$	32.20		$	29.52		$	25.08		$	22.19
Net Asset Value Total Return(d)		9.84	%		20.54	%		14.87	%		11.99	%(e)
Market Price Total Return(d)		9.95	%		20.59	%		14.83	%		11.94	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	125,483		$	106,322		$	82,816		$	4,440
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(f)		0.39	%		0.39	%		0.39	%(f)
Expenses, prior to Waivers		0.43	%(f)		0.45	%		0.79	%		7.69	%(f)
Net investment income, after Waivers		1.55	%(f)		1.84	%		1.63	%		1.54	%(f)
Portfolio turnover rate(g)		1	%		22	%		90	%		3	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

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

^(f)  Annualized.

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

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

57

Financial Highlights (continued)

PowerShares Fundamental Pure Large Value Portfolio (PXLV)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,						For the Period June 13, 2011(a) Through April 30, 2012
				2014			2013
Per Share Operating Performance:
Net asset value at beginning of period	$	29.40		$	25.16		$	20.37		$	20.00
Net investment income(b)		0.36			0.63			0.52			0.39
Net realized and unrealized gain on investments		1.13			4.17			4.77			0.33
Total from investment operations		1.49			4.80			5.29			0.72
Distributions to shareholders from:
Net investment income		(0.30	)		(0.54	)		(0.50	)		(0.35	)
Capital gains		—			(0.02	)		—			—
Total distributions		(0.30	)		(0.56	)		(0.50	)		(0.35	)
Net asset value at end of period	$	30.59		$	29.40		$	25.16		$	20.37
Market price at end of period(c)	$	30.59		$	29.39		$	25.16		$	20.35
Net Asset Value Total Return(d)		5.07	%		19.27	%		26.41	%		3.80	%(e)
Market Price Total Return(d)		5.10	%		19.23	%		26.53	%		3.70	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	36,705		$	14,701		$	7,549		$	8,148
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(f)		0.39	%		0.39	%		0.39	%(f)
Expenses, prior to Waivers		0.63	%(f)		1.05	%		2.10	%		2.87	%(f)
Net investment income, after Waivers		2.41	%(f)		2.32	%		2.43	%		2.38	%(f)
Portfolio turnover rate(g)		1	%		23	%		9	%		2	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

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

^(f)  Annualized.

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

PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	36.31		$	30.41		$	26.60		$	27.15		$	23.05		$	16.30
Net investment income(a)		0.24			0.40			0.43			0.29			0.21			0.18
Net realized and unrealized gain (loss) on investments		2.16			5.90			3.80			(0.57	)		4.10			6.73
Total from investment operations		2.40			6.30			4.23			(0.28	)		4.31			6.91
Distributions to shareholders from:
Net investment income		(0.25	)		(0.40	)		(0.42	)		(0.27	)		(0.21	)		(0.16	)
Net asset value at end of period	$	38.46		$	36.31		$	30.41		$	26.60		$	27.15		$	23.05
Market price at end of period(b)	$	38.45		$	36.25		$	30.39		$	26.62		$	27.15		$	23.04
Net Asset Value Total Return(c)		6.60	%		20.85	%		16.16	%		(0.93	)%		18.84	%		42.59	%
Market Price Total Return(c)		6.75	%		20.73	%		16.00	%		(0.85	)%		18.89	%		42.62	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	25,000		$	30,867		$	19,768		$	18,623		$	23,081		$	25,353
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.39	%		0.43	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.65	%(d)		0.69	%		1.00	%		1.01	%		1.20	%		1.11	%
Net investment income, after Waivers		1.24	%(d)		1.19	%		1.58	%		1.16	%		0.88	%		0.92	%
Portfolio turnover rate(e)		2	%		50	%		38	%		83	%		47	%		76	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

58

Financial Highlights (continued)

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	30.02		$	26.06		$	22.65		$	24.13		$	19.11		$	13.87
Net investment income (loss)(a)		0.21			0.33			0.26			0.13			(0.01	)		0.00	(b)
Net realized and unrealized gain (loss) on investments		1.01			4.01			3.38			(1.53	)		5.09			5.25
Total from investment operations		1.22			4.34			3.64			(1.40	)		5.08			5.25
Distributions to shareholders from:
Net investment income		(0.23	)		(0.38	)		(0.23	)		(0.08	)		—			(0.00	)(b)
Return of capital		—			—			—			—			(0.06	)		(0.01	)
Total distributions		(0.23	)		(0.38	)		(0.23	)		(0.08	)		(0.06	)		(0.01	)
Net asset value at end of period	$	31.01		$	30.02		$	26.06		$	22.65		$	24.13		$	19.11
Market price at end of period(c)	$	30.99		$	29.99		$	26.04		$	22.63		$	24.13		$	19.10
Net Asset Value Total Return(d)		4.08	%		16.80	%		16.23	%		(5.74	)%		26.61	%		37.89	%
Market Price Total Return(d)		4.12	%		16.77	%		16.25	%		(5.83	)%		26.67	%		38.02	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	88,379		$	91,555		$	82,101		$	87,203		$	130,290		$	128,044
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(e)		0.39	%		0.39	%		0.43	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.46	%(e)		0.45	%		0.54	%		0.55	%		0.69	%		0.66	%
Net investment income (loss), after Waivers		1.35	%(e)		1.19	%		1.14	%		0.61	%		(0.06	)%		0.03	%
Portfolio turnover rate(f)		2	%		33	%		33	%		75	%		49	%		75	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Annualized.

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

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	25.88		$	20.98		$	17.06		$	17.07		$	15.37		$	11.16
Net investment income(a)		0.22			0.37			0.37			0.25			0.15			0.23
Net realized and unrealized gain (loss) on investments		0.88			4.87			3.94			(0.03	)		1.70			4.24
Total from investment operations		1.10			5.24			4.31			0.22			1.85			4.47
Distributions to shareholders from:
Net investment income		(0.20	)		(0.34	)		(0.39	)		(0.23	)		(0.15	)		(0.26	)
Net asset value at end of period	$	26.78		$	25.88		$	20.98		$	17.06		$	17.07		$	15.37
Market price at end of period(b)	$	26.79		$	25.87		$	20.98		$	17.04		$	17.07		$	15.36
Net Asset Value Total Return(c)		4.24	%		25.19	%		25.74	%		1.42	%		12.16	%		40.58	%
Market Price Total Return(c)		4.31	%		25.14	%		25.89	%		1.30	%		12.24	%		40.88	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	50,887		$	42,709		$	28,321		$	32,408		$	40,970		$	43,818
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)(e)		0.39	%		0.39	%		0.43	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.57	%(d)(e)		0.62	%		0.82	%		0.79	%		0.91	%		0.84	%
Net investment income, after Waivers		1.65	%(d)		1.56	%		2.08	%		1.57	%		0.99	%		1.76	%
Portfolio turnover rate(f)		2	%		33	%		25	%		83	%		65	%		86	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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 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.

^(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, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	32.85		$	27.80		$	24.21		$	25.32		$	21.07		$	15.03
Net investment income(a)		0.16			0.33			0.46			0.22			0.09			0.11
Net realized and unrealized gain (loss) on investments		1.56			5.12			3.60			(1.18	)		4.25			6.08
Total from investment operations		1.72			5.45			4.06			(0.96	)		4.34			6.19
Distributions to shareholders from:
Net investment income		(0.18	)		(0.40	)		(0.47	)		(0.15	)		(0.09	)		(0.14	)
Return of capital		—			—			—			—			—			(0.01	)
Total distributions		(0.18	)		(0.40	)		(0.47	)		(0.15	)		(0.09	)		(0.15	)
Net asset value at end of period	$	34.39		$	32.85		$	27.80		$	24.21		$	25.32		$	21.07
Market price at end of period(b)	$	34.38		$	32.84		$	27.76		$	24.18		$	25.33		$	21.05
Net Asset Value Total Return(c)		5.23	%		19.76	%		17.05	%		(3.70	)%		20.64	%		41.37	%
Market Price Total Return(c)		5.24	%		19.90	%		17.03	%		(3.85	)%		20.80	%		41.52	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	15,475		$	14,784		$	15,290		$	15,735		$	18,991		$	18,960
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)(e)		0.39	%		0.39	%		0.43	%		0.65	%		0.65	%
Expenses, prior to Waivers		1.02	%(d)(e)		0.94	%		1.22	%		1.25	%		1.41	%		1.26	%
Net investment income, after Waivers		0.94	%(d)		1.06	%		1.88	%		0.97	%		0.42	%		0.59	%
Portfolio turnover rate(f)		2	%		50	%		45	%		97	%		68	%		93	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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 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.

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

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	23.90		$	19.74		$	17.66		$	19.03		$	14.12		$	10.49
Net investment income (loss)(a)		0.10			0.20			0.13			0.07			(0.05	)		0.05
Net realized and unrealized gain (loss) on investments		0.43			4.17			2.08			(1.44	)		4.96			3.67
Total from investment operations		0.53			4.37			2.21			(1.37	)		4.91			3.72
Distributions to shareholders from:
Net investment income		(0.15	)		(0.21	)		(0.13	)		—			—			(0.07	)
Return of capital		—			—			—			—			—			(0.02	)
Total distributions		(0.15	)		(0.21	)		(0.13	)		—			—			(0.09	)
Net asset value at end of period	$	24.28		$	23.90		$	19.74		$	17.66		$	19.03		$	14.12
Market price at end of period(b)	$	24.28		$	23.89		$	19.72		$	17.64		$	19.05		$	14.10
Net Asset Value Total Return(c)		2.19	%		22.31	%		12.63	%		(7.20	)%		34.77	%		35.60	%
Market Price Total Return(c)		2.24	%		22.38	%		12.65	%		(7.40	)%		35.11	%		35.54	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	30,350		$	29,872		$	26,646		$	30,913		$	109,451		$	32,473
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)(e)		0.39	%(e)		0.39	%(e)		0.48	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.70	%(d)(e)		0.70	%(e)		0.92	%(e)		0.69	%		0.93	%		0.94	%
Net investment income (loss), after Waivers		0.86	%(d)		0.90	%		0.72	%		0.41	%		(0.37	)%		0.41	%
Portfolio turnover rate(f)		2	%		39	%		39	%		189	%		57	%		113	%

^(a)  Based on average shares outstanding.

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

^(c)  Net assets value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning at the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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 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.

^(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.

60

Financial Highlights (continued)

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	24.67		$	19.63		$	16.35		$	17.07		$	14.64		$	10.38
Net investment income(a)		0.16			0.30			0.32			0.19			0.16			0.09
Net realized and unrealized gain (loss) on investments		0.49			5.03			3.31			(0.72	)		2.45			4.25
Total from investment operations		0.65			5.33			3.63			(0.53	)		2.61			4.34
Distributions to shareholders from:
Net investment income		(0.13	)		(0.29	)		(0.35	)		(0.19	)		(0.18	)		(0.08	)
Net asset value at end of period	$	25.19		$	24.67		$	19.63		$	16.35		$	17.07		$	14.64
Market price at end of period(b)	$	25.20		$	24.68		$	19.61		$	16.33		$	17.08		$	14.62
Net Asset Value Total Return(c)		2.62	%		27.29	%		22.56	%		(3.01	)%		18.03	%		42.03	%
Market Price Total Return(c)		2.62	%		27.47	%		22.58	%		(3.18	)%		18.26	%		42.11	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	68,023		$	65,376		$	48,084		$	52,312		$	72,540		$	72,453
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.39	%		0.43	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.56	%(d)		0.54	%		0.70	%		0.64	%		0.80	%		0.74	%
Net investment income, after Waivers		1.29	%(d)		1.31	%		1.87	%		1.28	%		1.14	%		0.73	%
Portfolio turnover rate(e)		2	%		43	%		31	%		109	%		90	%		116	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares Zacks Micro Cap Portfolio (PZI)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	16.26		$	13.57		$	11.34		$	12.53		$	11.69		$	8.10
Net investment income(a)		0.10			0.20			0.20			0.10			0.04			0.04
Net realized and unrealized gain (loss) on investments		0.08			2.65			2.25			(1.16	)		0.88			3.62
Total from investment operations		0.18			2.85			2.45			(1.06	)		0.92			3.66
Distributions to shareholders from:
Net investment income		(0.19	)		(0.16	)		(0.22	)		(0.13	)		(0.08	)		(0.07	)
Net asset value at end of period	$	16.25		$	16.26		$	13.57		$	11.34		$	12.53		$	11.69
Market price at end of period(b)	$	16.23		$	16.25		$	13.54		$	11.32		$	12.52		$	11.68
Net Asset Value Total Return(c)		1.08	%		21.06	%		21.95	%		(8.34	)%		7.97	%		45.49	%
Market Price Total Return(c)		1.02	%		21.25	%		21.90	%		(8.42	)%		7.97	%		45.37	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	34,940		$	61,782		$	42,055		$	34,019		$	98,964		$	53,758
Ratio to average net assets of:
Expenses, after Waivers(d)		0.70	%(e)		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers(d)		0.84	%(e)		0.79	%		0.98	%		0.92	%		0.85	%		0.93	%
Net investment income, after Waivers		1.20	%(e)		1.29	%		1.72	%		0.92	%		0.39	%		0.38	%
Portfolio turnover rate(f)		51	%		123	%		96	%		67	%		61	%		78	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

^(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.

61

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2014

(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, 2014, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic Large Cap Growth Portfolio (PWB)	“Dynamic Large Cap Growth Portfolio”
PowerShares Dynamic Large Cap Value Portfolio (PWV)	“Dynamic Large Cap Value Portfolio”
PowerShares 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 in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
Dynamic Large Cap Growth Portfolio	Dynamic Large Cap Growth IntellidexSM Index
Dynamic Large Cap Value Portfolio	Dynamic Large Cap Value IntellidexSM Index
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 securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and 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. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of each Fund’s investments.

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

63

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the 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 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. Fundamental Pure Large Growth Portfolio and Fundamental Pure Large Value Portfolio are 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.

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.

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

Growth Risk. For Dynamic Large Cap Growth Portfolio, 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. 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.

REIT Risk. For each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio), although the Funds will not invest in real estate directly, the REITs in which the Funds invest are subject to risks inherent in the direct ownership of real estate. These risks include, but are not limited to, a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers.

64

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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These 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-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 year-end.

G. Securities Lending

During the six-month period ended October 31, 2014, Fundamental Pure Mid Value Portfolio, Fundamental Pure Small Growth Portfolio, Fundamental Pure Small Value Portfolio and Zacks Micro Cap Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% 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

65

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 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 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 on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio 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, 2015. 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, 2015, 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 Expense Agreement, it will terminate on August 31, 2015. The Expense Agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Large Cap Growth Portfolio and Dynamic Large Cap Value Portfolio.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration.

For the six-month period ended October 31, 2014, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Dynamic Large Cap Growth Portfolio	$	124
Dynamic Large Cap Value Portfolio		355
Fundamental Pure Large Core Portfolio		36,676
Fundamental Pure Large Growth Portfolio		21,765
Fundamental Pure Large Value Portfolio		35,838
Fundamental Pure Mid Core Portfolio		40,668
Fundamental Pure Mid Growth Portfolio		31,029
Fundamental Pure Mid Value Portfolio		43,152
Fundamental Pure Small Core Portfolio		47,587
Fundamental Pure Small Growth Portfolio		47,077
Fundamental Pure Small Value Portfolio		55,643
Zacks Micro Cap Portfolio		32,858

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.

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For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2014 are as follows:

	Total Potential Recapture Amount		Potential Recapture Amounts Expiring
			04/30/15		04/30/16		04/30/17		10/31/17
Fundamental Pure Large Core Portfolio	$	273,082	$	58,805	$	105,264	$	72,372	$	36,641
Fundamental Pure Large Growth Portfolio		263,148		91,755		94,097		55,612		21,684
Fundamental Pure Large Value Portfolio		308,030		91,491		99,141		81,582		35,816
Fundamental Pure Mid Core Portfolio		290,221		60,267		109,592		79,739		40,623
Fundamental Pure Mid Growth Portfolio		267,219		65,801		117,856		52,602		30,960
Fundamental Pure Mid Value Portfolio		309,653		56,205		125,577		84,721		43,150
Fundamental Pure Small Core Portfolio		312,490		61,683		114,500		88,766		47,541
Fundamental Pure Small Growth Portfolio		344,249		66,139		142,898		88,188		47,024
Fundamental Pure Small Value Portfolio		349,295		60,052		145,112		88,541		55,590
Zacks Micro Cap Portfolio		220,014		50,688		86,324		50,214		32,788

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

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

Note 4. Investments in Affiliates

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 with the Funds. 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, 2014.

Fundamental Pure Mid Core Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value October 31, 2014		Dividend Income
Invesco Ltd.	$	353,579	$	4,950	$	(90,672	)	$	25,657	$	20,736	$	314,250	$	5,021

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Fundamental Pure Mid Growth Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value October 31, 2014		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	417,084	$	1,770	$	(29,260	)	$	(1,937	)	$	(786	)	$	386,871	$	24,623

Note 5. Additional Valuation Information

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

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

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

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

Except for the Funds listed below, as of October 31, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
Fundamental Pure Small Growth Portfolio
Equity Securities	$	31,479,939	$	0	$	—	$	31,479,939
Fundamental Pure Small Value Portfolio
Equity Securities	$	70,444,221	$	—	$	66,629	$	70,510,850
Zacks Micro Cap Portfolio
Equity Securities	$	36,713,530	$	—	$	2,209	$	36,715,739

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 eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

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The following Funds had capital loss carryforwards as of April 30, 2014, which expire as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short- Term		Long- Term		Total*		Utilized		Expiring
Dynamic Large Cap Growth Portfolio	$	10,916,066	$	14,024,455	$	68,715,641	$	131,638,879	$	15,986,258	$	15,645,106	$	—	$	256,926,405	$	2,545,279	$	191,864
Dynamic Large Cap Value Portfolio		1,378,743		2,783,761		22,558,581		56,819,182		17,964,198		29,535,406		7,209,548		138,249,419		—		70,814
Fundamental Pure Large Core Portfolio		—		87,112		2,328,337		5,621,834		1,626,267		1,058,078		—		10,721,628		37,665		—
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		1,482,320		12,280		10,292,450		147,225		—
Fundamental Pure Mid Growth Portfolio		8,055,857		5,112,579		54,769,394		82,364,246		12,021,724		7,286,499		895,020		170,505,319		—		422,220
Fundamental Pure Mid Value Portfolio		2,384,765		5,347,255		12,697,113		18,996,863		2,751,107		2,681,305		15,979		44,874,387		158,728		237,806
Fundamental Pure Small Core Portfolio		—		1,028,299		2,738,120		2,009,294		2,491,519		1,324,219		186,315		9,777,766		—		—
Fundamental Pure Small Growth Portfolio		13,094,039		6,666,558		9,888,431		10,392,627		4,547,805		4,797,048		290,655		49,677,163		—		823,782
Fundamental Pure Small Value Portfolio		3,929,009		8,615,687		16,547,947		9,588,502		5,376,983		588,434		—		44,646,562		581,242		703,862
Zacks Micro Cap Portfolio		15,172,527		14,330,930		28,782,755		12,380,833		7,234,973		12,284,744		868,129		91,054,891		—		1,951,245

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the six-month period ended October 31, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic Large Cap Growth Portfolio	$	209,353,880	$	210,518,932
Dynamic Large Cap Value Portfolio		316,188,767		313,793,098
Fundamental Pure Large Core Portfolio		410,102		364,753
Fundamental Pure Large Growth Portfolio		1,756,350		1,242,013
Fundamental Pure Large Value Portfolio		320,671		240,460
Fundamental Pure Mid Core Portfolio		687,737		672,040
Fundamental Pure Mid Growth Portfolio		1,853,676		1,831,961
Fundamental Pure Mid Value Portfolio		790,396		767,674
Fundamental Pure Small Core Portfolio		370,472		440,238
Fundamental Pure Small Growth Portfolio		724,078		743,251
Fundamental Pure Small Value Portfolio		1,607,810		1,369,543
Zacks Micro Cap Portfolio		24,437,647		24,722,429

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For the six-month period ended October 31, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Large Cap Growth Portfolio	$	153,263,082	$	183,496,537
Dynamic Large Cap Value Portfolio		396,105,302		303,236,502
Fundamental Pure Large Core Portfolio		1,925,041		3,751,879
Fundamental Pure Large Growth Portfolio		10,333,467		1,567,962
Fundamental Pure Large Value Portfolio		20,795,303		—
Fundamental Pure Mid Core Portfolio		—		7,391,714
Fundamental Pure Mid Growth Portfolio		—		6,088,838
Fundamental Pure Mid Value Portfolio		6,646,020		—
Fundamental Pure Small Core Portfolio		—		—
Fundamental Pure Small Growth Portfolio		—		—
Fundamental Pure Small Value Portfolio		1,196,318		—
Zacks Micro Cap Portfolio		11,085,645		37,340,719

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

At October 31, 2014, 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 Large Cap Growth Portfolio	$	250,848,430	$	30,083,648	$	33,109,418	$	(3,025,770	)
Dynamic Large Cap Value Portfolio		831,062,093		97,306,296		111,779,165		(14,472,869	)
Fundamental Pure Large Core Portfolio		34,134,529		7,072,690		7,552,101		(479,411	)
Fundamental Pure Large Growth Portfolio		99,702,133		25,831,474		26,009,342		(177,868	)
Fundamental Pure Large Value Portfolio		33,846,115		2,832,197		3,116,385		(284,188	)
Fundamental Pure Mid Core Portfolio		21,269,721		3,783,402		4,368,422		(585,020	)
Fundamental Pure Mid Growth Portfolio		72,787,126		15,629,921		17,989,868		(2,359,947	)
Fundamental Pure Mid Value Portfolio		43,733,344		8,295,571		10,222,215		(1,926,644	)
Fundamental Pure Small Core Portfolio		13,673,998		1,730,718		2,372,030		(641,312	)
Fundamental Pure Small Growth Portfolio		27,410,918		4,069,021		6,005,862		(1,936,841	)
Fundamental Pure Small Value Portfolio		62,705,289		7,805,561		12,489,178		(4,683,617	)
Zacks Micro Cap Portfolio		36,067,484		648,255		3,310,615		(2,662,360	)

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and Officer of the Funds. 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

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 in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

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

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

Note 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.

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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, 2014.

In addition to the fees and expenses which the PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Zacks Micro Cap Portfolio (collectively, the “Portfolios”) bear directly, the Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The amount of fees and expenses incurred indirectly by the Portfolios will vary because the investment companies have varied expenses and fee levels and the Portfolios may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invest in. The effect of the estimated investment companies’ expenses that you bear indirectly are included in each Portfolio’s total returns.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value May 1, 2014		Ending Account Value October 31, 2014		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	$	1,104.59		0.58	%	$	3.08
Hypothetical (5% return before expenses)		1,000.00		1,022.28		0.58			2.96
PowerShares Dynamic Large Cap Value Portfolio (PWV)
Actual		1,000.00		1,049.59		0.56			2.89
Hypothetical (5% return before expenses)		1,000.00		1,022.38		0.56			2.85
PowerShares Fundamental Pure Large Core Portfolio (PXLC)
Actual		1,000.00		1,067.14		0.39			2.03
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		1,098.09		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		1,050.71		0.39			2.02
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99

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Fees and Expenses (continued)

	Beginning Account Value May 1, 2014		Ending Account Value October 31, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
Actual	$	1,000.00	$	1,066.03		0.39	%	$	2.03
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)
Actual		1,000.00		1,040.82		0.39			2.01
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		1,042.36		0.39			2.01
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		1,052.33		0.39			2.02
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
Actual		1,000.00		1,021.92		0.39			1.99
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		1,026.17		0.39			1.99
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		1,010.80		0.70			3.55
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, 2014. 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.

73

(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.

©2014 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, 2014

2014 Semi-Annual Report to Shareholders

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

Table of Contents

Specialty Portfolios
Schedules of Investments
PowerShares Aerospace & Defense Portfolio (PPA)	3
PowerShares CleantechTM Portfolio (PZD)	5
PowerShares DWA Momentum Portfolio (PDP)	7
PowerShares Global Listed Private Equity Portfolio (PSP)	9
PowerShares Golden Dragon China Portfolio (PGJ)	11
PowerShares S&P 500 BuyWrite Portfolio (PBP)	13
PowerShares S&P 500® High Quality Portfolio (SPHQ)	19
PowerShares Water Resources Portfolio (PHO)	21
PowerShares WilderHill Clean Energy Portfolio (PBW)	23
PowerShares WilderHill Progressive Energy Portfolio (PUW)	25
Statements of Assets and Liabilities	28
Statements of Operations	30
Statements of Changes in Net Assets	32
Financial Highlights	36
Notes to Financial Statements	42
Fees and Expenses	54

2

Portfolio Composition

PowerShares Aerospace & Defense Portfolio (PPA)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Aerospace & Defense	79.2
IT Services	8.0
Communications Equipment	4.2
Containers & Packaging	3.4
Electronic Equipment, Instruments & Components	2.5
Machinery	1.5
Diversified Telecommunication Services	0.8
Trading Companies & Distributors	0.4
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Aerospace & Defense Portfolio (PPA)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—79.2%
	24,258	AAR Corp.	$	642,837
	14,208	Aerovironment, Inc.(b)		435,475
	19,426	Alliant Techsystems, Inc.		2,272,065
	4,813	American Science & Engineering, Inc.		266,159
	76,134	Boeing Co. (The)		9,509,898
	16,296	Cubic Corp.		786,119
	45,944	DigitalGlobe, Inc.(b)		1,313,539
	6,629	Ducommun, Inc.(b)		175,072
	10,718	Engility Holdings, Inc.(b)		463,017
	19,430	Esterline Technologies Corp.(b)		2,275,447
	114,562	Exelis, Inc.		2,044,932
	35,708	GenCorp, Inc.(b)		605,608
	71,305	General Dynamics Corp.		9,965,587
	40,466	HEICO Corp.		2,194,876
	58,601	Hexcel Corp.(b)		2,454,796
	104,330	Honeywell International, Inc.		10,028,200
	29,544	Huntington Ingalls Industries, Inc.		3,126,346
	22,853	KEYW Holding Corp. (The)(b)		231,958
	35,129	Kratos Defense & Security Solutions, Inc.(b)		244,849
	52,457	L-3 Communications Holdings, Inc.		6,371,427
	7,936	LMI Aerospace, Inc.(b)		104,596
	54,876	Lockheed Martin Corp.		10,457,719
	26,203	Moog, Inc., Class A(b)		2,005,578
	53,426	Northrop Grumman Corp.		7,370,651
	36,859	Orbital Sciences Corp.(b)		969,392
	30,601	Precision Castparts Corp.		6,753,641
	68,727	Raytheon Co.		7,139,361
	78,151	Rockwell Collins, Inc.		6,576,407

Number of Shares			Value
		Common Stocks (continued)
		Aerospace & Defense (continued)
	6,162	Sparton Corp.(b)	$	166,990
	31,957	TASER International, Inc.(b)		602,070
	22,830	Teledyne Technologies, Inc.(b)		2,365,873
	169,844	Textron, Inc.		7,053,621
	31,941	TransDigm Group, Inc.		5,973,925
	31,282	Triumph Group, Inc.		2,178,166
	92,291	United Technologies Corp.		9,875,137
	6,083	Vectrus, Inc.(b)		148,668
				125,150,002
		Communications Equipment—4.2%
	9,754	Comtech Telecommunications Corp.		371,335
	63,562	Harris Corp.		4,423,915
	28,416	ViaSat, Inc.(b)		1,779,978
				6,575,228
		Containers & Packaging—3.4%
	84,215	Ball Corp.		5,425,972
		Diversified Telecommunication Services—0.8%
	64,124	Intelsat SA(b)		1,247,853
		Electronic Equipment, Instruments & Components—2.5%
	86,217	FLIR Systems, Inc.		2,890,856
	20,660	Mercury Systems, Inc.(b)		288,827
	12,043	OSI Systems, Inc.(b)		853,608
				4,033,291
		IT Services—8.0%
	91,553	Booz Allen Hamilton Holding Corp., Class A		2,412,422
	14,305	CACI International, Inc., Class A(b)		1,177,158

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

3

PowerShares Aerospace & Defense Portfolio (PPA) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		IT Services (continued)
	88,246	Computer Sciences Corp.	$	5,330,058
	45,039	Leidos Holdings, Inc.		1,647,076
	22,672	ManTech International Corp., Class A		638,444
	28,604	Science Applications International Corp.		1,399,022
				12,604,180
		Machinery—1.5%
	51,716	Oshkosh Corp.		2,314,808
		Trading Companies & Distributors—0.4%
	16,481	Kaman Corp.		709,672
		Total Common Stocks (Cost $136,141,142)		158,061,006
		Money Market Fund—0.1%
	97,480	Invesco Premier Portfolio—Institutional Class(c) (Cost $97,480)		97,480
		Total Investments (Cost $136,238,622)—100.1%		158,158,486
		Other assets less liabilities—(0.1%)		(110,734	)
		Net Assets—100.0%	$	158,047,752

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.

4

Portfolio Composition

PowerShares Cleantech™ Portfolio (PZD)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Electrical Equipment	18.7
Machinery	17.5
Chemicals	8.7
Software	8.0
Industrial Conglomerates	7.1
Electronic Equipment, Instruments & Components	6.4
Professional Services	6.3
Auto Components	6.3
Semiconductors & Semiconductor Equipment	4.8
Commercial Services & Supplies	4.3
Aerospace & Defense	2.6
Independent Power Producers & Energy Traders	2.6
Life Sciences Tools & Services	2.3
Construction & Engineering	2.1
Building Products	1.4
Communications Equipment	0.8
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Cleantech™ Portfolio (PZD)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Aerospace & Defense—2.6%
	45,661	Hexcel Corp.(b)	$	1,912,739
		Auto Components—6.3%
	40,206	BorgWarner, Inc.		2,292,546
	50,418	Johnson Controls, Inc.		2,382,251
				4,674,797
		Building Products—1.4%
	66,877	Kingspan Group PLC (Ireland)		1,045,702
		Chemicals—8.7%
	638	Gurit Holding AG (Switzerland)		267,808
	35,888	Koninklijke DSM NV (Netherlands)		2,246,631
	51,963	Novozymes A/S, Class B (Denmark)		2,409,724
	38,898	Umicore SA (Belgium)		1,522,491
				6,446,654

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Commercial Services & Supplies—4.3%
	29,847	Ceco Environmental Corp.	$	427,409
	32,718	Mix Telematics Ltd. ADR (South Africa)(b)		291,518
	34,846	Tetra Tech, Inc.		934,221
	112,096	Tomra Systems ASA (Norway)		838,520
	622,025	United Envirotech Ltd. (Singapore)		708,881
				3,200,549
		Communications Equipment—0.8%
	30,408	CalAmp Corp.(b)		586,266
		Construction & Engineering—2.1%
	30,298	Aegion Corp.(b)		555,059
	31,817	Arcadis NV (Netherlands)		977,653
				1,532,712

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

5

PowerShares Cleantech™ Portfolio (PZD) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Electrical Equipment—18.7%
	100,196	ABB Ltd. (Switzerland)	$	2,192,454
	19,762	EnerSys		1,241,054
	107,156	Gamesa Corp. Tecnologica SA (Spain)(b)		1,056,593
	21,482	Polypore International, Inc.(b)		943,489
	20,218	Saft Groupe SA (France)		600,348
	29,026	Schneider Electric SE (France)		2,286,737
	45,087	Sensata Technologies Holding NV(b)		2,200,697
	38,664	SGL Carbon SE (Germany)(b)(c)		597,776
	20,346	Vacon Oyj (Finland)		861,358
	56,708	Vestas Wind Systems A/S (Denmark)(b)		1,897,633
				13,878,139
		Electronic Equipment, Instruments & Components—6.4%
	10,833	Badger Meter, Inc.		616,614
	24,277	Horiba Ltd. (Japan)		868,389
	22,574	Itron, Inc.(b)		878,806
	255,795	Opus Group AB (Sweden)(c)		387,136
	75,395	Trimble Navigation Ltd.(b)		2,025,110
				4,776,055
		Independent Power Producers & Energy Traders—2.6%
	7,038,659	Energy Development Corp. (Philippines)		1,207,748
	24,129	Ormat Technologies, Inc.		698,534
				1,906,282
		Industrial Conglomerates—7.1%
	27,685	Raven Industries, Inc.		701,815
	15,439	Roper Industries, Inc.		2,443,994
	18,867	Siemens AG (Germany)		2,125,335
				5,271,144
		Life Sciences Tools & Services—2.3%
	6,946	Eurofins Scientific (France)		1,754,889
		Machinery—17.5%
	109,119	Alfa Laval AB (Sweden)		2,238,338
	19,001	CLARCOR, Inc.		1,272,307
	46,485	Donaldson Co., Inc.		1,932,846
	11,360	Kadant, Inc.		469,622
	9,780	Lindsay Corp.(c)		857,706
	70,854	Meyer Burger Technology AG (Switzerland)(b)(c)		595,573
	27,192	Pall Corp.		2,485,893
	24,592	Woodward, Inc.		1,259,356
	51,110	Xylem, Inc.		1,858,360
				12,970,001
		Professional Services—6.3%
	44,488	Intertek Group PLC (United Kingdom)		1,937,358
	22,247	Mistras Group, Inc.(b)		366,853
	1,088	SGS SA (Switzerland)		2,387,507
				4,691,718
		Semiconductors & Semiconductor Equipment—4.8%
	29,299	Advanced Energy Industries, Inc.(b)		579,534
	42,415	Cree, Inc.(b)(c)		1,335,224
	446,000	Lextar Electronics Corp. (Taiwan)		370,976
	16,073	Power Integrations, Inc.		809,437
	19,589	SMA Solar Technology AG (Germany)(b)(c)		486,444
				3,581,615

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Software—8.0%
	27,310	ANSYS, Inc.(b)	$	2,145,474
	41,052	Autodesk, Inc.(b)		2,362,132
	27,454	FleetMatics Group PLC(b)(c)		1,019,642
	43,273	Silver Spring Networks, Inc.(b)(c)		414,555
				5,941,803
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $59,830,172)—99.9%		74,171,065
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.7%
	3,450,043	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $3,450,043)		3,450,043
		Total Investments (Cost $63,280,215)—104.6%		77,621,108
		Other assets less liabilities—(4.6%)		(3,394,169	)
		Net Assets—100.0%	$	74,226,939

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	3,339,005	$	(3,339,005	)	$	—

* Amount does not include excess collateral received, if any.

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

6

Portfolio Composition

PowerShares DWA Momentum Portfolio (PDP)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Consumer Discretionary	25.7
Industrials	19.0
Health Care	16.2
Materials	11.2
Information Technology	8.5
Consumer Staples	5.7
Energy	5.6
Financials	5.1
Utilities	2.4
Telecommunication Services	0.6
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares DWA Momentum Portfolio (PDP)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—25.7%
	58,131	Advance Auto Parts, Inc.	$	8,542,932
	35,425	Chipotle Mexican Grill, Inc.(b)		22,601,150
	319,977	Dillard’s, Inc., Class A		33,840,768
	116,417	DISH Network Corp., Class A(b)		7,409,942
	350,045	Domino’s Pizza, Inc.		31,080,496
	153,356	Foot Locker, Inc.		8,589,470
	154,282	Hanesbrands, Inc.		16,293,722
	152,599	Jarden Corp.(b)		9,932,669
	406,177	Liberty Interactive Corp., Class A(b)		10,617,467
	57,722	Liberty Ventures, Series A(b)		2,026,042
	240,262	Lions Gate Entertainment Corp.		7,959,880
	143,584	Macy’s, Inc.		8,302,027
	29,822	Netflix, Inc.(b)		11,713,187
	216,292	NIKE, Inc., Class B		20,108,667
	249,645	O’Reilly Automotive, Inc.(b)		43,907,563
	193,608	Penske Automotive Group, Inc.		8,758,826
	104,618	Polaris Industries, Inc.		15,782,671
	417,196	Service Corp. International		9,124,077
	154,336	Signet Jewelers Ltd.		18,521,863
	61,182	Tesla Motors, Inc.(b)		14,787,689
	246,961	Under Armour, Inc., Class A(b)		16,195,702
	322,480	VF Corp.		21,825,446
	312,472	Wyndham Worldwide Corp.		24,269,700
				372,191,956

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples—5.7%
	142,344	Brown-Forman Corp., Class B	$	13,191,019
	173,663	Coca-Cola Enterprises, Inc.		7,528,291
	88,666	Constellation Brands, Inc., Class A(b)		8,116,486
	77,709	Hain Celestial Group, Inc. (The)(b)		8,411,999
	200,129	Hormel Foods Corp.		10,788,954
	77,897	Keurig Green Mountain, Inc.		11,820,870
	121,799	Monster Beverage Corp.(b)		12,287,083
	358,944	Pilgrim’s Pride Corp.(b)		10,197,599
				82,342,301
		Energy—5.6%
	329,223	Cheniere Energy, Inc.(b)		24,691,725
	106,549	ConocoPhillips		7,687,510
	133,912	Continental Resources, Inc.(b)		7,548,620
	336,099	ONEOK, Inc.		19,809,675
	69,890	Pioneer Natural Resources Co.		13,213,403
	57,488	Targa Resources Corp.		7,394,681
				80,345,614
		Financials—5.1%
	92,733	ACE Ltd.		10,135,717
	131,128	American Financial Group, Inc.		7,845,388
	67,284	Ameriprise Financial, Inc.		8,489,222
	95,271	Capital One Financial Corp.		7,885,581
	144,007	Discover Financial Services		9,184,766
	155,685	Extra Space Storage, Inc. REIT		9,054,640

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

7

PowerShares DWA Momentum Portfolio (PDP) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	260,227	HCC Insurance Holdings, Inc.	$	13,581,247
	432,531	NorthStar Realty Finance Corp. REIT		8,036,426
				74,212,987
		Health Care—16.2%
	66,770	Actavis PLC(b)		16,207,750
	98,610	AmerisourceBergen Corp.		8,422,280
	57,303	athenahealth, Inc.(b)		7,019,617
	95,583	Cigna Corp.		9,517,199
	75,849	Cooper Cos., Inc. (The)		12,431,651
	367,564	Gilead Sciences, Inc.(b)		41,167,168
	252,960	Henry Schein, Inc.(b)		30,362,789
	50,316	Illumina, Inc.(b)		9,689,855
	265,109	Jazz Pharmaceuticals PLC(b)		44,761,004
	48,161	McKesson Corp.		9,796,429
	280,841	Medivation, Inc.(b)		29,684,894
	34,155	Mettler-Toledo International, Inc.(b)		8,828,043
	49,192	Salix Pharmaceuticals Ltd.(b)		7,076,269
				234,964,948
		Industrials—19.0%
	276,766	Alaska Air Group, Inc.		14,732,254
	32,127	AMERCO		8,710,272
	145,586	Avis Budget Group, Inc.(b)		8,116,419
	172,904	Danaher Corp.		13,901,482
	207,638	Delta Air Lines, Inc.		8,353,277
	138,035	IDEX Corp.		10,340,202
	193,558	Kirby Corp.(b)		21,403,644
	102,298	Lockheed Martin Corp.		19,494,930
	111,833	Middleby Corp. (The)(b)		9,897,220
	174,151	Old Dominion Freight Line, Inc.(b)		12,690,383
	92,591	Pall Corp.		8,464,669
	167,377	Roper Industries, Inc.		26,495,779
	66,964	Snap-on, Inc.		8,848,623
	124,364	Spirit Airlines, Inc.(b)		9,092,252
	52,119	TransDigm Group, Inc.		9,747,817
	160,448	Trinity Industries, Inc.		5,729,598
	183,795	Union Pacific Corp.		21,402,928
	261,070	United Rentals, Inc.(b)		28,733,364
	585,560	Waste Connections, Inc.		29,219,444
				275,374,557
		Information Technology—8.5%
	362,980	Amphenol Corp., Class A		18,359,529
	404,992	Apple, Inc.		43,739,136
	95,301	Facebook, Inc., Class A(b)		7,146,622
	161,557	Fiserv, Inc.(b)		11,224,980
	53,906	FleetCor Technologies, Inc.(b)		8,116,087
	144,394	Gartner, Inc.(b)		11,654,040
	235,490	Micron Technology, Inc.(b)		7,792,364
	262,692	Skyworks Solutions, Inc.		15,299,182
				123,331,940
		Materials—11.2%
	476,677	Ball Corp.		30,712,299
	160,847	Cytec Industries, Inc.		7,500,296
	77,472	Eagle Materials, Inc.		6,773,377
	93,443	Eastman Chemical Co.		7,548,325

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	93,926	Ecolab, Inc.	$	10,447,389
	94,673	International Flavors & Fragrances, Inc.		9,386,828
	82,694	LyondellBasell Industries NV, Class A		7,577,251
	37,056	NewMarket Corp.		14,378,099
	185,034	RPM International, Inc.		8,382,040
	94,037	Sherwin-Williams Co. (The)		21,587,134
	304,017	W.R. Grace & Co.(b)		28,760,008
	131,296	Westlake Chemical Corp.		9,262,933
				162,315,979
		Telecommunication Services—0.6%
	73,939	SBA Communications Corp., Class A(b)		8,305,568
		Utilities—2.4%
	83,108	NextEra Energy, Inc.		8,329,084
	90,007	Sempra Energy		9,900,770
	424,542	UGI Corp.		16,000,988
				34,230,842
		Total Common Stocks and Other Equity Interests (Cost $1,238,479,314)		1,447,616,692
		Money Market Fund—0.1%
	662,346	Invesco Premier Portfolio—Institutional Class(c) (Cost $662,346)		662,346
		Total Investments (Cost $1,239,141,660)—100.1%		1,448,279,038
		Other assets less liabilities—(0.1%)		(782,526	)
		Net Assets—100.0%	$	1,447,496,512

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.

8

Portfolio Composition

PowerShares Global Listed Private Equity Portfolio (PSP)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Capital Markets	51.9
Diversified Financial Services	24.5
Machinery	4.0
Internet Software & Services	3.4
Metals & Mining	3.2
Food Products	1.0
Industrial Conglomerates	1.0
Money Market Funds Plus Other Assets Less Liabilities	11.0

Schedule of Investments^(a)

PowerShares Global Listed Private Equity Portfolio (PSP)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—89.0%
		Capital Markets—51.9%
	3,690,971	3i Group PLC (United Kingdom)	$	23,436,930
	179,061	Alaris Royalty Corp. (Canada)(b)		5,363,333
	251,809	Altamir (France)		3,154,916
	717,300	American Capital Ltd.(c)		10,637,559
	527,642	Apollo Global Management LLC, Class A		12,003,855
	621,960	Apollo Investment Corp.(b)		5,131,170
	897,583	Ares Capital Corp.		14,352,352
	187,248	Aurelius AG (Germany)		6,503,198
	301,446	BlackRock Kelso Capital Corp.(b)		2,658,754
	1,981,459	Brait SE (South Africa)(c)		14,865,875
	622,997	Bure Equity AB (Sweden)		2,601,345
	68,061	Capital Southwest Corp.		2,495,116
	384,416	Carlyle Group LP (The)		10,671,388
	104,358	Deutsche Beteiligungs AG (Germany)		2,854,277
	422,900	Fifth Street Finance Corp.		3,763,810
	749,520	FS Investment Corp.(b)		7,944,912
	140,055	Gimv NV (Belgium)		6,360,968
	180,235	Golub Capital BDC, Inc.(b)		3,123,473
	1,273,298	GP Investments Ltd. (Brazil)(c)		2,600,103
	233,270	Hercules Technology Growth Capital, Inc.(b)		3,676,335
	1,781,870	Intermediate Capital Group PLC (United Kingdom)		11,690,815
	2,530,825	IP Group PLC (United Kingdom)(c)		8,377,252
	297,006	JAFCO Co. Ltd. (Japan)		11,193,527
	124,257	Main Street Capital Corp.(b)		3,948,887
	214,348	Medley Capital Corp.(b)		2,490,724
	116,490	MVC Capital, Inc.		1,312,842
	180,059	New Mountain Finance Corp.(b)		2,643,266
	89,840	Partners Group Holding AG (Switzerland)		23,873,012
	258,322	PennantPark Investment Corp.		2,810,543

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Capital Markets (continued)
	428,814	Princess Private Equity Holding Ltd. (Guernsey)	$	3,787,692
	919,420	Prospect Capital Corp.(b)		8,808,044
	1,962,591	Ratos AB, Class B (Sweden)		13,130,351
	111,529	Safeguard Scientifics, Inc.(c)		2,225,004
	150,048	Solar Capital Ltd.		2,789,392
	969,188	SVG Capital PLC (United Kingdom)(c)		6,620,867
	4,412,228	Symphony International Holdings Ltd. (Singapore)		3,529,782
	159,595	TCP Capital Corp.(b)		2,695,560
	260,371	TICC Capital Corp.(b)		2,283,454
	101,321	Triangle Capital Corp.		2,569,501
	5,075,932	Zeder Investments Ltd. (South Africa)		2,665,014
				263,645,198
		Diversified Financial Services—24.5%
	107,383	Ackermans & van Haaren NV (Belgium)		13,385,406
	1,773,330	Better Capital PCC Ltd. (United Kingdom)(c)		2,376,038
	1,628,913	China Merchants China Direct Investments Ltd. (China)		2,797,751
	188,161	Compass Diversified Holdings		3,471,570
	214,156	Electra Private Equity PLC (United Kingdom)(c)		8,736,740
	272,340	Eurazeo SA (France)		18,203,816
	229,341	HgCapital Trust PLC (United Kingdom)		3,889,256
	341,187	JZ Capital Partners Ltd. (United Kingdom)		2,295,290
	787,212	Leucadia National Corp.		18,719,901
	5,924,873	Marfin Investment Group Holdings SA (Greece)(c)		1,566,311
	491,947	Onex Corp. (Canada)		27,746,605

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

9

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Diversified Financial Services (continued)
	101,455	PICO Holdings, Inc.(c)	$	2,242,156
	184,434	TPG Specialty Lending, Inc.(b)		3,092,958
	143,040	Wendel SA (France)		15,760,157
				124,283,955
		Food Products—1.0%
	121,251	A/S Schouw & Co. (Denmark)		5,367,753
		Industrial Conglomerates—1.0%
	361,233	Hosken Consolidated Investments Ltd. (South Africa)		4,879,441
		Internet Software & Services—3.4%
	149,476	Actua Corp.(c)		2,810,149
	214,234	IAC/InterActiveCorp.		14,501,499
				17,311,648
		Machinery—4.0%
	4,911,201	Melrose Industries PLC (United Kingdom)		20,122,238
		Metals & Mining—3.2%
	13,648,245	Fosun International Ltd. (China)		16,173,325
		Total Common Stocks and Other Equity Interests (Cost $433,881,938)		451,783,558
		Money Market Fund—9.8%
	49,734,438	Invesco Premier Portfolio—Institutional Class(d) (Cost $49,734,438)		49,734,438
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $483,616,376)—98.8%		501,517,996
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—6.8%
	34,652,545	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $34,652,545)		34,652,545
		Total Investments (Cost $518,268,921)—105.6%		536,170,541
		Other assets less liabilities—(5.6%)		(28,730,052	)
		Net Assets—100.0%	$	507,440,489

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	33,860,267	$	(33,860,267	)	$	—

* Amount does not include excess collateral received, if any.

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

United Kingdom 17.3 % 

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

10

Portfolio Composition

PowerShares Golden Dragon China Portfolio (PGJ)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Information Technology	52.9
Consumer Discretionary	23.0
Telecommunication Services	8.0
Health Care	7.8
Energy	4.0
Financials	2.0
Industrials	1.8
Utilities	0.3
Materials	0.2
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Golden Dragon China Portfolio (PGJ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—23.0%
	19,739	500.com Ltd., Class A ADR (China)(b)(c)	$	608,948
	82,235	Bona FILM Group Ltd. ADR (China)(b)(c)		575,645
	83,170	China Automotive Systems, Inc. (China)(c)		764,332
	57,331	China Distance Education Holdings Ltd. ADR (China)		859,965
	85,795	China Lodging Group Ltd. ADR (China)(c)		2,358,505
	147,070	China XD Plastics Co. Ltd. (China)(b)(c)		783,883
	351,064	Ctrip.com International Ltd. ADR (China)(c)		20,467,031
	163,504	E-Commerce China Dangdang, Inc., Class A ADR (China)(b)(c)		2,146,807
	36,000	eLong, Inc. ADR(b)(c)		698,400
	108,319	Home Inns & Hotels Management, Inc. ADR (China)(c)		3,272,317
	124,964	Kandi Technologies Group, Inc. (China)(b)(c)		2,064,405
	66,561	LightInTheBox Holding Co. Ltd. ADR (China)(b)(c)		435,975
	416,916	New Oriental Education & Technology
		Group, Inc. ADR (China)(c)		9,005,386
	37,887	Qunar Cayman Islands Ltd. ADR (China)(c)		1,019,160
	116,012	TAL Education Group ADR (China)(b)(c)		3,684,541
	57,316	Vipshop Holdings Ltd. ADR (China)(c)		13,141,986
				61,887,286
		Energy—4.0%
	34,205	China Petroleum & Chemical Corp. ADR (China)(b)		2,975,151
	24,197	CNOOC Ltd. ADR (China)		3,783,685

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	31,960	PetroChina Co. Ltd. ADR (China)	$	4,010,980
	26,179	Sino Clean Energy, Inc. (China)(c)		0
				10,769,816
		Financials—2.0%
	28,673	China Life Insurance Co. Ltd. ADR (China)		1,283,117
	104,235	CNinsure, Inc. ADR (China)(c)		570,687
	232,877	E-House China Holdings Ltd. ADR (China)(b)		2,326,441
	53,151	Noah Holdings Ltd. ADR (China)(b)(c)		871,676
	130,107	Xinyuan Real Estate Co. Ltd. ADR (China)		370,805
				5,422,726
		Health Care—7.8%
	72,597	China Biologic Products, Inc. (China)(c)		4,373,969
	56,680	Concord Medical Services Holdings Ltd. ADR (China)		419,432
	258,933	Mindray Medical International Ltd. ADR (China)(b)		7,545,308
	164,801	Sinovac Biotech Ltd. (China)(b)(c)		871,797
	208,261	WuXi PharmaTech Cayman, Inc. ADR (China)(c)		7,851,440
				21,061,946
		Industrials—1.8%
	69,844	51job, Inc. ADR (China)(c)		2,144,211
	283,881	China Ming Yang Wind Power Group Ltd. ADR (China)(b)(c)		715,380
	110,528	China Yuchai International Ltd.		2,010,504
				4,870,095

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

11

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology—52.9%
	137,154	21Vianet Group, Inc. ADR (China)(b)(c)	$	2,869,262
	71,912	58.Com, Inc. ADR (China)(b)(c)		2,845,558
	26,671	Autohome, Inc. ADR (China)(c)		1,410,629
	105,001	Baidu, Inc. ADR (China)(c)		25,071,089
	76,355	Bitauto Holdings Ltd. ADR (China)(c)		6,392,441
	162,793	Canadian Solar, Inc. (Canada)(b)(c)		5,193,097
	36,231	Changyou.com Ltd. ADR (China)(b)(c)		870,993
	115,346	China Digital TV Holding Co. Ltd. ADR (China)(b)		454,463
	88,898	China Information Technology, Inc. (China)(b)(c)		352,925
	41,234	China Mobile Games & Entertainment Group Ltd. ADR (China)(b)(c)		1,002,399
	46,137	ChinaCache International Holdings Ltd. ADR (China)(b)(c)		475,211
	163,161	Hanwha SolarOne Co. Ltd. ADR (South Korea)(b)(c)		339,375
	174,679	Hollysys Automation Technologies Ltd. (China)(c)		4,284,876
	128,292	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		1,073,804
	66,261	JinkoSolar Holding Co. Ltd. ADR (China)(b)(c)		1,634,659
	94,770	KongZhong Corp. ADR (China)		557,248
	132,863	Nam Tai Property, Inc. (China)		733,404
	212,367	NetEase, Inc. ADR (China)		20,115,402
	160,943	NQ Mobile, Inc. ADR (China)(b)(c)		1,176,493
	131,812	Perfect World Co. Ltd. ADR (China)		2,739,053
	102,467	Phoenix New Media Ltd. ADR (China)(c)		1,051,311
	256,528	Qihoo 360 Technology Co. Ltd. ADR (China)(b)(c)		18,721,413
	243,467	ReneSola Ltd. ADR (China)(b)(c)		584,321
	338,930	Renren, Inc. ADR (China)(c)		1,176,087
	73,003	Semiconductor Manufacturing International Corp. ADR (China)(c)		375,235
	183,531	Shanda Games Ltd. ADR (China)(c)		1,186,528
	195,984	SINA Corp. (China)(c)		8,029,465
	114,114	Sohu.com, Inc. (China)(c)		5,544,799
	643,708	SouFun Holdings Ltd. ADR (China)(b)		6,276,153
	221,236	Trina Solar Ltd. ADR (China)(b)(c)		2,336,252
	381,365	Yingli Green Energy Holding Co. Ltd. ADR (China)(b)(c)		1,117,399
	387,601	Youku Tudou, Inc. ADR (China)(b)(c)		7,596,980
	109,798	YY, Inc. ADR (China)(b)(c)		9,097,862
				142,686,186
		Materials—0.2%
	506,791	Silvercorp Metals, Inc. (Canada)(b)		608,149
		Telecommunication Services—8.0%
	303,364	China Mobile Ltd. ADR (China)		18,835,871
	19,703	China Telecom Corp. Ltd. ADR (China)		1,252,717
	102,736	China Unicom (Hong Kong) Ltd. ADR (China)		1,538,985
				21,627,573

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities—0.3%
	14,474	Huaneng Power International, Inc. ADR (China)	$	717,187
		Total Common Stocks and Other Equity Interests (Cost $246,905,265)		269,650,964
		Money Market Fund—0.1%
	197,247	Invesco Premier Portfolio—Institutional Class(d) (Cost $197,247)		197,247
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $247,102,512)—100.1%		269,848,211
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—17.7%
	47,877,357	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $47,877,357)		47,877,357
		Total Investments (Cost $294,979,869)—117.8%		317,725,568
		Other assets less liabilities—(17.8%)		(48,051,592	)
		Net Assets—100.0%	$	269,673,976

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	47,653,063	$	(47,653,063	)	$	—

* Amount does not include excess collateral received, if any.

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

China 96.7 % 

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

12

Portfolio Composition

PowerShares S&P 500 BuyWrite Portfolio (PBP)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Information Technology	20.8
Financials	17.5
Health Care	15.2
Consumer Discretionary	12.4
Industrials	11.1
Consumer Staples	10.2
Energy	9.8
Materials	3.5
Utilities	3.4
Telecommunication Services	2.5
Other Assets Less Liabilities	(6.4)

Schedule of Investments^(a)

PowerShares S&P 500 BuyWrite Portfolio (PBP)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b)—106.4%
		Consumer Discretionary—12.4%
	8,193	Amazon.com, Inc.(c)	$	2,502,634
	1,691	AutoNation, Inc.(c)		96,827
	705	AutoZone, Inc.(c)		390,232
	4,007	Bed Bath & Beyond, Inc.(c)		269,831
	6,274	Best Buy Co., Inc.		214,194
	4,939	BorgWarner, Inc.		281,622
	4,691	Cablevision Systems Corp., Class A		87,346
	4,738	CarMax, Inc.(c)		264,902
	9,737	Carnival Corp.		390,941
	10,479	CBS Corp., Class B		568,171
	670	Chipotle Mexican Grill, Inc.(c)		427,460
	5,938	Coach, Inc.		204,148
	55,962	Comcast Corp., Class A		3,097,497
	7,173	D.R. Horton, Inc.		163,473
	2,862	Darden Restaurants, Inc.		148,194
	6,481	Delphi Automotive PLC (United Kingdom)		447,059
	10,859	DIRECTV(c)		942,453
	3,200	Discovery Communications, Inc., Class A(c)		113,120
	5,908	Discovery Communications, Inc., Class C(c)		206,721
	6,559	Dollar General Corp.(c)		411,053
	4,445	Dollar Tree, Inc.(c)		269,234
	2,146	Expedia, Inc.		182,346
	2,069	Family Dollar Stores, Inc.		161,982
	83,860	Ford Motor Co.		1,181,587
	1,006	Fossil Group, Inc.(c)		102,270
	2,436	GameStop Corp., Class A		104,163

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Discretionary (continued)
	4,879	Gannett Co., Inc.	$	153,688
	5,923	Gap, Inc. (The)		224,422
	2,626	Garmin Ltd.		145,690
	29,145	General Motors Co.		915,153
	3,312	Genuine Parts Co.		321,529
	5,953	Goodyear Tire & Rubber Co. (The)		144,241
	5,948	H&R Block, Inc.		192,180
	4,704	Harley-Davidson, Inc.		309,053
	1,473	Harman International Industries, Inc.		158,112
	2,481	Hasbro, Inc.		142,732
	29,101	Home Depot, Inc. (The)		2,837,929
	9,111	Interpublic Group of Cos., Inc. (The)		176,662
	14,400	Johnson Controls, Inc.		680,400
	4,424	Kohl’s Corp.		239,869
	5,310	L Brands, Inc.		382,957
	2,970	Leggett & Platt, Inc.		116,959
	3,845	Lennar Corp., Class A		165,643
	21,343	Lowe’s Cos., Inc.		1,220,820
	7,634	Macy’s, Inc.		441,398
	4,714	Marriott International, Inc., Class A		357,085
	7,304	Mattel, Inc.		226,935
	21,233	McDonald’s Corp.		1,990,169
	4,437	Michael Kors Holdings Ltd.(c)		348,704
	1,338	Mohawk Industries, Inc.(c)		190,049
	1,298	Netflix, Inc.(c)		509,815
	5,920	Newell Rubbermaid, Inc.		197,314

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

13

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Discretionary (continued)
	10,766	News Corp., Class A(c)	$	166,658
	15,209	NIKE, Inc., Class B		1,413,981
	3,081	Nordstrom, Inc.		223,711
	5,432	Omnicom Group, Inc.		390,343
	2,245	O’Reilly Automotive, Inc.(c)		394,851
	2,148	PetSmart, Inc.		155,408
	1,135	Priceline Group, Inc. (The)(c)		1,369,048
	7,315	PulteGroup, Inc.		140,375
	1,782	PVH Corp.		203,772
	1,311	Ralph Lauren Corp., Class A		216,105
	4,537	Ross Stores, Inc.		366,227
	2,244	Scripps Networks Interactive, Inc., Class A		173,327
	13,928	Staples, Inc.		176,607
	16,244	Starbucks Corp.		1,227,397
	4,118	Starwood Hotels & Resorts Worldwide, Inc.		315,686
	13,702	Target Corp.		847,058
	2,432	Tiffany & Co.		233,764
	6,025	Time Warner Cable, Inc.		886,940
	18,482	Time Warner, Inc.		1,468,765
	14,982	TJX Cos., Inc. (The)		948,660
	2,979	Tractor Supply Co.		218,122
	2,408	TripAdvisor, Inc.(c)		213,493
	40,724	Twenty-First Century Fox, Inc., Class A		1,404,164
	3,598	Under Armour, Inc., Class A(c)		235,957
	2,209	Urban Outfitters, Inc.(c)		67,065
	7,458	VF Corp.		504,757
	8,234	Viacom, Inc., Class B		598,447
	34,147	Walt Disney Co. (The)		3,120,353
	1,686	Whirlpool Corp.		290,076
	2,705	Wyndham Worldwide Corp.		210,097
	1,753	Wynn Resorts Ltd.		333,088
	9,507	Yum! Brands, Inc.		682,888
				45,216,158
		Consumer Staples—10.2%
	42,887	Altria Group, Inc.		2,073,158
	13,957	Archer-Daniels-Midland Co.		655,979
	9,397	Avon Products, Inc.		97,729
	3,415	Brown-Forman Corp., Class B		316,468
	3,869	Campbell Soup Co.		170,894
	2,786	Clorox Co. (The)		277,207
	85,351	Coca-Cola Co. (The)		3,574,500
	4,884	Coca-Cola Enterprises, Inc.		211,721
	18,562	Colgate-Palmolive Co.		1,241,427
	9,135	ConAgra Foods, Inc.		313,787
	3,624	Constellation Brands, Inc., Class A(c)		331,741
	9,477	Costco Wholesale Corp.		1,263,947
	25,043	CVS Health Corp.		2,148,940
	4,219	Dr Pepper Snapple Group, Inc.		292,166
	4,864	Estee Lauder Cos., Inc. (The), Class A		365,675
	13,243	General Mills, Inc.		688,106
	3,227	Hershey Co. (The)		309,502
	2,906	Hormel Foods Corp.		156,662
	2,203	J.M. Smucker Co. (The)		229,112
	5,528	Kellogg Co.		353,571
	2,632	Keurig Green Mountain, Inc.		399,406
	8,085	Kimberly-Clark Corp. when-issued		885,523

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Staples (continued)
	12,841	Kraft Foods Group, Inc.	$	723,590
	10,572	Kroger Co. (The)		588,966
	7,785	Lorillard, Inc.		478,777
	2,807	McCormick & Co., Inc.		198,511
	4,373	Mead Johnson Nutrition Co.		434,283
	3,441	Molson Coors Brewing Co., Class B		255,942
	36,452	Mondelez International, Inc., Class A		1,285,298
	3,108	Monster Beverage Corp.(c)		313,535
	32,579	PepsiCo, Inc.		3,133,122
	33,778	Philip Morris International, Inc.		3,006,580
	58,545	Procter & Gamble Co. (The)		5,109,222
	6,663	Reynolds American, Inc.		419,169
	4,983	Safeway, Inc.		173,707
	12,688	Sysco Corp.		488,996
	6,333	Tyson Foods, Inc., Class A		255,537
	19,029	Walgreen Co.		1,222,042
	34,143	Wal-Mart Stores, Inc.		2,604,087
	7,812	Whole Foods Market, Inc.		307,246
				37,355,831
		Energy—9.8%
	10,941	Anadarko Petroleum Corp.		1,004,165
	8,268	Apache Corp.		638,290
	9,406	Baker Hughes, Inc.		498,142
	9,022	Cabot Oil & Gas Corp.		280,584
	4,389	Cameron International Corp.(c)		261,365
	11,228	Chesapeake Energy Corp.		249,037
	41,059	Chevron Corp.		4,925,027
	1,883	Cimarex Energy Co.		214,041
	26,585	ConocoPhillips		1,918,108
	4,977	CONSOL Energy, Inc.		183,154
	7,616	Denbury Resources, Inc.		94,438
	8,314	Devon Energy Corp.		498,840
	1,454	Diamond Offshore Drilling, Inc.		54,830
	5,055	Ensco PLC, Class A		205,182
	11,836	EOG Resources, Inc.		1,125,012
	3,277	EQT Corp.		308,169
	92,211	Exxon Mobil Corp.		8,917,726
	5,080	FMC Technologies, Inc.(c)		284,683
	18,392	Halliburton Co.		1,014,135
	2,339	Helmerich & Payne, Inc.		203,072
	5,656	Hess Corp.		479,685
	14,222	Kinder Morgan, Inc.		550,391
	14,582	Marathon Oil Corp.		516,203
	6,128	Marathon Petroleum Corp.		557,035
	3,610	Murphy Oil Corp.		192,738
	6,256	Nabors Industries Ltd.		111,670
	9,301	National Oilwell Varco, Inc.		675,625
	2,956	Newfield Exploration Co.(c)		96,395
	5,496	Noble Corp. PLC		114,976
	7,790	Noble Energy, Inc.		448,938
	16,857	Occidental Petroleum Corp.		1,499,093
	4,497	ONEOK, Inc.		265,053
	12,086	Phillips 66		948,751
	3,093	Pioneer Natural Resources Co.		584,763
	3,583	QEP Resources, Inc.		89,826
	3,649	Range Resources Corp.		249,592

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

14

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Energy (continued)
	28,031	Schlumberger Ltd.	$	2,765,538
	7,635	Southwestern Energy Co.(c)		248,214
	14,508	Spectra Energy Corp.		567,698
	2,772	Tesoro Corp.		197,948
	7,361	Transocean Ltd.		219,579
	11,414	Valero Energy Corp.		571,727
	14,544	Williams Cos., Inc. (The)		807,337
				35,636,775
		Financials—17.5%
	7,257	ACE Ltd.		793,190
	1,203	Affiliated Managers Group, Inc.(c)		240,347
	9,795	Aflac, Inc.		585,055
	9,370	Allstate Corp. (The)		607,644
	19,463	American Express Co.		1,750,697
	30,852	American International Group, Inc.		1,652,742
	8,567	American Tower Corp. REIT		835,282
	4,046	Ameriprise Financial, Inc.		510,484
	6,280	Aon PLC		540,080
	3,159	Apartment Investment & Management Co., Class A REIT		113,061
	1,545	Assurant, Inc.		105,400
	2,837	AvalonBay Communities, Inc. REIT		442,118
	227,375	Bank of America Corp.		3,901,755
	24,466	Bank of New York Mellon Corp. (The)		947,324
	15,560	BB&T Corp.		589,413
	39,419	Berkshire Hathaway, Inc., Class B(c)		5,524,967
	2,727	BlackRock, Inc., Class A		930,207
	3,312	Boston Properties, Inc. REIT		419,796
	12,135	Capital One Financial Corp.		1,004,414
	6,033	CBRE Group, Inc., Class A(c)		193,056
	24,798	Charles Schwab Corp. (The)		710,959
	5,199	Chubb Corp. (The)		516,573
	3,185	Cincinnati Financial Corp.		160,747
	65,553	Citigroup, Inc.		3,509,052
	6,831	CME Group, Inc., Class A		572,506
	3,910	Comerica, Inc.		186,663
	7,217	Crown Castle International Corp. REIT		563,792
	9,989	Discover Financial Services		637,098
	6,242	E*TRADE Financial Corp.(c)		139,197
	7,823	Equity Residential REIT		544,168
	1,372	Essex Property Trust, Inc. REIT		276,815
	18,040	Fifth Third Bancorp		360,620
	8,519	Franklin Resources, Inc.		473,742
	13,567	General Growth Properties, Inc. REIT		351,521
	10,736	Genworth Financial, Inc., Class A(c)		150,197
	8,860	Goldman Sachs Group, Inc. (The)		1,683,311
	9,681	Hartford Financial Services Group, Inc. (The)		383,174
	9,922	HCP, Inc. REIT		436,270
	7,006	Health Care REIT, Inc.		498,197
	16,365	Host Hotels & Resorts, Inc. REIT		381,468
	10,403	Hudson City Bancorp, Inc.		100,389
	17,667	Huntington Bancshares, Inc.		175,080
	2,453	IntercontinentalExchange, Inc.		510,935
	9,359	Invesco Ltd.(d)		378,759
	3,715	Iron Mountain, Inc. REIT		134,000
	81,326	JPMorgan Chase & Co.		4,918,596

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Financials (continued)
	18,959	KeyCorp	$	250,259
	8,888	Kimco Realty Corp. REIT		221,756
	2,205	Legg Mason, Inc.		114,660
	6,851	Leucadia National Corp.		162,917
	5,645	Lincoln National Corp.		309,120
	6,591	Loews Corp.		287,368
	2,854	M&T Bank Corp.		348,702
	3,041	Macerich Co. (The) REIT		214,390
	11,767	Marsh & McLennan Cos., Inc.		639,772
	5,856	McGraw Hill Financial, Inc.		529,851
	24,320	MetLife, Inc.		1,319,117
	4,020	Moody’s Corp.		398,905
	33,114	Morgan Stanley		1,157,334
	2,555	NASDAQ OMX Group, Inc. (The)		110,529
	9,069	Navient Corp.		179,385
	4,787	Northern Trust Corp.		317,378
	6,710	People’s United Financial, Inc.		98,100
	3,829	Plum Creek Timber Co., Inc. REIT		157,027
	11,689	PNC Financial Services Group, Inc. (The)		1,009,813
	5,909	Principal Financial Group, Inc.		309,454
	11,639	Progressive Corp. (The)		307,386
	10,810	Prologis, Inc. REIT		450,236
	9,948	Prudential Financial, Inc.		880,796
	3,135	Public Storage REIT		577,906
	29,806	Regions Financial Corp.		295,974
	6,720	Simon Property Group, Inc. REIT		1,204,291
	9,158	State Street Corp.		691,063
	11,479	SunTrust Banks, Inc.		449,288
	5,689	T. Rowe Price Group, Inc.		467,010
	2,824	Torchmark Corp.		149,559
	7,330	Travelers Cos., Inc. (The)		738,864
	38,962	U.S. Bancorp		1,659,781
	5,508	Unum Group		184,298
	6,365	Ventas, Inc. REIT		436,066
	3,773	Vornado Realty Trust REIT		413,068
	102,716	Wells Fargo & Co.		5,453,192
	11,421	Weyerhaeuser Co. REIT		386,715
	5,742	XL Group PLC		194,539
	4,387	Zions Bancorporation		127,091
				63,643,821
		Health Care—15.2%
	32,512	Abbott Laboratories		1,417,198
	34,416	AbbVie, Inc.		2,184,039
	5,715	Actavis PLC(c)		1,387,259
	7,667	Aetna, Inc.		632,604
	7,209	Agilent Technologies, Inc. when-issued		284,988
	4,278	Alexion Pharmaceuticals, Inc.(c)		818,638
	6,427	Allergan, Inc.		1,221,516
	4,610	AmerisourceBergen Corp.		393,740
	16,424	Amgen, Inc.		2,663,644
	11,714	Baxter International, Inc.		821,620
	4,147	Becton, Dickinson and Co.		533,719
	5,104	Biogen Idec, Inc.(c)		1,638,792
	28,663	Boston Scientific Corp.(c)		380,645
	35,848	Bristol-Myers Squibb Co.		2,085,995
	1,612	C.R. Bard, Inc.		264,320

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

15

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Health Care (continued)
	7,278	Cardinal Health, Inc.	$	571,177
	4,388	CareFusion Corp.(c)		251,740
	17,288	Celgene Corp.(c)		1,851,372
	6,562	Cerner Corp.(c)		415,637
	5,705	Cigna Corp.		568,047
	9,767	Covidien PLC		902,861
	3,713	DaVita HealthCare Partners, Inc.(c)		289,874
	3,064	DENTSPLY International, Inc.		155,559
	2,291	Edwards Lifesciences Corp.(c)		277,028
	21,258	Eli Lilly & Co.		1,410,043
	16,118	Express Scripts Holding Co.(c)		1,238,185
	32,686	Gilead Sciences, Inc.(c)		3,660,832
	3,650	Hospira, Inc.(c)		196,005
	3,333	Humana, Inc.		462,787
	778	Intuitive Surgical, Inc.(c)		385,732
	60,980	Johnson & Johnson		6,572,424
	1,837	Laboratory Corp. of America Holdings(c)		200,766
	2,449	Mallinckrodt PLC(c)		225,749
	5,009	McKesson Corp.		1,018,881
	21,181	Medtronic, Inc.		1,443,697
	62,371	Merck & Co., Inc.		3,613,776
	8,088	Mylan, Inc.(c)		433,112
	1,872	Patterson Cos., Inc.		80,702
	2,441	PerkinElmer, Inc.		105,988
	2,894	Perrigo Co. PLC		467,236
	137,102	Pfizer, Inc.		4,106,205
	3,122	Quest Diagnostics, Inc.		198,122
	1,593	Regeneron Pharmaceuticals, Inc.(c)		627,196
	6,154	St. Jude Medical, Inc.		394,902
	6,468	Stryker Corp.		566,144
	2,117	Tenet Healthcare Corp.(c)		118,658
	8,624	Thermo Fisher Scientific, Inc.		1,013,924
	21,008	UnitedHealth Group, Inc.		1,995,970
	1,971	Universal Health Services, Inc., Class B		204,412
	2,233	Varian Medical Systems, Inc.(c)		187,840
	5,147	Vertex Pharmaceuticals, Inc.(c)		579,758
	1,816	Waters Corp.(c)		201,213
	5,929	WellPoint, Inc.		751,145
	3,654	Zimmer Holdings, Inc.		406,471
	10,836	Zoetis, Inc.		402,666
				55,282,553
		Industrials—11.1%
	14,010	3M Co.		2,154,318
	3,761	ADT Corp. (The)		134,794
	2,077	Allegion PLC		110,268
	5,315	AMETEK, Inc.		277,177
	14,492	Boeing Co. (The)		1,810,196
	3,182	C.H. Robinson Worldwide, Inc.		220,226
	13,574	Caterpillar, Inc.		1,376,539
	2,089	Cintas Corp.		152,998
	21,611	CSX Corp.		770,000
	3,696	Cummins, Inc.		540,281
	13,179	Danaher Corp.		1,059,592
	7,750	Deere & Co.		662,935
	18,227	Delta Air Lines, Inc.		733,272
	3,602	Dover Corp.		286,143

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Industrials (continued)
	787	Dun & Bradstreet Corp. (The)	$	96,652
	10,291	Eaton Corp. PLC		703,802
	15,090	Emerson Electric Co.		966,665
	2,631	Equifax, Inc.		199,272
	4,219	Expeditors International of Washington, Inc.		179,983
	5,903	Fastenal Co.		259,968
	5,741	FedEx Corp.		961,043
	2,960	Flowserve Corp.		201,250
	3,405	Fluor Corp.		225,888
	6,865	General Dynamics Corp.		959,452
	216,955	General Electric Co.		5,599,609
	16,921	Honeywell International, Inc.		1,626,447
	7,889	Illinois Tool Works, Inc.		718,294
	5,786	Ingersoll-Rand PLC		362,319
	2,878	Jacobs Engineering Group, Inc.(c)		136,561
	2,123	Joy Global, Inc.		111,734
	2,385	Kansas City Southern		292,854
	1,866	L-3 Communications Holdings, Inc.		226,644
	5,832	Lockheed Martin Corp.		1,111,404
	7,707	Masco Corp.		170,094
	6,577	Nielsen NV		279,457
	6,693	Norfolk Southern Corp.		740,514
	4,495	Northrop Grumman Corp.		620,130
	7,670	PACCAR, Inc.		501,004
	2,308	Pall Corp.		210,997
	3,218	Parker Hannifin Corp.		408,783
	4,163	Pentair PLC (United Kingdom)		279,129
	4,387	Pitney Bowes, Inc.		108,534
	3,102	Precision Castparts Corp.		684,611
	4,689	Quanta Services, Inc.(c)		159,801
	6,719	Raytheon Co.		697,970
	5,459	Republic Services, Inc.		209,626
	2,975	Robert Half International, Inc.		162,971
	2,983	Rockwell Automation, Inc.		335,140
	2,922	Rockwell Collins, Inc.		245,886
	2,164	Roper Industries, Inc.		342,561
	1,149	Ryder System, Inc.		101,652
	1,255	Snap-on, Inc.		165,836
	14,815	Southwest Airlines Co.		510,821
	3,378	Stanley Black & Decker, Inc.		316,316
	1,835	Stericycle, Inc.(c)		231,210
	6,038	Textron, Inc.		250,758
	9,591	Tyco International Ltd.		411,742
	19,405	Union Pacific Corp.		2,259,712
	15,210	United Parcel Service, Inc., Class B		1,595,681
	2,073	United Rentals, Inc.(c)		228,154
	18,397	United Technologies Corp.		1,968,479
	1,315	W.W. Grainger, Inc.		324,542
	9,378	Waste Management, Inc.		458,491
	3,951	Xylem, Inc.		143,658
				40,352,840
		Information Technology—20.8%
	13,648	Accenture PLC, Class A		1,107,126
	10,217	Adobe Systems, Inc.(c)		716,416
	3,852	Akamai Technologies, Inc.(c)		232,276
	1,202	Alliance Data Systems Corp.(c)		340,587

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

16

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	6,681	Altera Corp.	$	229,626
	6,783	Amphenol Corp., Class A		343,084
	6,795	Analog Devices, Inc.		337,168
	129,470	Apple, Inc.		13,982,760
	26,345	Applied Materials, Inc.		581,961
	4,913	Autodesk, Inc.(c)		282,694
	10,397	Automatic Data Processing, Inc.		850,267
	5,441	Avago Technologies Ltd. (Singapore)		469,286
	11,629	Broadcom Corp., Class A		487,023
	6,928	CA, Inc.		201,328
	110,256	Cisco Systems, Inc.		2,697,964
	3,557	Citrix Systems, Inc.(c)		228,466
	13,146	Cognizant Technology Solutions Corp., Class A(c)		642,182
	3,136	Computer Sciences Corp.		189,414
	27,913	Corning, Inc.		570,263
	24,421	eBay, Inc.(c)		1,282,102
	6,760	Electronic Arts, Inc.(c)		276,957
	43,864	EMC Corp.		1,260,213
	1,600	F5 Networks, Inc.(c)		196,768
	45,048	Facebook, Inc., Class A(c)		3,378,150
	6,170	Fidelity National Information Services, Inc.		360,266
	1,623	First Solar, Inc.(c)		95,595
	5,390	Fiserv, Inc.(c)		374,497
	3,063	FLIR Systems, Inc.		102,702
	6,141	Google, Inc., Class A(c)		3,487,290
	6,133	Google, Inc., Class C(c)		3,428,838
	2,267	Harris Corp.		157,783
	40,353	Hewlett-Packard Co.		1,447,866
	107,051	Intel Corp.		3,640,805
	20,061	International Business Machines Corp.		3,298,028
	6,140	Intuit, Inc.		540,381
	4,322	Jabil Circuit, Inc.		90,546
	8,681	Juniper Networks, Inc.		182,909
	3,576	KLA-Tencor Corp.		283,040
	3,504	Lam Research Corp.		272,821
	5,156	Linear Technology Corp.		220,883
	21,281	MasterCard, Inc., Class A		1,782,284
	4,334	Microchip Technology, Inc.		186,839
	23,153	Micron Technology, Inc.(c)		766,133
	178,162	Microsoft Corp.		8,364,706
	4,772	Motorola Solutions, Inc.		307,794
	6,902	NetApp, Inc.		295,406
	11,130	NVIDIA Corp.		217,480
	70,318	Oracle Corp.		2,745,918
	7,066	Paychex, Inc.		331,678
	36,240	QUALCOMM, Inc.		2,845,202
	4,087	Red Hat, Inc.(c)		240,806
	12,449	Salesforce.com, Inc.(c)		796,612
	4,848	SanDisk Corp.		456,391
	7,067	Seagate Technology PLC		444,020
	14,928	Symantec Corp.		370,513
	8,850	TE Connectivity Ltd. (Switzerland)		541,000
	3,350	Teradata Corp.(c)		141,772
	23,082	Texas Instruments, Inc.		1,146,252
	3,574	Total System Services, Inc.		120,765
	2,433	VeriSign, Inc.(c)		145,396

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	10,645	Visa, Inc., Class A	$	2,570,022
	4,754	Western Digital Corp.		467,651
	11,453	Western Union Co. (The)		194,243
	23,437	Xerox Corp.		311,243
	5,803	Xilinx, Inc.		258,117
	20,000	Yahoo!, Inc.(c)		921,000
				75,837,574
		Materials—3.5%
	4,145	Air Products & Chemicals, Inc.		558,166
	1,451	Airgas, Inc.		161,845
	25,437	Alcoa, Inc.		426,324
	2,350	Allegheny Technologies, Inc.		77,197
	2,026	Avery Dennison Corp.		94,918
	2,991	Ball Corp.		192,710
	2,160	Bemis Co., Inc.		83,095
	1,074	CF Industries Holdings, Inc.		279,240
	24,270	Dow Chemical Co. (The)		1,198,938
	19,791	E.I. du Pont de Nemours & Co.		1,368,548
	3,225	Eastman Chemical Co.		260,515
	5,829	Ecolab, Inc.		648,360
	2,880	FMC Corp.		165,168
	22,466	Freeport-McMoRan, Inc.		640,281
	1,755	International Flavors & Fragrances, Inc.		174,008
	9,234	International Paper Co.		467,425
	9,195	LyondellBasell Industries NV, Class A		842,538
	1,330	Martin Marietta Materials, Inc.		155,504
	3,644	MeadWestvaco Corp.		160,955
	11,344	Monsanto Co.		1,305,014
	6,884	Mosaic Co. (The)		305,030
	10,783	Newmont Mining Corp.		202,289
	6,893	Nucor Corp.		372,636
	3,565	Owens-Illinois, Inc.(c)		91,870
	2,982	PPG Industries, Inc.		607,404
	6,314	Praxair, Inc.		795,501
	4,585	Sealed Air Corp.		166,206
	1,798	Sherwin-Williams Co. (The)		412,749
	2,574	Sigma-Aldrich Corp.		349,832
	2,831	Vulcan Materials Co.		174,701
				12,738,967
		Telecommunication Services—2.5%
	112,135	AT&T, Inc.		3,906,783
	12,329	CenturyLink, Inc.		511,407
	21,667	Frontier Communications Corp.		141,702
	89,630	Verizon Communications, Inc.		4,503,908
	13,032	Windstream Holdings, Inc.		136,575
				9,200,375
		Utilities—3.4%
	14,388	AES Corp. (The)		202,439
	2,585	AGL Resources, Inc.		139,357
	5,246	Ameren Corp.		222,116
	10,567	American Electric Power Co., Inc.		616,479
	9,295	CenterPoint Energy, Inc.		228,192
	5,945	CMS Energy Corp.		194,223
	6,333	Consolidated Edison, Inc.		401,259
	12,598	Dominion Resources, Inc.		898,237

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, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Utilities (continued)
	3,827	DTE Energy Co.	$	314,426
	15,291	Duke Energy Corp.		1,256,156
	7,045	Edison International		440,876
	3,884	Entergy Corp.		326,334
	18,577	Exelon Corp.		679,733
	9,088	FirstEnergy Corp.		339,346
	1,729	Integrys Energy Group, Inc.		125,664
	9,435	NextEra Energy, Inc.		945,576
	6,820	NiSource, Inc.		286,849
	6,834	Northeast Utilities		337,258
	7,301	NRG Energy, Inc.		218,884
	5,430	Pepco Holdings, Inc.		148,456
	10,193	PG&E Corp.		512,912
	2,386	Pinnacle West Capital Corp.		146,667
	14,365	PPL Corp.		502,631
	10,940	Public Service Enterprise Group, Inc.		451,931
	3,071	SCANA Corp.		168,567
	4,999	Sempra Energy		549,890
	19,368	Southern Co. (The)		897,901
	5,046	TECO Energy, Inc.		98,952
	4,876	Wisconsin Energy Corp.		242,142
	10,928	Xcel Energy, Inc.		365,760
				12,259,213
		Total Investments (Cost $320,760,651)—106.4%		387,524,107
		Other assets less liabilities—(6.4%)		(23,185,046	)
		Net Assets—100.0%	$	364,339,061

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 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 wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

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

18

Portfolio Composition

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

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Industrials	27.9
Consumer Discretionary	18.9
Consumer Staples	18.8
Health Care	9.9
Materials	8.2
Financials	5.6
Information Technology	5.1
Utilities	3.6
Energy	2.0
Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—18.9%
	31,077	Comcast Corp., Class A	$	1,720,112
	33,807	Darden Restaurants, Inc.		1,750,526
	63,292	Family Dollar Stores, Inc.		4,955,131
	89,970	Gap, Inc. (The)		3,408,963
	37,534	Genuine Parts Co.		3,643,801
	28,954	Harley-Davidson, Inc.		1,902,278
	59,446	Hasbro, Inc.		3,419,928
	35,324	Home Depot, Inc. (The)		3,444,796
	30,453	Lowe’s Cos., Inc.		1,741,912
	106,395	Mattel, Inc.		3,305,693
	35,431	McDonald’s Corp.		3,320,948
	56,257	NIKE, Inc., Class B		5,230,213
	46,699	Nordstrom, Inc.		3,390,814
	74,862	Omnicom Group, Inc.		5,379,583
	50,433	PetSmart, Inc.		3,648,828
	20,378	Ralph Lauren Corp., Class A		3,359,109
	63,266	Ross Stores, Inc.		5,106,832
	53,962	Target Corp.		3,335,931
	17,875	Tiffany & Co.		1,718,145
	79,658	TJX Cos., Inc. (The)		5,043,945
	50,668	VF Corp.		3,429,210
	56,859	Walt Disney Co. (The)		5,195,775
	70,760	Yum! Brands, Inc.		5,082,691
				82,535,164
		Consumer Staples—18.8%
	35,001	Altria Group, Inc.		1,691,948
	37,698	Brown-Forman Corp., Class B		3,493,474

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	38,747	Campbell Soup Co.	$	1,711,455
	33,683	Clorox Co. (The)		3,351,458
	110,287	Coca-Cola Co. (The)		4,618,820
	75,115	Colgate-Palmolive Co.		5,023,691
	25,376	Costco Wholesale Corp.		3,384,397
	59,460	CVS Health Corp.		5,102,263
	45,003	Estee Lauder Cos., Inc. (The), Class A		3,383,326
	65,642	General Mills, Inc.		3,410,758
	17,542	Hershey Co. (The)		1,682,453
	94,746	Hormel Foods Corp.		5,107,757
	33,470	J.M. Smucker Co. (The)		3,480,880
	81,332	Kellogg Co.		5,201,995
	31,459	Kimberly-Clark Corp. when-issued		3,449,167
	81,101	Lorillard, Inc.		4,987,711
	72,534	McCormick & Co., Inc.		5,129,604
	34,540	PepsiCo, Inc.		3,321,712
	57,908	Procter & Gamble Co. (The)		5,053,631
	44,142	Sysco Corp.		1,701,233
	51,909	Walgreen Co.		3,333,596
	62,641	Wal-Mart Stores, Inc.		4,777,629
				82,398,958
		Energy—2.0%
	28,703	Chevron Corp.		3,442,925
	35,690	Exxon Mobil Corp.		3,451,580
	19,813	Hess Corp.		1,680,340
				8,574,845

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

19

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

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—5.6%
	28,924	Aflac, Inc.	$	1,727,631
	14,280	Ameriprise Financial, Inc.		1,801,708
	10,585	BlackRock, Inc., Class A		3,610,649
	35,011	Chubb Corp. (The)		3,478,693
	24,592	Health Care REIT, Inc.		1,748,737
	72,091	Kimco Realty Corp. REIT		1,798,671
	17,755	Moody’s Corp.		1,761,829
	21,705	T. Rowe Price Group, Inc.		1,781,763
	63,497	Torchmark Corp.		3,362,801
	17,393	Travelers Cos., Inc. (The)		1,753,214
	32,291	Wells Fargo & Co.		1,714,329
				24,540,025
		Health Care—9.9%
	78,718	Abbott Laboratories		3,431,318
	42,528	AmerisourceBergen Corp.		3,632,317
	45,884	Baxter International, Inc.		3,218,304
	25,572	Becton, Dickinson and Co.		3,291,116
	21,819	C.R. Bard, Inc.		3,577,661
	36,384	DENTSPLY International, Inc.		1,847,216
	48,449	Johnson & Johnson		5,221,833
	8,436	McKesson Corp.		1,715,967
	51,009	Medtronic, Inc.		3,476,773
	33,133	Mylan, Inc.(b)		1,774,272
	28,015	Quest Diagnostics, Inc.		1,777,832
	39,920	Stryker Corp.		3,494,198
	57,436	UnitedHealth Group, Inc.		5,456,994
	15,737	Universal Health Services, Inc., Class B		1,632,084
				43,547,885
		Industrials—27.9%
	36,652	3M Co.		5,635,978
	68,974	AMETEK, Inc.		3,596,994
	75,894	C.H. Robinson Worldwide, Inc.		5,252,624
	35,110	Caterpillar, Inc.		3,560,505
	23,852	Cintas Corp.		1,746,921
	109,212	CSX Corp.		3,891,224
	12,840	Cummins, Inc.		1,876,951
	68,254	Danaher Corp.		5,487,622
	40,372	Deere & Co.		3,453,421
	43,152	Dover Corp.		3,427,995
	82,522	Emerson Electric Co.		5,286,359
	85,255	Expeditors International of Washington, Inc.		3,636,978
	76,864	Fastenal Co.		3,385,091
	26,007	Fluor Corp.		1,725,304
	26,972	General Dynamics Corp.		3,769,607
	67,355	General Electric Co.		1,738,433
	37,195	Honeywell International, Inc.		3,575,184
	20,241	Illinois Tool Works, Inc.		1,842,943
	42,592	L-3 Communications Holdings, Inc.		5,173,224
	28,114	Lockheed Martin Corp.		5,357,685
	31,948	Norfolk Southern Corp.		3,534,727
	26,369	Northrop Grumman Corp.		3,637,867
	39,873	Pall Corp.		3,645,190
	30,008	Parker Hannifin Corp.		3,811,916
	51,381	Raytheon Co.		5,337,458
	42,725	Republic Services, Inc.		1,640,640

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	43,702	Rockwell Collins, Inc.	$	3,677,523
	23,058	Roper Industries, Inc.		3,650,081
	28,237	Snap-on, Inc.		3,731,237
	48,398	Union Pacific Corp.		5,635,947
	49,082	United Technologies Corp.		5,251,774
	20,375	W.W. Grainger, Inc.		5,028,550
				122,003,953
		Information Technology—5.1%
	35,781	Amphenol Corp., Class A		1,809,803
	44,997	Automatic Data Processing, Inc.		3,679,855
	26,387	International Business Machines Corp.		4,338,023
	20,390	Intuit, Inc.		1,794,524
	41,628	Linear Technology Corp.		1,783,343
	37,129	Microsoft Corp.		1,743,206
	42,911	Oracle Corp.		1,675,674
	75,323	Paychex, Inc.		3,535,662
	22,960	QUALCOMM, Inc.		1,802,590
				22,162,680
		Materials—8.2%
	26,590	Air Products & Chemicals, Inc.		3,580,609
	30,920	Airgas, Inc.		3,448,817
	52,221	Ball Corp.		3,364,599
	24,570	E.I. du Pont de Nemours & Co.		1,699,015
	44,881	Ecolab, Inc.		4,992,114
	17,592	International Flavors & Fragrances, Inc.		1,744,247
	30,633	Monsanto Co.		3,524,020
	40,611	Praxair, Inc.		5,116,580
	15,339	Sherwin-Williams Co. (The)		3,521,221
	36,213	Sigma-Aldrich Corp.		4,921,709
				35,912,931
		Utilities—3.6%
	63,105	AGL Resources, Inc.		3,401,991
	21,015	Entergy Corp.		1,765,680
	34,916	NextEra Energy, Inc.		3,499,281
	33,094	SCANA Corp.		1,816,530
	36,256	Southern Co. (The)		1,680,828
	71,772	Wisconsin Energy Corp.		3,564,198
				15,728,508
		Total Investments (Cost $347,269,630)—100.0%		437,404,949
		Other assets less liabilities—0.0%		91,003
		Net Assets—100.0%	$	437,495,952

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.

20

Portfolio Composition

PowerShares Water Resources Portfolio (PHO)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Machinery	49.0
Water Utilities	16.4
Life Sciences Tools & Services	8.6
Industrial Conglomerates	8.5
Electronic Equipment, Instruments & Components	4.6
Commercial Services & Supplies	4.2
Construction & Engineering	3.3
Electrical Equipment	2.3
Chemicals	1.9
Multi-Utilities	1.1
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Water Resources Portfolio (PHO)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Chemicals—1.9%
	878,290	Calgon Carbon Corp.(b)	$	18,470,439
		Commercial Services & Supplies—4.2%
	1,514,123	Tetra Tech, Inc.		40,593,638
		Construction & Engineering—3.3%
	1,077,028	Aegion Corp.(b)		19,731,153
	914,131	Layne Christensen Co.(b)		6,581,743
	143,876	Northwest Pipe Co.(b)		5,147,883
				31,460,779
		Electrical Equipment—2.3%
	581,570	Franklin Electric Co., Inc.		21,715,824
		Electronic Equipment, Instruments & Components—4.6%
	143,425	Badger Meter, Inc.		8,163,751
	914,502	Itron, Inc.(b)		35,601,563
				43,765,314
		Industrial Conglomerates—8.5%
	512,897	Roper Industries, Inc.		81,191,595
		Life Sciences Tools & Services—8.6%
	746,594	Waters Corp.(b)		82,722,615
		Machinery—49.0%
	1,098,044	Energy Recovery, Inc.(b)		5,029,042
	1,017,527	Flowserve Corp.		69,181,661
	300,196	Gorman-Rupp Co. (The)		9,528,221

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Machinery (continued)
	496,402	Lindsay Corp.	$	43,534,455
	3,700,507	Mueller Water Products, Inc., Class A		36,524,004
	457,627	Pall Corp.		41,836,260
	1,134,426	Pentair PLC (United Kingdom)		76,063,263
	627,502	Toro Co. (The)		38,735,698
	548,633	Valmont Industries, Inc.		74,707,356
	610,058	Watts Water Technologies, Inc., Class A		36,987,817
	1,036,234	Xylem, Inc.		37,677,468
				469,805,245
		Multi-Utilities—1.1%
	683,679	Veolia Environnement SA ADR (France)		11,123,457
		Water Utilities—16.4%
	517,861	American States Water Co.		18,529,067
	762,899	American Water Works Co., Inc.		40,715,920
	1,543,789	Aqua America, Inc.		40,447,272
	563,035	California Water Service Group		14,655,801
	4,090,058	Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)		31,738,850
	94,058	Connecticut Water Service, Inc.		3,496,136
	634,746	Consolidated Water Co. Ltd. (Cayman Islands)		7,610,604
				157,193,650
		Total Common Stocks and Other Equity Interests (Cost $744,672,041)		958,042,556

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

21

PowerShares Water Resources Portfolio (PHO) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.1%
	1,007,269	Invesco Premier Portfolio—Institutional Class(c) (Cost $1,007,269)	$	1,007,269
		Total Investments (Cost $745,679,310)—100.0%		959,049,825
		Other assets less liabilities—(0.0%)		(297,384	)
		Net Assets—100.0%	$	958,752,441

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.

22

Portfolio Composition

PowerShares WilderHill Clean Energy Portfolio (PBW)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Semiconductors & Semiconductor Equipment	28.2
Electrical Equipment	20.4
Chemicals	9.3
Electronic Equipment, Instruments & Components	8.0
Independent Power Producers & Energy Traders	7.4
Oil, Gas & Consumable Fuels	6.7
Construction & Engineering	4.5
Software	4.4
Auto Components	3.7
Electric Utilities	2.7
Automobiles	2.4
Internet Software & Services	2.3
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares WilderHill Clean Energy Portfolio (PBW)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Components—3.7%
	93,421	Fuel Systems Solutions, Inc.(b)	$	862,276
	85,957	Gentherm, Inc.(b)		3,584,407
	241,269	Quantum Fuel Systems Technologies Worldwide, Inc.(b)(c)		960,251
	645,140	UQM Technologies, Inc.(b)(c)		716,105
				6,123,039
		Automobiles—2.4%
	16,380	Tesla Motors, Inc.(b)		3,959,046
		Chemicals—9.3%
	30,077	Air Products & Chemicals, Inc.		4,050,169
	83,155	Cytec Industries, Inc.		3,877,517
	149,511	OM Group, Inc.		3,891,771
	151,942	Sociedad Quimica y Minera de Chile SA ADR (Chile)		3,605,584
				15,425,041

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Construction & Engineering—4.5%
	507,767	Ameresco, Inc., Class A(b)	$	4,184,000
	99,325	Quanta Services, Inc.(b)		3,384,996
				7,568,996
		Electric Utilities—2.7%
	111,930	ITC Holdings Corp.		4,433,547
		Electrical Equipment—20.4%
	626,969	American Superconductor Corp.(b)		821,329
	1,191,603	Ballard Power Systems, Inc. (Canada)(b)(c)		3,336,488
	111,010	Broadwind Energy, Inc.(b)		708,244
	1,333,498	China Ming Yang Wind Power Group Ltd. ADR (China)(b)(c)		3,360,415
	236,736	Enphase Energy, Inc.(b)		3,555,775
	1,699,699	FuelCell Energy, Inc.(b)(c)		3,433,392
	47,156	Hydrogenics Corp. (Canada)(b)(c)		834,661
	160,412	Orion Energy Systems, Inc.(b)		922,369
	806,727	Plug Power, Inc.(b)(c)		3,799,684
	103,204	Polypore International, Inc.(b)		4,532,720

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

23

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Electrical Equipment (continued)
	377,165	PowerSecure International, Inc.(b)(c)	$	4,212,933
	626,969	Real Goods Solar, Inc., Class A(b)(c)		504,773
	66,443	SolarCity Corp.(b)(c)		3,932,097
				33,954,880
		Electronic Equipment, Instruments & Components—8.0%
	392,197	Echelon Corp.(b)		823,614
	93,528	Itron, Inc.(b)		3,641,045
	465,537	Maxwell Technologies, Inc.(b)(c)		5,428,161
	110,332	Universal Display Corp.(b)(c)		3,451,185
				13,344,005
		Independent Power Producers & Energy Traders—7.4%
	179,047	Calpine Corp.(b)		4,085,852
	150,768	Ormat Technologies, Inc.		4,364,734
	131,314	Pattern Energy Group, Inc., Class A		3,779,217
				12,229,803
		Internet Software & Services—2.3%
	211,553	Opower, Inc.(b)(c)		3,841,803
		Oil, Gas & Consumable Fuels—6.7%
	1,024,632	Amyris, Inc.(b)(c)		3,094,389
	390,704	Renewable Energy Group, Inc.(b)		4,114,113
	509,064	Solazyme, Inc.(b)(c)		3,904,521
				11,113,023
		Semiconductors & Semiconductor Equipment—28.2%
	200,467	Advanced Energy Industries, Inc.(b)		3,965,237
	294,689	Aixtron SE ADR (Germany)(b)(c)		3,574,578
	83,518	Amtech Systems, Inc.(b)		879,445
	107,806	Canadian Solar, Inc. (Canada)(b)		3,439,011
	87,819	Cree, Inc.(b)(c)		2,764,542
	101,685	Daqo New Energy Corp. ADR (China)(b)(c)		3,957,580
	60,320	First Solar, Inc.(b)		3,552,848
	1,681,748	Hanwha SolarOne Co. Ltd. ADR (South Korea)(b)(c)		3,498,036
	422,720	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		3,538,166
	1,147,362	ReneSola Ltd. ADR (China)(b)(c)		2,753,669
	187,825	Rubicon Technology, Inc.(b)		832,065
	189,967	SunEdison, Inc.(b)		3,706,256
	116,253	SunPower Corp.(b)(c)		3,701,495
	298,936	Trina Solar Ltd. ADR (China)(b)(c)		3,156,764
	1,181,105	Yingli Green Energy Holding Co. Ltd. ADR (China)(b)(c)		3,460,638
				46,780,330
		Software—4.4%
	202,662	EnerNOC, Inc.(b)		2,993,318
	444,344	Silver Spring Networks, Inc.(b)(c)		4,256,815
				7,250,133
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $172,332,301)—100.0%		166,023,646

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—28.4%
	47,233,325	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $47,233,325)	$	47,233,325
		Total Investments (Cost $219,565,626)—128.4%		213,256,971
		Other assets less liabilities—(28.4%)		(47,168,040	)
		Net Assets—100.0%	$	166,088,931

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	46,037,567	$	(46,037,567	)	$	—

* Amount does not include excess collateral received, if any.

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

China 12.2 % 

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

24

Portfolio Composition

PowerShares WilderHill Progressive Energy Portfolio (PUW)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Oil, Gas & Consumable Fuels	18.7
Electrical Equipment	16.4
Machinery	13.3
Chemicals	9.2
Construction & Engineering	7.2
Building Products	5.9
Auto Components	5.4
Electric Utilities	5.2
Automobiles	4.0
Commercial Services & Supplies	2.4
Energy Equipment & Services	2.2
Food & Staples Retailing	2.1
Aerospace & Defense	2.0
Semiconductors & Semiconductor Equipment	2.0
Electronic Equipment, Instruments & Components	1.8
Industrial Conglomerates	1.6
Real Estate Investment Trusts	0.6
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Aerospace & Defense—2.0%
	17,455	Hexcel Corp.(b)	$	731,190
		Auto Components—5.4%
	15,148	Johnson Controls, Inc.		715,743
	33,294	Remy International, Inc.		615,273
	11,615	Tenneco, Inc.(b)		608,162
				1,939,178
		Automobiles—4.0%
	46,691	Kandi Technologies Group, Inc. (China)(b)(c)		771,335
	14,595	Tata Motors Ltd. ADR (India)		687,425
				1,458,760

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Building Products—5.9%
	13,908	A.O. Smith Corp.	$	741,992
	16,407	Apogee Enterprises, Inc.		720,267
	20,728	Owens Corning		664,540
				2,126,799
		Chemicals—9.2%
	32,086	Advanced Emissions Solutions, Inc.(b)		648,779
	18,329	LSB Industries, Inc.(b)		687,887
	11,071	Methanex Corp. (Canada)		656,953
	431,469	Rentech, Inc.(b)		686,036
	8,572	Rockwood Holdings, Inc.		659,273
				3,338,928

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

25

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Commercial Services & Supplies—2.4%
	57,465	Blue Earth, Inc.(b)(c)	$	87,921
	35,057	Covanta Holding Corp.		773,708
				861,629
		Construction & Engineering—7.2%
	25,085	Abengoa SA ADR (Spain)(c)		539,327
	12,544	Chicago Bridge & Iron Co. NV		685,404
	22,025	Foster Wheeler AG		683,436
	23,815	MasTec, Inc.(b)		682,062
				2,590,229
		Electric Utilities—5.2%
	226,016	Centrais Eletricas Brasileiras SA ADR (Brazil)(c)		571,820
	106,760	Companhia Energetica de Minas Gerais ADR (Brazil)		617,073
	13,672	NRG Yield, Inc., Class A		683,190
				1,872,083
		Electrical Equipment—16.4%
	5,489	Acuity Brands, Inc.		765,331
	177,140	Capstone Turbine Corp.(b)		177,140
	10,460	Eaton Corp. PLC		715,359
	10,525	Emerson Electric Co.		674,232
	12,171	EnerSys		764,339
	39,290	General Cable Corp.		556,739
	12,779	Global Power Equipment Group, Inc.		174,178
	138,410	GrafTech International Ltd.(b)		593,779
	9,142	Power Solutions International, Inc.(b)		598,801
	10,253	Regal-Beloit Corp.		727,655
	113,578	Revolution Lighting Technologies, Inc.(b)(c)		196,490
				5,944,043
		Electronic Equipment, Instruments & Components—1.8%
	32,515	Corning, Inc.		664,282
		Energy Equipment & Services—2.2%
	107,620	McDermott International, Inc.(b)(c)		413,261
	41,948	Nuverra Environmental Solutions, Inc.(b)(c)		397,247
				810,508
		Food & Staples Retailing—2.1%
	12,128	Andersons, Inc. (The)		772,918
		Industrial Conglomerates—1.6%
	21,066	Koninklijke Philips NV (Netherlands)		588,584
		Machinery—13.3%
	24,762	Altra Industrial Motion Corp.		780,498
	11,728	Chart Industries, Inc.(b)		545,938
	50,945	Energy Recovery, Inc.(b)(c)		233,328
	19,182	ESCO Technologies, Inc.		729,300
	38,914	Luxfer Holdings PLC ADR (United Kingdom)		619,900
	8,059	WABCO Holdings, Inc.(b)		784,786
	68,147	Westport Innovations, Inc. (Canada)(b)(c)		420,467
	13,592	Woodward, Inc.		696,046
				4,810,263
		Oil, Gas & Consumable Fuels—18.7%
	42,836	Cameco Corp. (Canada)		744,490
	32,275	Chesapeake Energy Corp.		715,860
	85,474	Clean Energy Fuels Corp.(b)(c)		624,815

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil, Gas & Consumable Fuels (continued)
	67,511	Cosan Ltd., Class A (Brazil)	$	714,941
	643,608	Denison Mines Corp. (Canada)(b)(c)		598,877
	10,705	Golar LNG Ltd. (Norway)		600,658
	20,557	Green Plains, Inc.		703,049
	11,203	Range Resources Corp.		766,285
	11,784	Sasol Ltd. ADR (South Africa)		591,439
	21,634	Southwestern Energy Co.(b)		703,321
				6,763,735
		Real Estate Investment Trusts—0.6%
	14,156	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		197,901
		Semiconductors & Semiconductor Equipment—2.0%
	19,957	Veeco Instruments, Inc.(b)		718,252
		Total Common Stocks and Other Equity Interests (Cost $34,884,447)		36,189,282
		Money Market Fund—0.1%
	32,804	Invesco Premier Portfolio—Institutional Class(d) (Cost $32,804)		32,804
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $34,917,251)—100.1%		36,222,086
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—9.6%
	3,475,467	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $3,475,467)		3,475,467
		Total Investments (Cost $38,392,718)—109.7%		39,697,553
		Other assets less liabilities—(9.7%)		(3,492,101	)
		Net Assets—100.0%	$	36,205,452

Investment Abbreviations:

ADR—American Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at October 31, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

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

26

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

October 31, 2014

(Unaudited)

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	3,377,105	$	(3,377,105	)	$	—

* Amount does not include excess collateral received, if any.

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

27

Statements of Assets and Liabilities

October 31, 2014

(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)	$	158,061,006		$	74,171,065		$	1,447,616,692		$	451,783,558
Affiliated investments, at value		97,480			3,450,043			662,346			84,386,983
Total investments, at value		158,158,486			77,621,108			1,448,279,038			536,170,541
Foreign currencies, at value		—			—			—			20,276
Receivables:
Dividends		48,222			27,910			499,803			305,687
Foreign tax reclaims		—			82,090			—			645,235
Securities lending		—			8,149			—			38,008
Shares sold		—			—			16,061,801			—
Investments sold		—			—			—			5,051,144
Unrealized appreciation on swap agreements		—			—			—			424,720
Settlement proceeds		—			105,540			—			—
Other assets		1,274			1,100			3,585			2,011
Total Assets		158,207,982			77,845,897			1,464,844,227			542,657,622
Liabilities:
Due to custodian		4,435			57,359			44,809			17,347
Payables:
Expenses recaptured		3,921			—			—			—
Collateral upon return of securities loaned		—			3,450,043			—			34,652,545
Investments purchased		—			—			16,073,084			—
Payable for swaps		—			—			—			1,973
Shares repurchased		—			—			—			—
Open options written, at value		—			—			—			—
Accrued advisory fees		63,024			26,557			566,209			206,323
Accrued trustees’ and officer’s fees		17,656			16,297			37,430			24,919
Accrued expenses		71,194			68,702			626,183			314,026
Total Liabilities		160,230			3,618,958			17,347,715			35,217,133
Net Assets	$	158,047,752		$	74,226,939		$	1,447,496,512		$	507,440,489
Net Assets Consist of:
Shares of beneficial interest	$	165,045,321		$	142,642,662		$	1,320,140,633		$	589,133,700
Undistributed net investment income		(50,220	)		(5,916	)		(870,349	)		(21,627,092	)
Undistributed net realized gain (loss)		(28,867,213	)		(82,745,885	)		(80,911,150	)		(78,356,610	)
Net unrealized appreciation (depreciation)		21,919,864			14,336,078			209,137,378			18,290,491
Net Assets	$	158,047,752		$	74,226,939		$	1,447,496,512		$	507,440,489
Shares outstanding (unlimited amount authorized, $0.01 par value)		4,700,000			2,550,000			35,900,000			45,650,000
Net asset value	$	33.63		$	29.11		$	40.32		$	11.12
Market price	$	33.63		$	29.12		$	40.33		$	11.13
Unaffiliated investments, at cost	$	136,141,142		$	59,830,172		$	1,238,479,314		$	433,881,938
Affiliated investments, at cost	$	97,480		$	3,450,043		$	662,346		$	84,386,983
Total investments, at cost	$	136,238,622		$	63,280,215		$	1,239,141,660		$	518,268,921
Foreign currencies, at cost	$	—		$	—		$	—		$	20,290
Premium received on written options	$	—		$	—		$	—		$	—
(a) Includes securities on loan with an aggregate value of	$	—		$	3,339,005		$	—		$	33,860,267

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

28

PowerShares Golden Dragon China Portfolio (PGJ)			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)
$	269,650,964		$	387,145,348		$	437,404,949		$	958,042,556		$	166,023,646		$	36,189,282
	48,074,604			378,759			—			1,007,269			47,233,325			3,508,271
	317,725,568			387,524,107			437,404,949			959,049,825			213,256,971			39,697,553
	—			—			—			—			—			—
	83,703			389,191			415,411			613,386			23,335			21,234
	—			144			—			—			32,697			18,254
	82,360			—			—			—			444,894			23,356
	—			—			9,999,414			—			—			—
	4,622,842			151,872			145,663			1,293,275			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	1,398			—			1,523			2,194			1,548			1,263
	322,515,871			388,065,314			447,966,960			960,958,680			213,759,445			39,761,660
	9,398			107,654			118,945			33,839			165,277			1,925
	820			—			—			—			—			—
	47,877,357			—			—			—			47,233,325			3,475,467
	—			—			10,133,929			—			11,082			—
	—			—			—			—			—			—
	4,596,191			—			—			1,293,820			—			—
	—			23,383,015			—			—			—			—
	112,937			235,584			69,553			386,667			64,626			9,101
	29,333			—			19,476			79,519			42,079			13,118
	215,859			—			129,105			412,394			154,125			56,597
	52,841,895			23,726,253			10,471,008			2,206,239			47,670,514			3,556,208
$	269,673,976		$	364,339,061		$	437,495,952		$	958,752,441		$	166,088,931		$	36,205,452
$	513,281,476		$	363,144,564		$	478,175,292		$	1,294,714,882		$	1,629,091,104		$	65,073,002
	(1,523,404	)		(8,551,813	)		722,131			469,271			(395,348	)		77,186
	(264,829,795	)		(40,605,668	)		(131,536,790	)		(549,802,227	)		(1,456,298,170	)		(30,249,571	)
	22,745,699			50,351,978			90,135,319			213,370,515			(6,308,655	)		1,304,835
$	269,673,976		$	364,339,061		$	437,495,952		$	958,752,441		$	166,088,931		$	36,205,452
	8,600,000			17,550,000			19,500,000			37,050,000			27,450,000			1,250,000
$	31.36		$	20.76		$	22.44		$	25.88		$	6.05		$	28.96
$	31.34		$	20.77		$	22.43		$	25.87		$	6.05		$	28.96
$	246,905,265		$	320,471,654		$	347,269,630		$	744,672,041		$	172,332,301		$	34,884,447
$	48,074,604		$	288,997		$	—		$	1,007,269		$	47,233,325		$	3,508,271
$	294,979,869		$	320,760,651		$	347,269,630		$	745,679,310		$	219,565,626		$	38,392,718
$	—		$	—		$	—		$	—		$	—		$	—
$	—		$	6,971,537		$	—		$	—		$	—		$	—
$	47,653,063		$	—		$	—		$	—		$	46,037,567		$	3,377,105

29

Statements of Operations

For the six months ended October 31, 2014

(Unaudited)

	PowerShares Aerospace & Defense Portfolio (PPA)			PowerShares CleantechTM Portfolio (PZD)			PowerShares DWA Momentum Portfolio (PDP)			PowerShares Global Listed Private Equity Portfolio (PSP)
Investment Income:
Unaffiliated dividend income	$	1,138,221		$	681,730		$	5,328,815		$	11,069,271
Affiliated dividend income		7			2			74			4,605
Securities lending income		—			61,713			—			297,305
Foreign withholding tax		—			(46,145	)		(1,278	)		(493,919	)
Total Income		1,138,228			697,300			5,327,611			10,877,262
Expenses:
Advisory fees		340,647			205,934			3,226,893			1,518,244
Sub-licensing		40,877			30,890			645,379			303,649
Accounting & administration fees		18,467			18,467			128,832			59,996
Recapture (Note 3)		17,502			—			—			32,811
Professional fees		13,388			13,415			22,368			18,847
Trustees’ and officer’s fees		4,904			4,491			15,285			9,561
Custodian & transfer agent fees		2,751			8,185			8,802			24,562
Other expenses		11,118			11,081			49,930			27,539
Total Expenses		449,654			292,463			4,097,489			1,995,209
Less: Waivers		(77	)		(14,471	)		(802	)		(51,439	)
Net Expenses		449,577			277,992			4,096,687			1,943,770
Net Investment Income		688,651			419,308			1,230,924			8,933,492
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(64,620	)		106,613			(9,422,531	)		(5,692,637	)
Swap agreements		—			—			—			(2,039,040	)
Written options		—			—			—			—
In-kind redemptions		941,163			2,553,998			136,783,045			25,849,620
Foreign currencies		—			(1,716	)		—			(38,605	)
Net realized gain (loss)		876,543			2,658,895			127,360,514			18,079,338
Change in net unrealized appreciation (depreciation) on:
Investment securities		5,138,106			(9,826,572	)		(14,789,202	)		(61,331,701	)
Swaps agreements		—			—			—			3,699,794
Written options		—			—			—			—
Foreign currencies		—			(7,953	)		—			(60,883	)
Net change in unrealized appreciation (depreciation)		5,138,106			(9,834,525	)		(14,789,202	)		(57,692,790	)
Net realized and unrealized gain (loss)		6,014,649			(7,175,630	)		112,571,312			(39,613,452	)
Net increase (decrease) in net assets resulting from operations	$	6,703,300		$	(6,756,322	)	$	113,802,236		$	(30,679,960	)

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

30

PowerShares Golden Dragon China Portfolio (PGJ)			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)
$	1,727,584		$	3,252,516		$	4,133,238		$	5,604,894		$	328,212		$	402,086
	15			3,742			14			68			9			2
	577,356			—			—			—			2,663,310			171,412
	(122,240	)		(420	)		—			—			(17,129	)		(1,179	)
	2,182,715			3,255,838			4,133,252			5,604,962			2,974,402			572,321
	673,161			1,214,261			570,509			2,428,922			468,967			108,576
	134,632			—			91,281			364,338			93,794			21,715
	28,096			—			36,029			99,126			21,875			18,467
	4,081			—			—			—			—			—
	17,265			—			15,594			21,376			14,672			13,857
	5,930			—			7,150			12,824			5,509			4,119
	58,732			—			5,582			6,856			31,176			4,379
	20,528			—			15,755			52,826			31,931			8,604
	942,425			1,214,261			741,900			2,986,268			667,924			179,717
	(145	)		(380	)		(170,552	)		(747	)		(11,473	)		(27,730	)
	942,280			1,213,881			571,348			2,985,521			656,451			151,987
	1,240,435			2,041,957			3,561,904			2,619,441			2,317,951			420,334
	(3,526,045	)		(227,348	)		(333,343	)		(11,764,690	)		(15,815,970	)		92,664
	—			—			—			—			—			—
	—			(9,309,395	)		—			—			—			—
	33,465,552			8,131,706			9,722,056			15,598,792			16,615,541			3,236,605
	—			—			—			—			—			—
	29,939,507			(1,405,037	)		9,388,713			3,834,102			799,571			3,329,269
	(3,327,468	)		14,473,400			18,996,476			(4,187,267	)		(16,645,316	)		(7,989,971	)
	—			—			—			—			—			—
	—			(15,594,115	)		—			—			—			—
	—			—			—			—			—			—
	(3,327,468	)		(1,120,715	)		18,996,476			(4,187,267	)		(16,645,316	)		(7,989,971	)
	26,612,039			(2,525,752	)		28,385,189			(353,165	)		(15,845,745	)		(4,660,702	)
$	27,852,474		$	(483,795	)	$	31,947,093		$	2,266,276		$	(13,527,794	)	$	(4,240,368	)

31

Statements of Changes in Net Assets

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares Aerospace & Defense Portfolio (PPA)						PowerShares CleantechTM Portfolio (PZD)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income	$	688,651		$	881,865		$	419,308		$	452,908
Net realized gain (loss)		876,543			5,236,366			2,658,895			(41,079	)
Net change in unrealized appreciation (depreciation)		5,138,106			17,672,034			(9,834,525	)		17,269,664
Net increase (decrease) in net assets resulting from operations		6,703,300			23,790,265			(6,756,322	)		17,681,493
Distributions to Shareholders from:
Net investment income		(723,239	)		(993,578	)		(581,436	)		(713,573	)
Shareholder Transactions:
Proceeds from shares sold		57,108,686			48,361,326			4,394,717			1,498,269
Value of shares repurchased		(3,127,222	)		(20,678,371	)		(7,365,438	)		(5,244,820	)
Net increase (decrease) in net assets resulting from shares transactions		53,981,464			27,682,955			(2,970,721	)		(3,746,551	)
Increase (Decrease) in Net Assets		59,961,525			50,479,642			(10,308,479	)		13,221,369
Net Assets:
Beginning of period		98,086,227			47,606,585			84,535,418			71,314,049
End of period	$	158,047,752		$	98,086,227		$	74,226,939		$	84,535,418
Undistributed net investment income at end of period	$	(50,220	)	$	(15,632	)	$	(5,916	)	$	156,212
Changes in Shares Outstanding:
Shares sold		1,750,000			1,750,000			150,000			50,000
Shares repurchased		(100,000	)		(750,000	)		(250,000	)		(200,000	)
Shares outstanding, beginning of period		3,050,000			2,050,000			2,650,000			2,800,000
Shares outstanding, end of period		4,700,000			3,050,000			2,550,000			2,650,000

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

32

PowerShares DWA Momentum Portfolio (PDP)						PowerShares Global Listed Private Equity Portfolio (PSP)						PowerShares Golden Dragon China Portfolio (PGJ)
October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	1,230,924		$	1,800,480		$	8,933,492		$	15,159,334		$	1,240,435		$	2,006,913
	127,360,514			56,424,570			18,079,338			35,699,870			29,939,507			39,890,527
	(14,789,202	)		95,556,132			(57,692,790	)		13,948,978			(3,327,468	)		28,415,205
	113,802,236			153,781,182			(30,679,960	)		64,808,182			27,852,474			70,312,645
	(2,069,760	)		(3,053,165	)		(7,044,279	)		(65,805,444	)		(1,470,298	)		(2,898,245	)
	608,115,800			391,192,705			75,585,089			239,772,662			79,503,122			123,413,615
	(532,795,307	)		(158,406,142	)		(114,021,627	)		(63,665,641	)		(94,779,896	)		(114,003,682	)
	75,320,493			232,786,563			(38,436,538	)		176,107,021			(15,276,774	)		9,409,933
	187,052,969			383,514,580			(76,160,777	)		175,109,759			11,105,402			76,824,333
	1,260,443,543			876,928,963			583,601,266			408,491,507			258,568,574			181,744,241
$	1,447,496,512		$	1,260,443,543		$	507,440,489		$	583,601,266		$	269,673,976		$	258,568,574
$	(870,349	)	$	(31,513	)	$	(21,627,092	)	$	(23,516,305	)	$	(1,523,404	)	$	(1,293,541	)
	15,500,000			11,150,000			6,200,000			20,100,000			2,500,000			4,350,000
	(13,700,000	)		(4,650,000	)		(10,050,000	)		(5,500,000	)		(3,250,000	)		(4,250,000	)
	34,100,000			27,600,000			49,500,000			34,900,000			9,350,000			9,250,000
	35,900,000			34,100,000			45,650,000			49,500,000			8,600,000			9,350,000

33

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares S&P 500 BuyWrite Portfolio (PBP)						PowerShares S&P 500® High Quality Portfolio (SPHQ)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income	$	2,041,957		$	2,774,392		$	3,561,904		$	5,453,071
Net realized gain (loss)		(1,405,037	)		(8,894,757	)		9,388,713			15,539,020
Net change in unrealized appreciation (depreciation)		(1,120,715	)		24,139,096			18,996,476			29,453,789
Net increase (decrease) in net assets resulting from operations		(483,795	)		18,018,731			31,947,093			50,445,880
Distributions to Shareholders from:
Net investment income		(11,085,960	)		(12,551,907	)		(3,499,976	)		(5,320,142	)
Net realized gains		—			(67,519	)		—			—
Total distributions to shareholders		(11,085,960	)		(12,619,426	)		(3,499,976	)		(5,320,142	)
Shareholder Transactions:
Proceeds from shares sold		149,495,084			72,951,504			66,787,110			137,479,261
Value of shares repurchased		(23,044,693	)		(34,114,213	)		(23,424,478	)		(45,654,865	)
Net increase (decrease) in net assets resulting from shares transactions		126,450,391			38,837,291			43,362,632			91,824,396
Increase (Decrease) in Net Assets		114,880,636			44,236,596			71,809,749			136,950,134
Net Assets:
Beginning of period		249,458,425			205,221,829			365,686,203			228,736,069
End of period	$	364,339,061		$	249,458,425		$	437,495,952		$	365,686,203
Undistributed net investment income at end of period	$	(8,551,813	)	$	492,190		$	722,131		$	660,203
Changes in Shares Outstanding:
Shares sold		6,950,000			3,500,000			3,100,000			7,000,000
Shares repurchased		(1,100,000	)		(1,650,000	)		(1,100,000	)		(2,300,000	)
Shares outstanding, beginning of period		11,700,000			9,850,000			17,500,000			12,800,000
Shares outstanding, end of period		17,550,000			11,700,000			19,500,000			17,500,000

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

34

PowerShares Water Resources Portfolio (PHO)						PowerShares WilderHill Clean Energy Portfolio (PBW)						PowerShares WilderHill Progressive Energy Portfolio (PUW)
October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	2,619,441		$	6,200,491		$	2,317,951		$	3,171,838		$	420,334		$	317,552
	3,834,102			84,949,788			799,571			31,745,124			3,329,269			1,303,228
	(4,187,267	)		62,930,259			(16,645,316	)		24,395,717			(7,989,971	)		5,713,352
	2,266,276			154,080,538			(13,527,794	)		59,312,679			(4,240,368	)		7,334,132
	(4,343,723	)		(5,035,124	)		(2,376,741	)		(5,058,769	)		(413,875	)		(473,310	)
	—			—			—			—			—			—
	(4,343,723	)		(5,035,124	)		(2,376,741	)		(5,058,769	)		(413,875	)		(473,310	)
	15,343,507			157,626,289			26,622,725			125,579,841			5,044,172			5,983,872
	(44,760,706	)		(193,488,911	)		(62,730,483	)		(104,226,358	)		(10,003,583	)		(5,609,711	)
	(29,417,199	)		(35,862,622	)		(36,107,758	)		21,353,483			(4,959,411	)		374,161
	(31,494,646	)		113,182,792			(52,012,293	)		75,607,393			(9,613,654	)		7,234,983
	990,247,087			877,064,295			218,101,224			142,493,831			45,819,106			38,584,123
$	958,752,441		$	990,247,087		$	166,088,931		$	218,101,224		$	36,205,452		$	45,819,106
$	469,271		$	2,193,553		$	(395,348	)	$	(336,558	)	$	77,186		$	70,727
	600,000			6,100,000			4,000,000			20,650,000			150,000			200,000
	(1,750,000	)		(7,650,000	)		(9,650,000	)		(17,300,000	)		(300,000	)		(200,000	)
	38,200,000			39,750,000			33,100,000			29,750,000			1,400,000			1,400,000
	37,050,000			38,200,000			27,450,000			33,100,000			1,250,000			1,400,000

35

Financial Highlights

PowerShares Aerospace & Defense Portfolio (PPA)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	32.16		$	23.22		$	19.99		$	20.57		$	19.07		$	13.38
Net investment income(a)		0.16			0.33			0.44			0.21			0.18			0.17
Net realized and unrealized gain (loss) on investments		1.47			9.00			3.22			(0.60	)		1.49			5.73
Total from investment operations		1.63			9.33			3.66			(0.39	)		1.67			5.90
Distributions to shareholders from:
Net investment income		(0.16	)		(0.39	)		(0.43	)		(0.19	)		(0.17	)		(0.21	)
Net asset value at end of period	$	33.63		$	32.16		$	23.22		$	19.99		$	20.57		$	19.07
Market price at end of period(b)	$	33.63		$	32.15		$	23.20		$	19.98		$	20.57		$	19.07
Net Asset Value Total Return(c)		5.08	%		40.52	%		18.69	%		(1.82	)%		8.91	%		44.36	%
Market Price Total Return(c)		5.11	%		40.59	%		18.65	%		(1.87	)%		8.91	%		44.47	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	158,048		$	98,086		$	47,607		$	54,967		$	107,971		$	137,338
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		0.66	%(d)		0.69	%		0.74	%		0.76	%		0.73	%		0.69	%
Net investment income, after Waivers		1.01	%(d)		1.13	%		2.18	%		1.09	%		0.99	%		1.08	%
Portfolio turnover rate(e)		5	%		8	%		17	%		25	%		12	%		17	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares Cleantech^TM Portfolio (PZD)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	31.90		$	25.47		$	23.06		$	30.10		$	25.00		$	19.25
Net investment income (loss)(a)		0.16			0.17			0.26			0.24			0.06			0.03
Net realized and unrealized gain (loss) on investments		(2.73	)		6.53			2.37			(7.07	)		5.05			5.77
Total from investment operations		(2.57	)		6.70			2.63			(6.83	)		5.11			5.80
Distributions to shareholders from:
Net investment income		(0.22	)		(0.27	)		(0.22	)		(0.21	)		(0.01	)		(0.04	)
Return of capital		—			—			—			—			—			(0.01	)
Total distributions		(0.22	)		(0.27	)		(0.22	)		(0.21	)		(0.01	)		(0.05	)
Net asset value at end of period	$	29.11		$	31.90		$	25.47		$	23.06		$	30.10		$	25.00
Market price at end of period(b)	$	29.12		$	31.92		$	25.36		$	22.98		$	30.08		$	24.80
Net Asset Value Total Return(c)		(8.13	)%		26.52	%		11.59	%		(22.65	)%		20.43	%		30.16	%
Market Price Total Return(c)		(8.16	)%		27.15	%		11.50	%		(22.87	)%		21.32	%		28.45	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	74,227		$	84,535		$	71,314		$	100,305		$	162,530		$	160,021
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		0.71	%(d)		0.72	%		0.76	%		0.74	%		0.74	%		0.71	%
Net investment income, after Waivers		1.02	%(d)		0.58	%		1.16	%		0.97	%		0.22	%		0.11	%
Portfolio turnover rate(e)		11	%		24	%		22	%		27	%		24	%		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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

36

Financial Highlights (continued)

PowerShares DWA Momentum Portfolio (PDP)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	36.96		$	31.77		$	27.86		$	26.52		$	21.25		$	14.14
Net investment income(a)		0.04			0.06			0.23			0.07			0.04			0.06
Net realized and unrealized gain on investments		3.38			5.23			3.92			1.31			5.29			7.15
Total from investment operations		3.42			5.29			4.15			1.38			5.33			7.21
Distributions to shareholders from:
Net investment income		(0.06	)		(0.10	)		(0.24	)		(0.04	)		(0.06	)		(0.10	)
Net asset value at end of period	$	40.32		$	36.96		$	31.77		$	27.86		$	26.52		$	21.25
Market price at end of period(b)	$	40.33		$	36.93		$	31.76		$	27.86		$	26.54		$	21.24
Net Asset Value Total Return(c)		9.26	%		16.71	%		15.02	%		5.22	%		25.11	%		51.28	%
Market Price Total Return(c)		9.37	%		16.65	%		14.98	%		5.15	%		25.26	%		51.31	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,447,497		$	1,260,444		$	876,929		$	571,078		$	450,904		$	159,371
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)(e)		0.64	%(e)		0.67	%(e)		0.65	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.63	%(d)(e)		0.64	%(e)		0.67	%(e)		0.65	%		0.71	%		0.73	%
Net investment income, after Waivers		0.19	%(d)		0.17	%		0.82	%		0.29	%		0.19	%		0.35	%
Portfolio turnover rate(f)		39	%		75	%		66	%		96	%		42	%		52	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

37

Financial Highlights (continued)

PowerShares Global Listed Private Equity Portfolio (PSP)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	11.79		$	11.70		$	9.22		$	12.17		$	10.04		$	6.72
Net investment income(a)		0.17			0.38	(b)		0.24			0.26			0.26			0.33	(g)
Net realized and unrealized gain (loss) on investments		(0.70	)		1.38			2.64			(2.58	)		2.41			3.27
Total from investment operations		(0.53	)		1.76			2.88			(2.32	)		2.67			3.60
Distributions to shareholders from:
Net investment income		(0.14	)		(1.67	)		(0.40	)		(0.56	)		(0.54	)		(0.28	)
Return of capital		—			—			—			(0.07	)		—			—
Total distributions		(0.14	)		(1.67	)		(0.40	)		(0.63	)		(0.54	)		(0.28	)
Net asset value at end of period	$	11.12		$	11.79		$	11.70		$	9.22		$	12.17		$	10.04
Market price at end of period(c)	$	11.13		$	11.85		$	11.75		$	9.25		$	12.25		$	10.06
Net Asset Value Total Return(d)		(4.55	)%		16.20	%		31.87	%		(19.51	)%		27.93	%		54.20	%
Market Price Total Return(d)		(4.95	)%		16.31	%		32.00	%		(19.80	)%		28.48	%		54.70	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	507,440		$	583,601		$	408,492		$	296,744		$	493,622		$	211,879
Ratio to average net assets of:
Expenses, after Waivers(e)		0.64	%(f)		0.69	%		0.70	%		0.71	%		0.70	%		0.70	%
Expenses, prior to Waivers(e)		0.66	%(f)		0.70	%		0.70	%		0.76	%		0.73	%		0.72	%
Net investment income, after Waivers		2.94	%(f)		3.20	%(b)		2.47	%		2.79	%		2.50	%		3.66	%(g)
Portfolio turnover rate(h)		15	%		53	%		53	%		88	%		112	%		121	%

^(a)  Based on average shares outstanding.

^(b)  Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.28 and 2.39%, respectively.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment 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)  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.

^(h)  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.

38

Financial Highlights (continued)

PowerShares Golden Dragon China Portfolio (PGJ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	27.65		$	19.65		$	21.56		$	28.98		$	25.03		$	17.47
Net investment income(a)		0.14			0.21			0.34			0.48			0.21			0.13
Net realized and unrealized gain (loss) on investments		3.74			8.08			(1.81	)		(7.43	)		3.92			7.63
Total from investment operations		3.88			8.29			(1.47	)		(6.95	)		4.13			7.76
Distributions to shareholders from:
Net investment income		(0.17	)		(0.29	)		(0.44	)		(0.47	)		(0.18	)		(0.17	)
Return of capital		—			—			—			—			—			(0.03	)
Total distributions		(0.17	)		(0.29	)		(0.44	)		(0.47	)		(0.18	)		(0.20	)
Net asset value at end of period	$	31.36		$	27.65		$	19.65		$	21.56		$	28.98		$	25.03
Market price at end of period(b)	$	31.34		$	27.60		$	19.59		$	21.49		$	28.87		$	25.04
Net Asset Value Total Return(c)		14.04	%		42.28	%		(6.73	)%(d)		(23.98	)%		16.60	%		44.51	%
Market Price Total Return(c)		14.18	%		42.46	%		(6.70	)%		(23.93	)%		16.11	%		44.49	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	269,674		$	258,569		$	181,744		$	245,838		$	446,292		$	455,523
Ratio to average net assets of:
Expenses, after Waivers		0.70	%(e)		0.70	%		0.70	%		0.69	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.70	%(e)		0.70	%		0.75	%		0.71	%		0.72	%		0.71	%
Net investment income, after Waivers		0.92	%(e)		0.75	%		1.78	%		2.08	%		0.82	%		0.56	%
Portfolio turnover rate(f)		9	%		37	%		63	%		23	%		15	%		35	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

PowerShares S&P 500 BuyWrite Portfolio (PBP)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	21.32		$	20.83		$	20.60		$	21.52		$	21.52		$	17.54
Net investment income(a)		0.14			0.28			0.33			0.29			0.29			0.27
Net realized and unrealized gain on investments		0.04			1.57			0.70			1.00			1.34			4.00
Total from investment operations		0.18			1.85			1.03			1.29			1.63			4.27
Distributions to shareholders from:
Net investment income		(0.74	)		(1.35	)		(0.65	)		(2.10	)		(0.27	)		(0.29	)
Net realized gains		—			(0.01	)		(0.15	)		(0.11	)		(1.36	)		—
Total distributions		(0.74	)		(1.36	)		(0.80	)		(2.21	)		(1.63	)		(0.29	)
Net asset value at end of period	$	20.76		$	21.32		$	20.83		$	20.60		$	21.52		$	21.52
Market price at end of period(b)	$	20.77		$	21.35		$	20.83		$	20.65		$	21.52		$	21.52
Net Asset Value Total Return(c)		0.78	%		9.34	%		5.22	%		6.74	%		8.11	%		24.48	%
Market Price Total Return(c)		0.68	%		9.50	%		4.97	%		7.02	%		8.09	%		24.11	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	364,339		$	249,458		$	205,222		$	154,528		$	120,511		$	167,840
Ratio to average net assets of:
Expenses		0.75	%(d)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		1.26	%(d)		1.37	%		1.61	%		1.42	%		1.37	%		1.35	%
Portfolio turnover rate(e)		21	%		32	%		22	%		58	%		61	%		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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

39

Financial Highlights (continued)

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

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	20.90		$	17.87		$	15.33		$	14.64		$	12.21		$	9.60
Net investment income(a)		0.19			0.36			0.33			0.26			0.20			0.00	(b)
Net realized and unrealized gain on investments		1.54			3.03			2.52			0.74			2.31			2.64
Total from investment operations		1.73			3.39			2.85			1.00			2.51			2.64
Distributions to shareholders from:
Net investment income		(0.19	)		(0.36	)		(0.31	)		(0.31	)		(0.08	)		(0.03	)
Net asset value at end of period	$	22.44		$	20.90		$	17.87		$	15.33		$	14.64		$	12.21
Market price at end of period(c)	$	22.43		$	20.89		$	17.87		$	15.33		$	14.64		$	12.21
Net Asset Value Total Return(d)		8.32	%		19.15	%		18.86	%		7.04	%		20.61	%		27.63	%
Market Price Total Return(d)		8.33	%		19.09	%		18.86	%		7.04	%		20.61	%		27.63	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	437,496		$	365,686		$	228,736		$	146,421		$	112,695		$	67,746
Ratio to average net assets of:
Expenses, after Waivers		0.29	%(e)		0.29	%		0.39	%		0.50	%		0.52	%		0.70	%
Expenses, prior to Waivers		0.38	%(e)		0.39	%		0.55	%		0.70	%		0.84	%		0.80	%
Net investment income (loss), after Waivers		1.81	%(e)		1.87	%		2.06	%		1.82	%		1.49	%		(0.03	)%
Portfolio turnover rate(f)		5	%		13	%		17	%		14	%		64	%		138	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Annualized.

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

PowerShares Water Resources Portfolio (PHO)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	25.92		$	22.06		$	18.78		$	20.25		$	18.05		$	14.04
Net investment income(a)		0.07			0.16			0.16			0.14			0.11			0.09
Net realized and unrealized gain (loss) on investments		0.01			3.83			3.28			(1.48	)		2.19			4.03
Total from investment operations		0.08			3.99			3.44			(1.34	)		2.30			4.12
Distributions to shareholders from:
Net investment income		(0.12	)		(0.13	)		(0.16	)		(0.13	)		(0.10	)		(0.11	)
Net asset value at end of period	$	25.88		$	25.92		$	22.06		$	18.78		$	20.25		$	18.05
Market price at end of period(b)	$	25.87		$	25.91		$	22.05		$	18.77		$	20.24		$	18.05
Net Asset Value Total Return(c)		0.28	%		18.16	%		18.48	%		(6.59	)%		12.81	%		29.48	%
Market Price Total Return(c)		0.28	%		18.17	%		18.49	%		(6.59	)%		12.75	%		29.67	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	958,752		$	990,247		$	877,064		$	825,510		$	1,260,648		$	1,335,033
Ratio to average net assets of:
Expenses, after Waivers		0.61	%(d)		0.61	%		0.62	%		0.62	%		0.66	%		0.64	%
Expenses, prior to Waivers		0.61	%(d)		0.61	%		0.62	%		0.62	%		0.66	%		0.64	%
Net investment income, after Waivers		0.54	%(d)		0.66	%		0.81	%		0.77	%		0.63	%		0.57	%
Portfolio turnover rate(e)		12	%		34	%		31	%		44	%		13	%		20	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

40

Financial Highlights (continued)

PowerShares WilderHill Clean Energy Portfolio (PBW)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	6.59		$	4.79		$	5.08		$	10.35		$	10.12		$	9.03
Net investment income (loss)(a)		0.08			0.10			0.11			0.20			(0.03	)		(0.02	)
Net realized and unrealized gain (loss) on investments		(0.54	)		1.85			(0.26	)		(5.33	)		0.26			1.11
Total from investment operations		(0.46	)		1.95			(0.15	)		(5.13	)		0.23			1.09
Distributions to shareholders from:
Net investment income		(0.08	)		(0.15	)		(0.14	)		(0.14	)		—			—
Net asset value at end of period	$	6.05		$	6.59		$	4.79		$	5.08		$	10.35		$	10.12
Market price at end of period(b)	$	6.05		$	6.59		$	4.79		$	5.08		$	10.33		$	10.11
Net Asset Value Total Return(c)		(7.04	)%		41.23	%		(2.64	)%		(49.78	)%		2.27	%		12.07	%
Market Price Total Return(c)		(7.04	)%		41.23	%		(2.65	)%		(49.68	)%		2.18	%		12.46	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	166,089		$	218,101		$	142,494		$	178,016		$	541,472		$	657,486
Ratio to average net assets of:
Expenses, after Waivers		0.70	%(d)		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.71	%(d)		0.70	%		0.70	%		0.76	%		0.75	%		0.70	%
Net investment income (loss), after Waivers		2.47	%(d)		1.55	%		2.48	%		2.98	%		(0.27	)%		(0.18	)%
Portfolio turnover rate(e)		21	%		57	%		52	%		46	%		32	%		42	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares WilderHill Progressive Energy Portfolio (PUW)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	32.73		$	27.56		$	25.87		$	30.68		$	25.19		$	17.38
Net investment income(a)		0.31			0.24			0.35			0.14			0.10			0.14
Net realized and unrealized gain (loss) on investments		(3.76	)		5.27			1.54			(4.71	)		5.53			7.81
Total from investment operations		(3.45	)		5.51			1.89			(4.57	)		5.63			7.95
Distributions to shareholders from:
Net investment income		(0.32	)		(0.34	)		(0.20	)		(0.24	)		(0.14	)		(0.14	)
Net asset value at end of period	$	28.96		$	32.73		$	27.56		$	25.87		$	30.68		$	25.19
Market price at end of period(b)	$	28.96		$	32.71		$	27.55		$	25.86		$	30.70		$	25.19
Net Asset Value Total Return(c)		(10.67	)%		20.24	%		7.38	%		(14.84	)%		22.47	%		45.96	%
Market Price Total Return(c)		(10.61	)%		20.21	%		7.38	%		(14.93	)%		22.55	%		45.96	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	36,205		$	45,819		$	38,584		$	47,859		$	75,175		$	60,451
Ratio to average net assets of:
Expenses, after Waivers		0.70	%(d)		0.70	%		0.70	%		0.71	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.83	%(d)		0.84	%		0.87	%		0.86	%		0.86	%		0.84	%
Net investment income, after Waivers		1.94	%(d)		0.78	%		1.40	%		0.56	%		0.37	%		0.63	%
Portfolio turnover rate(e)		17	%		37	%		32	%		36	%		22	%		52	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

41

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2014

(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, 2014, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Aerospace & Defense Portfolio (PPA)	“Aerospace & Defense Portfolio”
PowerShares CleantechTM Portfolio (PZD)	“CleantechTM Portfolio”
PowerShares DWA Momentum Portfolio (PDP)	“DWA Momentum Portfolio”
PowerShares Global Listed Private Equity Portfolio (PSP)	“Global Listed Private Equity Portfolio”
PowerShares Golden Dragon China Portfolio (PGJ)	“Golden Dragon China Portfolio”
PowerShares S&P 500 BuyWrite Portfolio (PBP)	“S&P 500 BuyWrite Portfolio”
PowerShares S&P 500® 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 in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
Aerospace & Defense Portfolio	SPADETM Defense Index
CleantechTM Portfolio	The Cleantech IndexTM
DWA Momentum Portfolio	Dorsey Wright Technical LeadersTM Index
Global Listed Private Equity Portfolio	Red Rocks Global Listed Private Equity Index
Golden Dragon China Portfolio	NASDAQ Golden Dragon China Index
S&P 500 BuyWrite Portfolio	CBOE S&P 500 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.

A. Security Valuation

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

42

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and 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. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

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

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of each Fund’s investments.

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

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B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the 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 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 (except for Cleantech^TM Portfolio, DWA Momentum Portfolio, Global Listed Private Equity 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.

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

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

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

Foreign Securities Risk. For Cleantech^™ Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio, since their Underlying Indexes may include ADRs and global depositary receipts (“GDRs”), investing in these Funds involve risks of investing in foreign securities, in addition to the risks associated with domestic securities. In general, foreign companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

Risk of Investing in Listed Private Equity Companies. For Global Listed Private Equity Portfolio, there are certain risks inherent in investing in listed private equity companies, which encompass business development companies (“BDCs”). and other financial institutions or vehicles whose principal business is to invest in and lend capital to, or provide services to privately held companies. The 1940 Act imposes certain restraints upon the operations of BDCs. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information exists for private and

44

thinly traded companies, and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Additionally, a BDC may incur indebtedness only in amounts such that the BDC’s asset coverage equals at least 200% after such incurrence. These limitations on asset mix and leverage may prohibit the way that the BDC raises capital. BDCs generally invest in less mature private companies, which involve greater risk than well-established, publicly-traded companies.

C. Federal Income Taxes

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

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These 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-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. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, 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 year-end.

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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 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

The Global Listed Private Equity Portfolio may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). These agreements may contain, among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

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 the Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate, the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

I. Securities Lending

During the six-month period ended October 31, 2014, Cleantech^TM Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedules of Investments. 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

46

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 has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust on behalf of each Fund (excluding S&P BuyWrite Portfolio), pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for S&P 500^® 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, 2015. The Expense Cap (including sub-licensing 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, 2015. 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 Expense Agreement, it will terminate on August 31, 2015. The Expense Agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for DWA Momentum Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration.

For the six-month period ended October 31, 2014, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Aerospace & Defense Portfolio	$	77
CleantechTM Portfolio		14,471
DWA Momentum Portfolio		802
Global Listed Private Equity Portfolio		51,349
Golden Dragon China Portfolio		145
S&P 500 BuyWrite Portfolio		380
S&P 500® High Quality Portfolio		170,552
Water Resources Portfolio		747
WilderHill Clean Energy Portfolio		11,473
WilderHill Progressive Energy Portfolio		27,730

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.

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For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2014 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/15		04/30/16		04/30/17		10/31/17
Aerospace & Defense Portfolio	$	103,785	$	44,135	$	36,735	$	22,915	$	—
CleantechTM Portfolio		145,130		34,642		61,862		34,174		14,452
Golden Dragon China Portfolio		157,621		65,966		91,655		—		—
S&P 500® High Quality Portfolio		849,934		121,405		271,138		286,999		170,392
WilderHill Clean Energy Portfolio		133,176		121,807		—		—		11,369
WilderHill Progressive Energy Portfolio		183,919		36,181		64,090		55,938		27,710

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

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

Fund	Licensor
Aerospace & Defense Portfolio	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	The NASDAQ OMX Group, 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	The 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 by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds (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 the Funds.

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

Note 4. Investments in Affiliates

Each Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd., and therefore Invesco Ltd. is considered to be affiliated with the Funds. The table below shows each Fund’s transactions in, and earnings from, its investment in Invesco Ltd. for the six-month period ended October 31, 2014.

S&P 500 BuyWrite Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value October 31, 2014		Dividend Income
Invesco Ltd.	$	227,034	$	162,894	$	(52,437	)	$	30,824	$	10,444	$	378,759	$	3,713

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

48

assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

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

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

Except for the Funds listed below, as of October 31, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules 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 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	$	536,170,541	$	—	$	—	$	536,170,541
Swap Agreements*		—		424,720		—		424,720
Total Investments	$	536,170,541	$	424,720	$	—	$	536,595,261
Golden Dragon China Portfolio
Equity Securities	$	317,725,568	$	—	$	0	$	317,725,568

* Unrealized appreciation.

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 enabling 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 Investments 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, 2014:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Global Listed Private Equity Portfolio
Equity risk:
Swap agreements(a)	$	424,720	$	—
S&P 500 BuyWrite Portfolio
Equity risk:
Options written contracts(a)	$	—	$	(23,383,015	)

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

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Effect of Derivative Investments for the Six-Month Period Ended October 31, 2014

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

	Location of Gain (Loss) on Statements of Operations
	Swap Agreements*			Options*
Global Listed Private Equity Portfolio*
Realized Gain (Loss)
Equity risk	$	(2,039,040	)	$	—
Change in Unrealized Appreciation (Depreciation)
Equity risk		3,699,794			—
S&P 500 BuyWrite Portfolio*
Realized Gain (Loss)
Equity risk		—			(9,309,395	)
Change in Unrealized Appreciation (Depreciation)
Equity risk		—			(15,594,115	)
Total	$	1,660,754		$	(24,903,510	)

* The average notional value of swap agreements and options outstanding during the year was $56,218,115 and $335,590,083, respectively.

Global Listed Private Equity Portfolio

Open Total Return Swap Agreements
Counterparty	Swap Agreements	Termination Date		Notional Amount		Value Unrealized Appreciation
Citibank, N.A.	Receive a return equal to common shares of The Blackstone Group LP and pay the product of (i) 1-Month LIBOR plus 75 basis points multiplied by (ii) days in the period divided by 360		10/23/15	$	21,694,953	$	162,559
Citibank, N.A.	Receive a return equal to common shares of KKR & Co. LP and pay the product of (i) 1-Month LIBOR plus 75 basis points multiplied by (ii) days in the period divided by 360		10/23/15		23,228,363		262,161
Morgan Stanley Capital Services LLC	Receive a return equal to common shares of Riverstone Energy Ltd. and pay the product of (i) 1-Month LIBOR plus 85 basis points multiplied by (ii) days in the period divided by 365		08/03/16		3,582,011		—
Total						$	424,720

S&P 500 BuyWrite Portfolio

Options Written Transactions During the Period
	Call Option Contracts
	Number of Contracts			Premiums Received
Beginning of period		1,343		$	2,842,312
Written		10,621			23,987,971
Closed		(6,545	)		(14,313,407	)
Expired		(3,500	)		(5,545,339	)
End of period		1,919		$	6,971,537

Open Options Written at Period-End
	Contract Month		Strike Price		Number of Contracts		Premiums Received		Unrealized Appreciation (Depreciation)			Notional Value*		Value
Call Option S&P 500 Index		Nov-14	$	1,895		1,919	$	6,971,537	($	16,411,478	)	$	3,636,505	$	23,383,015

* Notional Value is calculated by multiplying the Number of Contracts by the Strike Price.

50

Offsetting Assets and Liabilities

Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which was subsequently clarified in Financial Accounting Standards Board ASU 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” is intended to enhance disclosures about financial instruments and derivative instruments that are subject to offsetting arrangements on the Statements of Assets and Liabilities and to enable investors to better understand the effect of those arrangements on each fund’s financial position. In order for an arrangement to be eligible for netting, the Funds must have a basis to conclude that such netting arrangements are legally enforceable. The Funds enter into netting agreements and collateral agreements in an attempt to reduce the Funds’ counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement.

There were no derivative instruments subject to a netting agreement for which the Funds are not currently netting. The following table presents derivative instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements as of October 31, 2014.

Global Listed Private Equity Portfolio

Assets:							Collateral Received
Counterparty	Gross amounts presented in Statement of Assets & Liabilities		Gross amounts offset in Statement of Assets & Liabilities		Net amounts of assets presented in the Statement of Assets and Liabilities		Financial Instruments		Cash		Net Amount
Citibank, N.A.	$	424,720	$	—	$	424,720	$	—	$	—	$	424,720

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.

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 eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of April 30, 2014, which expire as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short-term		Long-term		Total*		Utilized		Expired
Aerospace & Defense Portfolio	$	104,662	$	2,374,303	$	7,470,897	$	6,428,813	$	9,464,875	$	—	$	3,466,723	$	29,310,273	$	—	$	—
CleantechTM Portfolio		—		1,171,839		14,341,075		25,186,026		12,098,616		1,476,508		29,311,493		83,585,557		—		—
DWA Momentum Portfolio		—		5,046,566		92,771,702		60,219,842		10,496,532		21,263,683		—		189,798,325		30,262,612		—
Global Listed Private Equity Portfolio		—		796,018		7,687,052		47,149,399		—		13,517,688		9,858,041		79,008,198		6,727,087		—
Golden Dragon China Portfolio		3,128,677		1,235,904		22,836,421		74,072,167		35,483,714		13,898,904		132,661,873		283,317,660		—		1,018,146
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		—		523,009		139,678,368		—		—
Water Resources Portfolio		11,876,489		3,553,481		93,208,162		265,948,030		33,978,301		18,359,580		103,953,663		530,877,706		—		—

51

																Post-effective no expiration
	2015			2016			2017			2018			2019			Short-term			Long-term			Total*			Utilized			Expired
WilderHill Clean Energy Portfolio		$	89,533,576		$	44,707,703		$	261,712,498		$	460,657,845		$	241,008,862		$	57,314,443		$	283,242,997		$	1,438,177,924		$	—		$	2,098,368
WilderHill Progressive Energy Portfolio			—			179,432			8,319,827			12,433,887			2,282,887			3,244,080			5,860,967			32,321,080			—			—

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 8. Investment Transactions

For the six-month period ended October 31, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Aerospace & Defense Portfolio	$	7,785,955	$	7,053,194
CleantechTM Portfolio		9,084,366		9,219,959
DWA Momentum Portfolio		508,959,820		511,827,420
Global Listed Private Equity Portfolio		78,141,473		82,504,295
Golden Dragon China Portfolio		23,145,187		22,970,343
S&P 500 BuyWrite Portfolio		68,605,659		84,287,279
S&P 500® High Quality Portfolio		22,019,368		21,509,263
Water Resources Portfolio		117,433,551		119,093,748
WilderHill Clean Energy Portfolio		39,198,052		38,878,053
WilderHill Progressive Energy Portfolio		7,402,090		7,417,385

For the six-month period ended October 31, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Aerospace & Defense Portfolio	$	56,935,209	$	3,109,246
CleantechTM Portfolio		4,389,849		7,356,692
DWA Momentum Portfolio		607,938,027		529,733,167
Global Listed Private Equity Portfolio		66,691,966		97,781,965
Golden Dragon China Portfolio		79,977,333		95,381,349
S&P 500 BuyWrite Portfolio		151,708,724		23,642,185
S&P 500® High Quality Portfolio		66,637,648		23,674,406
Water Resources Portfolio		15,328,655		45,017,608
WilderHill Clean Energy Portfolio		26,643,270		62,577,470
WilderHill Progressive Energy Portfolio		5,021,675		9,957,488

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

At October 31, 2014, the 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	$	136,603,743	$	21,554,743		$	23,551,500	$	(1,996,757	)
CleantechTM Portfolio		64,044,393		13,576,715			18,789,999		(5,213,284	)
DWA Momentum Portfolio		1,240,624,890		207,654,148			223,740,052		(16,085,904	)
Global Listed Private Equity Portfolio		563,371,016		(27,200,475	)		43,166,253		(70,366,728	)
Golden Dragon China Portfolio		305,690,097		12,035,471			48,132,246		(36,096,775	)
S&P 500 BuyWrite Portfolio		373,050,707		14,473,400			68,847,366		(54,373,966	)

52

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
S&P 500® High Quality Portfolio	$	348,516,765	$	88,888,184		$	91,096,592	$	(2,208,408	)
Water Resources Portfolio		768,437,933		190,611,892			242,224,004		(51,612,112	)
WilderHill Clean Energy Portfolio		231,068,573		(17,811,602	)		21,826,780		(39,638,382	)
WilderHill Progressive Energy Portfolio		39,650,478		47,075			6,679,765		(6,632,690	)

Note 9. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and Officer of the Funds. 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 10. Capital

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

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

Transactions in each Fund’s Shares are disclosed in detail 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.

53

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, 2014.

In addition to the fees and expenses which the PowerShares DWA Momentum Portfolio and PowerShares Global Listed Private Equity Portfolio (collectively, the “Portfolios”) bear directly, the Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The amount of fees and expenses incurred indirectly by the Portfolios will vary because the investment companies have varied expenses and fee levels and the Portfolios may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invests in. The effect of the estimated investment companies’ expenses that you bear indirectly 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, 2014		Ending Account Value October 31, 2014		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	$	1,050.84		0.66	%	$	3.41
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.66			3.36
PowerShares CleantechTM Portfolio (PZD)
Actual		1,000.00		918.68		0.67			3.24
Hypothetical (5% return before expenses)		1,000.00		1,021.83		0.67			3.41
PowerShares DWA Momentum Portfolio (PDP)
Actual		1,000.00		1,092.59		0.63			3.32
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Global Listed Private Equity Portfolio (PSP)
Actual		1,000.00		954.46		0.64			3.15
Hypothetical (5% return before expenses)		1,000.00		1,021.98		0.64			3.26

54

Fees and Expenses (continued)

	Beginning Account Value May 1, 2014		Ending Account Value October 31, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Golden Dragon China Portfolio (PGJ)
Actual	$	1,000.00	$	1,140.44		0.70	%	$	3.78
Hypothetical (5% return before expenses)		1,000.00		1,021.68		0.70			3.57
PowerShares S&P 500 BuyWrite Portfolio (PBP)
Actual		1,000.00		1,007.84		0.75			3.80
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		1,083.22		0.29			1.52
Hypothetical (5% return before expenses)		1,000.00		1,023.74		0.29			1.48
PowerShares Water Resources Portfolio (PHO)
Actual		1,000.00		1,002.77		0.61			3.08
Hypothetical (5% return before expenses)		1,000.00		1,022.13		0.61			3.11
PowerShares WilderHill Clean Energy Portfolio (PBW)
Actual		1,000.00		929.63		0.70			3.40
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		893.30		0.70			3.34
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, 2014. 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.

55

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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.

©2014 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, 2014

2014 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

Dividend Income Portfolios
Schedules of Investments
PowerShares BuyBack AchieversTM Portfolio (PKW)	3
PowerShares Dividend AchieversTM Portfolio (PFM)	6
PowerShares Financial Preferred Portfolio (PGF)	9
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
Fees and Expenses	31

2

Portfolio Composition

PowerShares Buyback Achievers^TM Portfolio (PKW)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Consumer Discretionary	32.0
Information Technology	17.3
Health Care	11.6
Financials	11.4
Industrials	7.8
Telecommunication Services	6.3
Energy	5.5
Materials	5.2
Consumer Staples	2.3
Utilities	0.6
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Buyback Achievers^TM Portfolio (PKW)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—32.0%
	73,613	ANN INC.(b)	$	2,826,003
	52,460	AutoZone, Inc.(b)		29,037,659
	61,663	Bally Technologies, Inc.(b)		4,957,705
	128,025	bebe stores, Inc.		293,177
	324,985	Bed Bath & Beyond, Inc.(b)		21,884,490
	25,834	Blyth, Inc.(c)		216,747
	37,959	Bob Evans Farms, Inc.		1,854,297
	103,983	Brinker International, Inc.		5,577,648
	85,518	Carter’s, Inc.		6,681,521
	785,217	CBS Corp., Class B		42,574,466
	34,704	Children’s Place, Inc. (The)		1,709,172
	62,865	Dillard’s, Inc., Class A		6,648,602
	808,201	DIRECTV(b)		70,143,765
	330,893	Dollar Tree, Inc.(b)		20,042,189
	85,141	Fossil Group, Inc.(b)		8,655,434
	699,787	Gap, Inc. (The)		26,514,929
	2,582,259	General Motors Co.		81,082,933
	45,692	hhgregg, Inc.(b)		236,685
	1,414,262	Home Depot, Inc. (The)		137,918,830
	77,430	Iconix Brand Group, Inc.(b)		3,097,974
	397,795	International Game Technology		6,519,860
	329,353	Kohl’s Corp.		17,857,520
	129,095	Lear Corp.		11,941,288
	728,430	Liberty Interactive Corp., Class A(b)		19,041,160
	1,588,461	Lowe’s Cos., Inc.		90,859,969

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	568,253	Macy’s, Inc.	$	32,856,388
	29,991	Marcus Corp. (The)		513,746
	467,586	Marriott International, Inc., Class A		35,419,640
	50,832	Martha Stewart Living Omnimedia, Inc., Class A(b)		220,103
	77,329	Men’s Wearhouse, Inc. (The)		3,636,783
	9,730	NACCO Industries, Inc., Class A		569,886
	6,751	NVR, Inc.(b)		8,287,393
	166,982	O’Reilly Automotive, Inc.(b)		29,368,794
	30,078	Outerwall, Inc.(b)(c)		1,903,035
	41,330	Panera Bread Co., Class A(b)		6,680,581
	65,859	Papa John’s International, Inc.		3,079,567
	85,051	Rent-A-Center, Inc.		2,634,030
	249,678	Sally Beauty Holdings, Inc.(b)		7,318,062
	153,320	Six Flags Entertainment Corp.		6,178,796
	85,998	Smith & Wesson Holding Corp.(b)(c)		873,740
	65,346	Sonic Automotive, Inc., Class A		1,626,462
	17,550	Strayer Education, Inc.(b)		1,284,485
	179,004	TRW Automotive Holdings Corp.(b)		18,142,055
	81,088	Tupperware Brands Corp.		5,169,360
	598,737	Viacom, Inc., Class B		43,516,205
	70,779	Visteon Corp.(b)		6,646,148
	135,671	Wet Seal, Inc. (The), Class A(b)(c)		46,128
	201,414	Wyndham Worldwide Corp.		15,643,825
				849,789,235

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

3

PowerShares Buyback Achievers^TM Portfolio (PKW) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples—2.3%
	395,120	Coca-Cola Enterprises, Inc.	$	17,128,452
	147,696	Herbalife Ltd.(c)		7,748,132
	21,756	Ingles Markets, Inc., Class A		585,236
	579,341	Lorillard, Inc.		35,629,472
				61,091,292
		Energy—5.5%
	566,905	Denbury Resources, Inc.		7,029,622
	1,368,672	Halliburton Co.		75,468,574
	455,928	Marathon Petroleum Corp.		41,443,855
	206,363	Tesoro Corp.		14,736,382
	162,670	Western Refining, Inc.		7,416,125
				146,094,558
		Financials—11.4%
	155,790	AllianceBernstein Holding LP		4,144,014
	697,429	Allstate Corp. (The)		45,228,271
	432,238	American Capital Ltd.(b)		6,410,090
	301,244	Ameriprise Financial, Inc.		38,007,956
	105,344	Aspen Insurance Holdings Ltd.		4,596,159
	249,211	Associated Banc-Corp.		4,685,167
	114,864	Assurant, Inc.		7,836,022
	272,291	Assured Guaranty Ltd.		6,284,476
	34,749	Credit Acceptance Corp.(b)		5,127,562
	743,298	Discover Financial Services		47,407,546
	28,591	eHealth, Inc.(b)		713,345
	73,173	Everest Re Group Ltd.		12,486,972
	14,311	FBR & Co.(b)		345,468
	13,817	First Citizens BancShares, Inc., Class A		3,470,969
	150,477	First Commonwealth Financial Corp.		1,406,960
	29,613	First Community Bancshares, Inc.		484,765
	334,391	Fortress Investment Group LLC, Class A		2,514,620
	186,370	Legg Mason, Inc.		9,691,240
	161,531	LPL Financial Holdings, Inc.		6,685,768
	73,575	Montpelier Re Holdings Ltd. (Bermuda)		2,438,276
	36,533	MVC Capital, Inc.		411,727
	499,344	People’s United Financial, Inc.(c)		7,300,409
	26,161	Piper Jaffray Cos.(b)		1,477,050
	42,627	Platinum Underwriters Holdings Ltd.		2,669,729
	65,206	RenaissanceRe Holdings Ltd.		6,737,736
	680,591	SLM Corp.		6,499,644
	681,529	State Street Corp.		51,428,178
	84,997	United Financial Bancorp, Inc.		1,192,508
	55,970	Universal Insurance Holdings, Inc.		979,475
	409,991	Unum Group		13,718,299
	15,409	World Acceptance Corp.(b)(c)		1,104,209
				303,484,610
		Health Care—11.6%
	120,104	C.R. Bard, Inc.		19,693,453
	27,819	Chemed Corp.		2,875,372
	33,551	CorVel Corp.(b)		1,154,825
	170,629	Edwards Lifesciences Corp.(b)		20,632,459
	141,170	HealthSouth Corp.		5,693,386
	80,895	IDEXX Laboratories, Inc.(b)		11,460,395
	136,621	Laboratory Corp. of America Holdings(b)		14,931,309
	601,918	Mylan, Inc.(b)		32,232,709

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	117,142	Myriad Genetics, Inc.(b)(c)	$	4,625,938
	157,464	Omnicare, Inc.		10,485,528
	4,387,677	Pfizer, Inc.		131,410,926
	30,655	PhotoMedex, Inc.(b)(c)		117,715
	232,393	Quest Diagnostics, Inc.		14,747,660
	458,130	St. Jude Medical, Inc.		29,398,202
	21,880	SurModics, Inc.(b)		473,702
	157,566	Tenet Healthcare Corp.(b)		8,831,574
				308,765,153
		Industrials—7.8%
	280,014	ADT Corp. (The)		10,035,702
	160,083	AECOM Technology Corp., Class W(b)		5,210,702
	12,731	American Science & Engineering, Inc.		704,024
	88,259	Armstrong World Industries, Inc.(b)		4,273,501
	40,646	Atlas Air Worldwide Holdings, Inc.(b)		1,500,650
	172,927	Babcock & Wilcox Co. (The)		4,945,712
	236,806	C.H. Robinson Worldwide, Inc.		16,389,343
	79,397	CBIZ, Inc.(b)		732,834
	58,526	Dun & Bradstreet Corp. (The)		7,187,578
	220,145	Flowserve Corp.		14,967,659
	27,128	Franklin Covey Co.(b)		531,980
	52,690	Kforce, Inc.		1,219,774
	138,765	L-3 Communications Holdings, Inc.		16,854,397
	334,624	Northrop Grumman Corp.		46,164,727
	136,805	Oshkosh Corp.		6,123,392
	76,113	PGT, Inc.(b)		715,843
	51,399	Pike Corp.(b)		613,704
	1,102,530	Southwest Airlines Co.		38,015,234
	68,490	SPX Corp.		6,492,167
	251,478	Stanley Black & Decker, Inc.		23,548,400
				206,227,323
		Information Technology—17.3%
	1,154,574	Activision Blizzard, Inc.		23,033,751
	88,031	ADTRAN, Inc.		1,867,138
	126,594	AOL, Inc.(b)		5,510,637
	233,438	Computer Sciences Corp.		14,099,655
	25,802	Comtech Telecommunications Corp.		982,282
	162,696	Convergys Corp.		3,281,578
	103,121	Conversant, Inc.(b)		3,635,015
	87,317	Dice Holdings, Inc.(b)		870,550
	51,461	Digital River, Inc.(b)		1,315,858
	63,938	DST Systems, Inc.		6,160,426
	228,071	FLIR Systems, Inc.		7,647,221
	29,365	Forrester Research, Inc.		1,182,822
	108,843	Global Payments, Inc.		8,761,861
	147,523	Harmonic, Inc.(b)		983,978
	168,141	Harris Corp.		11,702,614
	76,578	Higher One Holdings, Inc.(b)		196,805
	124,869	IAC/InterActiveCorp.		8,452,383
	261,401	Lam Research Corp.		20,352,682
	827,774	Marvell Technology Group Ltd.		11,125,283
	142,934	Monster Worldwide, Inc.(b)		551,725
	403,715	Motorola Solutions, Inc.		26,039,618
	90,260	NeuStar, Inc., Class A(b)(c)		2,383,767
	872,052	NVIDIA Corp.		17,039,896

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

4

PowerShares Buyback Achievers^TM Portfolio (PKW) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	3,389,331	Oracle Corp.	$	132,353,376
	81,522	Progress Software Corp.(b)		2,111,420
	141,320	QLogic Corp.(b)		1,668,989
	360,830	SanDisk Corp.		33,968,536
	125,903	Silicon Image, Inc.(b)		674,840
	63,503	Telenav, Inc.(b)		458,492
	79,152	TeleTech Holdings, Inc.(b)		2,042,913
	234,947	Vantiv, Inc., Class A(b)		7,264,561
	201,184	VeriSign, Inc.(b)		12,022,756
	62,968	WebMD Health Corp.(b)(c)		2,687,474
	852,507	Western Union Co. (The)		14,458,519
	1,600,520	Yahoo!, Inc.(b)		73,703,946
				460,593,367
		Materials—5.2%
	119,935	Airgas, Inc.		13,377,550
	125,906	Albemarle Corp.		7,350,392
	222,775	Ball Corp.		14,353,393
	79,930	CF Industries Holdings, Inc.		20,781,800
	31,871	Clearwater Paper Corp.(b)		2,050,899
	115,555	Cytec Industries, Inc.		5,388,330
	526,243	Graphic Packaging Holding Co.(b)		6,383,328
	221,804	PPG Industries, Inc.		45,179,257
	114,635	Rockwood Holdings, Inc.		8,816,578
	102,040	Silgan Holdings, Inc.		5,016,286
	133,339	Valspar Corp. (The)		10,955,132
				139,652,945
		Telecommunication Services—6.3%
	3,681,714	AT&T, Inc.		128,270,916
	917,511	CenturyLink, Inc.		38,058,356
	336,407	Vonage Holdings Corp.(b)		1,170,696
				167,499,968
		Utilities—0.6%
	647,778	Calpine Corp.(b)		14,782,294
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $2,360,383,358)—100.0%		2,657,980,745
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.7%
	18,271,105	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $18,271,105)		18,271,105
		Total Investments (Cost $2,378,654,463)—100.7%		2,676,251,850
		Other assets less liabilities—(0.7%)		(18,864,169	)
		Net Assets—100.0%	$	2,657,387,681

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	18,478,293	$	(18,271,105	)	$	207,188

* Amount does not include excess collateral received, if any.

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

5

Portfolio Composition

PowerShares Dividend Achievers^TM Portfolio (PFM)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Consumer Staples	23.4
Energy	15.6
Industrials	14.5
Information Technology	10.9
Health Care	8.3
Consumer Discretionary	7.2
Financials	6.5
Utilities	5.2
Materials	5.2
Telecommunication Services	3.2
Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dividend Achievers^TM Portfolio (PFM)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—7.2%
	4,544	Aaron’s, Inc.	$	112,509
	1,497	Cracker Barrel Old Country Store, Inc.		172,679
	7,160	Family Dollar Stores, Inc.		560,556
	9,620	Genuine Parts Co.		933,910
	8,011	Hasbro, Inc.		460,873
	3,131	John Wiley & Sons, Inc., Class A		182,819
	8,625	Leggett & Platt, Inc.		339,652
	62,669	Lowe’s Cos., Inc.		3,584,667
	61,702	McDonald’s Corp.		5,783,328
	2,311	Meredith Corp.		120,496
	43,405	NIKE, Inc., Class B		4,035,363
	4,145	Polaris Industries, Inc.		625,315
	13,296	Ross Stores, Inc.		1,073,253
	39,821	Target Corp.		2,461,734
	8,125	Tiffany & Co.		780,975
	43,543	TJX Cos., Inc. (The)		2,757,143
	27,089	VF Corp.		1,833,384
				25,818,656
		Consumer Staples—23.4%
	124,636	Altria Group, Inc.		6,024,904
	1,785	Andersons, Inc. (The)		113,758
	40,563	Archer-Daniels-Midland Co.		1,906,461
	8,104	Brown-Forman Corp., Class B		750,998
	9,168	Bunge Ltd.		812,743
	2,427	Casey’s General Stores, Inc.		198,699

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	8,399	Church & Dwight Co., Inc.	$	608,172
	8,096	Clorox Co. (The)		805,552
	275,602	Coca-Cola Co. (The)		11,542,212
	57,390	Colgate-Palmolive Co.		3,838,243
	72,774	CVS Health Corp.		6,244,737
	13,167	Flowers Foods, Inc.		250,173
	38,335	General Mills, Inc.		1,991,887
	16,589	Hormel Foods Corp.		894,313
	6,398	J.M. Smucker Co. (The)		665,392
	23,480	Kimberly-Clark Corp. when-issued		2,571,618
	1,718	Lancaster Colony Corp.		157,180
	7,392	McCormick & Co., Inc.		522,762
	3,722	Nu Skin Enterprises, Inc., Class A		196,633
	94,683	PepsiCo, Inc.		9,105,664
	170,101	Procter & Gamble Co. (The)		14,844,714
	36,871	Sysco Corp.		1,421,008
	2,374	Tootsie Roll Industries, Inc.		70,389
	1,456	Universal Corp.		64,792
	6,627	Vector Group Ltd.		148,047
	60,108	Walgreen Co.		3,860,136
	189,072	Wal-Mart Stores, Inc.		14,420,521
				84,031,708
		Energy—15.6%
	4,654	Alliance Resource Partners LP		223,811
	7,468	Buckeye Partners LP		563,087
	1,452	CARBO Ceramics, Inc.		75,025

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

6

PowerShares Dividend Achievers^TM Portfolio (PFM) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	110,274	Chevron Corp.	$	13,227,366
	77,263	ConocoPhillips		5,574,525
	4,599	Energen Corp.		311,352
	118,005	Enterprise Products Partners LP		4,354,384
	34,401	EOG Resources, Inc.		3,269,815
	143,524	Exxon Mobil Corp.		13,880,206
	5,571	Genesis Energy LP		267,297
	6,801	Helmerich & Payne, Inc.		590,463
	20,429	Kinder Morgan Energy Partners LP		1,916,240
	14,268	Magellan Midstream Partners LP		1,168,121
	11,158	Murphy Oil Corp.		595,726
	48,990	Occidental Petroleum Corp.		4,356,681
	13,070	ONEOK, Inc.		770,346
	23,183	Plains All American Pipeline LP		1,306,362
	13,208	Sunoco Logistics Partners LP		630,418
	3,917	TC Pipelines LP		244,225
	46,960	Williams Cos., Inc. (The)		2,606,750
				55,932,200
		Financials—6.5%
	1,500	1st Source Corp.		46,935
	21,095	ACE Ltd.		2,305,684
	28,468	Aflac, Inc.		1,700,394
	4,700	American Equity Investment Life Holding Co.		121,307
	6,618	Axis Capital Holdings Ltd.		318,591
	969	BancFirst Corp.		62,985
	5,006	Bank of the Ozarks, Inc.		176,411
	9,083	Brown & Brown, Inc.		289,384
	15,111	Chubb Corp. (The)		1,501,429
	10,283	Cincinnati Financial Corp.		518,983
	5,758	Commerce Bancshares, Inc.		260,607
	2,557	Community Bank System, Inc.		97,550
	1,095	Community Trust Bancorp, Inc.		39,365
	3,957	Cullen/Frost Bankers, Inc.		319,765
	7,435	Eaton Vance Corp.		273,831
	2,902	Erie Indemnity Co., Class A		246,293
	3,989	Essex Property Trust, Inc. REIT		804,821
	4,255	Federal Realty Investment Trust REIT		560,809
	39,292	Franklin Resources, Inc.		2,185,028
	6,284	HCC Insurance Holdings, Inc.		327,962
	28,831	HCP, Inc. REIT		1,267,699
	19,388	Health Care REIT, Inc. REIT		1,378,681
	723	Infinity Property & Casualty Corp.		52,786
	17,023	McGraw Hill Financial, Inc.		1,540,241
	3,455	Mercury General Corp.		183,530
	2,077	National Health Investors, Inc. REIT		136,895
	7,860	National Retail Properties, Inc. REIT		299,623
	16,390	Old Republic International Corp.		242,080
	7,995	OMEGA Healthcare Investors, Inc. REIT		305,089
	3,122	PartnerRe Ltd.		361,184
	19,499	People’s United Financial, Inc.		285,075
	4,383	Prosperity Bancshares, Inc.		264,689
	13,990	Realty Income Corp. REIT		643,960
	2,546	RenaissanceRe Holdings Ltd.		263,078
	2,704	RLI Corp.		134,091
	10,542	SEI Investments Co.		407,554
	12,804	Senior Housing Properties Trust REIT		289,242

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,184	Southside Bancshares, Inc.	$	39,759
	2,695	StanCorp Financial Group, Inc.		187,464
	16,530	T. Rowe Price Group, Inc.		1,356,948
	6,025	Tanger Factory Outlet Centers, Inc. REIT		215,514
	933	Tompkins Financial Corp.		46,837
	2,859	UMB Financial Corp.		170,339
	4,347	United Bankshares, Inc.		149,015
	812	Universal Health Realty Income Trust REIT		39,341
	1,484	Urstadt Biddle Properties, Inc., Class A REIT		32,099
	8,014	W.R. Berkley Corp.		413,042
	1,634	Westamerica Bancorp.		80,622
	521	Westwood Holdings Group, Inc.		35,167
	6,247	WP Carey, Inc. REIT		423,047
				23,402,825
		Health Care—8.3%
	94,489	Abbott Laboratories		4,118,776
	12,055	Becton, Dickinson and Co.		1,551,479
	4,690	C.R. Bard, Inc.		769,019
	21,155	Cardinal Health, Inc.		1,660,244
	137,616	Johnson & Johnson		14,832,252
	61,551	Medtronic, Inc.		4,195,316
	3,963	Owens & Minor, Inc.		132,047
	23,789	Stryker Corp.		2,082,251
	4,447	West Pharmaceutical Services, Inc.		227,909
				29,569,293
		Industrials—14.5%
	40,717	3M Co.		6,261,053
	4,830	A.O. Smith Corp.		257,681
	3,519	ABM Industries, Inc.		97,265
	2,994	Brady Corp., Class A		71,377
	9,247	C.H. Robinson Worldwide, Inc.		639,985
	4,029	Carlisle Cos., Inc.		358,098
	39,453	Caterpillar, Inc.		4,000,929
	7,315	Cintas Corp.		535,751
	3,171	CLARCOR, Inc.		212,330
	22,522	Deere & Co.		1,926,532
	8,983	Donaldson Co., Inc.		373,513
	10,466	Dover Corp.		831,419
	43,856	Emerson Electric Co.		2,809,415
	12,260	Expeditors International of Washington, Inc.		523,012
	18,648	Fastenal Co.		821,258
	17,843	FedEx Corp.		2,986,918
	2,989	Franklin Electric Co., Inc.		111,609
	21,008	General Dynamics Corp.		2,936,078
	1,650	Gorman-Rupp Co. (The)		52,371
	3,775	Graco, Inc.		296,337
	4,419	Healthcare Services Group, Inc.		131,598
	24,916	Illinois Tool Works, Inc.		2,268,602
	5,756	ITT Corp.		259,365
	4,993	Lincoln Electric Holdings, Inc.		361,893
	800	Lindsay Corp.		70,160
	19,944	Lockheed Martin Corp.		3,800,728
	2,063	Matthews International Corp., Class A		95,063
	1,630	McGrath RentCorp		59,544
	2,350	MSA Safety, Inc.		135,054

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

7

PowerShares Dividend Achievers^TM Portfolio (PFM) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	3,079	MSC Industrial Direct Co., Inc., Class A	$	249,307
	3,979	Nordson Corp.		304,592
	19,449	Norfolk Southern Corp.		2,151,837
	13,066	Northrop Grumman Corp.		1,802,585
	9,350	Parker Hannifin Corp.		1,187,731
	12,100	Pentair PLC (United Kingdom)		811,305
	2,293	Raven Industries, Inc.		58,128
	22,351	Republic Services, Inc.		858,278
	9,159	Rollins, Inc.		291,897
	6,286	Roper Industries, Inc.		995,074
	9,820	Stanley Black & Decker, Inc.		919,545
	1,155	Tennant Co.		85,158
	3,498	Toro Co. (The)		215,932
	57,485	United Technologies Corp.		6,150,895
	1,646	Valmont Industries, Inc.		224,136
	4,298	W.W. Grainger, Inc.		1,060,746
	29,308	Waste Management, Inc.		1,432,868
				52,084,952
		Information Technology—10.9%
	19,744	Analog Devices, Inc.		979,697
	30,220	Automatic Data Processing, Inc.		2,471,392
	908	Badger Meter, Inc.		51,683
	725	Cass Information Systems, Inc.		34,467
	4,060	Diebold, Inc.		143,846
	2,644	FactSet Research Systems, Inc.		347,527
	6,583	Harris Corp.		458,177
	311,110	Intel Corp.		10,580,851
	62,687	International Business Machines Corp.		10,305,743
	5,183	Jack Henry & Associates, Inc.		310,047
	14,988	Linear Technology Corp.		642,086
	17,842	Maxim Integrated Products, Inc.		523,484
	221	Mesa Laboratories, Inc.		16,878
	12,593	Microchip Technology, Inc.		542,884
	105,318	QUALCOMM, Inc.		8,268,516
	67,083	Texas Instruments, Inc.		3,331,342
				39,008,620
		Materials—5.2%
	13,385	Air Products & Chemicals, Inc.		1,802,424
	4,683	Airgas, Inc.		522,342
	4,917	Albemarle Corp.		287,054
	4,096	AptarGroup, Inc.		254,935
	6,276	Bemis Co., Inc.		241,438
	18,828	Ecolab, Inc.		2,094,238
	3,155	H.B. Fuller Co.		132,415
	5,100	International Flavors & Fragrances, Inc.		505,665
	32,964	Monsanto Co.		3,792,179
	20,035	Nucor Corp.		1,083,092
	8,661	PPG Industries, Inc.		1,764,159
	18,351	Praxair, Inc.		2,312,043
	4,069	Royal Gold, Inc.		232,543
	8,389	RPM International, Inc.		380,022
	6,145	Sherwin-Williams Co. (The)		1,410,646
	7,476	Sigma-Aldrich Corp.		1,016,063
	6,393	Sonoco Products Co.		261,282
	1,401	Stepan Co.		62,036

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	5,247	Valspar Corp. (The)	$	431,094
				18,585,670
		Telecommunication Services—3.2%
	325,877	AT&T, Inc.		11,353,555
	1,001	Atlantic Tele-Network, Inc.		67,257
	6,349	Telephone & Data Systems, Inc.		162,788
				11,583,600
		Utilities—5.2%
	7,508	AGL Resources, Inc.		404,756
	6,971	Alliant Energy Corp.		431,575
	2,432	American States Water Co.		87,017
	11,134	Aqua America, Inc.		291,711
	6,306	Atmos Energy Corp.		334,218
	4,049	Avista Corp.		143,537
	2,805	Black Hills Corp.		153,518
	3,004	California Water Service Group		78,194
	916	Chesapeake Utilities Corp.		44,362
	697	Connecticut Water Service, Inc.		25,908
	18,404	Consolidated Edison, Inc.		1,166,077
	36,614	Dominion Resources, Inc.		2,610,578
	2,713	Laclede Group, Inc. (The)		137,739
	12,187	MDU Resources Group, Inc.		343,430
	2,178	MGE Energy, Inc.		96,856
	5,286	National Fuel Gas Co.		365,950
	2,653	New Jersey Resources Corp.		155,147
	27,420	NextEra Energy, Inc.		2,748,032
	19,881	Northeast Utilities		981,127
	1,708	Northwest Natural Gas Co.		80,156
	4,911	Piedmont Natural Gas Co., Inc.		186,667
	41,748	PPL Corp.		1,460,763
	11,014	Questar Corp.		265,548
	8,926	SCANA Corp.		489,948
	2,082	South Jersey Industries, Inc.		122,088
	56,284	Southern Co. (The)		2,609,326
	10,832	UGI Corp.		408,258
	5,184	Vectren Corp.		233,021
	8,149	Westar Energy, Inc.		308,114
	3,264	WGL Holdings, Inc.		153,408
	14,171	Wisconsin Energy Corp.		703,732
	31,756	Xcel Energy, Inc.		1,062,873
				18,683,634
		Total Investments (Cost $273,270,249)—100.0%		358,701,158
		Other assets less liabilities—(0.0)%		(107	)
		Net Assets—100.0%	$	358,701,051

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.

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

8

Portfolio Composition

PowerShares Financial Preferred Portfolio (PGF)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Banks	72.2
Capital Markets	13.1
Insurance	10.4
Consumer Finance	4.3
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Financial Preferred Portfolio (PGF)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests—100.0%
		Banks—72.2%
	546,681	Bank of America Corp.,
		6.20%, Series D(b)	$	13,738,094
	75,033	Bank of America Corp.,
		6.38%, Series 3(b)		1,893,083
	769,739	Bank of America Corp.,
		6.63%, Series W		19,466,699
	14,939	Bank of America Corp.,
		7.25%, Series L		17,078,414
	727,246	Barclays Bank PLC,
		6.63%, Series 2 (United Kingdom)		18,435,686
	805,298	Barclays Bank PLC,
		7.10%, Series 3 (United Kingdom)		20,599,523
	594,055	Barclays Bank PLC,
		7.75%, Series 4 (United Kingdom)		15,249,392
	2,288,268	Barclays Bank PLC,
		8.13%, Series 5 (United Kingdom)		59,060,197
	116,458	BB&T Corp.,
		5.20%, Series G		2,649,419
	1,675,042	BB&T Corp.,
		5.63%, Series E(b)		40,770,522
	382,594	BB&T Corp.,
		5.85%		9,629,891
	672,436	Citigroup, Inc.,
		5.80%, Series C(b)		16,272,951
	1,014,480	Citigroup, Inc.,
		6.88%, Series K		27,147,485
	790,433	Citigroup, Inc.,
		7.13%, Series J		21,389,117
	368,593	Fifth Third Bancorp,
		6.63%, Series I		9,999,928
	284,263	First Niagara Financial Group, Inc.,
		8.63%, Series B		7,930,938

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Banks (continued)
	474,470	HSBC Finance Corp.,
		6.36%, Series B	$	12,027,814
	4,046,519	HSBC Holdings PLC,
		8.00%, Series 2 (United Kingdom)		108,446,709
	1,505,467	HSBC Holdings PLC,
		8.13% (United Kingdom)(b)		39,563,673
	332,692	HSBC USA, Inc.,
		6.50%, Series H		8,473,665
	665,372	ING Groep NV,
		6.13% (Netherlands)(b)		16,707,491
	155,335	ING Groep NV,
		6.20% (Netherlands)		3,903,569
	1,294,703	ING Groep NV,
		6.38% (Netherlands)		32,768,933
	2,218,360	ING Groep NV,
		7.38% (Netherlands)		56,568,180
	816,167	JPMorgan Chase & Co.,
		5.45%, Series P(b)		18,731,033
	1,213,399	JPMorgan Chase & Co.,
		5.50%, Series O(b)		28,017,383
	107,358	JPMorgan Chase & Co.,
		6.30%, Series W		2,679,656
	529,942	JPMorgan Chase & Co.,
		6.70%, Series T		13,635,408
	269,227	KKR Financial Holdings LLC,
		7.38%, Series A		6,999,902
	1,559,288	PNC Financial Services Group, Inc. (The),
		6.13%, Series P		42,475,005
	427,204	Regions Financial Corp.,
		6.38%, Series A		10,731,364
	396,893	Regions Financial Corp.,
		6.38%, Series B		10,160,461

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

9

PowerShares Financial Preferred Portfolio (PGF) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Banks (continued)
	418,596	Royal Bank of Scotland Group PLC,
		5.75%, Series L (United Kingdom)	$	9,824,448
	71,374	Royal Bank of Scotland Group PLC,
		6.13%, Series R (United Kingdom)		1,715,831
	505,397	Royal Bank of Scotland Group PLC,
		6.35%, Series N (United Kingdom)(b)		12,437,820
	163,000	Royal Bank of Scotland Group PLC,
		6.40%, Series M (United Kingdom)(b)		4,006,540
	438,835	Royal Bank of Scotland Group PLC,
		6.60%, Series S (United Kingdom)		10,891,885
	306,965	Royal Bank of Scotland Group PLC,
		6.75%, Series Q (United Kingdom)		7,717,100
	1,289,310	Royal Bank of Scotland Group PLC,
		7.25%, Series T (United Kingdom)		32,684,008
	355,109	SunTrust Banks, Inc.,
		5.88%, Series E		8,501,309
	793,961	U.S. Bancorp,
		5.15%, Series H		18,126,130
	440,272	U.S. Bancorp,
		6.00%, Series G		11,913,760
	995,609	U.S. Bancorp,
		6.50%, Series F		29,181,300
	49,814	Wells Fargo & Co.,
		5.13%, Series O		1,148,711
	960,270	Wells Fargo & Co.,
		5.20%(b)		22,307,072
	422,276	Wells Fargo & Co.,
		5.25%, Series P(b)		10,016,387
	1,287,633	Wells Fargo & Co.,
		5.85%		33,426,953
	446,945	Wells Fargo & Co.,
		6.00%, Series T		11,164,686
	161,045	Wells Fargo & Co.,
		6.63%(b)		4,520,533
	17,140	Wells Fargo & Co.,
		7.50%, Series L		20,636,560
	1,700,873	Wells Fargo & Co.,
		8.00%, Series J		49,954,640
				1,013,377,258
		Capital Markets—13.1%
	457,841	Bank of New York Mellon Corp. (The),
		5.20%		10,914,930
	402,358	Charles Schwab Corp. (The),
		6.00%, Series B		10,280,247
	808,802	Goldman Sachs Group, Inc. (The),
		5.50%, Series J		19,354,632
	884,179	Goldman Sachs Group, Inc. (The),
		5.95%(b)		21,264,505
	580,661	Goldman Sachs Group, Inc. (The),
		6.20%, Series B		14,487,492
	356,095	Goldman Sachs Group, Inc. (The),
		6.38%, Series K		9,044,813
	523,342	Morgan Stanley,
		6.38%, Series I(c)		13,193,452
	334,882	Morgan Stanley,
		6.63%, Series G		8,532,793

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Capital Markets (continued)
	739,450	Morgan Stanley,
		6.88%	$	19,610,214
	792,531	Morgan Stanley,
		7.13%, Series E		21,604,395
	311,836	Northern Trust Corp.,
		5.85%, Series C(c)		7,721,059
	532,671	State Street Corp.,
		5.25%, Series C		13,002,499
	545,643	State Street Corp.,
		5.90%, Series D		14,241,282
				183,252,313
		Consumer Finance—4.3%
	802,295	Ally Financial, Inc.,
		8.50%, Series A		21,244,772
	762,288	Capital One Financial Corp.,
		6.00%, Series B		18,401,632
	339,285	Capital One Financial Corp.,
		6.25%, Series C		8,258,197
	50,064	Capital One Financial Corp.,
		6.70%, Series D(c)		1,258,609
	457,718	Discover Financial Services,
		6.50%, Series B		11,749,621
				60,912,831
		Insurance—10.4%
	678,725	Aegon NV,
		6.38% (Netherlands)		17,327,849
	234,070	Aegon NV,
		6.50% (Netherlands)		5,964,104
	296,814	Allstate Corp. (The),
		5.63%		7,420,350
	111,016	Allstate Corp. (The),
		6.25%, Series F		2,913,060
	605,308	Allstate Corp. (The),
		6.63%, Series E		15,943,813
	269,249	Allstate Corp. (The),
		6.75%, Series C		7,267,030
	257,389	Arch Capital Group Ltd.,
		6.75%, Series C		6,882,582
	246,418	Aspen Insurance Holdings Ltd.,
		5.95%		6,374,834
	311,324	Axis Capital Holdings Ltd.,
		6.88%, Series C		8,296,785
	1,152,417	MetLife, Inc.,
		6.50%, Series B		29,905,221
	92,947	PartnerRe Ltd.,
		5.88%, Series F		2,319,028
	391,246	PartnerRe Ltd.,
		7.25%, Series E		10,712,315
	247,175	Principal Financial Group, Inc.,
		6.52%, Series B		6,327,680
	292,330	Prudential PLC,
		6.50% (United Kingdom)		7,583,040
	175,472	Prudential PLC,
		6.75% (United Kingdom)		4,535,951

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

10

PowerShares Financial Preferred Portfolio (PGF) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Insurance (continued)
	239,643	RenaissanceRe Holdings Ltd.,
		5.38%, Series E	$	5,509,392
				145,283,034
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,313,782,757)—100%		1,402,825,436
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.7%
	9,363,870	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $9,363,870)		9,363,870
		Total Investments (Cost $1,323,146,627)—100.7%		1,412,189,306
		Other assets less liabilities—(0.7%)		(9,564,738	)
		Net Assets—100.0%	$	1,402,624,568

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, 2014.

^(c)  Non-incoming 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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	9,158,134	$	(9,158,134	)	$	—

* Amount does not include excess collateral received, if any.

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

United Kingdom 25.1 % 

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

11

Portfolio Composition

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (PEY)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Gas Utilities	10.0
Insurance	9.5
Multi-Utilities	8.9
Tobacco	8.5
Electric Utilities	6.8
Commercial Services & Supplies	6.2
Banks	6.0
Household Products	5.6
Oil, Gas & Consumable Fuels	4.8
Semiconductors & Semiconductor Equipment	4.7
Hotels, Restaurants & Leisure	4.1
Diversified Telecommunication Services	2.9
Thrifts & Mortgage Finance	2.4
Media	2.3
Household Durables	2.2
Leisure Products	1.9
Aerospace & Defense	1.9
Food & Staples Retailing	1.8
Containers & Packaging	1.7
Food Products	1.6
Technology Hardware, Storage & Peripherals	1.6
Beverages	1.6
Pharmaceuticals	1.5
Metals & Mining	1.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (PEY)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—1.9%
	50,447	Lockheed Martin Corp.	$	9,613,685
		Banks—6.0%
	257,460	Community Bank System, Inc.		9,822,099
	335,828	United Bankshares, Inc.		11,512,184
	186,516	Westamerica Bancorp.(b)		9,202,699
				30,536,982

Number of Shares			Value
		Common Stocks (continued)
		Beverages—1.6%
	192,984	Coca-Cola Co. (The)	$	8,082,170
		Commercial Services & Supplies—6.2%
	316,012	Brady Corp., Class A		7,533,726
	203,420	McGrath RentCorp		7,430,933
	193,023	Republic Services, Inc.		7,412,083
	192,595	Waste Management, Inc.		9,415,969
				31,792,711

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

12

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (PEY) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Containers & Packaging—1.7%
	213,523	Sonoco Products Co.	$	8,726,685
		Diversified Telecommunication Services—2.9%
	429,866	AT&T, Inc.		14,976,531
		Electric Utilities—6.8%
	328,746	PPL Corp.		11,502,822
	279,035	Southern Co. (The)		12,936,063
	269,541	Westar Energy, Inc.		10,191,345
				34,630,230
		Food & Staples Retailing—1.8%
	230,701	Sysco Corp.		8,891,217
		Food Products—1.6%
	159,193	General Mills, Inc.		8,271,668
		Gas Utilities—10.0%
	181,840	AGL Resources, Inc.		9,802,994
	190,093	Laclede Group, Inc. (The)		9,651,022
	237,172	Northwest Natural Gas Co.		11,130,482
	239,956	Piedmont Natural Gas Co., Inc.(b)		9,120,728
	242,244	WGL Holdings, Inc.		11,385,468
				51,090,694
		Hotels, Restaurants & Leisure—4.1%
	92,545	Cracker Barrel Old Country Store, Inc.		10,675,066
	105,902	McDonald’s Corp.		9,926,194
				20,601,260
		Household Durables—2.2%
	279,794	Leggett & Platt, Inc.		11,018,288
		Household Products—5.6%
	104,964	Clorox Co. (The)		10,443,918
	81,225	Kimberly-Clark Corp. when-issued		8,906,703
	103,503	Procter & Gamble Co. (The)		9,032,707
				28,383,328
		Insurance—9.5%
	213,522	Cincinnati Financial Corp.		10,776,455
	122,488	Erie Indemnity Co., Class A		10,395,557
	268,825	Mercury General Corp.		14,279,984
	883,376	Old Republic International Corp.		13,047,463
				48,499,459
		Leisure Products—1.9%
	171,891	Hasbro, Inc.		9,888,889
		Media—2.3%
	225,606	Meredith Corp.		11,763,097
		Metals & Mining—1.5%
	143,758	Nucor Corp.		7,771,557
		Multi-Utilities—8.9%
	317,918	Avista Corp.		11,270,193
	199,115	Consolidated Edison, Inc.		12,615,927
	203,901	SCANA Corp.		11,192,126
	225,652	Vectren Corp.		10,143,057
				45,221,303
		Oil, Gas & Consumable Fuels—4.8%
	70,928	Chevron Corp.		8,507,813
	121,859	ConocoPhillips		8,792,127
	127,880	Williams Cos., Inc. (The)		7,098,619
				24,398,559

Number of Shares			Value
		Common Stocks (continued)
		Pharmaceuticals—1.5%
	72,575	Johnson & Johnson	$	7,822,134
		Semiconductors & Semiconductor Equipment—4.7%
	211,894	Intel Corp.		7,206,515
	318,929	Maxim Integrated Products, Inc.		9,357,377
	171,098	Microchip Technology, Inc.(b)		7,376,035
				23,939,927
		Technology Hardware, Storage & Peripherals—1.6%
	229,003	Diebold, Inc.		8,113,576
		Thrifts & Mortgage Finance—2.4%
	841,363	People’s United Financial, Inc.		12,300,727
		Tobacco—8.5%
	297,012	Altria Group, Inc.		14,357,560
	209,368	Universal Corp.		9,316,876
	876,778	Vector Group Ltd.(b)		19,587,221
				43,261,657
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $447,117,506)—100.0%		509,596,334
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—6.4%
	32,440,804	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $32,440,804)		32,440,804
		Total Investments (Cost $479,558,310)—106.4%		542,037,138
		Other assets less liabilities—(6.4%)		(32,455,821	)
		Net Assets—100.0%	$	509,581,317

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, 2014.

^(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 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	32,429,632	$	(32,429,632	)	$	—

* Amount does not include excess collateral received, if any.

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

13

Portfolio Composition

PowerShares International Dividend Achievers^TM Portfolio (PID)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Energy	20.2
Telecommunication Services	16.6
Financials	13.2
Health Care	11.8
Industrials	9.6
Consumer Discretionary	8.9
Consumer Staples	8.9
Materials	5.7
Information Technology	2.7
Utilities	2.4
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares International Dividend Achievers^TM Portfolio (PID)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—3.4%
	397,029	BHP Billiton Ltd. ADR	$	23,599,404
	464,078	BHP Billiton PLC ADR(a)		24,150,619
				47,750,023
		Bermuda—0.9%
	392,544	Montpelier Re Holdings Ltd.		13,008,908
		Brazil—0.4%
	135,834	Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR		5,677,861
		Canada—17.5%
	875,427	BCE, Inc.(a)		38,930,239
	129,217	Canadian National Railway Co.		9,120,136
	265,588	Canadian Natural Resources Ltd.		9,263,709
	25,952	Canadian Pacific Railway Ltd.		5,389,711
	396,869	Enbridge, Inc.		18,795,716
	155,040	Franco-Nevada Corp.		7,248,120
	98,918	Imperial Oil Ltd.		4,736,194
	744,555	Ritchie Bros. Auctioneers, Inc.(a)		18,159,696
	794,941	Rogers Communications, Inc., Class B(a)		29,929,529
	1,221,845	Shaw Communications, Inc., Class B(a)		31,376,980
	275,179	Suncor Energy, Inc.		9,779,862
	785,120	TELUS Corp.		28,146,552
	132,167	Tim Hortons, Inc.		10,708,170
	479,118	TransCanada Corp.		23,615,726
				245,200,340

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China—3.8%
	436,218	China Mobile Ltd. ADR	$	27,084,776
	302,622	China Petroleum & Chemical Corp. ADR(a)		26,322,061
				53,406,837
		Colombia—1.3%
	315,745	Bancolombia SA ADR		17,861,695
		Denmark—1.0%
	311,459	Novo Nordisk A/S ADR		14,071,718
		France—1.7%
	505,758	Sanofi ADR		23,386,250
		Germany—0.9%
	337,892	Fresenius Medical Care AG & Co. KGaA ADR(a)		12,370,226
		India—2.1%
	238,863	Axis Bank Ltd. GDR(b)		8,410,366
	109,521	HDFC Bank Ltd. ADR		5,742,186
	231,046	Infosys Ltd. ADR(a)		15,447,736
				29,600,288
		Ireland—0.1%
	7,925	Shire PLC ADR		1,583,415
		Israel—1.6%
	391,870	Teva Pharmaceutical Industries Ltd. ADR		22,128,899
		Japan—3.2%
	581,731	Nippon Telegraph & Telephone Corp. ADR		18,312,892

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

14

PowerShares International Dividend Achievers^TM Portfolio (PID) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	1,574,253	NTT DOCOMO, Inc. ADR	$	26,557,648
				44,870,540
		Jersey Island—0.2%
	55,977	Randgold Resources Ltd. ADR		3,258,421
		Mexico—1.9%
	467,872	America Movil SAB de CV, Class L ADR		11,420,755
	148,466	Coca-Cola Femsa SAB de CV ADR(a)		15,707,703
				27,128,458
		Norway—2.3%
	1,440,669	Statoil ASA ADR(a)		33,063,354
		Russia—4.6%
	435,876	LUKOIL OAO ADR		21,401,512
	7,645,184	Rosneft Oil Co. OAO GDR(b)		42,583,675
				63,985,187
		Switzerland—3.3%
	270,954	Novartis AG ADR		25,114,726
	346,854	Syngenta AG ADR		21,504,948
				46,619,674
		United Kingdom—20.4%
	95,030	ARM Holdings PLC ADR		4,058,731
	277,104	British American Tobacco PLC ADR(a)		31,467,930
	72,037	Diageo PLC ADR		8,498,205
	872,356	GlaxoSmithKline PLC ADR		39,683,474
	1,931,039	Pearson PLC ADR		36,206,981
	179,555	Pentair PLC		12,039,163
	401,242	Prudential PLC ADR		18,589,542
	359,415	Smith & Nephew PLC ADR		12,238,081
	690,645	Unilever NV		26,748,681
	616,872	Unilever PLC ADR		24,816,760
	1,576,680	Vodafone Group PLC ADR		52,377,310
	203,303	WPP PLC ADR		19,840,340
				286,565,198
		United States—29.4%
	224,295	Accenture PLC, Class A		18,194,810
	169,626	ACE Ltd.		18,540,122
	419,870	Allied World Assurance Co. Holdings AG		15,955,060
	361,254	Axis Capital Holdings Ltd.		17,390,768
	822,321	Brookfield Infrastructure Partners LP(a)		33,378,009
	137,152	Bunge Ltd.		12,158,525
	57,793	Core Laboratories NV		8,063,857
	134,540	Covidien PLC		12,436,878
	305,000	Lazard Ltd., Class A		15,009,050
	2,250,814	Maiden Holdings Ltd.		26,897,227
	3,029,481	Navios Maritime Partners LP(a)		48,956,413
	168,339	PartnerRe Ltd.		19,475,139
	14,481	Perrigo Co. PLC		2,337,957
	86,153	RenaissanceRe Holdings Ltd.		8,902,190
	1,157,122	Teekay LNG Partners LP(a)		45,474,895
	1,365,839	Teekay Offshore Partners LP(a)		40,879,561
	1,196,916	Textainer Group Holdings Ltd.(a)		41,221,787

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United States (continued)
	725,456	Thomson Reuters Corp.	$	27,001,472
				412,273,720
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,318,281,604)—100%		1,403,811,012
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—15.3%
	214,690,724	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $214,690,724)		214,690,724
		Total Investments (Cost $1,532,972,328)—115.3%		1,618,501,736
		Other assets less liabilities—(15.3%)		(214,304,948	)
		Net Assets—100.0%	$	1,404,196,788

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, 2014.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2014 was $50,994,041, which represented 3.63% of the Fund’s Net Assets.

^(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 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	211,125,808	$	(211,125,808	)	$	—

* Amount does not include excess collateral received, if any.

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

15

Statements of Assets and Liabilities

October 31, 2014

(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)	$	2,657,980,745	$	358,701,158		$	1,402,825,436		$	509,596,334		$	1,403,811,012
Affiliated investments, at value		18,271,105		—			9,363,870			32,440,804			214,690,724
Total investments, at value		2,676,251,850		358,701,158			1,412,189,306			542,037,138			1,618,501,736
Cash segregated as collateral		—		—			—			—			3,777,655
Receivables:
Investments sold		42,095,639		204,884			1,198,176			374,904			1,478,463
Shares sold		27,254,650		—			1,813,287			2,582,306			7,246,127
Dividends		2,532,144		600,851			2,953,126			1,324,594			862,396
Securities lending		33,912		—			36,745			7,963			166,417
Foreign tax reclaims		—		—			—			—			618,323
Settlement proceeds		—		—			—			—			9,288
Other assets		9,413		1,356			2,592			1,893			4,918
Total Assets		2,748,177,608		359,508,249			1,418,193,232			546,328,798			1,632,665,323
Liabilities:
Due to custodian		283,778		238,113			3,088,068			364,117			1,611,244
Payables:
Investments purchased		46,811,022		237,696			1,765,685			3,541,043			7,245,708
Shares repurchased		22,987,020		—			—			—			—
Collateral upon return of securities loaned		18,271,105		—			9,363,870			32,440,804			214,690,724
Collateral upon receipt of securities in-kind		—		—			—			—			3,777,655
Accrued advisory fees		1,115,845		118,388			591,586			155,847			453,970
Accrued trustees’ and officer’s fees		35,947		20,631			76,375			23,005			44,595
Accrued expenses		1,285,210		192,370			683,080			222,665			644,639
Total Liabilities		90,789,927		807,198			15,568,664			36,747,481			228,468,535
Net Assets	$	2,657,387,681	$	358,701,051		$	1,402,624,568		$	509,581,317		$	1,404,196,788
Net Assets Consist of:
Shares of beneficial interest	$	2,326,173,169	$	292,583,454		$	1,342,248,230		$	569,061,804		$	1,564,797,892
Undistributed net investment income		3,320,173		764,728			(723,693	)		539,958			2,478,938
Undistributed net realized gain (loss)		30,296,952		(20,078,040	)		(27,942,648	)		(122,499,273	)		(248,609,450	)
Net unrealized appreciation		297,597,387		85,430,909			89,042,679			62,478,828			85,529,408
Net Assets	$	2,657,387,681	$	358,701,051		$	1,402,624,568		$	509,581,317		$	1,404,196,788
Shares outstanding (unlimited amount authorized, $0.01 par value)		57,800,000		16,850,000			77,350,000			38,900,000			76,550,000
Net asset value	$	45.98	$	21.29		$	18.13		$	13.10		$	18.34
Market price	$	46.00	$	21.29		$	18.16		$	13.10		$	18.36
Unaffiliated investments, at cost	$	2,360,383,358	$	273,270,249		$	1,313,782,757		$	447,117,506		$	1,318,281,604
Affiliated investments, at cost	$	18,271,105	$	—		$	9,363,870		$	32,440,804		$	214,690,724
Total investments, at cost	$	2,378,654,463	$	273,270,249		$	1,323,146,627		$	479,558,310		$	1,532,972,328
(a) Includes securities on loan with an aggregate value of	$	18,478,293	$	—		$	9,158,134		$	32,429,632		$	211,125,808

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, 2014

(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	$	25,133,452		$	4,628,742		$	45,831,644		$	8,680,151		$	22,727,247
Securities lending income		414,449			—			237,314			43,591			1,327,089
Affiliated dividend income		91			12			148			26			25
Foreign withholding tax		—			—			—			—			(1,865,704	)
Total Income		25,547,992			4,628,754			46,069,106			8,723,768			22,188,657
Expenses:
Advisory fees		7,122,950			718,112			3,559,737			869,886			2,618,192
Sub-licensing		1,424,590			179,528			676,373			217,471			654,548
Accounting & administration fees		291,489			34,949			141,832			39,533			117,654
Trustees’ and officer’s fees		30,379			6,952			16,680			7,543			15,048
Custodian & transfer agent fees		20,284			9,442			23,457			5,683			37,760
Other expenses		92,799			32,850			87,426			37,869			63,952
Total Expenses		8,982,491			981,833			4,505,505			1,177,985			3,507,154
Less: Waivers		(1,333	)		(147	)		(1,429	)		(270	)		(340	)
Net Expenses		8,981,158			981,686			4,504,076			1,177,715			3,506,814
Net Investment Income		16,566,834			3,647,068			41,565,030			7,546,053			18,681,843
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		501,993			344,230			4,857,821			(407,079	)		(1,371,230	)
In-kind redemptions		80,812,733			2,314,986			6,696,579			9,593,569			24,528,436
Foreign currencies		—			—			—			—			857
Net realized gain		81,314,726			2,659,216			11,554,400			9,186,490			23,158,063
Net change in unrealized appreciation (depreciation) on investment securities		71,795,947			10,827,840			503,792			20,189,476			(45,113,648	)
Net realized and unrealized gain (loss)		153,110,673			13,487,056			12,058,192			29,375,966			(21,955,585	)
Net increase (decrease) in net assets resulting from operations	$	169,677,507		$	17,134,124		$	53,623,222		$	36,922,019		$	(3,273,742	)

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, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares Buyback AchieversTM Portfolio (PKW)						PowerShares Dividend AchieversTM Portfolio (PFM)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income	$	16,566,834		$	17,305,602		$	3,647,068		$	6,689,623
Net realized gain		81,314,726			126,786,066			2,659,216			20,581,678
Net change in unrealized appreciation (depreciation)		71,795,947			186,899,277			10,827,840			16,307,260
Net increase (decrease) in net assets resulting from operations		169,677,507			330,990,945			17,134,124			43,578,561
Distributions to Shareholders from:
Net investment income		(20,013,684	)		(10,911,610	)		(3,679,356	)		(6,755,875	)
Shareholder Transactions:
Proceeds from shares sold		163,843,078			3,285,171,345			1,036,870			79,961,620
Value of shares repurchased		(561,239,759	)		(1,118,751,473	)		(7,347,548	)		(62,155,717	)
Net increase (decrease) in net assets resulting from shares transactions		(397,396,681	)		2,166,419,872			(6,310,678	)		17,805,903
Increase (Decrease) in Net Assets		(247,732,858	)		2,486,499,207			7,144,090			54,628,589
Net Assets:
Beginning of period		2,905,120,539			418,621,332			351,556,961			296,928,372
End of period	$	2,657,387,681		$	2,905,120,539		$	358,701,051		$	351,556,961
Undistributed net investment income at end of period	$	3,320,173		$	6,767,023		$	764,728		$	797,016
Changes in Shares Outstanding:
Shares sold		3,650,000			82,050,000			50,000			4,100,000
Shares repurchased		(12,750,000	)		(27,250,000	)		(350,000	)		(3,150,000	)
Shares outstanding, beginning of period		66,900,000			12,100,000			17,150,000			16,200,000
Shares outstanding, end of period		57,800,000			66,900,000			16,850,000			17,150,000

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, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	41,565,030		$	96,727,623		$	7,546,053		$	12,883,764		$	18,681,843		$	38,477,799
	11,554,400			69,653,790			9,186,490			41,966,345			23,158,063			51,317,591
	503,792			(149,768,967	)		20,189,476			5,744,238			(45,113,648	)		25,895,334
	53,623,222			16,612,446			36,922,019			60,594,347			(3,273,742	)		115,690,724
	(42,218,717	)		(96,939,622	)		(7,322,781	)		(12,646,964	)		(18,682,257	)		(39,823,589	)
	6,311,040			84,078,357			123,681,573			143,056,402			348,520,935			406,219,189
	(50,649,252	)		(459,644,875	)		(36,802,601	)		(120,376,506	)		(83,021,655	)		(198,773,646	)
	(44,338,212	)		(375,566,518	)		86,878,972			22,679,896			265,499,280			207,445,543
	(32,933,707	)		(455,893,694	)		116,478,210			70,627,279			243,543,281			283,312,678
	1,435,558,275			1,891,451,969			393,103,107			322,475,828			1,160,653,507			877,340,829
$	1,402,624,568		$	1,435,558,275		$	509,581,317		$	393,103,107		$	1,404,196,788		$	1,160,653,507
$	(723,693	)	$	(70,006	)	$	539,958		$	316,686		$	2,478,938		$	2,479,352
	350,000			4,800,000			9,900,000			12,250,000			18,350,000			22,950,000
	(2,800,000	)		(26,300,000	)		(2,900,000	)		(10,300,000	)		(4,350,000	)		(11,200,000	)
	79,800,000			101,300,000			31,900,000			29,950,000			62,550,000			50,800,000
	77,350,000			79,800,000			38,900,000			31,900,000			76,550,000			62,550,000

19

Financial Highlights

PowerShares BuyBack Achievers^TM Portfolio (PKW)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	43.42		$	34.60		$	29.40		$	27.27		$	22.36		$	16.15
Net investment income(a)		0.26			0.39			0.37			0.27			0.11			0.19
Net realized and unrealized gain on investments		2.61			8.70			5.18			2.12			4.87			6.29
Total from investment operations		2.87			9.09			5.55			2.39			4.98			6.48
Distributions to shareholders from:
Net investment income		(0.31	)		(0.27	)		(0.35	)		(0.26	)		(0.07	)		(0.27	)
Net asset value at end of period	$	45.98		$	43.42		$	34.60		$	29.40		$	27.27		$	22.36
Market price at end of period(b)	$	46.00		$	43.42		$	34.61		$	29.40		$	27.27		$	22.37
Net Asset Value Total Return(c)		6.62	%		26.36	%		19.08	%		8.91	%		22.34	%		40.46	%
Market Price Total Return(c)		6.67	%		26.32	%		19.11	%		8.91	%		22.29	%		40.43	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	2,657,388		$	2,905,121		$	418,621		$	139,641		$	43,637		$	38,019
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)(e)		0.66	%(d)		0.70	%		0.71	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.63	%(d)(e)		0.66	%(d)		0.70	%		0.79	%		1.00	%		0.97	%
Net investment income, after Waivers		1.16	%(e)		0.95	%		1.21	%		1.00	%		0.49	%		0.98	%
Portfolio turnover rate(f)		3	%		92	%		80	%		32	%		26	%		23	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

PowerShares Dividend Achievers^TM Portfolio (PFM)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	20.50		$	18.33		$	15.81		$	15.29		$	13.21		$	10.30
Net investment income(a)		0.21			0.39			0.38			0.34			0.31			0.27
Net realized and unrealized gain on investments		0.80			2.16			2.52			0.51			2.08			2.96
Total from investment operations		1.01			2.55			2.90			0.85			2.39			3.23
Distributions to shareholders from:
Net investment income		(0.22	)		(0.38	)		(0.38	)		(0.33	)		(0.31	)		(0.32	)
Net asset value at end of period	$	21.29		$	20.50		$	18.33		$	15.81		$	15.29		$	13.21
Market price at end of period(b)	$	21.29		$	20.50		$	18.32		$	15.80		$	15.29		$	13.21
Net Asset Value Total Return(c)		4.91	%		14.11	%		18.67	%		5.78	%		18.39	%		31.76	%
Market Price Total Return(c)		4.91	%		14.17	%		18.68	%		5.71	%		18.39	%		31.76	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	358,701		$	351,557		$	296,928		$	252,988		$	217,859		$	133,380
Ratio to average net assets of:
Expenses, after Waivers		0.55	%(d)		0.55	%		0.58	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.55	%(d)		0.55	%		0.58	%		0.60	%		0.61	%		0.64	%
Net investment income, after Waivers		2.03	%(d)		2.05	%		2.28	%		2.28	%		2.30	%		2.28	%
Portfolio turnover rate(e)		2	%		21	%		18	%		20	%		11	%		18	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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 Financial Preferred Portfolio (PGF)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	17.99		$	18.67		$	17.79		$	18.26		$	16.97		$	11.41
Net investment income(a)		0.53			1.10			1.18			1.17			1.18			1.31
Net realized and unrealized gain (loss) on investments		0.15			(0.68	)		0.85			(0.42	)		1.36			5.61
Total from investment operations		0.68			0.42			2.03			0.75			2.54			6.92
Distributions to shareholders from:
Net investment income		(0.54	)		(1.10	)		(1.15	)		(1.17	)		(1.21	)		(1.30	)
Return of capital		—			—			—			(0.05	)		(0.04	)		(0.06	)
Total distributions		(0.54	)		(1.10	)		(1.15	)		(1.22	)		(1.25	)		(1.36	)
Net asset value at end of period	$	18.13		$	17.99		$	18.67		$	17.79		$	18.26		$	16.97
Market price at end of period(b)	$	18.16		$	17.98		$	18.70		$	17.83		$	18.28		$	16.93
Net Asset Value Total Return(c)		3.84	%		2.63	%		11.78	%		4.56	%		15.57	%		62.16	%
Market Price Total Return(c)		4.07	%		2.41	%		11.71	%		4.68	%		15.97	%		61.76	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,402,625		$	1,435,558		$	1,891,452		$	1,612,698		$	1,832,516		$	1,714,824
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.63	%		0.64	%		0.66	%		0.66	%		0.65	%
Expenses, prior to Waivers		0.63	%(d)		0.63	%		0.64	%		0.66	%		0.66	%		0.65	%
Net investment income, after Waivers		5.84	%(d)		6.28	%		6.47	%		6.76	%		6.75	%		8.30	%
Portfolio turnover rate(e)		6	%		30	%		18	%		6	%		26	%		23	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (PEY)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	12.32		$	10.77		$	9.36		$	9.06		$	8.44		$	6.12
Net investment income(a)		0.22			0.42			0.42			0.35			0.34			0.32
Net realized and unrealized gain on investments		0.77			1.54			1.41			0.29			0.63			2.35
Total from investment operations		0.99			1.96			1.83			0.64			0.97			2.67
Distributions to shareholders from:
Net investment income		(0.21	)		(0.41	)		(0.42	)		(0.34	)		(0.34	)		(0.33	)
Return of capital		—			—			—			—			(0.01	)		(0.02	)
Total distributions		(0.21	)		(0.41	)		(0.42	)		(0.34	)		(0.35	)		(0.35	)
Net asset value at end of period	$	13.10		$	12.32		$	10.77		$	9.36		$	9.06		$	8.44
Market price at end of period(b)	$	13.10		$	12.32		$	10.76		$	9.36		$	9.06		$	8.44
Net Asset Value Total Return(c)		8.15	%		18.61	%		20.16	%		7.37	%		11.91	%		44.59	%
Market Price Total Return(c)		8.15	%		18.72	%		20.05	%		7.37	%		11.91	%		44.58	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	509,581		$	393,103		$	322,476		$	276,169		$	208,471		$	127,424
Ratio to average net assets of:
Expenses, after Waivers		0.54	%(d)		0.55	%		0.57	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.54	%(d)		0.55	%		0.57	%		0.60	%		0.62	%		0.65	%
Net investment income, after Waivers		3.47	%(d)		3.70	%		4.31	%		3.88	%		4.02	%		4.42	%
Portfolio turnover rate(e)		6	%		51	%		32	%		35	%		44	%		57	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	18.56		$	17.27		$	15.35		$	16.85		$	14.26		$	10.14
Net investment income(a)		0.27			0.67	(b)		0.40			0.48			0.47			0.35
Net realized and unrealized gain (loss) on investments		(0.23	)		1.26			1.93			(1.49	)		2.59			4.24
Total from investment operations		0.04			1.93			2.33			(1.01	)		3.06			4.59
Distributions to shareholders from:
Net investment income		(0.26	)		(0.64	)		(0.41	)		(0.49	)		(0.47	)		(0.47	)
Net asset value at end of period	$	18.34		$	18.56		$	17.27		$	15.35		$	16.85		$	14.26
Market price at end of period(c)	$	18.36		$	18.58		$	17.31		$	15.37		$	16.89		$	14.26
Net Asset Value Total Return(d)		0.17	%		11.50	%		15.63	%		(5.87	)%		21.95	%		45.77	%
Market Price Total Return(d)		0.16	%		11.35	%		15.75	%		(5.97	)%		22.23	%		45.62	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,404,197		$	1,160,654		$	877,341		$	690,196		$	550,282		$	427,783
Ratio to average net assets of:
Expenses, after Waivers		0.54	%(e)		0.54	%		0.56	%		0.55	%		0.58	%		0.57	%
Expenses, prior to Waivers		0.54	%(e)		0.54	%		0.56	%		0.56	%		0.58	%		0.57	%
Net investment income, after Waivers		2.85	%(e)		3.82	%		2.57	%		3.20	%		3.20	%		2.65	%
Portfolio turnover rate(f)		16	%		49	%		46	%		33	%		42	%		63	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a significant dividend during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.43 and 2.42%, respectively.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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.

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2014

(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, 2014, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares BuyBack AchieversTM Portfolio (PKW)	“BuyBack AchieversTM Portfolio”
PowerShares Dividend AchieversTM Portfolio (PFM)	“Dividend AchieversTM Portfolio”
PowerShares Financial Preferred Portfolio (PGF)	“Financial Preferred Portfolio”
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)	“High Yield Equity Dividend AchieversTM Portfolio”
PowerShares International Dividend AchieversTM Portfolio (PID)	“International Dividend AchieversTM Portfolio”

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

The market 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 in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
BuyBack AchieversTM Portfolio	NASDAQ US BuyBack AchieversTM Index
Dividend AchieversTM Portfolio	NASDAQ US Broad Dividend AchieversTM Index
Financial Preferred Portfolio	Wells Fargo® Hybrid & Preferred Securities Financial Index
High Yield Equity Dividend AchieversTM Portfolio	NASDAQ US Dividend AchieversTM 50 Index
International Dividend AchieversTM Portfolio	NASDAQ International Dividend AchieversTM Index

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and 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. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of each Fund’s investments.

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

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the 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 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.

24

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 their assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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

Sampling Risk. Financial Preferred Portfolio’s use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development to an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.

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

Dividend Paying Security Risk. Dividend Achievers^TM Portfolio, High Yield Equity Dividend Achievers^TM Portfolio and International Dividend Achievers^TM Portfolio invest in securities that pay high dividends. As a group, these securities can fall out of favor with the market, causing such companies to underperform companies that do not pay high dividends. Also, changes in the dividend policies of the companies in an Underlying Index and the capital resources available for such companies’ dividend payments may affect a Fund.

Foreign Securities Risk. For Financial Preferred Portfolio and International Dividend Achievers^TM Portfolio, investments in foreign securities involve risks in addition to the risks associated with domestic securities. In general, foreign companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

In addition, securities of foreign issuers may be less liquid than comparable securities of U.S. issuers and, as such, their price changes may be more volatile. Furthermore, foreign exchanges and broker-dealers generally are subject to less government and exchange scrutiny and regulation than their U.S. counterparts. In addition, differences in clearance and settlement procedures in foreign markets may cause delays in settlement of a Fund’s trades effected in those markets and could result in losses to a Fund due to subsequent declines in the value of the securities subject to the trades. Depositary receipts also involve substantially identical risks to those associated with investments in foreign securities. Additionally, the issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, have no obligation to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited securities.

High Yield Securities Risk. For Financial Preferred Portfolio and High Yield Equity Dividend Achievers^TM Portfolio, high yield securities typically involve greater risk and are less liquid than higher grade issues. Changes in general economic conditions, changes in the financial condition of the issuers and changes in interest rates may adversely impact the ability of issuers of high yield securities to make timely payments of interest and principal.

Preferred Securities Risk. Financial Preferred Portfolio faces special risks associated with investing in preferred securities. Preferred securities may include provisions that permit the issuer, in its discretion, to defer or omit distributions for a certain period of time. If the Fund owns a security that is deferring or omitting its distributions, the Fund may be required to report the distribution on its tax returns, even though it may not have received this income. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer. Preferred securities also may be subordinated to bonds or other debt

25

instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment than more senior securities. In addition, in certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date, and this may negatively impact the return of the security.

C. Federal Income Taxes

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

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These 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-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 Financial Preferred Portfolio and High Yield Equity Dividend Achievers^TM Portfolio, which declare and pay dividends from net investment income, if any, monthly) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

G. Securities Lending

During the six-month period ended October 31, 2014, BuyBack Achievers^TM Portfolio, Financial Preferred Portfolio, High Yield Equity Dividend Achievers^TM Portfolio and International Dividend Achievers^TM Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% 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

26

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 the Fund’s average daily net assets, except for BuyBack Achievers^TM Portfolio and Financial Preferred Portfolio, each of which pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for BuyBack Achievers^TM Portfolio and Financial Preferred Portfolio) from exceeding 0.50% of the Fund’s average daily net assets per year (0.60% of the Fund’s average daily net assets per year for the BuyBack Achievers^TM Portfolio and Financial Preferred Portfolio) (the “Expense Cap”), through at least August 31, 2015. 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 Expense Agreement, it will terminate on August 31, 2015. The Expense Agreement cannot be terminated during its term. For each Fund, the Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration.

For the six-month period ended October 31, 2014, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Buyback AchieversTM Portfolio	$	1,333
Dividend AchieversTM Portfolio		147
Financial Preferred Portfolio		1,429
High Yield Equity Dividend AchieversTM Portfolio		270
International Dividend AchieversTM Portfolio		340

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

For the six-month period ended October 31, 2014, there were no amounts available for potential recapture by the Adviser under the Expense Agreement.

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

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

Fund	Licensor
BuyBack AchieversTM Portfolio	NASDAQ OMX Group, Inc.
Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.
Financial Preferred Portfolio	Wells Fargo Securities, LLC
High Yield Equity Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.
International Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.

27

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

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

Note 4. Additional Valuation Information

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

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

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

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

As of October 31, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

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 eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of April 30, 2014, which expire as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short-term		Long-term		Total*		Utilized		Expired
BuyBack AchieversTM Portfolio	$	—	$	2,915,681	$	800,254	$	12,142,749	$	2,107,645	$	—	$	—	$	17,966,329	$	5,112,463	$	—
Dividend AchieversTM Portfolio		—		50,943		1,716,151		14,632,363		2,339,194		271,124		558,548		19,568,323		76,569		7,896
Financial Preferred Portfolio		—		10,308,236		9,034,558		7,354,935		—		—		—		26,697,729		11,880,150		—
High Yield Equity Dividend AchieversTM Portfolio		—		936,776		81,487,358		44,815,128		2,187,574		—		—		129,426,836		12,848,630		—
International Dividend AchieversTM Portfolio		148,582		1,975,339		59,472,841		145,514,837		11,745,409		28,743,478		8,655,506		256,255,992		—		—

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

28

Note 6. Investment Transactions

For the six-month period ended October 31, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
BuyBack AchieversTM Portfolio	$	84,205,822	$	86,358,270
Dividend AchieversTM Portfolio		7,130,613		6,882,768
Financial Preferred Portfolio		85,222,609		88,990,222
High Yield Equity Dividend AchieversTM Portfolio		28,494,982		28,014,093
International Dividend AchieversTM Portfolio		212,544,627		207,268,091

For the six-month period ended October 31, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
BuyBack AchieversTM Portfolio	$	163,370,700	$	561,254,869
Dividend AchieversTM Portfolio		1,030,129		7,320,639
Financial Preferred Portfolio		4,391,411		49,069,150
High Yield Equity Dividend AchieversTM Portfolio		123,686,244		36,786,123
International Dividend AchieversTM Portfolio		348,032,876		83,380,492

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

At October 31, 2014, 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 AchieversTM Portfolio	$	2,391,523,563	$	284,728,287	$	339,525,340	$	(54,797,053	)
Dividend AchieversTM Portfolio		275,905,810		82,795,348		86,100,098		(3,304,750	)
Financial Preferred Portfolio		1,333,448,702		78,740,604		109,249,896		(30,509,292	)
High Yield Equity Dividend AchieversTM Portfolio		481,817,237		60,219,901		65,914,875		(5,694,974	)
International Dividend AchieversTM Portfolio		1,548,483,849		70,017,887		130,327,046		(60,309,159	)

Note 7. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and Officer of the Funds. 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

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 in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in

29

the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

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

Note 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.

30

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, 2014.

In addition to the fees and expenses which the PowerShares BuyBack Achievers^TM Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of the estimated investment companies’ expenses that you bear indirectly are included in the Portfolio’s total returns.

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, 2014		Ending Account Value October 31, 2014		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	$	1,066.00		0.63	%	$	3.28
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dividend AchieversTM Portfolio (PFM)
Actual		1,000.00		1,049.13		0.55			2.84
Hypothetical (5% return before expenses)		1,000.00		1,022.43		0.55			2.80
PowerShares Financial Preferred Portfolio (PGF)
Actual		1,000.00		1,038.40		0.63			3.24
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
Actual		1,000.00		1,081.55		0.54			2.83
Hypothetical (5% return before expenses)		1,000.00		1,022.48		0.54			2.75

31

Fees and Expenses (continued)

	Beginning Account Value May 1, 2014		Ending Account Value October 31, 2014		Annualized Expense Ratio Based on the Number of Days in the Period			Expenses Paid During the Six-Month  Period(1)
PowerShares International Dividend AchieversTM Portfolio (PID)
Actual	$	1,000.00	$	1,001.66		0.54	%	$	2.72
Hypothetical (5% return before expenses)		1,000.00		1,022.48		0.54			2.75

⁽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, 2014. 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.

32

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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.

©2014 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, 2014

2014 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

Industry Portfolios
Schedules of Investments
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)	3
PowerShares Dynamic Building & Construction Portfolio (PKB)	5
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)	7
PowerShares Dynamic Food & Beverage Portfolio (PBJ)	8
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)	18
PowerShares Dynamic Semiconductors Portfolio (PSI)	20
PowerShares Dynamic Software Portfolio (PSJ)	21
Statements of Assets and Liabilities	24
Statements of Operations	26
Statements of Changes in Net Assets	28
Financial Highlights	32
Notes to Financial Statements	39
Fees and Expenses	47

2

Portfolio Composition

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Biotechnology	70.4
Life Sciences Tools & Services	18.3
Specialty Chemicals	6.2
Health Care Supplies	2.7
Pharmaceuticals	2.5
Money Market Funds Plus Other Assets Less Liabilities	(0.1)

Schedule of Investments^(a)

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.1%
		Biotechnology—70.4%
	961,858	Achillion Pharmaceuticals, Inc.(b)(c)	$	11,301,831
	341,581	Acorda Therapeutics, Inc.(c)		11,893,850
	120,518	Alexion Pharmaceuticals, Inc.(c)		23,062,324
	146,382	Amgen, Inc.		23,740,233
	2,701,142	Arena Pharmaceuticals, Inc.(b)(c)		11,776,979
	59,477	Biogen Idec, Inc.(c)		19,096,875
	161,217	Cubist Pharmaceuticals, Inc.(c)		11,654,377
	446,937	Emergent Biosolutions, Inc.(c)		10,109,715
	189,651	Gilead Sciences, Inc.(c)		21,240,912
	941,515	ImmunoGen, Inc.(b)(c)		8,718,429
	315,083	Insys Therapeutics, Inc.(b)(c)		12,816,001
	273,031	Isis Pharmaceuticals, Inc.(b)(c)		12,575,808
	121,946	Medivation, Inc.(c)		12,889,692
	307,507	Myriad Genetics, Inc.(b)(c)		12,143,451
	368,744	NPS Pharmaceuticals, Inc.(c)		10,103,586
	1,102,943	PDL BioPharma, Inc.(b)		9,408,104
	164,022	Pharmacyclics, Inc.(c)		21,432,755
	58,206	Regeneron Pharmaceuticals, Inc.(c)		22,916,866
	583,877	Repligen Corp.(c)		14,725,378
	252,867	Seattle Genetics, Inc.(c)		9,272,633
	94,447	United Therapeutics Corp.(c)		12,369,724
				303,249,523
		Health Care Supplies—2.7%
	264,341	Neogen Corp.(c)		11,604,570
		Life Sciences Tools & Services—18.3%
	554,772	Bruker Corp.(c)		11,500,424
	408,843	Fluidigm Corp.(c)		11,856,447
	113,752	Illumina, Inc.(c)		21,906,360
	590,383	Luminex Corp.(c)		11,217,277
	116,506	Techne Corp.		10,607,871
	107,598	Waters Corp.(c)		11,921,858
				79,010,237

Number of Shares			Value
		Common Stocks (continued)
		Pharmaceuticals—2.5%
	780,414	Nektar Therapeutics(c)	$	10,761,909
		Specialty Chemicals—6.2%
	196,180	Sigma-Aldrich Corp.		26,662,824
		Total Common Stocks (Cost $350,354,663)		431,289,063
		Money Market Fund—0.0%
	83,761	Invesco Premier Portfolio—Institutional Class(d) (Cost $83,761)		83,761
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $350,438,424)—100.1%		431,372,824
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—13.0%
	56,112,407	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $56,112,407)		56,112,407
		Total Investments (Cost $406,550,831)—113.1%		487,485,231
		Other assets less liabilities—(13.1%)		(56,332,470	)
		Net Assets—100.0%	$	431,152,761

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

3

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)

October 31, 2014

(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)  All or a portion of this security was out on loan at October 31, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	54,579,514	$	(54,579,514	)	$	—

* Amount does not include excess collateral received, if any.

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

4

Portfolio Composition

PowerShares Dynamic Building & Construction Portfolio (PKB)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Construction & Engineering	22.8
Construction Materials	12.7
Homebuilding	11.6
Home Improvement Retail	11.2
Building Products	9.4
Forest Products	9.2
Industrial Machinery	8.3
Environmental & Facilities Services	3.0
Real Estate Development	2.7
Construction Machinery & Heavy Trucks	2.6
Oil & Gas Equipment & Services	2.6
Diversified Real Estate Activities	2.5
Diversified Support Services	1.4
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dynamic Building & Construction Portfolio (PKB)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Building Products—9.4%
	40,557	A.O. Smith Corp.	$	2,163,716
	110,219	Quanex Building Products Corp.		2,206,584
	42,039	Universal Forest Products, Inc.		2,100,689
				6,470,989
		Construction & Engineering—22.8%
	52,604	AECOM Technology Corp.(b)		1,712,260
	80,720	Aegion Corp.(b)		1,478,791
	63,779	Dycom Industries, Inc.(b)		2,002,023
	46,078	EMCOR Group, Inc.		2,033,422
	49,389	Fluor Corp.		3,276,466
	100,422	Quanta Services, Inc.(b)		3,422,382
	66,618	Tutor Perini Corp.(b)		1,865,970
				15,791,314
		Construction Machinery & Heavy Trucks—2.6%
	40,067	Oshkosh Corp.		1,793,399
		Construction Materials—12.7%
	153,237	Headwaters, Inc.(b)		1,946,110
	27,866	Martin Marietta Materials, Inc.		3,258,093
	57,579	Vulcan Materials Co.		3,553,200
				8,757,403

Number of Shares			Value
		Common Stocks (continued)
		Diversified Real Estate Activities—2.5%
	91,900	St. Joe Co. (The)(b)	$	1,759,885
		Diversified Support Services—1.4%
	78,337	Civeo Corp.		954,928
		Environmental & Facilities Services—3.0%
	78,061	Tetra Tech, Inc.		2,092,815
		Forest Products—9.2%
	66,219	Boise Cascade Co.(b)		2,387,857
	30,051	Deltic Timber Corp.		1,956,020
	139,492	Louisiana-Pacific Corp.(b)		2,036,583
				6,380,460
		Home Improvement Retail—11.2%
	39,030	Home Depot, Inc. (The)		3,806,205
	69,498	Lowe’s Cos., Inc.		3,975,286
				7,781,491
		Homebuilding—11.6%
	98,542	Brookfield Residential Properties, Inc. (Canada)(b)		2,291,101
	1,697	NVR, Inc.(b)		2,083,203
	189,872	PulteGroup, Inc.		3,643,644
				8,017,948

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

5

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Industrial Machinery—8.3%
	60,620	Ingersoll-Rand PLC	$	3,796,025
	14,142	Valmont Industries, Inc.		1,925,716
				5,721,741
		Oil & Gas Equipment & Services—2.6%
	70,562	Matrix Service Co.(b)		1,768,284
		Real Estate Development—2.7%
	12,569	Howard Hughes Corp. (The)(b)		1,852,419
		Total Common Stocks (Cost $70,078,598)		69,143,076
		Money Market Fund—0.1%
	79,609	Invesco Premier Portfolio—Institutional Class(c) (Cost $79,609)		79,609
		Total Investments (Cost $70,158,207)—100.1%		69,222,685
		Other assets less liabilities—(0.1%)		(81,781	)
		Net Assets—100.0%	$	69,140,904

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 Energy Exploration & Production Portfolio (PXE)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Oil & Gas Exploration & Production	54.9
Oil & Gas Refining & Marketing	39.9
Integrated Oil & Gas	5.1
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Integrated Oil & Gas—5.1%
	61,460	Occidental Petroleum Corp.	$	5,465,638
		Oil & Gas Exploration & Production—54.9%
	56,574	Anadarko Petroleum Corp.		5,192,362
	62,609	Apache Corp.		4,833,415
	23,959	Cimarex Energy Co.		2,723,419
	78,491	ConocoPhillips		5,663,126
	201,939	Denbury Resources, Inc.		2,504,044
	58,016	EOG Resources, Inc.		5,514,421
	152,919	Marathon Oil Corp.		5,413,333
	55,667	Murphy Oil Corp.		2,972,061
	77,584	Newfield Exploration Co.(b)		2,530,014
	206,375	Northern Oil and Gas, Inc.(b)		2,332,037
	97,766	QEP Resources, Inc.		2,450,994
	160,770	QR Energy LP		2,636,628
	663,624	SandRidge Energy, Inc.(b)		2,588,134
	39,051	SM Energy Co.		2,198,571
	84,448	Southwestern Energy Co.(b)		2,745,404
	98,815	Stone Energy Corp.(b)		2,420,967
	233,069	W&T Offshore, Inc.		2,118,597
	37,528	Whiting Petroleum Corp.(b)		2,298,215
				59,135,742
		Oil & Gas Refining & Marketing—39.9%
	179,153	Alon USA Partners LP		3,484,526
	70,065	CVR Energy, Inc.		3,403,757
	144,831	CVR Refining LP		3,510,703
	99,409	Delek US Holdings, Inc.		3,368,971
	69,502	HollyFrontier Corp.		3,154,001
	70,046	Marathon Petroleum Corp.		6,367,181
	132,826	Northern Tier Energy LP		3,352,528
	122,400	PBF Energy, Inc., Class A		3,190,968
	53,714	Tesoro Corp.		3,835,717

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil & Gas Refining & Marketing (continued)
	117,755	Valero Energy Corp.	$	5,898,348
	74,730	Western Refining, Inc.		3,406,941
				42,973,641
		Total Common Stocks and Other Equity Interests (Cost $117,614,248)		107,575,021
		Money Market Fund—0.1%
	85,595	Invesco Premier Portfolio—Institutional Class(c) (Cost $85,595)		85,595
		Total Investments (Cost $117,699,843)—100.0%		107,660,616
		Other assets less liabilities—(0.0)%		(23,717	)
		Net Assets—100.0%	$	107,636,899

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 Food & Beverage Portfolio (PBJ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Packaged Foods & Meats	44.3
Soft Drinks	16.6
Agricultural Products	9.9
Food Retail	7.9
Food Distributors	7.4
Distillers & Vintners	5.4
Distributors	3.2
Restaurants	2.7
Brewers	2.6
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Agricultural Products—9.9%
	250,142	Archer-Daniels-Midland Co.	$	11,756,674
	80,365	Bunge Ltd.		7,124,357
	85,293	Ingredion, Inc.		6,588,884
				25,469,915
		Brewers—2.6%
	91,994	Molson Coors Brewing Co., Class B		6,842,514
		Distillers & Vintners—5.4%
	73,416	Brown-Forman Corp., Class B		6,803,461
	78,113	Constellation Brands, Inc., Class A(b)		7,150,464
				13,953,925
		Distributors—3.2%
	141,257	Core-Mark Holding Co., Inc.		8,197,144
		Food Distributors—7.4%
	98,923	Andersons, Inc. (The)		6,304,363
	329,687	Sysco Corp.		12,706,137
				19,010,500
		Food Retail—7.9%
	244,647	Kroger Co. (The)		13,629,284
	195,599	Safeway, Inc.		6,818,581
				20,447,865
		Packaged Foods & Meats—44.3%
	85,994	Cal-Maine Foods, Inc.		7,549,413
	233,647	General Mills, Inc.		12,140,298
	71,829	J & J Snack Foods Corp.		7,400,542
	191,966	Kellogg Co.		12,278,145
	93,550	Keurig Green Mountain, Inc.		14,196,213
	344,625	Mondelez International, Inc., Class A		12,151,478

Number of Shares			Value
		Common Stocks (continued)
		Packaged Foods & Meats (continued)
	227,752	Pilgrim’s Pride Corp.(b)	$	6,470,434
	210,228	Pinnacle Foods, Inc.		7,105,706
	73,353	Sanderson Farms, Inc.		6,160,185
	2,346	Seaboard Corp.(b)		7,208,953
	82,440	TreeHouse Foods, Inc.(b)		7,021,415
	178,742	Tyson Foods, Inc., Class A		7,212,240
	194,258	WhiteWave Foods Co. (The)(b)		7,232,225
				114,127,247
		Restaurants—2.7%
	212,326	Burger King Worldwide, Inc.		6,938,814
		Soft Drinks—16.6%
	91,486	Coca-Cola Bottling Co. Consolidated		8,273,994
	142,380	Coca-Cola Enterprises, Inc.		6,172,173
	108,121	Dr Pepper Snapple Group, Inc.		7,487,379
	76,948	Monster Beverage Corp.(b)		7,762,514
	134,847	PepsiCo, Inc.		12,968,236
				42,664,296
		Total Common Stocks (Cost $231,920,504)		257,652,220
		Money Market Fund—0.0%
	118,578	Invesco Premier Portfolio—Institutional Class(c) (Cost $118,578)		118,578
		Total Investments (Cost $232,039,082)—100.0%		257,770,798
		Other assets less liabilities—0.0%		(77,695	)
		Net Assets—100.0%	$	257,693,103

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

8

PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)

October 31, 2014

(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.

9

Portfolio Composition

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Hotels, Resorts & Cruise Lines	34.0
Restaurants	28.4
Movies & Entertainment	15.4
Internet Retail	9.7
Casinos & Gaming	7.4
Cable & Satellite	2.6
Leisure Facilities	2.6
Money Market Fund Plus Other Assets Less Liabilities	(0.1)

Schedule of Investments^(a)

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Cable & Satellite—2.6%
	121,164	Starz, Class A(b)	$	3,743,968
		Casinos & Gaming—7.4%
	154,932	MGM Resorts International(b)		3,602,169
	36,035	Wynn Resorts Ltd.		6,847,010
				10,449,179
		Hotels, Resorts & Cruise Lines—34.0%
	70,000	Choice Hotels International, Inc.		3,745,000
	151,526	Diamond Resorts International, Inc.(b)		3,933,615
	274,507	Hilton Worldwide Holdings, Inc.(b)		6,928,557
	62,061	Hyatt Hotels Corp., Class A(b)		3,675,252
	191,958	La Quinta Holdings, Inc.(b)		3,917,863
	100,152	Marriott International, Inc., Class A		7,586,514
	63,623	Marriott Vacations Worldwide Corp.		4,417,981
	59,461	Royal Caribbean Cruises Ltd.		4,041,564
	82,852	Starwood Hotels & Resorts Worldwide, Inc.		6,351,434
	46,840	Wyndham Worldwide Corp.		3,638,063
				48,235,843
		Internet Retail—9.7%
	44,132	Expedia, Inc.		3,749,896
	462,339	Orbitz Worldwide, Inc.(b)		3,823,543
	70,142	TripAdvisor, Inc.(b)		6,218,790
				13,792,229
		Leisure Facilities—2.6%
	76,603	Cedar Fair LP		3,620,258
		Movies & Entertainment—15.4%
	107,428	Cinemark Holdings, Inc.		3,794,357
	116,975	Lions Gate Entertainment Corp.		3,875,382

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Movies & Entertainment (continued)
	90,230	Time Warner, Inc.	$	7,170,578
	77,333	Walt Disney Co. (The)		7,066,689
				21,907,006
		Restaurants—28.4%
	146,378	Aramark		4,085,410
	77,527	Brinker International, Inc.		4,158,548
	118,327	Burger King Worldwide, Inc.		3,866,927
	10,243	Chipotle Mexican Grill, Inc.(b)		6,535,034
	45,566	DineEquity, Inc.		4,053,551
	50,249	Domino’s Pizza, Inc.		4,461,609
	117,339	El Pollo Loco Holdings, Inc.(b)		4,183,135
	63,771	Jack in the Box, Inc.		4,530,292
	179,592	Sonic Corp.(b)		4,527,514
				40,402,020
		Total Common Stocks and Other Equity Interests (Cost $131,144,434)		142,150,503
		Money Market Fund—0.0%
	51,800	Invesco Premier Portfolio—Institutional Class(c) (Cost $51,800)		51,800
		Total Investments (Cost $131,196,234)—100.1%		142,202,303
		Other assets less liabilities—(0.1%)		(124,113	)
		Net Assets—100.0%	$	142,078,190

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, 2014

(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, 2014 (Unaudited)
Cable & Satellite	20.6
Internet Software & Services	20.4
Movies & Entertainment	16.3
Broadcasting	11.0
Publishing	10.7
Advertising	8.2
Internet Retail	4.2
Specialized Finance	3.1
Catalog Retail	3.0
Research & Consulting Services	2.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dynamic Media Portfolio (PBS)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Advertising—8.2%
	238,524	Interpublic Group of Cos., Inc. (The)	$	4,624,980
	88,767	Lamar Advertising Co., Class A		4,584,816
	64,689	Omnicom Group, Inc.		4,648,551
				13,858,347
		Broadcasting—11.0%
	199,762	LIN Media LLC, Class A(b)		4,780,305
	102,067	Nexstar Broadcasting Group, Inc., Class A		4,605,263
	58,442	Scripps Networks Interactive, Inc., Class A		4,514,060
	160,357	Sinclair Broadcast Group, Inc., Class A		4,658,371
				18,557,999
		Cable & Satellite—20.6%
	251,664	Cablevision Systems Corp., Class A		4,685,984
	98,790	DIRECTV(b)		8,573,984
	131,774	DISH Network Corp., Class A(b)		8,387,415
	148,879	Starz, Class A(b)		4,600,361
	57,734	Time Warner Cable, Inc.		8,499,022
				34,746,766
		Catalog Retail—3.0%
	76,886	HSN, Inc.		5,079,858
		Internet Retail—4.2%
	17,878	Netflix, Inc.(b)		7,021,942
		Internet Software & Services—20.4%
	169,148	Conversant, Inc.(b)		5,962,467
	114,148	Facebook, Inc., Class A(b)		8,559,958
	65,793	Shutterstock, Inc.(b)		5,116,064

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	171,670	Twitter, Inc.(b)	$	7,119,155
	96,349	WebMD Health Corp.(b)		4,112,175
	32,477	Zillow, Inc., Class A(b)		3,531,224
				34,401,043
		Movies & Entertainment—16.3%
	143,736	Lions Gate Entertainment Corp.		4,761,974
	69,673	Madison Square Garden Co. (The), Class A(b)		5,278,426
	110,868	Time Warner, Inc.		8,810,680
	95,020	Walt Disney Co. (The)		8,682,928
				27,534,008
		Publishing—10.7%
	137,983	Gannett Co., Inc.		4,346,464
	77,709	John Wiley & Sons, Inc., Class A		4,537,429
	132,945	Scholastic Corp.		4,627,815
	198,401	Time, Inc.(b)		4,481,879
				17,993,587
		Research & Consulting Services—2.5%
	32,696	IHS, Inc., Class A(b)		4,284,157
		Specialized Finance—3.1%
	57,416	McGraw Hill Financial, Inc.		5,195,000
		Total Common Stocks (Cost $166,144,006)		168,672,707

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

12

PowerShares Dynamic Media Portfolio (PBS) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.1%
	103,825	Invesco Premier Portfolio—Institutional Class(c) (Cost $103,825)	$	103,825
		Total Investments (Cost $166,247,831)—100.1%		168,776,532
		Other assets less liabilities—(0.1%)		(142,850	)
		Net Assets—100.0%	$	168,633,682

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.

13

Portfolio Composition

PowerShares Dynamic Networking Portfolio (PXQ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Communications Equipment	53.2
Systems Software	19.0
Application Software	9.6
Semiconductors	7.7
Electronic Components	7.5
Internet Software & Services	3.0
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Networking Portfolio (PXQ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—9.6%
	19,868	Citrix Systems, Inc.(b)	$	1,276,121
	16,527	NetScout Systems, Inc.(b)		609,185
	17,794	SolarWinds, Inc.(b)		846,105
				2,731,411
		Communications Equipment—53.2%
	32,990	ADTRAN, Inc.		699,718
	9,081	Arista Networks, Inc.(b)		737,831
	24,875	ARRIS Group, Inc.(b)		746,747
	35,663	Aruba Networks, Inc.(b)		769,608
	72,172	Brocade Communications Systems, Inc.		774,406
	36,801	Ciena Corp.(b)		616,785
	55,859	Cisco Systems, Inc.		1,366,870
	6,131	F5 Networks, Inc.(b)		753,990
	71,967	Infinera Corp.(b)		1,045,681
	32,834	Juniper Networks, Inc.		691,812
	23,500	Motorola Solutions, Inc.		1,515,750
	22,920	NETGEAR, Inc.(b)		780,197
	8,959	Palo Alto Networks, Inc.(b)		946,966
	18,343	QUALCOMM, Inc.		1,440,109
	40,415	Riverbed Technology, Inc.(b)		767,481
	54,738	Ruckus Wireless, Inc.(b)		710,499
	201,966	Sonus Networks, Inc.(b)		700,822
				15,065,272
		Electronic Components—7.5%
	27,102	Amphenol Corp., Class A		1,370,819
	10,420	Belden, Inc.		741,800
				2,112,619
		Internet Software & Services—3.0%
	18,009	LogMeIn, Inc.(b)		865,332

Number of Shares			Value
		Common Stocks (continued)
		Semiconductors—7.7%
	35,447	Broadcom Corp., Class A	$	1,484,520
	13,553	Cavium, Inc.(b)		695,405
				2,179,925
		Systems Software—19.0%
	30,640	Barracuda Networks, Inc.(b)		985,076
	49,431	CA, Inc.		1,436,465
	29,501	Fortinet, Inc.(b)		768,501
	31,334	Qualys, Inc.(b)		1,005,195
	14,160	VMware, Inc., Class A(b)		1,183,351
				5,378,588
		Total Common Stocks (Cost $24,047,972)		28,333,147
		Money Market Fund—0.2%
	60,237	Invesco Premier Portfolio—Institutional Class(c) (Cost $60,237)		60,237
		Total Investments (Cost $24,108,209)—100.2%		28,393,384
		Other assets less liabilities—(0.2%)		(58,959	)
		Net Assets—100.0%	$	28,334,425

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, 2014 (Unaudited)
Oil & Gas Equipment & Services	75.8
Oil & Gas Drilling	24.1
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Oil & Gas Drilling—24.1%
	67,390	Atwood Oceanics, Inc.(b)	$	2,739,403
	31,695	Helmerich & Payne, Inc.		2,751,760
	122,373	Nabors Industries Ltd.		2,184,358
	117,000	Noble Corp. PLC		2,447,640
	357,271	Paragon Offshore PLC(b)		1,739,910
	530,219	Parker Drilling Co.(b)		2,354,172
	96,402	Patterson-UTI Energy, Inc.		2,220,138
	216,500	Pioneer Energy Services Corp.(b)		1,987,470
	157,948	Transocean Ltd.		4,711,589
				23,136,440
		Oil & Gas Equipment & Services—75.8%
	88,293	Baker Hughes, Inc.		4,675,997
	137,534	Basic Energy Services, Inc.(b)		1,774,189
	82,125	Cameron International Corp.(b)		4,890,544
	123,372	Compressco Partners LP		2,646,329
	21,076	Core Laboratories NV		2,940,734
	32,814	Dril-Quip, Inc.(b)		2,951,619
	71,409	Exterran Holdings, Inc.		2,808,516
	98,715	FMC Technologies, Inc.(b)		5,531,989
	97,787	Forum Energy Technologies, Inc.(b)		2,669,585
	90,290	Halliburton Co.		4,978,591
	121,877	Helix Energy Solutions Group, Inc.(b)		3,246,803
	528,534	Key Energy Services, Inc.(b)		1,606,743
	70,631	National Oilwell Varco, Inc.		5,130,636
	270,052	Newpark Resources, Inc.(b)		3,086,694
	47,868	Oceaneering International, Inc.		3,363,684
	51,581	Oil States International, Inc.(b)		3,081,449
	146,232	RPC, Inc.		2,398,205
	55,678	Schlumberger Ltd.		5,493,192
	92,908	Superior Energy Services, Inc.		2,336,636
	156,919	Tesco Corp.		2,987,738
	257,688	Weatherford International PLC(b)		4,231,237
				72,831,110
		Total Common Stocks and Other Equity Interests (Cost $104,541,930)		95,967,550

Number of Shares			Value
		Money Market Fund—0.1%
	48,882	Invesco Premier Portfolio—Institutional Class(c) (Cost $48,882)	$	48,882
		Total Investments (Cost $104,590,812)—100.0%		96,016,432
		Other assets less liabilities—0.0%		9,303
		Net Assets—100.0%	$	96,025,735

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, 2014 (Unaudited)
Pharmaceuticals	68.2
Biotechnology	26.1
Health Care Equipment	5.7
Money Market Funds Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—26.1%
	482,689	Amgen, Inc.	$	78,282,502
	196,114	Biogen Idec, Inc.(b)		62,968,283
	708,046	Celgene Corp.(b)		75,824,646
	625,369	Gilead Sciences, Inc.(b)		70,041,328
	816,521	Ligand Pharmaceuticals, Inc.(b)		45,129,116
	9,060,046	Novavax, Inc.(b)(c)		50,736,258
				382,982,133
		Health Care Equipment—5.7%
	1,005,941	Abbott Laboratories		43,848,968
	566,707	Baxter International, Inc.		39,748,829
				83,597,797
		Pharmaceuticals—68.2%
	187,190	Actavis PLC(b)		45,438,501
	1,088,974	Akorn, Inc.(b)		48,513,792
	259,606	Allergan, Inc.		49,340,716
	2,284,487	Auxilium Pharmaceuticals, Inc.(b)(c)		73,491,947
	2,655,722	BioDelivery Sciences International, Inc.(b)(d)		46,209,563
	1,328,292	Bristol-Myers Squibb Co.		77,293,311
	2,768,192	Depomed, Inc.(b)		42,630,157
	668,516	Eli Lilly & Co.		44,342,666
	790,675	Hospira, Inc.(b)		42,459,248
	1,724,499	Impax Laboratories, Inc.(b)		49,958,736
	648,604	Johnson & Johnson		69,906,539
	1,079,029	Lannett Co., Inc.(b)		61,202,525
	1,659,179	Medicines Co. (The)(b)		42,010,412
	1,119,261	Merck & Co., Inc.		64,849,982
	874,303	Mylan, Inc.(b)		46,818,926
	285,681	Perrigo Co. PLC		46,123,197
	2,289,155	Pfizer, Inc.		68,560,192
	1,227,736	Prestige Brands Holdings, Inc.(b)		43,486,409
	267,049	Salix Pharmaceuticals Ltd.(b)		38,414,999
				1,001,051,818
		Total Common Stocks (Cost $1,153,322,633)		1,467,631,748

Number of Shares			Value
		Money Market Fund—0.0%
	104,571	Invesco Premier Portfolio—Institutional Class(e) (Cost $104,571)	$	104,571
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,153,427,204)—100.0%		1,467,736,319
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.0%
	58,383,075	Invesco Liquid Assets Portfolio—Institutional Class(e)(f) (Cost $58,383,075)		58,383,075
		Total Investments (Cost $1,211,810,279)—104.0%		1,526,119,394
		Other assets less liabilities—(4.0%)		(58,561,128	)
		Net Assets—100.0%	$	1,467,558,266

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, 2014.

^(d)  Affiliated investments. See Note 4.

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

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

16

PowerShares Dynamic Pharmaceuticals Portfolio (PJP) (continued)

October 31, 2014

(Unaudited)

^(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	56,926,753	$	(56,926,753	)	$	—

* Amount does not include excess collateral received, if any.

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

17

Portfolio Composition

PowerShares Dynamic Retail Portfolio (PMR)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Food Retail	18.8
Apparel Retail	17.2
Hypermarkets & Super Centers	13.0
Drug Retail	12.8
Automotive Retail	11.1
General Merchandise Stores	5.8
Home Improvement Retail	5.1
Department Stores	5.0
Forest Products	3.2
Homefurnishing Retail	3.0
Food Distributors	2.8
Trucking	2.2
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dynamic Retail Portfolio (PMR)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Apparel Retail—17.2%
	15,580	Brown Shoe Co., Inc.	$	414,272
	13,410	Cato Corp. (The), Class A		478,335
	8,286	Foot Locker, Inc.		464,099
	18,454	Gap, Inc. (The)		699,222
	5,862	Genesco, Inc.(b)		449,557
	14,372	Zumiez, Inc.(b)		479,737
				2,985,222
		Automotive Retail—11.1%
	3,407	Advance Auto Parts, Inc.		500,692
	6,672	Asbury Automotive Group, Inc.(b)		467,307
	5,460	O’Reilly Automotive, Inc.(b)		960,305
				1,928,304
		Department Stores—5.0%
	4,068	Dillard’s, Inc., Class A		430,232
	7,909	Kohl’s Corp.		428,826
				859,058
		Drug Retail—12.8%
	10,719	CVS Health Corp.		919,797
	74,747	Rite Aid Corp.(b)		392,422
	14,072	Walgreen Co.		903,704
				2,215,923
		Food Distributors—2.8%
	21,634	SpartanNash Co.		484,818

Number of Shares			Value
		Common Stocks (continued)
		Food Retail—18.8%
	13,941	Fresh Market, Inc. (The)(b)	$	511,774
	16,704	Kroger Co. (The)		930,580
	13,367	Safeway, Inc.		465,974
	15,027	Sprouts Farmers Market, Inc.(b)		437,436
	48,683	SUPERVALU, Inc.(b)		420,134
	10,824	Weis Markets, Inc.		483,183
				3,249,081
		Forest Products—3.2%
	15,467	Boise Cascade Co.(b)		557,740
		General Merchandise Stores—5.8%
	10,031	Big Lots, Inc.		457,915
	13,035	Burlington Stores, Inc.(b)		546,688
				1,004,603
		Home Improvement Retail—5.1%
	9,108	Home Depot, Inc. (The)		888,212
		Homefurnishing Retail—3.0%
	8,115	Mattress Firm Holding Corp.(b)		512,787
		Hypermarkets & Super Centers—13.0%
	7,035	Costco Wholesale Corp.		938,258
	5,188	PriceSmart, Inc.		461,888
	11,280	Wal-Mart Stores, Inc.		860,325
				2,260,471

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

18

PowerShares Dynamic Retail Portfolio (PMR) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Trucking—2.2%
	6,887	Avis Budget Group, Inc.(b)	$	383,950
		Total Common Stocks (Cost $16,506,208)		17,330,169
		Money Market Fund—0.3%
	44,245	Invesco Premier Portfolio—Institutional Class(c) (Cost $44,245)		44,245
		Total Investments (Cost $16,550,453)—100.3%		17,374,414
		Other assets less liabilities—(0.3%)		(49,558	)
		Net Assets—100.0%	$	17,324,856

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 Semiconductors Portfolio (PSI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Semiconductors	71.6
Semiconductor Equipment	23.2
Communications Equipment	5.3
Money Market Fund Plus Other Assets Less Liabilities	(0.1)

Schedule of Investments^(a)

PowerShares Dynamic Semiconductors Portfolio (PSI)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.1%
		Communications Equipment—5.3%
	20,026	QUALCOMM, Inc.	$	1,572,241
		Semiconductor Equipment—23.2%
	79,931	Amkor Technology, Inc.(b)		541,932
	65,961	Applied Materials, Inc.		1,457,079
	19,943	KLA-Tencor Corp.		1,578,488
	56,587	Kulicke & Soffa Industries, Inc. (Singapore)(b)		815,985
	21,193	Lam Research Corp.		1,650,087
	24,493	MKS Instruments, Inc.		891,545
				6,935,116
		Semiconductors—71.6%
	24,269	Ambarella, Inc.(b)		1,074,874
	38,699	Broadcom Corp., Class A		1,620,714
	34,378	Cirrus Logic, Inc.(b)		663,495
	32,663	Diodes, Inc.(b)		843,685
	47,368	Fairchild Semiconductor International, Inc.(b)		727,099
	39,492	Freescale Semiconductor Ltd.(b)		785,496
	50,534	Integrated Device Technology, Inc.(b)		829,263
	43,643	Intel Corp.		1,484,299
	55,253	Intersil Corp., Class A		734,312
	110,690	Lattice Semiconductor Corp.(b)		742,730
	59,760	Marvell Technology Group Ltd.		803,174
	66,343	Micrel, Inc.		805,404
	17,025	Microchip Technology, Inc.		733,948
	46,749	Micron Technology, Inc.(b)		1,546,924
	17,398	Monolithic Power Systems, Inc.		768,818
	42,740	NVIDIA Corp.		835,140
	30,662	OmniVision Technologies, Inc.(b)		821,128
	85,172	ON Semiconductor Corp.(b)		706,076
	112,640	PMC-Sierra, Inc.(b)		877,466
	14,670	Skyworks Solutions, Inc.		854,381
	37,279	Spansion, Inc., Class A(b)		767,202
	31,632	Texas Instruments, Inc.		1,570,845
	40,226	TriQuint Semiconductor, Inc.(b)		870,088
				21,466,561
		Total Common Stocks (Cost $26,498,196)		29,973,918

Number of Shares			Value
		Money Market Fund—0.1%
	41,874	Invesco Premier Portfolio—Institutional Class(c) (Cost $41,874)	$	41,874
		Total Investments (Cost $26,540,070)—100.2%		30,015,792
		Other assets less liabilities—(0.2%)		(49,489	)
		Net Assets—100.0%	$	29,966,303

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 Software Portfolio (PSJ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Application Software	40.0
Health Care Technology	13.9
Home Entertainment Software	12.4
Systems Software	12.1
Internet Software & Services	6.1
IT Consulting & Other Services	4.9
Data Processing & Outsourced Services	2.8
Semiconductor Equipment	2.7
Communications Equipment	2.7
Electronic Components	2.4
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dynamic Software Portfolio (PSJ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—40.0%
	34,380	Adobe Systems, Inc.(b)	$	2,410,726
	32,814	Aspen Technology, Inc.(b)		1,211,821
	46,084	Autodesk, Inc.(b)		2,651,673
	76,435	Cadence Design Systems, Inc.(b)		1,372,008
	101,251	King Digital Entertainment PLC (Ireland)		1,154,261
	46,686	Manhattan Associates, Inc.(b)		1,872,575
	29,266	NetScout Systems, Inc.(b)		1,078,745
	75,241	Paycom Software, Inc.(b)		1,335,528
	34,850	PTC, Inc.(b)		1,329,528
	31,510	SolarWinds, Inc.(b)		1,498,301
	29,791	SS&C Technologies Holdings, Inc.(b)		1,439,501
	32,965	Synopsys, Inc.(b)		1,350,906
	26,896	Verint Systems, Inc.(b)		1,546,251
				20,251,824
		Communications Equipment—2.7%
	71,566	Riverbed Technology, Inc.(b)		1,359,038
		Data Processing & Outsourced Services—2.8%
	14,527	DST Systems, Inc.		1,399,677
		Electronic Components—2.4%
	28,946	Dolby Laboratories, Inc., Class A		1,213,416
		Health Care Technology—13.9%
	42,871	Cerner Corp.(b)		2,715,449
	21,944	Computer Programs & Systems, Inc.		1,382,033
	51,938	HealthStream, Inc.(b)		1,608,001
	44,988	Veeva Systems, Inc., Class A(b)		1,339,743
				7,045,226

Number of Shares			Value
		Common Stocks (continued)
		Home Entertainment Software—12.4%
	105,009	Activision Blizzard, Inc.	$	2,094,930
	65,325	Electronic Arts, Inc.(b)		2,676,365
	57,350	Take-Two Interactive Software, Inc.(b)		1,516,907
				6,288,202
		Internet Software & Services—6.1%
	43,256	Constant Contact, Inc.(b)		1,529,532
	31,890	LogMeIn, Inc.(b)		1,532,315
				3,061,847
		IT Consulting & Other Services—4.9%
	52,483	Amdocs Ltd.		2,495,042
		Semiconductor Equipment—2.7%
	45,598	Tessera Technologies, Inc.		1,385,723
		Systems Software—12.1%
	54,411	Microsoft Corp.		2,554,596
	59,521	Oracle Corp.		2,324,295
	58,294	Rovi Corp.(b)		1,217,179
				6,096,070
		Total Common Stocks (Cost $45,214,862)		50,596,065

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

21

PowerShares Dynamic Software Portfolio (PSJ) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.1%
	42,922	Invesco Premier Portfolio—Institutional Class(c) (Cost $42,922)	$	42,922
		Total Investments (Cost $45,257,784)—100.1%		50,638,987
		Other assets less liabilities—(0.1%)		(73,390	)
		Net Assets—100.0%	$	50,565,597

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

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

October 31, 2014

(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)	$	431,289,063		$	69,143,076		$	107,575,021		$	257,652,220		$	142,150,503
Affiliated investments, at value		56,196,168			79,609			85,595			118,578			51,800
Total investments, at value		487,485,231			69,222,685			107,660,616			257,770,798			142,202,303
Cash		8,275			841			1,190			7,715			4,223
Receivables:
Shares sold		4,984,362			—			—			—			—
Securities lending		98,270			—			—			—			—
Dividends		3			22,146			103,226			150,881			23,370
Investments sold		—			—			—			—			—
Other assets		1,637			1,332			1,361			1,111			1,370
Total Assets		492,577,778			69,247,004			107,766,393			257,930,505			142,231,266
Liabilities:
Payables:
Collateral upon return of securities loaned		56,112,407			—			—			—			—
Investments purchased		4,984,684			—			—			—			—
Expenses recaptured		—			—			819			—			3,012
Accrued advisory fees		168,552			31,196			47,519			98,134			58,761
Accrued trustees’ and officer’s fees		21,162			13,403			15,601			17,949			13,633
Accrued expenses		138,212			61,501			65,555			121,319			77,670
Total Liabilities		61,425,017			106,100			129,494			237,402			153,076
Net Assets	$	431,152,761		$	69,140,904		$	107,636,899		$	257,693,103		$	142,078,190
Net Assets Consist of:
Shares of beneficial interest	$	487,877,744		$	86,555,608		$	165,715,168		$	251,501,532		$	146,453,066
Undistributed net investment income (loss)		(192,425	)		39,762			65,651			301,881			(26,448	)
Undistributed net realized gain (loss)		(137,466,958	)		(16,518,944	)		(48,104,693	)		(19,842,026	)		(15,354,497	)
Net unrealized appreciation (depreciation)		80,934,400			(935,522	)		(10,039,227	)		25,731,716			11,006,069
Net Assets	$	431,152,761		$	69,140,904		$	107,636,899		$	257,693,103		$	142,078,190
Shares outstanding (unlimited amount authorized, $0.01 par value)		8,650,000			3,200,000			3,400,000			8,700,000			4,150,000
Net asset value	$	49.84		$	21.61		$	31.66		$	29.62		$	34.24
Market price	$	49.83		$	21.60		$	31.67		$	29.62		$	34.24
Unaffiliated investments, at cost	$	350,354,663		$	70,078,598		$	117,614,248		$	231,920,504		$	131,144,434
Affiliated investments, at cost	$	56,196,168		$	79,609		$	85,595		$	118,578		$	51,800
Total investments, at cost	$	406,550,831		$	70,158,207		$	117,699,843		$	232,039,082		$	131,196,234
(a) Includes securities on loan with an aggregate value of	$	54,579,514		$	—		$	—		$	—		$	—

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)
$	168,672,707		$	28,333,147		$	95,967,550		$	1,421,422,185	$	17,330,169		$	29,973,918		$	50,596,065
	103,825			60,237			48,882			104,697,209		44,245			41,874			42,922
	168,776,532			28,393,384			96,016,432			1,526,119,394		17,374,414			30,015,792			50,638,987
	9,497			218			1,672			33,841		534			—			1,040
	—			—			6,662,045			10,310,437		—			—			—
	—			—			—			73,827		—			—			—
	29,149			2,970			74,237			656,148		6,513			10,756			2,895
	—			—			52,793			—		—			—			—
	1,280			1,247			1,105			3,047		1,225			1,269			1,263
	168,816,458			28,397,819			102,808,284			1,537,196,694		17,382,686			30,027,817			50,644,185
	—			—			—			58,383,075		—			—			—
	—			—			6,657,169			10,309,017		—			—			—
	—			—			—			—		—			—			—
	67,171			5,799			38,972			549,667		1,959			6,630			16,035
	15,602			12,760			21,191			26,401		12,009			12,545			13,133
	100,003			44,835			65,217			370,268		43,862			42,339			49,420
	182,776			63,394			6,782,549			69,638,428		57,830			61,514			78,588
$	168,633,682		$	28,334,425		$	96,025,735		$	1,467,558,266	$	17,324,856		$	29,966,303		$	50,565,597
$	214,494,718		$	57,972,875		$	300,867,588		$	1,057,673,789	$	35,823,493		$	79,211,994		$	69,267,872
	4,130			(35,813	)		2,636			135,604		2,870			(16,777	)		22,863
	(48,393,867	)		(33,887,812	)		(196,270,109	)		95,439,758		(19,325,468	)		(52,704,636	)		(24,106,341	)
	2,528,701			4,285,175			(8,574,380	)		314,309,115		823,961			3,475,722			5,381,203
$	168,633,682		$	28,334,425		$	96,025,735		$	1,467,558,266	$	17,324,856		$	29,966,303		$	50,565,597
	6,750,000			850,000			4,300,000			21,350,000		500,000			1,300,000			1,350,000
$	24.98		$	33.33		$	22.33		$	68.74	$	34.65		$	23.05		$	37.46
$	24.98		$	33.34		$	22.33		$	68.76	$	34.65		$	23.06		$	37.45
$	166,144,006		$	24,047,972		$	104,541,930		$	1,110,407,647	$	16,506,208		$	26,498,196		$	45,214,862
$	103,825		$	60,237		$	48,882		$	101,402,632	$	44,245		$	41,874		$	42,922
$	166,247,831		$	24,108,209		$	104,590,812		$	1,211,810,279	$	16,550,453		$	26,540,070		$	45,257,784
$	—		$	—		$	—		$	56,926,753	$	—		$	—		$	—

25

Statements of Operations

For the six months ended October 31, 2014

(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	$	2,365,227		$	466,265		$	1,191,144		$	2,490,837		$	902,711
Affiliated income money market		18			7			10			15			8
Securities lending income		841,569			—			—			—			—
Foreign withholding tax		—			—			—			—			(1,317	)
Total Income		3,206,814			466,272			1,191,154			2,490,852			901,402
Expenses:
Advisory fees		955,863			284,980			344,899			827,486			399,478
Sub-licensing		57,352			17,099			20,694			49,649			23,969
Accounting & administration fees		40,120			18,467			18,467			39,795			19,266
Professional fees		15,016			14,323			13,951			15,327			14,087
Recapture (Note 3)		—			6,589			18,519			—			24,704
Trustees’ and officer’s fees		7,115			4,830			5,020			7,108			5,212
Custodian & transfer agent fees		4,015			2,218			2,594			4,429			2,955
Other expenses		17,237			10,568			10,429			12,656			13,671
Total Expenses		1,096,718			359,074			434,573			956,450			503,342
Less: Waivers		(206	)		(74	)		(80	)		(159	)		(87	)
Net Expenses		1,096,512			359,000			434,493			956,291			503,255
Net Investment Income (Loss)		2,110,302			107,272			756,661			1,534,561			398,147
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		5,943,974			(2,724,738	)		(4,156,436	)		(13,080,984	)		(6,945,445	)
In-kind redemptions		18,866,899			5,032,914			6,108,145			33,088,149			4,440,935
Net realized gain (loss)		24,810,873			2,308,176			1,951,709			20,007,165			(2,504,510	)
Net change in unrealized appreciation (depreciation) on investment securities		62,466,521			(8,106,833	)		(25,682,467	)		8,903,891			10,623,145
Net realized and unrealized gain (loss)		87,277,394			(5,798,657	)		(23,730,758	)		28,911,056			8,118,635
Net increase (decrease) in net assets resulting from operations	$	89,387,696		$	(5,691,385	)	$	(22,974,097	)	$	30,445,617		$	8,516,782

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

26

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)
$	810,207		$	77,496		$	693,331		$	6,171,479		$	112,474		$	150,031		$	217,417
	8			5			7			41			4			4			4
	—			—			—			223,070			—			—			—
	(2,682	)		—			(5,393	)		—			—			—			—
	807,533			77,501			687,945			6,394,590			112,478			150,035			217,421
	421,587			71,730			295,363			2,989,754			53,653			61,439			129,684
	25,295			4,304			17,722			179,385			3,219			3,686			7,781
	24,270			18,467			18,467			115,686			18,467			18,467			18,467
	15,009			13,514			13,814			19,857			12,983			12,859			13,209
	—			—			—			—			—			—			—
	5,232			3,980			4,880			14,066			3,883			3,909			4,178
	3,728			1,663			2,793			7,401			2,100			1,828			2,038
	14,897			7,950			11,724			33,237			7,540			6,933			8,439
	510,018			121,608			364,763			3,359,386			101,845			109,121			183,796
	(86	)		(31,280	)		(74	)		(403	)		(34,289	)		(31,746	)		(20,440	)
	509,932			90,328			364,689			3,358,983			67,556			77,375			163,356
	297,601			(12,827	)		323,256			3,035,607			44,922			72,660			54,065
	(8,874,680	)		(1,289,589	)		(2,560,696	)		36,411,408			(1,338,241	)		(455,441	)		(3,469,270	)
	9,452,946			2,711,097			8,754,422			66,297,290			1,203,486			1,987,972			2,107,843
	578,266			1,421,508			6,193,726			102,708,698			(134,755	)		1,532,531			(1,361,427	)
	8,312,538			518,729			(29,230,529	)		118,939,821			857,633			1,085,801			6,267,527
	8,890,804			1,940,237			(23,036,803	)		221,648,519			722,878			2,618,332			4,906,100
$	9,188,405		$	1,927,410		$	(22,713,547	)	$	224,684,126		$	767,800		$	2,690,992		$	4,960,165

27

Statements of Changes in Net Assets

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)						PowerShares Dynamic Building & Construction Portfolio (PKB)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income	$	2,110,302		$	244,059		$	107,272		$	11,556
Net realized gain (loss)		24,810,873			87,977,271			2,308,176			15,368,923
Net change in unrealized appreciation (depreciation)		62,466,521			(20,969,168	)		(8,106,833	)		(5,474,689	)
Net increase (decrease) in net assets resulting from operations		89,387,696			67,252,162			(5,691,385	)		9,905,790
Distributions to Shareholders from:
Net investment income		(2,402,943	)		—			(25,368	)		—
Shareholder Transactions:
Proceeds from shares sold		33,504,768			370,953,512			38,347,373			98,038,267
Value of shares repurchased		(50,656,470	)		(232,339,347	)		(87,177,724	)		(88,376,874	)
Net increase (decrease) in net assets resulting from shares transactions		(17,151,702	)		138,614,165			(48,830,351	)		9,661,393
Increase (Decrease) in Net Assets		69,833,051			205,866,327			(54,547,104	)		19,567,183
Net Assets:
Beginning of period		361,319,710			155,453,383			123,688,008			104,120,825
End of period	$	431,152,761		$	361,319,710		$	69,140,904		$	123,688,008
Undistributed net investment income (loss) at end of period	$	(192,425	)	$	100,216		$	39,762		$	(42,142	)
Changes in Shares Outstanding:
Shares sold		700,000			9,650,000			1,750,000			4,600,000
Shares repurchased		(1,150,000	)		(6,050,000	)		(4,150,000	)		(4,300,000	)
Shares outstanding, beginning of period		9,100,000			5,500,000			5,600,000			5,300,000
Shares outstanding, end of period		8,650,000			9,100,000			3,200,000			5,600,000

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

28

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, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	756,661		$	1,548,772		$	1,534,561		$	4,131,010		$	398,147		$	760,630		$	297,601		$	947,374
	1,951,709			19,166,300			20,007,165			36,856,531			(2,504,510	)		32,569,351			578,266			64,610,167
	(25,682,467	)		4,474,440			8,903,891			(2,492,106	)		10,623,145			(13,361,430	)		8,312,538			(27,651,727	)
	(22,974,097	)		25,189,512			30,445,617			38,495,435			8,516,782			19,968,551			9,188,405			37,905,814
	(1,256,357	)		(1,698,221	)		(3,594,277	)		(1,980,743	)		(519,579	)		(649,713	)		(397,467	)		(902,729	)
	86,964,327			188,944,898			92,745,442			418,924,441			19,870,435			250,556,813			106,852,679			437,394,072
	(85,369,872	)		(186,590,268	)		(296,275,029	)		(257,294,105	)		(63,719,254	)		(177,711,187	)		(118,439,643	)		(453,755,849	)
	1,594,455			2,354,630			(203,529,587	)		161,630,336			(43,848,819	)		72,845,626			(11,586,964	)		(16,361,777	)
	(22,635,999	)		25,845,921			(176,678,247	)		198,145,028			(35,851,616	)		92,164,464			(2,796,026	)		20,641,308
	130,272,898			104,426,977			434,371,350			236,226,322			177,929,806			85,765,342			171,429,708			150,788,400
$	107,636,899		$	130,272,898		$	257,693,103		$	434,371,350		$	142,078,190		$	177,929,806		$	168,633,682		$	171,429,708
$	65,651		$	565,347		$	301,881		$	2,361,597		$	(26,448	)	$	94,984		$	4,130		$	103,996
	2,350,000			5,850,000			3,300,000			16,150,000			600,000			7,900,000			4,300,000			18,700,000
	(2,400,000	)		(5,850,000	)		(10,700,000	)		(10,050,000	)		(1,950,000	)		(5,550,000	)		(4,750,000	)		(19,000,000	)
	3,450,000			3,450,000			16,100,000			10,000,000			5,500,000			3,150,000			7,200,000			7,500,000
	3,400,000			3,450,000			8,700,000			16,100,000			4,150,000			5,500,000			6,750,000			7,200,000

29

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares Dynamic Networking Portfolio (PXQ)						PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income (loss)	$	(12,827	)	$	(37,678	)	$	323,256		$	376,843
Net realized gain (loss)		1,421,508			3,603,157			6,193,726			4,703,749
Net change in unrealized appreciation (depreciation)		518,729			3,901,364			(29,230,529	)		22,095,104
Net increase (decrease) in net assets resulting from operations		1,927,410			7,466,843			(22,713,547	)		27,175,696
Distributions to Shareholders from:
Net investment income		—			(230,610	)		(526,990	)		(414,523	)
Shareholder Transactions:
Proceeds from shares sold		6,494,397			15,967,749			30,415,875			89,598,341
Value of shares repurchased		(9,730,171	)		(23,560,809	)		(46,999,053	)		(97,482,772	)
Net increase (decrease) in net assets resulting from shares transactions		(3,235,774	)		(7,593,060	)		(16,583,178	)		(7,884,431	)
Increase (Decrease) in Net Assets		(1,308,364	)		(356,827	)		(39,823,715	)		18,876,742
Net Assets:
Beginning of period		29,642,789			29,999,616			135,849,450			116,972,708
End of period	$	28,334,425		$	29,642,789		$	96,025,735		$	135,849,450
Undistributed net investment income (loss) at end of period	$	(35,813	)	$	(22,986	)	$	2,636		$	206,370
Changes in Shares Outstanding:
Shares sold		200,000			550,000			1,150,000			3,650,000
Shares repurchased		(300,000	)		(800,000	)		(1,700,000	)		(4,000,000	)
Shares outstanding, beginning of period		950,000			1,200,000			4,850,000			5,200,000
Shares outstanding, end of period		850,000			950,000			4,300,000			4,850,000

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

30

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)						PowerShares Dynamic Retail Portfolio (PMR)						PowerShares Dynamic Semiconductors Portfolio (PSI)						PowerShares Dynamic Software Portfolio (PSJ)
October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	3,035,607		$	4,199,747		$	44,922		$	307,680		$	72,660		$	90,462		$	54,065		$	(6,877	)
	102,708,698			145,620,775			(134,755	)		6,391,166			1,532,531			4,076,053			(1,361,427	)		15,011,409
	118,939,821			109,005,911			857,633			(3,531,138	)		1,085,801			1,207,489			6,267,527			(8,514,120	)
	224,684,126			258,826,433			767,800			3,167,708			2,690,992			5,374,004			4,960,165			6,490,412
	(4,379,288	)		(3,255,531	)		(136,818	)		(250,815	)		(116,676	)		(107,690	)		—			—
	334,770,792			645,323,430			6,793,996			52,577,848			15,764,235			20,754,635			11,048,837			50,413,954
	(191,524,188	)		(265,192,841	)		(14,963,682	)		(55,381,501	)		(8,993,240	)		(22,144,327	)		(19,778,695	)		(50,826,283	)
	143,246,604			380,130,589			(8,169,686	)		(2,803,653	)		6,770,995			(1,389,692	)		(8,729,858	)		(412,329	)
	363,551,442			635,701,491			(7,538,704	)		113,240			9,345,311			3,876,622			(3,769,693	)		6,078,083
	1,104,006,824			468,305,333			24,863,560			24,750,320			20,620,992			16,744,370			54,335,290			48,257,207
$	1,467,558,266		$	1,104,006,824		$	17,324,856		$	24,863,560		$	29,966,303		$	20,620,992		$	50,565,597		$	54,335,290
$	135,604		$	1,479,285		$	2,870		$	94,766		$	(16,777	)	$	27,239		$	22,863		$	(31,202	)
	5,300,000			12,600,000			200,000			1,600,000			700,000			1,150,000			300,000			1,500,000
	(3,100,000	)		(4,950,000	)		(450,000	)		(1,700,000	)		(400,000	)		(1,250,000	)		(550,000	)		(1,500,000	)
	19,150,000			11,500,000			750,000			850,000			1,000,000			1,100,000			1,600,000			1,600,000
	21,350,000			19,150,000			500,000			750,000			1,300,000			1,000,000			1,350,000			1,600,000

31

Financial Highlights

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

	Six Months Ended October 31,  2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	39.71		$	28.26		$	22.26		$	23.14		$	19.67		$	12.90
Net investment income (loss)(a)		0.24			0.03			(0.05	)		(0.04	)		(0.05	)		0.06	(b)
Net realized and unrealized gain (loss) on investments		10.17			11.42			6.05			(0.84	)		3.52			6.79
Total from investment operations		10.41			11.45			6.00			(0.88	)		3.47			6.85
Distributions to shareholders from:
Net investment income		(0.28	)		—			—			—			—			(0.06	)
Return of capital		—			—			—			—			—			(0.02	)
Total distributions		(0.28	)		—			—			—			—			(0.08	)
Net asset value at end of period	$	49.84		$	39.71		$	28.26		$	22.26		$	23.14		$	19.67
Market price at end of period(c)	$	49.83		$	39.68		$	28.27		$	22.21		$	23.18		$	19.68
Net Asset Value Total Return:(d)		26.29	%		40.52	%		26.96	%		(3.80	)%		17.64	%		53.19	%
Market Price Total Return(d)		26.36	%		40.36	%		27.29	%		(4.18	)%		17.78	%		53.63	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	431,153		$	361,320		$	155,453		$	136,903		$	217,553		$	214,391
Ratio to average net assets of:
Expenses, after Waivers		0.57	%(e)		0.59	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.57	%(e)		0.59	%		0.63	%		0.64	%		0.65	%		0.61	%
Net investment income (loss), after Waivers		1.10	%(e)		0.09	%		(0.20	)%		(0.21	)%		(0.23	)%		0.36	%(b)
Portfolio turnover rate(f)		45	%		64	%		53	%		53	%		81	%		80	%

^(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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.

32

Financial Highlights (continued)

PowerShares Dynamic Building & Construction Portfolio (PKB)

	Six Months Ended October 31,  2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	22.09		$	19.65		$	14.23		$	14.11		$	13.92		$	10.92
Net investment income(a)		0.02			0.00	(b)		0.07			0.02			0.68	(c)		0.01
Net realized and unrealized gain (loss) on investments		(0.50	)		2.44			5.44			0.12			0.29	(d)		3.01
Total from investment operations		(0.48	)		2.44			5.51			0.14			0.97			3.02
Distributions to shareholders from:
Net investment income		(0.00	)(b)		—			(0.09	)		(0.02	)		(0.66	)		(0.02	)
Return of capital		—			—			—			—			(0.12	)		—
Total distributions		(0.00	)(b)		—			(0.09	)		(0.02	)		(0.78	)		(0.02	)
Net asset value at end of period	$	21.61		$	22.09		$	19.65		$	14.23		$	14.11		$	13.92
Market price at end of period(e)	$	21.60		$	22.10		$	19.63		$	14.20		$	14.09		$	13.92
Net Asset Value Total Return:(f)		(2.15	)%		12.42	%		38.85	%		0.99	%		7.49	%		27.65	%
Market Price Total Return(f)		(2.24	)%		12.58	%		39.01	%		0.92	%		7.34	%		27.42	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	69,141		$	123,688		$	104,121		$	30,600		$	40,204		$	50,114
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(g)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%(g)		0.63	%		0.69	%		1.01	%		0.91	%		0.76	%
Net investment income, after Waivers		0.19	%(g)		0.01	%		0.44	%		0.12	%		5.25	%(c)		0.07	%
Portfolio turnover rate(h)		42	%		117	%		95	%		72	%		75	%		59	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

^(c)  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.

^(d)  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.

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

^(f)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(g)  Annualized.

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

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	37.76		$	30.27		$	24.58		$	27.67		$	18.46		$	13.17
Net investment income(a)		0.20			0.48			0.53			0.19			0.12			0.10
Net realized and unrealized gain (loss) on investments		(5.98	)		7.55			5.81			(2.94	)		9.21			5.27
Total from investment operations		(5.78	)		8.03			6.34			(2.75	)		9.33			5.37
Distributions to shareholders from:
Net investment income		(0.32	)		(0.54	)		(0.65	)		(0.34	)		(0.12	)		(0.07	)
Return of capital		—			—			—			—			—			(0.01	)
Total distributions		(0.32	)		(0.54	)		(0.65	)		(0.34	)		(0.12	)		(0.08	)
Net asset value at end of period	$	31.66		$	37.76		$	30.27		$	24.58		$	27.67		$	18.46
Market price at end of period(b)	$	31.67		$	37.76		$	30.23		$	24.57		$	27.65		$	18.46
Net Asset Value Total Return:(c)		(15.44	)%		26.93	%		26.14	%		(9.86	)%		50.80	%		40.87	%
Market Price Total Return(c)		(15.41	)%		27.10	%		26.03	%		(9.83	)%		50.69	%		41.08	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	107,637		$	130,273		$	104,427		$	67,592		$	118,975		$	59,983
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.64	%		0.65	%		0.65	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%(d)		0.64	%		0.69	%		0.73	%		0.76	%		0.76	%
Net investment income, after Waivers		1.10	%(d)		1.46	%		1.97	%		0.81	%		0.57	%		0.62	%
Portfolio turnover rate(e)		73	%		96	%		80	%		94	%		57	%		68	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

33

Financial Highlights (continued)

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	26.98		$	23.62		$	19.77		$	19.76		$	16.00		$	12.73
Net investment income(a)		0.13			0.38			0.26			0.22			0.24			0.20
Net realized and unrealized gain (loss) on investments		2.79			3.19			3.92			(0.03	)		3.73			3.33
Total from investment operations		2.92			3.57			4.18			0.19			3.97			3.53
Distributions to shareholders from:
Net investment income		(0.28	)		(0.21	)		(0.33	)		(0.18	)		(0.21	)		(0.26	)
Net asset value at end of period	$	29.62		$	26.98		$	23.62		$	19.77		$	19.76		$	16.00
Market price at end of period(b)	$	29.62		$	26.99		$	23.61		$	19.77		$	19.81		$	16.01
Net Asset Value Total Return:(c)		10.89	%		15.16	%		21.45	%		1.02	%		24.99	%		28.08	%
Market Price Total Return(c)		10.85	%		15.25	%		21.40	%		0.77	%		25.23	%		28.06	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	257,693		$	434,371		$	236,226		$	169,039		$	91,881		$	72,795
Ratio to average net assets of:
Expenses, after Waivers		0.58	%(d)		0.61	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.58	%(d)		0.61	%		0.63	%		0.64	%		0.71	%		0.74	%
Net investment income, after Waivers		0.93	%(d)		1.47	%		1.28	%		1.13	%		1.39	%		1.41	%
Portfolio turnover rate(e)		63	%		145	%		92	%		134	%		73	%		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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	32.35		$	27.23		$	22.18		$	19.34		$	16.52		$	10.65
Net investment income(a)		0.08			0.15			0.12			0.15			0.16			0.05
Net realized and unrealized gain on investments		1.92			5.10			5.09			2.82			2.81			5.88
Total from investment operations		2.00			5.25			5.21			2.97			2.97			5.93
Distributions to shareholders from:
Net investment income		(0.11	)		(0.13	)		(0.16	)		(0.13	)		(0.15	)		(0.06	)
Net asset value at end of period	$	34.24		$	32.35		$	27.23		$	22.18		$	19.34		$	16.52
Market price at end of period(b)	$	34.24		$	32.34		$	27.21		$	22.20		$	19.34		$	16.54
Net Asset Value Total Return:(c)		6.19	%		19.29	%		23.67	%		15.49	%		18.03	%		55.81	%
Market Price Total Return(c)		6.22	%		19.34	%		23.47	%		15.59	%		17.89	%		56.29	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	142,078		$	177,930		$	85,765		$	57,679		$	60,933		$	62,794
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	%		0.69	%		0.80	%		0.78	%		1.06	%
Net investment income, after Waivers		0.50	%(d)		0.48	%		0.52	%		0.80	%		0.92	%		0.41	%
Portfolio turnover rate(e)		86	%		171	%		93	%		90	%		58	%		68	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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.

34

Financial Highlights (continued)

PowerShares Dynamic Media Portfolio (PBS)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	23.81		$	20.11		$	14.84		$	15.61		$	13.68		$	8.25
Net investment income(a)		0.04			0.09			0.12			0.08			0.07			0.06
Net realized and unrealized gain (loss) on investments		1.19			3.70			5.28			(0.76	)		1.93			5.42
Total from investment operations		1.23			3.79			5.40			(0.68	)		2.00			5.48
Distributions to shareholders from:
Net investment income		(0.06	)		(0.09	)		(0.13	)		(0.09	)		(0.07	)		(0.05	)
Return of capital		—			—			—			—			—			(0.00	)(b)
Total distributions		(0.06	)		(0.09	)		(0.13	)		(0.09	)		(0.07	)		(0.05	)
Net asset value at end of period	$	24.98		$	23.81		$	20.11		$	14.84		$	15.61		$	13.68
Market price at end of period(c)	$	24.98		$	23.79		$	20.10		$	14.84		$	15.61		$	13.70
Net Asset Value Total Return:(d)		5.17	%		18.87	%		36.62	%		(4.33	)%		14.68	%		66.55	%
Market Price Total Return(d)		5.25	%		18.83	%		36.55	%		(4.33	)%		14.51	%		66.59	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	168,634		$	171,430		$	150,788		$	137,975		$	156,881		$	125,875
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(e)		0.62	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.60	%(e)		0.62	%		0.63	%		0.65	%		0.69	%		0.77	%
Net investment income, after Waivers		0.35	%(e)		0.38	%		0.71	%		0.60	%		0.57	%		0.51	%
Portfolio turnover rate(f)		66	%		120	%		70	%		89	%		53	%		50	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Annualized.

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

PowerShares Dynamic Networking Portfolio (PXQ)

	Six Months Ended October 31,  2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	31.20		$	25.00		$	27.71		$	29.20		$	21.08		$	13.56
Net investment income (loss)(a)		(0.01	)		(0.04	)		0.20	(b)		(0.06	)		(0.10	)		(0.09	)
Net realized and unrealized gain (loss) on investments		2.14			6.44			(2.85	)		(1.43	)		8.33			7.61
Total from investment operations		2.13			6.40			(2.65	)		(1.49	)		8.23			7.52
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	$	33.33		$	31.20		$	25.00		$	27.71		$	29.20		$	21.08
Market price at end of period(c)	$	33.34		$	31.19		$	24.97		$	27.68		$	29.20		$	21.11
Net Asset Value Total Return:(d)		6.83	%		25.69	%		(9.57	)%		(5.10	)%		39.08	%		55.46	%
Market Price Total Return(d)		6.89	%		25.80	%		(9.58	)%		(5.20	)%		38.89	%		55.45	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	28,334		$	29,643		$	30,000		$	81,739		$	172,291		$	47,437
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(e)		0.63	%		0.64	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.85	%(e)		0.82	%		0.75	%		0.67	%		0.70	%		0.95	%
Net investment income (loss), after Waivers		(0.07	)%(e)		(0.12	)%		0.81	%(b)		(0.22	)%		(0.38	)%		(0.50	)%
Portfolio turnover rate(f)		28	%		69	%		68	%		84	%		61	%		29	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1 per share owned of Tellabs, Inc. on December 24, 2012. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.01) and (0.05)%, respectively.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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.

35

Financial Highlights (continued)

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	28.01		$	22.49		$	20.48		$	26.38		$	18.03		$	13.09
Net investment income (loss)(a)		0.08			0.08			0.04			(0.01	)		0.07			0.04
Net realized and unrealized gain (loss) on investments		(5.64	)		5.53	(b)		2.00			(5.89	)		8.36			4.98
Total from investment operations		(5.56	)		5.61			2.04			(5.90	)		8.43			5.02
Distributions to shareholders from:
Net investment income		(0.12	)		(0.09	)		(0.03	)		(0.00	)(c)		(0.08	)		(0.06	)
Return of capital		—			—			—			—			—			(0.02	)
Total distributions		(0.12	)		(0.09	)		(0.03	)		(0.00	)(c)		(0.08	)		(0.08	)
Net asset value at end of period	$	22.33		$	28.01		$	22.49		$	20.48		$	26.38		$	18.03
Market price at end of period(d)	$	22.33		$	28.00		$	22.49		$	20.48		$	26.38		$	18.02
Net Asset Value Total Return:(e)		(19.94	)%		24.98	%(b)		9.95	%		(22.36	)%		46.84	%		38.41	%
Market Price Total Return(e)		(19.92	)%		24.94	%		9.95	%		(22.36	)%		46.93	%		38.13	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	96,026		$	135,849		$	116,973		$	147,485		$	309,972		$	170,358
Ratio to average net assets of:
Expenses, after Waivers		0.62	%(f)		0.61	%		0.62	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.62	%(f)		0.61	%		0.62	%		0.63	%		0.64	%		0.63	%
Net investment income (loss), after Waivers		0.55	%(f)		0.31	%		0.18	%		(0.03	)%		0.36	%		0.24	%
Portfolio turnover rate(g)		36	%		259	%(b)		68	%		70	%		39	%		56	%

^(a)  Based on average shares outstanding.

^(b)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.43 per share. Had the pay-in not been made, the net asset value total return would have been 23.06%. In addition, the portfolio turnover calculation includes the value of securities purchased and sold related to this transaction.

^(c)  Amount represents less than $0.005.

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

^(e)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(f)  Annualized.

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

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	57.65		$	40.72		$	32.00		$	26.15		$	19.55		$	13.91
Net investment income(a)		0.16			0.26			0.54	(b)		0.22			0.17			0.14
Net realized and unrealized gain on investments		11.16			16.90			8.72			5.83			6.56			5.76
Total from investment operations		11.32			17.16			9.26			6.05			6.73			5.90
Distributions to shareholders from:
Net investment income		(0.23	)		(0.23	)		(0.54	)		(0.20	)		(0.13	)		(0.26	)
Net asset value at end of period	$	68.74		$	57.65		$	40.72		$	32.00		$	26.15		$	19.55
Market price at end of period(c)	$	68.76		$	57.60		$	40.72		$	31.99		$	26.17		$	19.54
Net Asset Value Total Return:(d)		19.67	%		42.27	%		29.25	%		23.29	%		34.55	%		42.69	%
Market Price Total Return(d)		19.81	%		42.15	%		29.29	%		23.16	%		34.73	%		42.51	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,467,558		$	1,104,007		$	468,305		$	270,385		$	87,606		$	57,662
Ratio to average net assets of:
Expenses, after Waivers		0.56	%(e)		0.58	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.56	%(e)		0.58	%		0.63	%		0.64	%		0.76	%		0.74	%
Net investment income, after Waivers		0.51	%(e)		0.52	%		1.52	%(b)		0.77	%		0.78	%		0.83	%
Portfolio turnover rate(f)		20	%		39	%		24	%		23	%		9	%		35	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $4 per share owned of Warner Chilcott PLC. on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.32 and 0.91%, respectively.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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 Retail Portfolio (PMR)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	33.15		$	29.12		$	25.98		$	21.88		$	18.67		$	14.64
Net investment income(a)		0.07			0.32			0.66			0.16			0.18			0.06
Net realized and unrealized gain on investments		1.65			3.99			3.11			4.17			3.21			4.08
Total from investment operations		1.72			4.31			3.77			4.33			3.39			4.14
Distributions to shareholders from:
Net investment income		(0.22	)		(0.28	)		(0.63	)		(0.23	)		(0.18	)		(0.11	)
Net asset value at end of period	$	34.65		$	33.15		$	29.12		$	25.98		$	21.88		$	18.67
Market price at end of period(b)	$	34.65		$	33.14		$	29.11		$	25.98		$	21.90		$	18.68
Net Asset Value Total Return:(c)		5.22	%		14.81	%		14.87	%		20.06	%		18.35	%		28.49	%
Market Price Total Return(c)		5.25	%		14.81	%		14.83	%		19.95	%		18.39	%		28.56	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	17,325		$	24,864		$	24,750		$	76,643		$	13,130		$	24,273
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		0.95	%(d)		0.79	%		0.74	%		0.87	%		1.63	%		0.89	%
Net investment income, after Waivers		0.42	%(d)		0.96	%		2.59	%		0.75	%		1.01	%		0.44	%
Portfolio turnover rate(e)		63	%		184	%		83	%		111	%		102	%		52	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

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

PowerShares Dynamic Semiconductors Portfolio (PSI)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	20.62		$	15.22		$	15.75		$	18.19		$	14.29		$	10.39
Net investment income(a)		0.07			0.10			0.11			0.06			0.01			0.05
Net realized and unrealized gain (loss) on investments		2.47			5.41			(0.52	)		(2.47	)		3.92			3.91
Total from investment operations		2.54			5.51			(0.41	)		(2.41	)		3.93			3.96
Distribution to shareholder from:
Net investment income		(0.11	)		(0.11	)		(0.12	)		(0.03	)		(0.01	)		(0.06	)
Return of capital		—			—			—			—			(0.02	)		(0.00	)(b)
Total distributions		(0.11	)		(0.11	)		(0.12	)		(0.03	)		(0.03	)		(0.06	)
Net asset value at end of period	$	23.05		$	20.62		$	15.22		$	15.75		$	18.19		$	14.29
Market price at end of period(c)	$	23.06		$	20.62		$	15.19		$	15.71		$	18.20		$	14.29
Net Asset Value Total Return:(d)		12.32	%		36.38	%		(2.56	)%		(13.20	)%		27.57	%		38.16	%
Market Price Total Return(d)		12.37	%		36.66	%		(2.50	)%		(13.47	)%		27.64	%		38.16	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	29,966		$	20,621		$	16,744		$	21,261		$	42,749		$	28,573
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		0.89	%(e)		1.05	%		1.05	%		1.02	%		0.97	%		0.90	%
Net investment income, after Waivers		0.59	%(e)		0.55	%		0.77	%		0.42	%		0.04	%		0.39	%
Portfolio turnover rate(f)		47	%		126	%		91	%		57	%		64	%		68	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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.

37

Financial Highlights (continued)

PowerShares Dynamic Software Portfolio (PSJ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	33.96		$	30.16		$	26.87		$	27.47		$	22.54		$	15.37
Net investment income (loss)(a)		0.04			(0.00	)(b)		(0.01	)		(0.07	)		(0.07	)		(0.07	)
Net realized and unrealized gain (loss) on investments		3.46			3.80			3.30			(0.53	)		5.00			7.24
Total from investment operations		3.50			3.80			3.29			(0.60	)		4.93			7.17
Net asset value at end of period	$	37.46		$	33.96		$	30.16		$	26.87		$	27.47		$	22.54
Market price at end of period(c)	$	37.45		$	33.93		$	30.12		$	26.87		$	27.48		$	22.55
Net Asset Value Total Return:(d)		10.30	%		12.60	%		12.24	%		(2.19	)%		21.87	%		46.65	%
Market Price Total Return(d)		10.37	%		12.65	%		12.09	%		(2.22	)%		21.86	%		46.71	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	50,566		$	54,335		$	48,257		$	49,710		$	83,774		$	67,626
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)		0.69	%		0.74	%		0.78	%		0.77	%		0.75	%
Net investment income (loss), after Waivers		0.21	%(e)		(0.01	)%		(0.03	)%		(0.29	)%		(0.29	)%		(0.38	)%
Portfolio turnover rate(f)		60	%		150	%		95	%		100	%		46	%		33	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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.

38

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2014

(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, 2014, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)	“Dynamic Biotechnology & Genome Portfolio”
PowerShares Dynamic Building & Construction Portfolio (PKB)	“Dynamic Building & Construction Portfolio”
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)	“Dynamic Energy Exploration & Production Portfolio”
PowerShares Dynamic Food & Beverage Portfolio (PBJ)	“Dynamic Food & Beverage Portfolio”
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)	“Dynamic Leisure and Entertainment Portfolio”
PowerShares Dynamic Media Portfolio (PBS)	“Dynamic Media Portfolio”
PowerShares Dynamic Networking Portfolio (PXQ)	“Dynamic Networking Portfolio”
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)	“Dynamic Oil & Gas Services Portfolio”
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)	“Dynamic Pharmaceuticals Portfolio”
PowerShares Dynamic Retail Portfolio (PMR)	“Dynamic Retail Portfolio”
PowerShares Dynamic Semiconductors Portfolio (PSI)	“Dynamic Semiconductors Portfolio”
PowerShares Dynamic Software Portfolio (PSJ)	“Dynamic Software Portfolio”

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

The market 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 in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
Dynamic Biotechnology & Genome Portfolio	Dynamic Biotech & Genome IntellidexSM Index
Dynamic Building & Construction Portfolio	Dynamic Building & Construction IntellidexSM Index
Dynamic Energy Exploration & Production Portfolio	Dynamic Energy Exploration & Production IntellidexSM Index
Dynamic Food & Beverage Portfolio	Dynamic Food & Beverage IntellidexSM Index
Dynamic Leisure and Entertainment Portfolio	Dynamic Leisure & Entertainment IntellidexSM Index
Dynamic Media Portfolio	Dynamic Media IntellidexSM Index
Dynamic Networking Portfolio	Dynamic Networking IntellidexSM Index
Dynamic Oil & Gas Services Portfolio	Dynamic Oil Services IntellidexSM Index
Dynamic Pharmaceuticals Portfolio	Dynamic Pharmaceutical IntellidexSM Index
Dynamic Retail Portfolio	Dynamic Retail IntellidexSM Index
Dynamic Semiconductors Portfolio	Dynamic Semiconductor IntellidexSM Index
Dynamic Software Portfolio	Dynamic Software IntellidexSM Index

Note 2. Significant Accounting Policies

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

39

A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and 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. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of each Fund’s investments.

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

40

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the 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 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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These 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-date.

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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.

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 year-end.

G. Securities Lending

During the six-months period ended October 31, 2014, Dynamic Biotechnology & Genome Portfolio and Dynamic Pharmaceuticals Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% 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 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 on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2015. 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 Expense Agreement, it will terminate on August 31, 2015. The Expense Agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Biotechnology & Genome Portfolio, Dynamic Building & Construction Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio, Dynamic Media Portfolio, Dynamic Oil & Gas Services Portfolio and Dynamic Pharmaceuticals Portfolio.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration.

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For the six-month period ended October 31, 2014, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Dynamic Biotechnology & Genome Portfolio	$	206
Dynamic Building & Construction Portfolio		74
Dynamic Energy Exploration & Production Portfolio		80
Dynamic Food & Beverage Portfolio		159
Dynamic Leisure and Entertainment Portfolio		87
Dynamic Media Portfolio		86
Dynamic Networking Portfolio		31,280
Dynamic Oil & Gas Services Portfolio		74
Dynamic Pharmaceuticals Portfolio		403
Dynamic Retail Portfolio		34,289
Dynamic Semiconductors Portfolio		31,746
Dynamic Software Portfolio		20,440

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

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2014 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/15		04/30/16		04/30/17		10/31/17
Dynamic Building & Construction Portfolio	$	86,158	$	51,151	$	35,007	$	—	$	—
Dynamic Energy Exploration & Production Portfolio		59,108		27,399		31,709		—		—
Dynamic Leisure and Entertainment Portfolio		85,846		46,071		39,775		—		—
Dynamic Networking Portfolio		178,969		36,565		52,287		58,890		31,227
Dynamic Retail Portfolio		178,417		35,618		55,726		52,831		34,242
Dynamic Semiconductors Portfolio		220,272		46,104		73,270		69,191		31,707
Dynamic Software Portfolio		149,021		42,136		51,699		34,792		20,394

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 by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the Funds.

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

Note 4. Investments in Affiliates

The 1940 Act defines “affiliate” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The following is a summary of the transactions with affiliates for the six-months period ended October 31, 2014:

Dynamic Pharmaceuticals Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value October 31, 2014		Dividend Income
BioDelivery Seciences International, Inc.	$	—	$	43,058,289	$	(154,923	)	$	3,294,577	$	11,620	$	46,209,563	$	—

43

Note 5. Additional Valuation Information

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

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

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

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

As of October 31, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

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 eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of April 30, 2014, which expire as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short- term		Long- term		Total*		Utilized		Expired
Dynamic Biotechnology & Genome Portfolio	$	19,612,223	$	15,818,255	$	34,286,844	$	50,397,332	$	12,898,182	$	27,323,719	$	691,335	$	161,027,890	$	1,291,039	$	321,497
Dynamic Building & Construction Portfolio		2,263,182		742,893		2,843,349		3,001,058		6,653,613		2,616,267		—		18,120,362		361,969		—
Dynamic Energy Exploration & Production Portfolio		285,311		3,232,521		7,646,917		21,471,013		1,361,799		10,427,823		1,867,688		46,293,072		—		—
Dynamic Food & Beverage Portfolio		239,185		1,260,041		7,585,250		10,245,302		—		18,413,092		—		37,742,870		6,225,131		—
Dynamic Leisure and Entertainment Portfolio		1,611,839		2,111,801		2,895,936		2,889,449		2,356,106		837,920		—		12,703,051		6,745,537		751,908
Dynamic Media Portfolio		3,187,134		2,505,039		4,930,761		5,161,647		6,294,489		22,487,376		553,794		45,120,240		—		545,973
Dynamic Networking Portfolio		1,939,441		1,064,275		1,975,581		512,618		730,670		19,051,146		9,058,124		34,331,855		—		383,187

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											Post-effective no expiration
	2015		2016		2017		2018		2019		Short- term		Long- term		Total*		Utilized		Expired
Dynamic Oil & Gas Services Portfolio	$	15,026,862	$	7,909,602	$	24,680,663	$	85,028,926	$	35,877,910	$	14,879,231	$	11,525,924	$	194,929,118	$	—	$	—
Dynamic Pharmaceuticals Portfolio		—		—		—		1,468,910		1,618,918		—		—		3,087,828		22,307,942		—
Dynamic Retail Portfolio		937,070		1,908,967		2,427,604		1,816,180		2,176,015		8,353,449		83,412		17,702,697		—		—
Dynamic Semiconductors Portfolio		9,158,832		10,196,415		14,001,359		10,902,954		2,120,823		6,716,042		1,081,388		54,177,813		—		271,588
Dynamic Software Portfolio		3,017,278		1,542,190		7,095,351		2,938,722		3,242,208		4,884,417		—		22,720,166		826,186		108,427

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the six-month period ended October 31, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic Biotechnology & Genome Portfolio	$	171,299,706	$	171,568,322
Dynamic Building & Construction Portfolio		46,585,484		46,679,956
Dynamic Energy Exploration & Production Portfolio		98,998,459		99,337,982
Dynamic Food & Beverage Portfolio		204,438,224		205,312,040
Dynamic Leisure and Entertainment Portfolio		137,216,249		137,478,467
Dynamic Media Portfolio		110,444,669		110,294,362
Dynamic Networking Portfolio		8,971,527		7,946,324
Dynamic Oil & Gas Services Portfolio		44,056,372		42,714,275
Dynamic Pharmaceuticals Portfolio		243,938,604		247,944,344
Dynamic Retail Portfolio		14,345,588		13,764,254
Dynamic Semiconductors Portfolio		12,076,251		11,568,082
Dynamic Software Portfolio		31,584,913		30,940,977

For the six-month period ended October 31, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Biotechnology & Genome Portfolio	$	33,505,862	$	50,507,699
Dynamic Building & Construction Portfolio		38,348,139		86,998,944
Dynamic Energy Exploration & Production Portfolio		86,961,468		85,061,155
Dynamic Food & Beverage Portfolio		92,318,703		297,019,110
Dynamic Leisure and Entertainment Portfolio		19,802,039		63,460,125
Dynamic Media Portfolio		106,281,796		118,144,487
Dynamic Networking Portfolio		6,493,727		10,769,561
Dynamic Oil & Gas Services Portfolio		29,731,662		47,740,245
Dynamic Pharmaceuticals Portfolio		334,426,012		188,256,255
Dynamic Retail Portfolio		6,786,267		15,623,954
Dynamic Semiconductors Portfolio		15,764,096		9,544,168
Dynamic Software Portfolio		11,048,561		20,341,320

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

45

At October 31, 2014, the 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)
Dynamic Biotechnology & Genome Portfolio	$	407,800,772	$	79,684,459		$	89,624,195	$	(9,939,736	)
Dynamic Building & Construction Portfolio		70,864,965		(1,642,280	)		4,317,167		(5,959,447	)
Dynamic Energy Exploration & Production Portfolio		119,699,037		(12,038,421	)		3,049,867		(15,088,288	)
Dynamic Food & Beverage Portfolio		232,482,879		25,287,919			28,063,609		(2,775,690	)
Dynamic Leisure and Entertainment Portfolio		131,343,170		10,859,133			13,968,568		(3,109,435	)
Dynamic Media Portfolio		166,693,284		2,083,248			7,863,835		(5,780,587	)
Dynamic Networking Portfolio		24,234,539		4,158,845			4,570,143		(411,298	)
Dynamic Oil & Gas Services Portfolio		107,716,910		(11,700,478	)		4,194,854		(15,895,332	)
Dynamic Pharmaceuticals Portfolio		1,215,991,391		310,128,003			320,872,327		(10,744,324	)
Dynamic Retail Portfolio		16,626,111		748,303			1,516,450		(768,147	)
Dynamic Semiconductors Portfolio		26,544,927		3,470,865			3,913,398		(442,533	)
Dynamic Software Portfolio		45,282,532		5,356,455			6,268,837		(912,382	)

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and Officer of the Funds. 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

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 in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

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

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

Note 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.

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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, 2014.

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, 2014		Ending Account Value October 31, 2014		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	$	1,262.95		0.57	%	$	3.25
Hypothetical (5% return before expenses)		1,000.00		1,022.33		0.57			2.91
PowerShares Dynamic Building & Construction Portfolio (PKB)
Actual		1,000.00		978.46		0.63			3.14
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		845.61		0.63			2.93
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
Actual		1,000.00		1,108.85		0.58			3.08
Hypothetical (5% return before expenses)		1,000.00		1,022.28		0.58			2.96
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Actual		1,000.00		1,061.61		0.63			3.27
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Media Portfolio (PBS)
Actual		1,000.00		1,051.66		0.60			3.10
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares Dynamic Networking Portfolio (PXQ)
Actual		1,000.00		1,068.26		0.63			3.28
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		800.55		0.62			2.81
Hypothetical (5% return before expenses)		1,000.00		1,022.08		0.62			3.16

47

Fees and Expenses (continued)

	Beginning Account Value May 1, 2014		Ending Account Value October 31, 2014		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	$	1,196.70		0.56	%	$	3.10
Hypothetical (5% return before expenses)		1,000.00		1,022.38		0.56			2.85
PowerShares Dynamic Retail Portfolio (PMR)
Actual		1,000.00		1,052.22		0.63			3.26
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Semiconductors Portfolio (PSI)
Actual		1,000.00		1,123.20		0.63			3.37
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Software Portfolio (PSJ)
Actual		1,000.00		1,102.75		0.63			3.34
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, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value of the period, then multiplying the results by 184/365.

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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.

©2014 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, 2014

2014 Semi-Annual Report to Shareholders

PYZ	PowerShares DWA Basic Materials Momentum Portfolio
PEZ	PowerShares DWA Consumer Cyclicals Momentum Portfolio
PSL	PowerShares DWA Consumer Staples Momentum Portfolio
PXI	PowerShares DWA Energy Momentum Portfolio
PFI	PowerShares DWA Financial Momentum Portfolio
PTH	PowerShares DWA Healthcare Momentum Portfolio
PRN	PowerShares DWA Industrials Momentum Portfolio
PTF	PowerShares DWA Technology Momentum Portfolio
PUI	PowerShares DWA Utilities Momentum Portfolio
PNQI	PowerShares NASDAQ Internet Portfolio

Table of Contents

Sector Portfolios
Schedules of Investments
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)	3
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)	5
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)	7
PowerShares DWA Energy Momentum Portfolio (PXI)	9
PowerShares DWA Financial Momentum Portfolio (PFI)	11
PowerShares DWA Healthcare Momentum Portfolio (PTH)	13
PowerShares DWA Industrials Momentum Portfolio (PRN)	15
PowerShares DWA Technology Momentum Portfolio (PTF)	17
PowerShares DWA Utilities Momentum Portfolio (PUI)	19
PowerShares NASDAQ Internet Portfolio (PNQI)	21
Statements of Assets and Liabilities	24
Statements of Operations	26
Statements of Changes in Net Assets	28
Financial Highlights	32
Notes to Financial Statements	38
Fees and Expenses	46

2

Portfolio Composition

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Specialty Chemicals	37.0
Diversified Chemicals	14.5
Steel	11.3
Commodity Chemicals	8.6
Industrial Gases	7.2
Fertilizers & Agricultural Chemicals	5.2
Paper Products	5.1
Aluminum	4.5
Diversified Metals & Mining	4.4
Life Sciences Tools & Services	2.2
Money Market Funds Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aluminum—4.5%
	96,291	Century Aluminum Co.(b)	$	2,819,401
	27,346	Kaiser Aluminum Corp.		1,901,914
				4,721,315
		Commodity Chemicals—8.6%
	45,673	Cabot Corp.		2,120,597
	34,840	LyondellBasell Industries NV, Class A		3,192,389
	54,174	Westlake Chemical Corp.		3,821,976
				9,134,962
		Diversified Chemicals—14.5%
	72,528	Dow Chemical Co. (The)		3,582,883
	37,455	E.I. du Pont de Nemours & Co.		2,590,013
	45,805	Eastman Chemical Co.		3,700,128
	149,002	Huntsman Corp.		3,635,649
	75,351	Olin Corp.		1,826,508
				15,335,181
		Diversified Metals & Mining—4.4%
	102,456	Horsehead Holding Corp.(b)		1,609,584
	67,804	US Silica Holdings, Inc.		3,044,399
				4,653,983
		Fertilizers & Agricultural Chemicals—5.2%
	11,360	CF Industries Holdings, Inc.		2,953,600
	22,335	Monsanto Co.		2,569,419
				5,523,019

Number of Shares			Value
		Common Stocks (continued)
		Industrial Gases—7.2%
	25,012	Air Products & Chemicals, Inc.	$	3,368,116
	37,979	Airgas, Inc.		4,236,178
				7,604,294
		Life Sciences Tools & Services—2.2%
	110,653	Cambrex Corp.(b)		2,332,565
		Paper Products—5.1%
	28,422	Clearwater Paper Corp.(b)		1,828,956
	115,596	KapStone Paper and Packaging Corp.(b)		3,555,733
				5,384,689
		Specialty Chemicals—37.0%
	47,019	A. Schulman, Inc.		1,664,943
	41,855	Ashland, Inc.		4,523,270
	77,170	Cytec Industries, Inc.		3,598,437
	24,748	Ecolab, Inc.		2,752,720
	34,706	Innophos Holdings, Inc.		1,978,242
	21,678	International Flavors & Fragrances, Inc.		2,149,374
	28,244	Minerals Technologies, Inc.		2,166,597
	8,250	NewMarket Corp.		3,201,082
	17,987	PPG Industries, Inc.		3,663,772
	49,349	RPM International, Inc.		2,235,510
	41,473	Sensient Technologies Corp.		2,454,372
	49,326	Valspar Corp. (The)		4,052,624
	49,701	W.R. Grace & Co.(b)		4,701,715
				39,142,658

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

3

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Steel—11.3%
	279,017	AK Steel Holding Corp.(b)(c)	$	2,112,159
	62,504	Allegheny Technologies, Inc.		2,053,256
	114,384	Steel Dynamics, Inc.		2,631,976
	73,398	United States Steel Corp.		2,938,856
	59,165	Worthington Industries, Inc.		2,286,727
				12,022,974
		Total Common Stocks (Cost $100,118,925)		105,855,640
		Money Market Fund—0.1%
	66,372	Invesco Premier Portfolio—Institutional Class(d) (Cost $66,372)		66,372
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $100,185,297)—100.1%		105,922,012
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.4%
	1,526,625	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $1,526,625)		1,526,625
		Total Investments (Cost $101,711,922)—101.5%		107,448,637
		Other assets less liabilities—(1.5%)		(1,608,620	)
		Net Assets—100.0%	$	105,840,017

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	1,540,874	$	(1,526,625	)	$	14,249

* Amount does not include excess collateral received, if any.

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

4

Portfolio Composition

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Automotive Retail	14.2
Airlines	11.8
Internet Retail	11.5
Apparel, Accessories & Luxury Goods	11.1
Movies & Entertainment	6.8
Restaurants	6.4
Apparel Retail	4.3
Hotels, Resorts & Cruise Lines	3.7
Specialty Stores	3.6
Automobile Manufacturers	3.5
Leisure Products	3.3
Homefurnishing Retail	3.2
Trucking	3.0
Department Stores	2.7
Home Entertainment Software	2.7
Cable & Satellite	2.6
Footwear	2.0
Internet Software & Services	1.9
General Merchandise Stores	1.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Airlines—11.8%
	38,297	Alaska Air Group, Inc.	$	2,038,549
	40,035	Delta Air Lines, Inc.		1,610,608
	41,847	Southwest Airlines Co.		1,442,885
	14,785	Spirit Airlines, Inc.(b)		1,080,931
				6,172,973
		Apparel Retail—4.3%
	29,077	Brown Shoe Co., Inc.		773,158
	26,337	Foot Locker, Inc.		1,475,135
				2,248,293
		Apparel, Accessories & Luxury Goods—11.1%
	12,097	G-III Apparel Group Ltd.(b)		959,897
	12,712	Hanesbrands, Inc.		1,342,514
	25,094	Under Armour, Inc., Class A(b)		1,645,665

Number of Shares			Value
		Common Stocks (continued)
	27,785	VF Corp.	$	1,880,489
				5,828,565
		Automobile Manufacturers—3.5%
	7,543	Tesla Motors, Inc.(b)		1,823,143
		Automotive Retail—14.2%
	15,716	Asbury Automotive Group, Inc.(b)		1,100,749
	2,752	AutoZone, Inc.(b)		1,523,287
	16,346	Lithia Motors, Inc., Class A		1,268,776
	14,337	O’Reilly Automotive, Inc.(b)		2,521,592
	22,795	Penske Automotive Group, Inc.		1,031,246
				7,445,650
		Cable & Satellite—2.6%
	8,619	Charter Communications, Inc., Class A(b)		1,365,163

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

5

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Department Stores—2.7%
	24,008	Macy’s, Inc.	$	1,388,143
		Footwear—2.0%
	19,472	Skechers U.S.A., Inc., Class A(b)		1,066,092
		General Merchandise Stores—1.7%
	44,810	Tuesday Morning Corp.(b)		913,676
		Home Entertainment Software—2.7%
	33,835	Electronic Arts, Inc.(b)		1,386,220
		Homefurnishing Retail—3.2%
	25,427	Williams-Sonoma, Inc.		1,653,518
		Hotels, Resorts & Cruise Lines—3.7%
	24,799	Wyndham Worldwide Corp.		1,926,138
		Internet Retail—11.5%
	15,168	Expedia, Inc.		1,288,825
	24,772	Liberty Ventures, Series A(b)		869,497
	4,200	Netflix, Inc.(b)		1,649,634
	123,652	Orbitz Worldwide, Inc.(b)		1,022,602
	13,188	TripAdvisor, Inc.(b)		1,169,248
				5,999,806
		Internet Software & Services—1.9%
	51,766	Pandora Media, Inc.(b)		998,048
		Leisure Products—3.3%
	11,427	Polaris Industries, Inc.		1,723,877
		Movies & Entertainment—6.8%
	27,010	Carmike Cinemas, Inc.(b)		865,671
	44,357	Lions Gate Entertainment Corp.		1,469,547
	13,598	Walt Disney Co. (The)		1,242,585
				3,577,803
		Restaurants—6.4%
	24,889	Domino’s Pizza, Inc.		2,209,894
	20,146	Fiesta Restaurant Group, Inc.(b)		1,111,052
				3,320,946
		Specialty Stores—3.6%
	15,607	Signet Jewelers Ltd.		1,872,996
		Trucking—3.0%
	28,053	Avis Budget Group, Inc.(b)		1,563,955
		Total Common Stocks (Cost $49,652,216)		52,275,005
		Money Market Fund—0.1%
	58,309	Invesco Premier Portfolio—Institutional Class(c) (Cost $58,309)		58,309
		Total Investments (Cost $49,710,525)—100.1%		52,333,314
		Other assets less liabilities—(0.1%)		(66,255	)
		Net Assets—100.0%	$	52,267,059

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 DWA Consumer Staples Momentum Portfolio (PSL)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Packaged Foods & Meats	28.8
Soft Drinks	10.4
Tobacco	7.6
Household Products	6.3
Housewares & Specialties	6.2
Distillers & Vintners	6.0
Specialty Stores	4.1
Trading Companies & Distributors	4.1
Specialized Consumer Services	2.6
Food Retail	2.6
Industrial Machinery	2.6
Environmental & Facilities Services	2.5
Home Furnishings	2.5
Health Care Facilities	2.5
Trucking	2.3
Distributors	2.3
Diversified Support Services	2.3
Food Distributors	2.3
Education Services	2.0
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Distillers & Vintners—6.0%
	11,340	Brown-Forman Corp., Class B	$	1,050,878
	15,862	Constellation Brands, Inc., Class A(b)		1,452,007
				2,502,885
		Distributors—2.3%
	16,527	Core-Mark Holding Co., Inc.		959,062
		Diversified Support Services—2.3%
	31,072	KAR Auction Services, Inc.		943,346
		Education Services—2.0%
	18,715	Bright Horizons Family Solutions, Inc.(b)		833,940
		Environmental & Facilities Services—2.5%
	33,123	Rollins, Inc.		1,055,630

Number of Shares			Value
		Common Stocks (continued)
		Food Distributors—2.3%
	14,772	Andersons, Inc. (The)	$	941,419
		Food Retail—2.6%
	124,843	SUPERVALU, Inc.(b)		1,077,395
		Health Care Facilities—2.5%
	22,688	VCA, Inc.(b)		1,033,892
		Home Furnishings—2.5%
	20,014	Tempur Sealy International, Inc.(b)		1,053,537
		Household Products—6.3%
	22,494	Church & Dwight Co., Inc.		1,628,790
	10,879	Spectrum Brands Holdings, Inc.		985,529
				2,614,319

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

7

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Housewares & Specialties—6.2%
	18,927	Jarden Corp.(b)	$	1,231,959
	40,143	Newell Rubbermaid, Inc.		1,337,966
				2,569,925
		Industrial Machinery—2.6%
	8,085	Snap-on, Inc.		1,068,352
		Packaged Foods & Meats—28.8%
	9,370	Cal-Maine Foods, Inc.		822,592
	13,681	Hain Celestial Group, Inc. (The)(b)		1,480,968
	17,900	Hormel Foods Corp.		964,989
	11,218	J & J Snack Foods Corp.		1,155,791
	12,110	Keurig Green Mountain, Inc.		1,837,693
	16,754	Kraft Foods Group, Inc.		944,088
	9,603	Lancaster Colony Corp.		878,578
	43,010	Pilgrim’s Pride Corp.(b)		1,221,914
	26,417	Pinnacle Foods, Inc.		892,895
	10,345	Sanderson Farms, Inc.		868,773
	24,870	WhiteWave Foods Co.(b)		925,910
				11,994,191
		Soft Drinks—10.4%
	34,149	Coca-Cola Enterprises, Inc.		1,480,359
	19,177	Dr Pepper Snapple Group, Inc.		1,328,007
	15,203	Monster Beverage Corp.(b)		1,533,679
				4,342,045
		Specialized Consumer Services—2.6%
	50,029	Service Corp. International		1,094,134
		Specialty Stores—4.1%
	14,176	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		1,712,603
		Tobacco—7.6%
	32,681	Altria Group, Inc.		1,579,800
	25,366	Reynolds American, Inc.		1,595,775
				3,175,575
		Trading Companies & Distributors—4.1%
	15,541	United Rentals, Inc.(b)		1,710,442
		Trucking—2.3%
	3,540	AMERCO		959,765
		Total Common Stocks (Cost $37,009,571)		41,642,457
		Money Market Fund—0.1%
	59,356	Invesco Premier Portfolio—Institutional Class(c) (Cost $59,356)		59,356
		Total Investments (Cost $37,068,927)—100.1%		41,701,813
		Other assets less liabilities—(0.1%)		(60,227	)
		Net Assets—100.0%	$	41,641,586

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 DWA Energy Momentum Portfolio (PXI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Oil & Gas Exploration & Production	44.5
Oil & Gas Refining & Marketing	19.9
Oil & Gas Storage & Transportation	16.4
Oil & Gas Equipment & Services	8.6
Oil & Gas Drilling	4.7
Specialty Chemicals	3.1
Integrated Oil & Gas	2.8
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares DWA Energy Momentum Portfolio (PXI)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Integrated Oil & Gas—2.8%
	50,045	Chevron Corp.	$	6,002,898
		Oil & Gas Drilling—4.7%
	64,759	Helmerich & Payne, Inc.		5,622,377
	188,605	Patterson-UTI Energy, Inc.		4,343,573
				9,965,950
		Oil & Gas Equipment & Services—8.6%
	151,556	Exterran Holdings, Inc.		5,960,698
	109,273	Forum Energy Technologies, Inc.(b)		2,983,153
	114,546	Halliburton Co.		6,316,066
	189,968	RPC, Inc.		3,115,475
				18,375,392
		Oil & Gas Exploration & Production—44.5%
	62,033	Anadarko Petroleum Corp.		5,693,389
	102,595	Bonanza Creek Energy, Inc.(b)		4,641,398
	87,523	Carrizo Oil & Gas, Inc.(b)		4,545,945
	52,805	Cimarex Energy Co.		6,002,344
	108,696	Concho Resources, Inc.(b)		11,851,125
	93,517	ConocoPhillips		6,747,251
	167,025	Continental Resources, Inc.(b)		9,415,199
	86,200	Diamondback Energy, Inc.(b)		5,899,528
	65,618	EOG Resources, Inc.		6,236,991
	186,334	Marathon Oil Corp.		6,596,224
	208,299	Matador Resources Co.(b)		5,055,417
	155,474	Newfield Exploration Co.(b)		5,070,007
	137,700	Sanchez Energy Corp.(b)		2,350,539
	359,259	Synergy Resources Corp.(b)		4,379,367
	398,447	Triangle Petroleum Corp.(b)		3,087,964
	337,899	VAALCO Energy, Inc.(b)		2,507,210

Number of Shares			Value
		Common Stocks (continued)
		Oil & Gas Exploration & Production (continued)
	75,824	Whiting Petroleum Corp.(b)	$	4,643,462
				94,723,360
		Oil & Gas Refining & Marketing—19.9%
	200,035	Delek US Holdings, Inc.		6,779,186
	89,517	Marathon Petroleum Corp.		8,137,095
	87,232	Phillips 66		6,847,712
	156,649	Tesoro Corp.		11,186,305
	205,562	Western Refining, Inc.		9,371,572
				42,321,870
		Oil & Gas Storage & Transportation—16.4%
	178,171	Cheniere Energy, Inc.(b)		13,362,825
	71,617	SemGroup Corp., Class A		5,496,605
	52,051	Targa Resources Corp.		6,695,320
	168,512	Williams Cos., Inc. (The)		9,354,101
				34,908,851
		Specialty Chemicals—3.1%
	293,939	Flotek Industries, Inc.(b)		6,513,688
		Total Common Stocks (Cost $219,512,124)		212,812,009
		Money Market Fund—0.1%
	215,362	Invesco Premier Portfolio—Institutional Class(c) (Cost $215,362)		215,362
		Total Investments (Cost $219,727,486)—100.1%		213,027,371
		Other assets less liabilities—(0.1%)		(120,971	)
		Net Assets—100.0%	$	212,906,400

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

9

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

October 31, 2014

(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.

10

Portfolio Composition

PowerShares DWA Financial Momentum Portfolio (PFI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Regional Banks	15.9
Life & Health Insurance	11.4
Residential REITs	9.2
Consumer Finance	8.2
Asset Management & Custody Banks	8.0
Health Care REITs	6.7
Data Processing & Outsourced Services	6.5
Specialized Finance	5.0
Multi-line Insurance	4.3
Specialized REITs	4.1
Real Estate Services	3.6
Mortgage REITs	3.4
Hotel & Resort REITs	3.1
Property & Casualty Insurance	3.0
Diversified Banks	2.7
Investment Banking & Brokerage	2.5
Real Estate Development	1.4
Internet Software & Services	0.9
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares DWA Financial Momentum Portfolio (PFI)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Asset Management & Custody Banks—8.0%
	10,929	Ameriprise Financial, Inc.	$	1,378,912
	34,507	Invesco Ltd.(b)		1,396,498
				2,775,410
		Consumer Finance—8.2%
	8,901	American Express Co.		800,645
	10,536	Capital One Financial Corp.		872,065
	18,443	Discover Financial Services		1,176,294
				2,849,004
		Data Processing & Outsourced Services—6.5%
	14,137	Broadridge Financial Solutions, Inc.		621,038
	25,806	Total System Services, Inc.		871,985
	3,142	Visa, Inc., Class A		758,573
				2,251,596

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Diversified Banks—2.7%
	17,268	Wells Fargo & Co.	$	916,758
		Health Care REITs—6.7%
	60,303	OMEGA Healthcare Investors, Inc. REIT		2,301,163
		Hotel & Resort REITs—3.1%
	32,145	FelCor Lodging Trust, Inc. REIT		344,916
	56,821	Strategic Hotels & Resorts, Inc. REIT(c)		730,150
				1,075,066
		Internet Software & Services—0.9%
	7,325	Envestnet, Inc.(c)		325,377
		Investment Banking & Brokerage—2.5%
	16,359	Morgan Stanley		571,747
	5,041	Piper Jaffray Cos.(c)		284,615
				856,362

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

11

PowerShares DWA Financial Momentum Portfolio (PFI) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Life & Health Insurance—11.4%
	43,943	CNO Financial Group, Inc.	$	796,687
	11,591	Lincoln National Corp.		634,723
	7,833	Primerica, Inc.		400,658
	16,482	Principal Financial Group, Inc.		863,162
	9,561	Prudential Financial, Inc.		846,531
	7,914	Torchmark Corp.		419,125
				3,960,886
		Mortgage REITs—3.4%
	62,982	NorthStar Realty Finance Corp. REIT		1,170,206
		Multi-line Insurance—4.3%
	6,316	American Financial Group, Inc.		377,886
	14,254	HCC Insurance Holdings, Inc.		743,916
	11,902	Horace Mann Educators Corp.		361,940
				1,483,742
		Property & Casualty Insurance—3.0%
	15,764	Allstate Corp. (The)		1,022,295
		Real Estate Development—1.4%
	3,188	Howard Hughes Corp. (The)(c)		469,847
		Real Estate Services—3.6%
	39,435	CBRE Group, Inc., Class A(c)		1,261,920
		Regional Banks—15.9%
	12,049	Bank of the Ozarks, Inc.		424,607
	11,435	Cathay General Bancorp		301,998
	15,666	East West Bancorp, Inc.		575,882
	87,009	Fifth Third Bancorp		1,739,310
	95,017	Huntington Bancshares, Inc.		941,619
	8,870	PacWest Bancorp		378,394
	8,792	Pinnacle Financial Partners, Inc.		344,646
	11,150	ViewPoint Financial Group, Inc.		304,061
	19,157	Western Alliance Bancorp(c)		509,959
				5,520,476
		Residential REITs—9.2%
	23,977	Camden Property Trust REIT		1,838,317
	9,617	Equity Residential REIT		668,958
	3,318	Essex Property Trust, Inc. REIT		669,440
				3,176,715
		Specialized Finance—5.0%
	11,576	MarketAxess Holdings, Inc.		748,388
	10,054	Moody’s Corp.		997,659
				1,746,047
		Specialized REITs—4.1%
	24,498	Extra Space Storage, Inc. REIT		1,424,804
		Total Common Stocks and Other Equity Interests (Cost $31,512,394)		34,587,674

Number of Shares			Value
		Money Market Fund—0.2%
	50,182	Invesco Premier Portfolio—Institutional Class(d) (Cost $50,182)	$	50,182
		Total Investments (Cost $31,562,576)—100.1%		34,637,856
		Other assets less liabilities—(0.1%)		(21,405	)
		Net Assets—100.0%	$	34,616,451

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

^(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.

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

12

Portfolio Composition

PowerShares DWA Healthcare Momentum Portfolio (PTH)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Biotechnology	32.3
Pharmaceuticals	20.0
Managed Health Care	13.1
Health Care Facilities	10.0
Life Sciences Tools & Services	8.4
Health Care Supplies	7.0
Health Care Services	4.8
Health Care Equipment	3.4
Auto Parts & Equipment	1.1
Other Assets Less Liabilities	(0.1)

Schedule of Investments^(a)

PowerShares DWA Healthcare Momentum Portfolio (PTH)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.1%
		Auto Parts & Equipment—1.1%
	29,810	Gentherm, Inc.(b)	$	1,243,077
		Biotechnology—32.3%
	253,530	Achillion Pharmaceuticals, Inc.(b)		2,978,978
	17,158	Alnylam Pharmaceuticals, Inc.(b)		1,591,233
	29,204	Celgene Corp.(b)		3,127,456
	137,624	Dyax Corp.(b)		1,702,409
	25,490	Enanta Pharmaceuticals, Inc.(b)		1,096,070
	77,563	Exact Sciences Corp.(b)		1,866,941
	38,563	Gilead Sciences, Inc.(b)		4,319,056
	102,279	Infinity Pharmaceuticals, Inc.(b)		1,393,040
	21,481	Insys Therapeutics, Inc.(b)		873,740
	64,163	Isis Pharmaceuticals, Inc.(b)		2,955,348
	63,949	Medivation, Inc.(b)		6,759,409
	11,569	Puma Biotechnology, Inc.(b)		2,899,191
	21,400	United Therapeutics Corp.(b)		2,802,758
	21,056	Vertex Pharmaceuticals, Inc.(b)		2,371,748
				36,737,377
		Health Care Equipment—3.4%
	58,101	DexCom, Inc.(b)		2,611,640
	34,612	Natus Medical, Inc.(b)		1,176,808
				3,788,448
		Health Care Facilities—10.0%
	16,992	Amsurg Corp.(b)		917,738
	50,765	Community Health Systems, Inc.(b)		2,790,552
	52,233	HCA Holdings, Inc.(b)		3,658,922
	19,465	LifePoint Hospitals, Inc.(b)		1,362,550

Number of Shares			Value
		Common Stocks (continued)
		Health Care Facilities (continued)
	25,453	Universal Health Services, Inc., Class B	$	2,639,730
				11,369,492
		Health Care Services—4.8%
	43,160	Amedisys, Inc.(b)		1,126,476
	35,740	Omnicare, Inc.		2,379,927
	31,760	Team Health Holdings, Inc.(b)		1,986,270
				5,492,673
		Health Care Supplies—7.0%
	38,697	Cooper Cos., Inc. (The)		6,342,438
	50,574	Spectranetics Corp. (The)(b)		1,606,736
				7,949,174
		Life Sciences Tools & Services—8.4%
	123,297	Affymetrix, Inc.(b)		1,110,906
	65,448	Albany Molecular Research, Inc.(b)		1,522,321
	29,092	Illumina, Inc.(b)		5,602,537
	24,726	PAREXEL International Corp.(b)		1,342,869
				9,578,633
		Managed Health Care—13.1%
	31,283	Aetna, Inc.		2,581,160
	25,837	Centene Corp.(b)		2,394,315
	30,192	Health Net, Inc.(b)		1,434,422
	26,471	Humana, Inc.		3,675,498
	32,027	Molina Healthcare, Inc.(b)		1,557,793
	34,271	UnitedHealth Group, Inc.		3,256,088
				14,899,276

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

13

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Pharmaceuticals—20.0%
	33,098	AbbVie, Inc.	$	2,100,399
	23,816	Actavis PLC(b)		5,781,096
	48,717	Akorn, Inc.(b)		2,170,342
	203,376	AVANIR Pharmaceuticals, Inc.(b)		2,631,686
	186,853	Chelsea Therapeutics International Ltd.(b)		14,948
	74,489	Depomed, Inc.(b)		1,147,131
	27,255	Pacira Pharmaceuticals, Inc.(b)		2,529,809
	67,486	Prestige Brands Holdings, Inc.(b)		2,390,354
	27,188	Salix Pharmaceuticals Ltd.(b)		3,910,994
				22,676,759
		Total Investments (Cost $98,677,393)—100.1%		113,734,909
		Other assets less liabilities—(0.1%)		(107,950	)
		Net Assets—100.0%	$	113,626,959

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 DWA Industrials Momentum Portfolio (PRN)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Aerospace & Defense	17.5
Construction & Farm Machinery & Heavy Trucks	10.8
Electrical Components & Equipment	8.6
Railroads	8.5
Industrial Machinery	7.8
Data Processing & Outsourced Services	5.4
Paper Packaging	5.0
Specialty Chemicals	4.8
IT Consulting & Other Services	4.0
Trucking	3.4
Building Products	2.9
Construction Materials	2.8
Marine	2.2
Internet Software & Services	2.2
Security & Alarm Services	2.1
Oil & Gas Storage & Transportation	2.0
Human Resource & Employment Services	1.9
Commercial Printing	1.9
Electronic Equipment & Instruments	1.7
Electronic Manufacturing Services	1.2
Electronic Components	1.2
Air Freight & Logistics	1.1
Health Care Services	1.0
Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA Industrials Momentum Portfolio (PRN)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—17.5%
	15,709	Huntington Ingalls Industries, Inc.	$	1,662,326
	26,053	Lockheed Martin Corp.		4,964,920
	29,689	Northrop Grumman Corp.		4,095,895
	27,892	Raytheon Co.		2,897,421
	120,799	TASER International, Inc.(b)		2,275,853
	27,057	TransDigm Group, Inc.		5,060,471
				20,956,886

Number of Shares			Value
		Common Stocks (continued)
		Air Freight & Logistics—1.1%
	32,574	XPO Logistics, Inc.(b)	$	1,300,354
		Building Products—2.9%
	29,540	Apogee Enterprises, Inc.		1,296,806
	50,479	Trex Co., Inc.(b)		2,170,597
				3,467,403
		Commercial Printing—1.9%
	37,117	Deluxe Corp.		2,256,714

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

15

PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Construction & Farm Machinery & Heavy Trucks—10.8%
	26,520	American Railcar Industries, Inc.	$	1,745,281
	24,508	Cummins, Inc.		3,582,580
	31,414	Greenbrier Cos., Inc. (The)		1,964,632
	135,909	Meritor, Inc.(b)		1,561,594
	67,768	Trinity Industries, Inc.		2,419,995
	18,832	Wabtec Corp.		1,625,202
				12,899,284
		Construction Materials—2.8%
	38,807	Eagle Materials, Inc.		3,392,896
		Data Processing & Outsourced Services—5.4%
	25,733	FleetCor Technologies, Inc.(b)		3,874,360
	22,667	WEX, Inc.(b)		2,574,065
				6,448,425
		Electrical Components & Equipment—8.6%
	114,299	AMETEK, Inc.		5,960,693
	14,080	Hubbell, Inc., Class B		1,596,813
	24,301	Rockwell Automation, Inc.		2,730,217
				10,287,723
		Electronic Components—1.2%
	14,114	Littelfuse, Inc.		1,376,680
		Electronic Equipment & Instruments—1.7%
	52,865	Cognex Corp.(b)		2,091,339
		Electronic Manufacturing Services—1.2%
	35,082	Methode Electronics, Inc.		1,381,529
		Health Care Services—1.0%
	68,696	AMN Healthcare Services, Inc.(b)		1,178,136
		Human Resource & Employment Services—1.9%
	40,114	WageWorks, Inc.(b)		2,286,899
		Industrial Machinery—7.8%
	24,999	Crane Co.		1,558,688
	35,574	Flowserve Corp.		2,418,676
	30,604	IDEX Corp.		2,292,545
	47,835	Ingersoll-Rand PLC		2,995,428
				9,265,337
		Internet Software & Services—2.2%
	12,332	Equinix, Inc.		2,576,155
		IT Consulting & Other Services—4.0%
	43,157	Booz Allen Hamilton Holding Corp., Class A		1,137,187
	32,667	Gartner, Inc.(b)		2,636,554
	27,543	iGATE Corp.(b)		1,020,468
				4,794,209
		Marine—2.2%
	24,045	Kirby Corp.(b)		2,658,896
		Oil & Gas Storage & Transportation—2.0%
	20,777	Golar LNG Ltd. (Norway)		1,165,797
	21,488	Teekay Corp. (Bermuda)		1,256,189
				2,421,986
		Paper Packaging—5.0%
	218,559	Graphic Packaging Holding Co.(b)		2,651,120
	46,309	Packaging Corp. of America		3,337,953
				5,989,073

Number of Shares			Value
		Common Stocks (continued)
		Railroads—8.5%
	40,750	Norfolk Southern Corp.	$	4,508,580
	48,197	Union Pacific Corp.		5,612,541
				10,121,121
		Security & Alarm Services—2.1%
	59,848	Tyco International Ltd.		2,569,275
		Specialty Chemicals—4.8%
	25,006	Sherwin-Williams Co. (The)		5,740,377
		Trucking—3.4%
	36,889	Old Dominion Freight Line, Inc.(b)		2,688,101
	26,946	Saia, Inc.(b)		1,320,893
				4,008,994
		Total Investments (Cost $113,266,719)—100.0%		119,469,691
		Other assets less liabilities—0.0%		(20,965	)
		Net Assets—100.0%	$	119,448,726

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.

16

Portfolio Composition

PowerShares DWA Technology Momentum Portfolio (PTF)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Semiconductors	21.5
Application Software	20.3
Technology Hardware, Storage & Peripherals	15.9
Communications Equipment	11.1
Electronic Components	8.4
Internet Software & Services	4.3
Alternative Carriers	3.7
Semiconductor Equipment	3.7
Wireless Telecommunication Services	2.9
Data Processing & Outsourced Services	1.8
Specialized Consumer Services	1.7
Industrial Machinery	1.6
Electronic Equipment & Instruments	1.6
Construction & Engineering	1.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA Technology Momentum Portfolio (PTF)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Alternative Carriers—3.7%
	96,718	Iridium Communications, Inc.(b)	$	918,821
	33,261	Level 3 Communications, Inc.(b)		1,560,274
				2,479,095
		Application Software—20.3%
	19,442	Adobe Systems, Inc.(b)		1,363,273
	22,361	Autodesk, Inc.(b)		1,286,652
	77,442	Callidus Software, Inc.(b)		1,091,158
	49,684	Ellie Mae, Inc.(b)		1,906,872
	39,869	Intuit, Inc.		3,508,871
	20,793	NetScout Systems, Inc.(b)		766,430
	27,924	PTC, Inc.(b)		1,065,300
	21,957	Synchronoss Technologies, Inc.(b)		1,134,518
	14,843	Workday, Inc., Class A(b)		1,417,210
				13,540,284
		Communications Equipment—11.1%
	38,776	ARRIS Group, Inc.(b)		1,164,055
	90,958	Calix, Inc.(b)		983,256
	10,572	F5 Networks, Inc.(b)		1,300,145
	98,239	Infinera Corp.(b)		1,427,413

Number of Shares			Value
		Common Stocks (continued)
		Communications Equipment (continued)
	15,012	Palo Alto Networks, Inc.(b)	$	1,586,768
	264,547	Sonus Networks, Inc.(b)		917,978
				7,379,615
		Construction & Engineering—1.5%
	34,699	Tutor Perini Corp.(b)		971,919
		Data Processing & Outsourced Services—1.8%
	20,339	Jack Henry & Associates, Inc.		1,216,679
		Electronic Components—8.4%
	83,813	Amphenol Corp., Class A		4,239,261
	18,935	Belden, Inc.		1,347,983
				5,587,244
		Electronic Equipment & Instruments—1.6%
	14,458	Zebra Technologies Corp., Class A(b)		1,066,277
		Industrial Machinery—1.6%
	14,959	Tennant Co.		1,102,927
		Internet Software & Services—4.3%
	2,205	Google, Inc., Class A(b)		1,252,153

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

17

PowerShares DWA Technology Momentum Portfolio (PTF) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Internet Software & Services (continued)
	35,280	Yahoo!, Inc.(b)	$	1,624,644
				2,876,797
		Semiconductor Equipment—3.7%
	18,578	KLA-Tencor Corp.		1,470,449
	33,105	Tessera Technologies, Inc.		1,006,061
				2,476,510
		Semiconductors—21.5%
	24,578	Analog Devices, Inc.		1,219,560
	17,571	Avago Technologies Ltd. (Singapore)		1,515,499
	20,323	Cavium, Inc.(b)		1,042,773
	72,583	Integrated Device Technology, Inc.(b)		1,191,087
	26,004	Microchip Technology, Inc.		1,121,033
	66,154	Micron Technology, Inc.(b)		2,189,036
	27,748	Monolithic Power Systems, Inc.		1,226,184
	102,409	RF Micro Devices, Inc.(b)		1,332,341
	46,235	Skyworks Solutions, Inc.		2,692,726
	39,577	Spansion, Inc., Class A(b)		814,495
				14,344,734
		Specialized Consumer Services—1.7%
	69,213	LifeLock, Inc.(b)		1,170,392
		Technology Hardware, Storage & Peripherals—15.9%
	43,341	Apple, Inc.		4,680,828
	44,809	Hewlett-Packard Co.		1,607,747
	26,223	Lexmark International, Inc., Class A		1,131,784
	15,598	SanDisk Corp.		1,468,396
	17,349	Western Digital Corp.		1,706,621
				10,595,376
		Wireless Telecommunication Services—2.9%
	17,533	SBA Communications Corp., Class A(b)		1,969,482
		Total Common Stocks (Cost $59,522,541)		66,777,331
		Money Market Fund—0.1%
	67,945	Invesco Premier Portfolio—Institutional Class(c) (Cost $67,945)		67,945
		Total Investments (Cost $59,590,486)—100.1%		66,845,276
		Other assets less liabilities—(0.1%)		(79,525	)
		Net Assets—100.0%	$	66,765,751

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 DWA Utilities Momentum Portfolio (PUI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Electric Utilities	36.5
Multi-Utilities	33.0
Oil & Gas Storage & Transportation	7.0
Gas Utilities	6.4
Integrated Telecommunication Services	5.3
Water Utilities	4.6
Oil & Gas Exploration & Production	2.9
Independent Power Producers & Energy Traders	2.2
Internet Software & Services	1.3
Application Software	0.8
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA Utilities Momentum Portfolio (PUI)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—0.8%
	22,553	EnerNOC, Inc.(b)	$	333,108
		Electric Utilities—36.5%
	19,446	Cleco Corp.		1,045,417
	28,529	Duke Energy Corp.		2,343,657
	38,067	Edison International		2,382,233
	9,749	IDACORP, Inc.		616,429
	23,885	ITC Holdings Corp.		946,085
	16,722	NextEra Energy, Inc.		1,675,879
	23,492	Northeast Utilities		1,159,330
	16,939	OGE Energy Corp.		631,655
	27,734	PNM Resources, Inc.		800,126
	31,194	Southern Co. (The)		1,446,154
	17,969	Westar Energy, Inc.		679,408
	49,282	Xcel Energy, Inc.		1,649,469
				15,375,842
		Gas Utilities—6.4%
	15,277	AGL Resources, Inc.		823,583
	15,636	Atmos Energy Corp.		828,708
	6,050	National Fuel Gas Co.		418,841
	16,813	UGI Corp.		633,682
				2,704,814
		Independent Power Producers & Energy Traders—2.2%
	30,481	NRG Energy, Inc.		913,820

Number of Shares			Value
		Common Stocks (continued)
		Integrated Telecommunication Services—5.3%
	10,314	Consolidated Communications Holdings, Inc.	$	267,132
	164,948	Frontier Communications Corp.		1,078,760
	86,043	Windstream Holdings, Inc.		901,731
				2,247,623
		Internet Software & Services—1.3%
	10,296	j2 Global, Inc.		556,911
		Multi-Utilities—33.0%
	10,345	Alliant Energy Corp.		640,459
	11,328	Black Hills Corp.		619,981
	53,887	CenterPoint Energy, Inc.		1,322,926
	40,139	CMS Energy Corp.		1,311,341
	17,657	Dominion Resources, Inc.		1,258,944
	14,793	DTE Energy Co.		1,215,393
	38,382	NiSource, Inc.		1,614,347
	9,984	NorthWestern Corp.		527,555
	10,881	SCANA Corp.		597,258
	21,043	Sempra Energy		2,314,730
	14,776	Vectren Corp.		664,181
	36,650	Wisconsin Energy Corp.		1,820,039
				13,907,154
		Oil & Gas Exploration & Production—2.9%
	13,090	EQT Corp.		1,230,984
		Oil & Gas Storage & Transportation—7.0%
	30,916	ONEOK, Inc.		1,822,189

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

19

PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Oil & Gas Storage & Transportation (continued)
	28,403	Spectra Energy Corp.	$	1,111,409
				2,933,598
		Water Utilities—4.6%
	26,305	American Water Works Co., Inc.		1,403,898
	20,639	Aqua America, Inc.		540,742
				1,944,640
		Total Common Stocks (Cost $36,943,388)		42,148,494
		Money Market Fund—0.1%
	49,013	Invesco Premier Portfolio—Institutional Class(c) (Cost $49,013)		49,013
		Total Investments (Cost $36,992,401)—100.1%		42,197,507
		Other assets less liabilities—(0.1%)		(52,623	)
		Net Assets—100.0%	$	42,144,884

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 NASDAQ Internet Portfolio (PNQI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2014 (Unaudited)
Internet Software & Services	73.8
Internet Retail	24.0
Application Software	1.6
Alternative Carriers	0.4
Wireless Telecommunication Services	0.1
Casinos & Gaming	0.0
Systems Software	0.0
Money Market Funds Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares NASDAQ Internet Portfolio (PNQI)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Alternative Carriers—0.4%
	31,418	Cogent Communications Group, Inc.	$	1,066,327
		Application Software—1.6%
	36,789	NQ Mobile, Inc. ADR (China)(b)(c)		268,928
	82,561	Open Text Corp. (Canada)		4,550,762
	6,447	Sungy Mobile Ltd. ADR (China)(b)(c)		43,259
				4,862,949
		Casinos & Gaming—0.0%
	4,511	500.com Ltd., Class A ADR (China)(b)(c)		139,164
		Internet Retail—24.0%
	71,710	Amazon.com, Inc.(c)		21,904,537
	8,025	Blue Nile, Inc.(c)		284,887
	102,430	Ctrip.com International Ltd. ADR (China)(c)		5,971,669
	77,545	Expedia, Inc.		6,588,999
	452,121	Groupon, Inc.(c)		3,305,004
	25,452	Netflix, Inc.(c)		9,996,782
	19,512	Nutrisystem, Inc.		328,582
	74,736	Orbitz Worldwide, Inc.(c)		618,067
	16,288	Overstock.com, Inc.(c)		376,579
	13,741	PetMed Express, Inc.(b)		181,519
	9,770	Priceline Group, Inc. (The)(c)		11,784,672
	8,661	Qunar Cayman Islands Ltd. ADR (China)(b)(c)		232,981
	36,591	RetailMeNot, Inc.(c)		770,606
	26,091	Shutterfly, Inc.(c)		1,091,386
	88,119	TripAdvisor, Inc.(c)		7,812,631
	23,556	zulily, Inc., Class A(c)		856,967
				72,105,868
		Internet Software & Services—73.8%
	31,350	21Vianet Group, Inc. ADR (China)(b)(c)		655,842

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	120,778	Akamai Technologies, Inc.(c)	$	7,282,913
	39,669	Angie’s List, Inc.(b)(c)		276,493
	53,331	AOL, Inc.(c)		2,321,498
	56,669	Baidu, Inc. ADR (China)(c)		13,530,857
	70,797	Bankrate, Inc.(c)		768,855
	52,902	Bazaarvoice, Inc.(b)(c)		394,120
	17,273	Benefitfocus, Inc.(b)(c)		478,635
	27,879	Blucora, Inc.(c)		472,549
	21,847	Brightcove, Inc.(c)		140,039
	18,224	Carbonite, Inc.(c)		199,371
	10,547	ChinaCache International Holdings Ltd. ADR (China)(b)(c)		108,634
	23,166	comScore, Inc.(c)		976,215
	21,498	Constant Contact, Inc.(c)		760,169
	43,439	Conversant, Inc.(c)		1,531,225
	36,192	Cornerstone OnDemand, Inc.(c)		1,312,684
	21,897	CoStar Group, Inc.(c)		3,527,388
	20,065	Criteo SA ADR (France)(c)		615,795
	36,536	Dealertrack Technologies, Inc.(c)		1,719,019
	24,491	Demandware, Inc.(c)		1,468,235
	36,385	Dice Holdings, Inc.(c)		362,758
	21,678	Digital River, Inc.(c)		554,307
	19,728	E2open, Inc.(c)		115,212
	69,329	EarthLink Holdings Corp.		248,198
	438,070	eBay, Inc.(c)		22,998,675
	17,256	eGain Corp.(c)		70,750
	87,587	Endurance International Group Holdings, Inc.(b)(c)		1,455,696
	36,061	Equinix, Inc.		7,533,143
	361,026	Facebook, Inc., Class A(c)		27,073,340

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

21

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

October 31, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	48,805	Global Eagle Entertainment, Inc.(b)(c)	$	596,885
	57,760	Gogo, Inc.(b)(c)		959,394
	41,748	Google, Inc., Class A(c)		23,707,437
	42,534	Google, Inc., Class C(c)		23,779,909
	63,716	HomeAway, Inc.(c)		2,223,688
	52,604	IAC/InterActiveCorp.		3,560,765
	36,869	Internap Network Services Corp.(c)		295,321
	32,358	j2 Global, Inc.		1,750,244
	20,108	Liquidity Services, Inc.(c)		256,980
	36,456	LivePerson, Inc.(c)		524,966
	16,688	LogMeIn, Inc.(c)		801,858
	25,466	Marchex, Inc., Class B		97,535
	23,597	Marin Software, Inc.(b)(c)		211,193
	27,642	Marketo, Inc.(b)(c)		892,007
	29,933	MercadoLibre, Inc. (Argentina)(b)		4,075,378
	60,214	Monster Worldwide, Inc.(c)		232,426
	27,234	Move, Inc.(c)		570,552
	50,501	NetEase, Inc. ADR (China)		4,783,455
	44,242	NIC, Inc.		815,380
	139,980	Pandora Media, Inc.(c)		2,698,814
	23,338	Perficient, Inc.(c)		386,944
	46,414	Perion Network Ltd. (Israel)(b)(c)		255,277
	63,280	Qihoo 360 Technology Co. Ltd. ADR (China)(b)(c)		4,618,174
	29,700	QuinStreet, Inc.(c)		120,285
	96,951	Rackspace Hosting, Inc.(c)		3,719,040
	24,307	Rocket Fuel, Inc.(b)(c)		379,675
	18,646	SciQuest, Inc.(c)		278,012
	23,956	Shutterstock, Inc.(c)		1,862,819
	44,799	SINA Corp. (China)(c)		1,835,415
	26,083	Sohu.com, Inc. (China)(c)		1,267,373
	10,763	Stamps.com, Inc.(c)		397,155
	9,985	Travelzoo, Inc.(c)		130,704
	25,291	Trulia, Inc.(b)(c)		1,179,825
	84,753	VeriSign, Inc.(c)		5,064,839
	21,941	Vistaprint NV(b)(c)		1,466,975
	35,566	Web.com Group, Inc.(c)		730,170
	26,526	WebMD Health Corp.(b)(c)		1,132,130
	25,536	Wix.com Ltd. (Israel)(b)(c)		433,857
	25,889	Xoom Corp.(c)		390,924
	315,669	Yahoo!, Inc.(c)		14,536,557
	167,481	Yandex NV, Class A (Russia)(c)		4,793,306
	22,134	YuMe, Inc.(b)(c)		110,449
	25,044	YY, Inc. ADR (China)(b)(c)		2,075,146
	23,130	Zillow, Inc., Class A(b)(c)		2,514,925
	40,194	Zix Corp.(c)		132,641
				221,599,419
		Systems Software—0.0%
	25,688	Covisint Corp.(b)(c)		74,238
		Wireless Telecommunication Services—0.1%
	24,275	Boingo Wireless, Inc.(c)		170,168
		Total Common Stocks and Other Equity Interests (Cost $287,852,003)		300,018,133

Number of Shares			Value
		Money Market Fund—0.0%
	38,995	Invesco Premier Portfolio—Institutional Class(d) (Cost $38,995)	$	38,995
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $287,890,998)—99.9%		300,057,128
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—5.6%
	16,719,225	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $16,719,225)		16,719,225
		Total Investments (Cost $304,610,223)—105.5%		316,776,353
		Other assets less liabilities—(5.5%)		(16,573,317	)
		Net Assets—100.0%	$	300,203,036

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, 2014.

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of October 31, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	17,363,205	$	(16,719,225	)	$	643,980

* Amount does not include excess collateral received, if any.

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

China 11.8%

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

22

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

October 31, 2014

(Unaudited)

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)			PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)			PowerShares DWA Consumer Staples Momentum Portfolio (PSL)			PowerShares DWA Energy Momentum Portfolio (PXI)
Assets:
Unaffiliated investments, at value(a)	$	105,855,640		$	52,275,005		$	41,642,457		$	212,812,009
Affiliated investments, at value		1,592,997			58,309			59,356			215,362
Total investments, at value		107,448,637			52,333,314			41,701,813			213,027,371
Receivables:
Dividends		38,557			10,866			7,151			170,627
Securities lending		293			—			—			—
Other assets		1,571			2,128			1,451			1,763
Total Assets		107,489,058			52,346,308			41,710,415			213,199,761
Liabilities:
Due to custodian		2,958			1,327			1,246			5,065
Payables:
Collateral upon return of securities loaned		1,526,625			—			—			—
Investments purchased		—			—			—			—
Accrued advisory fees		37,464			11,012			9,930			61,763
Accrued trustees’ and officer’s fees		13,439			11,563			12,348			15,522
Accrued expenses		68,555			55,347			45,305			211,011
Total Liabilities		1,649,041			79,249			68,829			293,361
Net Assets	$	105,840,017		$	52,267,059		$	41,641,586		$	212,906,400
Net Assets Consist of:
Shares of beneficial interest	$	116,471,604		$	60,764,976		$	44,637,802		$	243,246,388
Undistributed net investment income (loss)		105,667			(8,723	)		11,337			110,770
Undistributed net realized gain (loss)		(16,473,969	)		(11,111,983	)		(7,640,439	)		(23,750,643	)
Net unrealized appreciation (depreciation)		5,736,715			2,622,789			4,632,886			(6,700,115	)
Net Assets	$	105,840,017		$	52,267,059		$	41,641,586		$	212,906,400
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,950,000			1,250,000			850,000			4,000,000
Net asset value	$	54.28		$	41.81		$	48.99		$	53.23
Market price	$	54.24		$	41.83		$	48.97		$	53.23
Unaffiliated investments, at cost	$	100,118,925		$	49,652,216		$	37,009,571		$	219,512,124
Affiliated investments, at cost	$	1,592,997		$	58,309		$	59,356		$	215,362
Total investments, at cost	$	101,711,922		$	49,710,525		$	37,068,927		$	219,727,486
(a) Includes securities on loan with an aggregate value of	$	1,540,874		$	—		$	—		$	—

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

24

PowerShares DWA Financial Momentum Portfolio (PFI)			PowerShares DWA Healthcare Momentum Portfolio (PTH)			PowerShares DWA Industrials Momentum Portfolio (PRN)			PowerShares DWA Technology Momentum Portfolio (PTF)			PowerShares DWA Utilities Momentum Portfolio (PUI)			PowerShares NASDAQ Internet Portfolio (PNQI)
$	33,191,176		$	113,734,909		$	119,469,691		$	66,777,331		$	42,148,494		$	300,018,133
	1,446,680			—			—			67,945			49,013			16,758,220
	34,637,856			113,734,909			119,469,691			66,845,276			42,197,507			316,776,353
	41,317			11,311			111,432			4,681			63,197			281,526
	—			—			—			—			—			15,311
	1,654			1,495			1,619			2,104			1,448			—
	34,680,827			113,747,715			119,582,742			66,852,061			42,262,152			317,073,190
	1,067			17,426			13,097			2,161			419			—
	—			—			—			—			—			16,719,225
	—			—			—			—			46,576			—
	6,401			34,407			47,363			16,625			13,173			150,929
	11,581			14,539			13,554			12,423			12,683			—
	45,327			54,384			60,002			55,101			44,417			—
	64,376			120,756			134,016			86,310			117,268			16,870,154
$	34,616,451		$	113,626,959		$	119,448,726		$	66,765,751		$	42,144,884		$	300,203,036
$	41,901,435		$	152,845,396		$	158,264,991		$	92,777,882		$	50,830,380		$	290,270,513
	45,071			(259,526	)		72,336			(51,738	)		105,892			(819,940	)
	(10,405,335	)		(54,016,427	)		(45,091,573	)		(33,215,183	)		(13,996,494	)		(1,413,667	)
	3,075,280			15,057,516			6,202,972			7,254,790			5,205,106			12,166,130
$	34,616,451		$	113,626,959		$	119,448,726		$	66,765,751		$	42,144,884		$	300,203,036
	1,150,000			2,150,000			2,550,000			1,850,000			1,800,000			4,400,000
$	30.10		$	52.85		$	46.84		$	36.09		$	23.41		$	68.23
$	30.08		$	52.83		$	46.82		$	36.10		$	23.40		$	68.20
$	30,322,561		$	98,677,393		$	113,266,719		$	59,522,541		$	36,943,388		$	287,852,003
$	1,240,015		$	—		$	—		$	67,945		$	49,013		$	16,758,220
$	31,562,576		$	98,677,393		$	113,266,719		$	59,590,486		$	36,992,401		$	304,610,223
$	—		$	—		$	—		$	—		$	—		$	17,363,205

25

Statements of Operations

For the six months ended October 31, 2014

(Unaudited)

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)			PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)			PowerShares DWA Consumer Staples Momentum Portfolio (PSL)			PowerShares DWA Energy Momentum Portfolio (PXI)
Investment Income:
Unaffiliated dividend income	$	677,978		$	159,087		$	226,136		$	1,401,539
Affiliated dividend income		6			5			4			13
Securities lending income		4,334			—			—			—
Foreign withholding tax		—			—			—			—
Total Income		682,318			159,092			226,140			1,401,552
Expenses:
Advisory fees		256,928			124,697			98,897			611,580
Sub-licensing		41,528			31,538			11,844			200,710
Accounting & administration fees		18,467			18,467			18,467			21,315
Professional fees		14,490			14,236			14,163			15,503
Trustees’ and officer’s fees		4,573			4,153			4,054			5,870
Custodian & transfer agent fees		3,643			2,293			3,077			3,820
Other expenses		9,770			7,431			7,929			12,730
Total Expenses		349,399			202,815			158,431			871,528
Less: Waivers		(41,155	)		(53,231	)		(39,803	)		(137,779	)
Net Expenses		308,244			149,584			118,628			733,749
Net Investment Income (Loss)		374,074			9,508			107,512			667,803
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(4,187,137	)		(1,654,828	)		(730,039	)		(12,260,878	)
In-kind redemptions		6,384,509			—			961,780			10,645,050
Net realized gain (loss)		2,197,372			(1,654,828	)		231,741			(1,615,828	)
Net change in unrealized appreciation (depreciation) on investment securities		(907,682	)		4,041,629			5,027,022			(30,462,103	)
Net realized and unrealized gain (loss)		1,289,690			2,386,801			5,258,763			(32,077,931	)
Net increase (decrease) in net assets resulting from operations	$	1,663,764		$	2,396,309		$	5,366,275		$	(31,410,128	)

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

26

PowerShares DWA Financial Momentum Portfolio (PFI)			PowerShares DWA Healthcare Momentum Portfolio (PTH)			PowerShares DWA Industrials Momentum Portfolio (PRN)			PowerShares DWA Technology Momentum Portfolio (PTF)			PowerShares DWA Utilities Momentum Portfolio (PUI)			PowerShares NASDAQ Internet Portfolio (PNQI)
$	273,861		$	149,741		$	601,774		$	168,508		$	683,211		$	482,330
	18,082			4			8			5			3			6
	—			—			—			—			—			111,488
	—			—			(412	)		—			—			(4,750	)
	291,943			149,745			601,370			168,513			683,214			589,074
	87,897			211,427			351,386			148,594			105,239			949,580
	12,125			21,778			36,430			29,827			12,529			—
	18,467			18,467			18,467			18,467			18,467			—
	14,034			14,546			14,604			14,131			14,244			—
	4,039			4,464			5,029			4,239			4,091			—
	3,050			3,179			3,644			2,843			3,036			—
	7,484			10,047			9,742			7,699			8,088			—
	147,096			283,908			439,302			225,800			165,694			949,580
	(41,668	)		(30,243	)		(17,734	)		(47,541	)		(39,442	)		(56	)
	105,428			253,665			421,568			178,259			126,252			949,524
	186,515			(103,920	)		179,802			(9,746	)		556,962			(360,450	)
	(1,095,701	)		(4,888,886	)		(8,856,529	)		(3,650,303	)		(93,572	)		(4,540,649	)
	960,772			(189,531	)		616,783			—			1,148,896			11,851,347
	(134,929	)		(5,078,417	)		(8,239,746	)		(3,650,303	)		1,055,324			7,310,698
	2,963,938			19,559,465			8,542,131			10,193,857			624,283			23,791,670
	2,829,009			14,481,048			302,385			6,543,554			1,679,607			31,102,368
$	3,015,524		$	14,377,128		$	482,187		$	6,533,808		$	2,236,569		$	30,741,918

27

Statements of Changes in Net Assets

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)						PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income	$	374,074		$	854,877		$	9,508		$	112,484
Net realized gain (loss)		2,197,372			17,417,241			(1,654,828	)		6,822,592
Net change in unrealized appreciation (depreciation)		(907,682	)		(2,979,184	)		4,041,629			(4,467,963	)
Net increase (decrease) in net assets resulting from operations		1,663,764			15,292,934			2,396,309			2,467,113
Distributions to Shareholders from:
Net investment income		(509,897	)		(855,864	)		(18,192	)		(129,334	)
Shareholder Transactions:
Proceeds from shares sold		51,104,049			73,661,881			4,135,299			59,400,392
Value of shares repurchased		(40,607,927	)		(74,162,058	)		—			(39,917,618	)
Net increase (decrease) in net assets resulting from shares transactions		10,496,122			(500,177	)		4,135,299			19,482,774
Increase (Decrease) in Net Assets		11,649,989			13,936,893			6,513,416			21,820,553
Net Assets:
Beginning of period		94,190,028			80,253,135			45,753,643			23,933,090
End of period	$	105,840,017		$	94,190,028		$	52,267,059		$	45,753,643
Undistributed net investment income at end of period	$	105,667		$	241,490		$	(8,723	)	$	(39	)
Changes in Shares Outstanding:
Shares sold		900,000			1,550,000			100,000			1,500,000
Shares repurchased		(750,000	)		(1,600,000	)		—			(1,050,000	)
Shares outstanding, beginning of period		1,800,000			1,850,000			1,150,000			700,000
Shares outstanding, end of period		1,950,000			1,800,000			1,250,000			1,150,000

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

28

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)						PowerShares DWA Energy Momentum Portfolio (PXI)						PowerShares DWA Financial Momentum Portfolio (PFI)
October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	107,512		$	600,840		$	667,803		$	1,039,264		$	186,515		$	313,310
	231,741			11,759,367			(1,615,828	)		28,951,519			(134,929	)		5,834,367
	5,027,022			(8,568,511	)		(30,462,103	)		8,823,850			2,963,938			(2,648,471	)
	5,366,275			3,791,696			(31,410,128	)		38,814,633			3,015,524			3,499,206
	(265,166	)		(519,961	)		(1,053,964	)		(942,939	)		(183,461	)		(327,300	)
	4,591,906			40,671,117			92,267,048			211,564,193			2,924,910			41,859,075
	(6,789,846	)		(42,912,351	)		(61,337,299	)		(172,910,991	)		(7,307,582	)		(29,193,899	)
	(2,197,940	)		(2,241,234	)		30,929,749			38,653,202			(4,382,672	)		12,665,176
	2,903,169			1,030,501			(1,534,343	)		76,524,896			(1,550,609	)		15,837,082
	38,738,417			37,707,916			214,440,743			137,915,847			36,167,060			20,329,978
$	41,641,586		$	38,738,417		$	212,906,400		$	214,440,743		$	34,616,451		$	36,167,060
$	11,337		$	168,991		$	110,770		$	496,931		$	45,071		$	42,017
	100,000			950,000			1,450,000			3,950,000			100,000			1,550,000
	(150,000	)		(1,000,000	)		(1,000,000	)		(3,250,000	)		(250,000	)		(1,100,000	)
	900,000			950,000			3,550,000			2,850,000			1,300,000			850,000
	850,000			900,000			4,000,000			3,550,000			1,150,000			1,300,000

29

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2014 and the year ended April 30, 2014

(Unaudited)

	PowerShares DWA Healthcare Momentum Portfolio (PTH)						PowerShares DWA Industrials Momentum Portfolio (PRN)
	October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
Operations:
Net investment income (loss)	$	(103,920	)	$	5,402		$	179,802		$	426,248
Net realized gain (loss)		(5,078,417	)		18,995,154			(8,239,746	)		20,871,490
Net change in unrealized appreciation (depreciation)		19,559,465			(12,438,845	)		8,542,131			(7,691,104	)
Net increase in net assets resulting from operations		14,377,128			6,561,711			482,187			13,606,634
Distributions to Shareholders from:
Net investment income		—			(245,316	)		(184,228	)		(341,196	)
Shareholder Transactions:
Proceeds from shares sold		29,098,353			129,950,062			—			216,269,719
Value of shares repurchased		(36,408,954	)		(89,776,750	)		(50,471,463	)		(98,486,362	)
Net increase (decrease) in net assets resulting from shares transactions		(7,310,601	)		40,173,312			(50,471,463	)		117,783,357
Increase (Decrease) in Net Assets		7,066,527			46,489,707			(50,173,504	)		131,048,795
Net Assets:
Beginning of period		106,560,432			60,070,725			169,622,230			38,573,435
End of period	$	113,626,959		$	106,560,432		$	119,448,726		$	169,622,230
Undistributed net investment income (loss) at end of period	$	(259,526	)	$	(155,606	)	$	72,336		$	76,762
Changes in Shares Outstanding:
Shares sold		600,000			2,850,000			—			4,800,000
Shares repurchased		(800,000	)		(2,050,000	)		(1,100,000	)		(2,200,000	)
Shares outstanding, beginning of period		2,350,000			1,550,000			3,650,000			1,050,000
Shares outstanding, end of period		2,150,000			2,350,000			2,550,000			3,650,000

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

30

PowerShares DWA Technology Momentum Portfolio (PTF)						PowerShares DWA Utilities Momentum Portfolio (PUI)						PowerShares NASDAQ Internet Portfolio (PNQI)
October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014			October 31, 2014			April 30, 2014
$	(9,746	)	$	50,166		$	556,962		$	902,306		$	(360,450	)	$	(871,050	)
	(3,650,303	)		9,068,960			1,055,324			7,202,577			7,310,698			34,722,920
	10,193,857			(7,416,013	)		624,283			(2,181,700	)		23,791,670			(19,851,903	)
	6,533,808			1,703,113			2,236,569			5,923,183			30,741,918			13,999,967
	—			(65,769	)		(538,430	)		(929,718	)		—			—
	6,706,730			56,477,215			4,604,997			16,775,859			27,090,159			317,679,346
	—			(36,642,270	)		(5,759,465	)		(22,772,053	)		(47,256,718	)		(106,576,777	)
	6,706,730			19,834,945			(1,154,468	)		(5,996,194	)		(20,166,559	)		211,102,569
	13,240,538			21,472,289			543,671			(1,002,729	)		10,575,359			225,102,536
	53,525,213			32,052,924			41,601,213			42,603,942			289,627,677			64,525,141
$	66,765,751		$	53,525,213		$	42,144,884		$	41,601,213		$	300,203,036		$	289,627,677
$	(51,738	)	$	(41,992	)	$	105,892		$	87,360		$	(819,940	)	$	(459,490	)
	200,000			1,700,000			200,000			850,000			400,000			4,950,000
	—			(1,150,000	)		(250,000	)		(1,150,000	)		(700,000	)		(1,650,000	)
	1,650,000			1,100,000			1,850,000			2,150,000			4,700,000			1,400,000
	1,850,000			1,650,000			1,800,000			1,850,000			4,400,000			4,700,000

31

Financial Highlights

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	52.33		$	43.38		$	38.24		$	40.66		$	31.30		$	20.14
Net investment income(a)		0.20			0.51			0.63			0.47			0.86	(b)		0.28
Net realized and unrealized gain (loss) on investments		2.02			8.95			5.16			(2.46	)		9.34			11.20
Total from investment operations		2.22			9.46			5.79			(1.99	)		10.20			11.48
Distributions to shareholders from:
Net investment income		(0.27	)		(0.51	)		(0.65	)		(0.43	)		(0.84	)		(0.32	)
Net asset value at end of period	$	54.28		$	52.33		$	43.38		$	38.24		$	40.66		$	31.30
Market price at end of period(c)	$	54.24		$	52.31		$	43.29		$	38.20		$	40.67		$	31.34
Net Asset Value Total Return(d)		4.23	%		21.97	%		15.37	%		(4.76	)%		33.12	%		57.46	%
Market Price Total Return(d)		4.20	%		22.18	%		15.26	%		(4.88	)%		32.98	%		57.59	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	105,840		$	94,190		$	80,253		$	66,924		$	97,591		$	48,517
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(e)		0.64	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.68	%(e)		0.68	%		0.72	%		0.76	%		0.79	%		0.91	%
Net investment income, after Waivers		0.73	%(e)		1.08	%		1.59	%		1.33	%		2.56	%(b)		1.05	%
Portfolio turnover rate(f)		40	%		158	%		63	%		78	%		28	%		46	%

^(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Annualized.

^(f)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	39.79		$	34.19		$	29.90		$	27.54		$	23.72		$	17.07
Net investment income(a)		0.01			0.17			0.39			0.18			0.20			0.06
Net realized and unrealized gain on investments		2.03			5.63			4.24			2.37			3.79			6.65
Total from investment operations		2.04			5.80			4.63			2.55			3.99			6.71
Distributions to shareholders from:
Net investment income		(0.02	)		(0.20	)		(0.34	)		(0.19	)		(0.17	)		(0.06	)
Net asset value at end of period	$	41.81		$	39.79		$	34.19		$	29.90		$	27.54		$	23.72
Market price at end of period(b)	$	41.83		$	39.74		$	34.16		$	29.89		$	27.53		$	23.74
Net Asset Value Total Return(c)		5.11	%		16.97	%		15.67	%		9.41	%		16.91	%		39.37	%
Market Price Total Return(c)		5.30	%		16.93	%		15.60	%		9.41	%		16.77	%		39.49	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	52,267		$	45,754		$	23,933		$	19,437		$	20,657		$	21,345
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(d)		0.64	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.81	%(d)		0.91	%		0.93	%		1.19	%		1.24	%		1.32	%
Net investment income, after Waivers		0.04	%(d)		0.42	%		1.29	%		0.69	%		0.86	%		0.31	%
Portfolio turnover rate(e)		77	%		236	%		130	%		88	%		68	%		86	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

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

32

Financial Highlights (continued)

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	43.04		$	39.69		$	32.61		$	31.36		$	26.74		$	20.81
Net investment income(a)		0.13			0.66			0.66			0.48			0.52			0.36
Net realized and unrealized gain on investments		6.13			3.26			7.13			1.22			4.61			5.99
Total from investment operations		6.26			3.92			7.79			1.70			5.13			6.35
Distributions to shareholders from:
Net investment income		(0.31	)		(0.57	)		(0.71	)		(0.45	)		(0.51	)		(0.42	)
Net asset value at end of period	$	48.99		$	43.04		$	39.69		$	32.61		$	31.36		$	26.74
Market price at end of period(b)	$	48.97		$	43.03		$	39.67		$	32.60		$	31.37		$	26.74
Net Asset Value Total Return(c)		14.59	%		9.93	%		24.29	%		5.53	%		19.46	%		30.87	%
Market Price Total Return(c)		14.58	%		9.97	%		24.27	%		5.47	%		19.50	%		30.99	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	41,642		$	38,738		$	37,708		$	39,131		$	40,772		$	38,772
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(d)		0.64	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.80	%(d)		0.79	%		0.82	%		0.89	%		0.94	%		0.87	%
Net investment income, after Waivers		0.54	%(d)		1.56	%		1.94	%		1.54	%		1.91	%		1.50	%
Portfolio turnover rate(e)		45	%		175	%		57	%		35	%		54	%		67	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Energy Momentum Portfolio (PXI)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	60.41		$	48.39		$	40.45		$	44.63		$	29.75		$	19.91
Net investment income(a)		0.17			0.34			0.47			0.21			0.32			0.20
Net realized and unrealized gain (loss) on investments		(7.09	)		12.01			8.13			(4.15	)		14.77			9.87
Total from investment operations		(6.92	)		12.35			8.60			(3.94	)		15.09			10.07
Distributions to shareholders from:
Net investment income		(0.26	)		(0.33	)		(0.66	)		(0.24	)		(0.21	)		(0.23	)
Net asset value at end of period	$	53.23		$	60.41		$	48.39		$	40.45		$	44.63		$	29.75
Market price at end of period(b)	$	53.23		$	60.37		$	48.36		$	40.47		$	44.65		$	29.75
Net Asset Value Total Return(c)		(11.52	)%		25.66	%		21.48	%		(8.79	)%		51.01	%		50.81	%
Market Price Total Return(c)		(11.46	)%		25.66	%		21.35	%		(8.78	)%		51.07	%		50.73	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	212,906		$	214,441		$	137,916		$	141,562		$	191,903		$	38,671
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(d)		0.64	%		0.66	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.71	%(d)		0.64	%		0.69	%		0.66	%		0.74	%		0.93	%
Net investment income, after Waivers		0.55	%(d)		0.65	%		1.10	%		0.54	%		0.90	%		0.79	%
Portfolio turnover rate(e)		57	%		198	%		80	%		107	%		35	%		63	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

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

33

Financial Highlights (continued)

PowerShares DWA Financial Momentum Portfolio (PFI)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	27.82		$	23.92		$	20.08		$	20.45		$	18.46		$	14.63
Net investment income(a)		0.15			0.32			0.35			0.25			0.27			0.21
Net realized and unrealized gain (loss) on investments		2.28			3.93			3.83			(0.42	)		2.04			3.84
Total from investment operations		2.43			4.25			4.18			(0.17	)		2.31			4.05
Distributions to shareholders from:
Net investment income		(0.15	)		(0.35	)		(0.34	)		(0.20	)		(0.32	)		(0.22	)
Net asset value at end of period	$	30.10		$	27.82		$	23.92		$	20.08		$	20.45		$	18.46
Market price at end of period(b)	$	30.08		$	27.79		$	23.90		$	20.07		$	20.44		$	18.45
Net Asset Value Total Return(c)		8.75	%		17.89	%		21.07	%		(0.66	)%		12.76	%		27.90	%
Market Price Total Return(c)		8.79	%		17.86	%		21.03	%		(0.66	)%		12.77	%		28.09	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	34,616		$	36,167		$	20,330		$	18,071		$	22,492		$	17,539
Ratio to average net assets of:
Expenses, after Waivers(d)		0.60	%(e)		0.64	%		0.66	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers(d)		0.84	%(e)		0.91	%		1.10	%		1.21	%		1.30	%		1.25	%
Net investment income, after Waivers		1.06	%(e)		1.20	%		1.66	%		1.33	%		1.50	%		1.26	%
Portfolio turnover rate(f)		50	%		232	%		118	%		102	%		59	%		97	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment 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. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

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

34

Financial Highlights (continued)

PowerShares DWA Healthcare Momentum Portfolio (PTH)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	45.34		$	38.76		$	32.29		$	31.41		$	25.68		$	17.89
Net investment income (loss)(a)		(0.06	)		0.00	(b)		0.43			0.02			(0.05	)		0.03
Net realized and unrealized gain on investments		7.57			6.73			6.39			0.86			5.78			7.84
Total from investment operations		7.51			6.73			6.82			0.88			5.73			7.87
Distributions to shareholders from:
Net investment income		—			(0.15	)		(0.35	)		—			—			(0.05	)
Return of capital		—			—			—			—			—			(0.03	)
Total distributions		—			(0.15	)		(0.35	)		—			—			(0.08	)
Net asset value at end of period	$	52.85		$	45.34		$	38.76		$	32.29		$	31.41		$	25.68
Market price at end of period(c)	$	52.83		$	45.34		$	38.69		$	32.30		$	31.44		$	25.67
Net Asset Value Total Return(d)		16.56	%		17.41	%		21.31	%		2.80	%		22.31	%		44.09	%
Market Price Total Return(d)		16.52	%		17.62	%		21.06	%		2.74	%		22.48	%		44.28	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	113,627		$	106,560		$	60,071		$	37,134		$	62,822		$	97,598
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(e)		0.64	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.67	%(e)		0.68	%		0.74	%		0.82	%		0.84	%		0.72	%
Net investment income (loss), after Waivers		(0.25	)%(e)		0.01	%		1.26	%		0.05	%		(0.21	)%		0.13	%
Portfolio turnover rate(f)		97	%		278	%		93	%		99	%		63	%		79	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

^(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Annualized.

^(f)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Industrials Momentum Portfolio (PRN)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	46.47		$	36.74		$	30.02		$	32.47		$	25.21		$	18.85
Net investment income(a)		0.06			0.19			0.52			0.22			0.17			0.20
Net realized and unrealized gain (loss) on investments		0.37			9.72			6.89			(2.48	)		7.29			6.48
Total from investment operations		0.43			9.91			7.41			(2.26	)		7.46			6.68
Distributions to shareholders from:
Net investment income		(0.06	)		(0.18	)		(0.65	)		(0.19	)		(0.20	)		(0.32	)
Return of capital		—			—			(0.04	)		—			—			—
Total distributions		(0.06	)		(0.18	)		(0.69	)		(0.19	)		(0.20	)		(0.32	)
Net asset value at end of period	$	46.84		$	46.47		$	36.74		$	30.02		$	32.47		$	25.21
Market price at end of period(b)	$	46.82		$	46.43		$	36.72		$	30.00		$	32.48		$	25.20
Net Asset Value Total Return(c)		0.92	%		27.01	%		25.18	%		(6.91	)%		29.83	%		35.73	%
Market Price Total Return(c)		0.97	%		26.97	%		25.19	%		(7.00	)%		29.92	%		35.89	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	119,449		$	169,622		$	38,573		$	30,017		$	113,629		$	32,779
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(d)		0.63	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.63	%(d)		0.66	%		0.92	%		0.80	%		0.88	%		0.82	%
Net investment income, after Waivers		0.26	%(d)		0.43	%		1.65	%		0.77	%		0.62	%		0.93	%
Portfolio turnover rate(e)		69	%		285	%		116	%		129	%		48	%		121	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

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

35

Financial Highlights (continued)

PowerShares DWA Technology Momentum Portfolio (PTF)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	32.44		$	29.14		$	27.29		$	27.66		$	23.60		$	17.29
Net investment income (loss)(a)		(0.01	)		0.04			0.17			0.01			(0.02	)		(0.05	)
Net realized and unrealized gain (loss) on investments		3.66			3.32			1.88			(0.38	)		4.09			6.36
Total from investment operations		3.65			3.36			2.05			(0.37	)		4.07			6.31
Distributions to shareholders from:
Net investment income		—			(0.06	)		(0.20	)		—			—			—
Return of capital		—			—			—			—			(0.01	)		—
Total distributions		—			(0.06	)		(0.20	)		—			(0.01	)		—
Net asset value at end of period	$	36.09		$	32.44		$	29.14		$	27.29		$	27.66		$	23.60
Market price at end of period(b)	$	36.10		$	32.45		$	29.06		$	27.28		$	27.65		$	23.59
Net Asset Value Total Return(c)		11.25	%		11.52	%		7.59	%		(1.34	)%		17.26	%		36.50	%
Market Price Total Return(c)		11.25	%		11.86	%		7.34	%		(1.34	)%		17.27	%		36.44	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	66,766		$	53,525		$	32,053		$	31,387		$	49,793		$	38,942
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(d)		0.64	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.76	%(d)		0.80	%		0.89	%		0.94	%		0.91	%		0.90	%
Net investment income (loss), after Waivers		(0.03	)%(d)		0.13	%		0.63	%		0.03	%		(0.07	)%		(0.24	)%
Portfolio turnover rate(e)		93	%		263	%		95	%		108	%		67	%		71	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Utilities Momentum Portfolio (PUI)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	22.49		$	19.82		$	16.69		$	17.12		$	14.96		$	13.15
Net investment income(a)		0.30			0.47			0.45			0.41			0.48			0.52
Net realized and unrealized gain (loss) on investments		0.91			2.68			3.14			(0.38	)		2.19			2.04
Total from investment operations		1.21			3.15			3.59			0.03			2.67			2.56
Distributions to shareholders from:
Net investment income		(0.29	)		(0.48	)		(0.46	)		(0.46	)		(0.51	)		(0.75	)
Net asset value at end of period	$	23.41		$	22.49		$	19.82		$	16.69		$	17.12		$	14.96
Market price at end of period(b)	$	23.40		$	22.47		$	19.79		$	16.66		$	17.13		$	14.96
Net Asset Value Total Return(c)		5.43	%		16.27	%		21.90	%		0.26	%		18.36	%		19.79	%
Market Price Total Return(c)		5.48	%		16.35	%		21.94	%		0.02	%		18.42	%		19.97	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	42,145		$	41,601		$	42,604		$	43,393		$	47,089		$	38,139
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(d)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.79	%(d)		0.77	%		0.81	%		0.77	%		0.89	%		0.95	%
Net investment income, after Waivers		2.65	%(d)		2.31	%		2.54	%		2.45	%		3.12	%		3.71	%
Portfolio turnover rate(e)		22	%		131	%		48	%		71	%		68	%		81	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

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

36

Financial Highlights (continued)

PowerShares NASDAQ Internet Portfolio (PNQI)

	Six Months Ended October 31, 2014 (Unaudited)			Year Ended April 30,
				2014			2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	61.62		$	46.09		$	41.08		$	41.37		$	27.99		$	17.89
Net investment income (loss)(a)		(0.08	)		(0.27	)		(0.01	)		(0.08	)		(0.06	)		(0.12	)
Net realized and unrealized gain (loss) on investments		6.69			15.80			5.04			(0.21	)		13.44			10.22
Total from investment operations		6.61			15.53			5.03			(0.29	)		13.38			10.10
Distributions to shareholders from:
Net investment income		—			—			(0.02	)		—			—			—
Net asset value at end of period	$	68.23		$	61.62		$	46.09		$	41.08		$	41.37		$	27.99
Market price at end of period(b)	$	68.20		$	61.51		$	46.08		$	41.08		$	41.40		$	28.01
Net Asset Value Total Return(c)		10.73	%		33.70	%		12.26	%		(0.70	)%		47.80	%		56.46	%
Market Price Total Return(c)		10.88	%		33.48	%		12.23	%		(0.77	)%		47.81	%		56.65	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	300,203		$	289,628		$	64,525		$	63,678		$	45,507		$	15,396
Ratio to average net assets of:
Expenses		0.60	%(d)		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income (loss)		(0.23	)%(d)		(0.42	)%		(0.02	)%		(0.22	)%		(0.17	)%		(0.46	)%
Portfolio turnover rate(e)		14	%		21	%		20	%		23	%		20	%		23	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2014

(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, 2014, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)	“DWA Basic Materials Momentum Portfolio”
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)	“DWA Consumer Cyclicals Momentum Portfolio”
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)	“DWA Consumer Staples Momentum Portfolio”
PowerShares DWA Energy Momentum Portfolio (PXI)	“DWA Energy Momentum Portfolio”
PowerShares DWA Financial Momentum Portfolio (PFI)	“DWA Financial Momentum Portfolio”
PowerShares DWA Healthcare Momentum Portfolio (PTH)	“DWA Healthcare Momentum Portfolio”
PowerShares DWA Industrials Momentum Portfolio (PRN)	“DWA Industrials Momentum Portfolio”
PowerShares DWA Technology Momentum Portfolio (PTF)	“DWA Technology Momentum Portfolio”
PowerShares DWA Utilities Momentum Portfolio (PUI)	“DWA Utilities Momentum Portfolio”
PowerShares NASDAQ Internet Portfolio (PNQI)	“NASDAQ Internet Portfolio”

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

The market 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
DWA Basic Materials Momentum Portfolio	DWA Basic Materials Technical LeadersTM Index
DWA Consumer Cyclicals Momentum Portfolio	DWA Consumer Cyclicals Technical LeadersTM Index
DWA Consumer Staples Momentum Portfolio	DWA Consumer Staples Technical LeadersTM Index
DWA Energy Momentum Portfolio	DWA Energy Technical LeadersTM Index
DWA Financial Momentum Portfolio	DWA Financials Technical LeadersTM Index
DWA Healthcare Momentum Portfolio	DWA Healthcare Technical LeadersTM Index
DWA Industrials Momentum Portfolio	DWA Industrials Technical LeadersTM Index
DWA Technology Momentum Portfolio	DWA Technology Technical LeadersTM Index
DWA Utilities Momentum Portfolio	DWA Utilities Technical LeadersTM 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:

38

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and 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. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of each Fund’s investments.

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

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

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Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the 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 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. NASDAQ Internet Portfolio is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase the Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund’s performance.

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

Momentum Investing Risk. Each Fund (except NASDAQ Internet Portfolio) employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.

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

C. Federal Income Taxes

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

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These 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-date.

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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. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, 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 year-end.

G. Securities Lending

During the six-month period ended October 31, 2014, DWA Basic Materials Momentum Portfolio and NASDAQ Internet Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% 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 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 on behalf of each Fund (excluding NASDAQ Internet Portfolio), pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except NASDAQ Internet Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2015. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds’ Shares offered

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for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2015. The Expense Agreement cannot be terminated during its term.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration.

For the six-month period ended October 31, 2014, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA Basic Materials Momentum Portfolio	$	41,155
DWA Consumer Cyclicals Momentum Portfolio		53,231
DWA Consumer Staples Momentum Portfolio		39,803
DWA Energy Momentum Portfolio		137,779
DWA Financial Momentum Portfolio		41,668
DWA Healthcare Momentum Portfolio		30,243
DWA Industrials Momentum Portfolio		17,734
DWA Technology Momentum Portfolio		47,541
DWA Utilities Momentum Portfolio		39,442
NASDAQ Internet Portfolio		56

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

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2014 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/15		04/30/16		04/30/17		10/31/17
DWA Basic Materials Momentum Portfolio	$	161,432	$	41,196	$	46,379	$	32,772	$	41,085
DWA Consumer Cyclicals Momentum Portfolio		253,302		51,344		76,493		72,285		53,180
DWA Consumer Staples Momentum Portfolio		203,430		41,541		63,480		58,654		39,755
DWA Energy Momentum Portfolio		178,956		9,506		31,818		—		137,632
DWA Financial Momentum Portfolio		243,270		48,756		83,041		69,854		41,619
DWA Healthcare Momentum Portfolio		160,536		50,671		41,317		38,353		30,195
DWA Industrials Momentum Portfolio		176,358		46,045		82,100		30,573		17,640
DWA Technology Momentum Portfolio		223,722		43,574		72,589		60,072		47,487
DWA Utilities Momentum Portfolio		203,767		38,784		71,758		53,817		39,408

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

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

Full Name	Licensor
DWA Basic Materials Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Consumer Cyclicals Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Consumer Staples Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Energy Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Financial Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Healthcare Momentum Portfolio	Dorsey Wright & Associates, Inc.

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Full Name	Licensor
DWA Industrials Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Technology Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Utilities Momentum Portfolio	Dorsey Wright & Associates, 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 by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds (except for NASDAQ Internet Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.

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 with the Funds. The table below shows each Fund’s transactions in, and earnings from, its investment in Invesco Ltd. for the six-month period ended October 31, 2014.

DWA Financial Momentum Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value October 31, 2014		Dividend Income
Invesco Ltd.	$	1,316,326	$	154,139	$	(266,195	)	$	171,330	$	20,898	$	1,396,498	$	18,078

Note 5. Additional Valuation Information

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

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

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

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

Except for the Fund listed below, as of October 31, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
DWA Healthcare Momentum Portfolio
Equity Securities	$	113,719,961	$	—	$	14,948	$	113,734,909

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.

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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 eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of April 30, 2014, which expire as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short-term		Long-term		Total*		Utilized
DWA Basic Materials Momentum Portfolio	$	—	$	205,528	$	3,783,798	$	4,534,904	$	2,521,492	$	5,924,971	$	1,413,258	$	18,383,951	$	3,244,639
DWA Consumer Cyclicals Momentum Portfolio		—		1,246,058		1,993,654		—		2,042,056		4,132,216		15,433		9,429,417		—
DWA Consumer Staples Momentum Portfolio		—		562,037		2,156,980		3,935,363		1,180,566		—		—		7,834,946		3,786,332
DWA Energy Momentum Portfolio		—		880,885		2,869,667		3,914,682		1,167,692		12,571,235		—		21,404,161		3,667,877
DWA Financial Momentum Portfolio		—		614,940		1,821,971		4,413,894		1,979,006		1,325,278		—		10,155,089		1,797,635
DWA Healthcare Momentum Portfolio		—		2,234,184		17,890,879		18,737,951		2,739,963		6,942,880		—		48,545,857		3,245,322
DWA Industrials Momentum Portfolio		—		1,476,057		6,525,387		21,245,288		2,746,746		4,807,743		—		36,801,221		6,643,650
DWA Technology Momentum Portfolio		—		2,465,875		8,220,697		7,658,564		3,016,840		7,958,308		—		29,320,284		861,059
DWA Utilities Momentum Portfolio		430,964		2,124,736		1,366,073		5,885,935		874,386		3,694,092		657,810		15,033,996		2,340,748
NASDAQ Internet Portfolio		—		—		—		3,360		74,863		1,343,592		2,359,815		3,781,630		—

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the six-month period ended October 31, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
DWA Basic Materials Momentum Portfolio	$	41,365,167	$	40,552,856
DWA Consumer Cyclicals Momentum Portfolio		38,293,722		38,312,567
DWA Consumer Staples Momentum Portfolio		17,796,239		17,556,755
DWA Energy Momentum Portfolio		138,270,947		138,894,984
DWA Financial Momentum Portfolio		18,130,130		17,685,190
DWA Healthcare Momentum Portfolio		86,293,939		86,295,875
DWA Industrials Momentum Portfolio		97,349,598		98,016,509
DWA Technology Momentum Portfolio		55,792,829		55,812,679
DWA Utilities Momentum Portfolio		9,371,809		9,572,407
NASDAQ Internet Portfolio		43,437,555		45,992,567

For the six-month period ended October 31, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA Basic Materials Momentum Portfolio	$	51,100,277	$	41,527,150
DWA Consumer Cyclicals Momentum Portfolio		4,135,497		—
DWA Consumer Staples Momentum Portfolio		4,591,580		7,201,220
DWA Energy Momentum Portfolio		92,329,440		61,314,031
DWA Financial Momentum Portfolio		2,924,822		7,770,421
DWA Healthcare Momentum Portfolio		29,124,523		36,475,917
DWA Industrials Momentum Portfolio		—		49,758,530
DWA Technology Momentum Portfolio		6,708,232		—
DWA Utilities Momentum Portfolio		4,599,948		5,504,858
NASDAQ Internet Portfolio		27,092,568		45,354,746

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

At October 31, 2014, 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)
DWA Basic Materials Momentum Portfolio	$	101,999,312	$	5,449,325		$	6,987,133	$	(1,537,808	)
DWA Consumer Cyclicals Momentum Portfolio		49,738,263		2,595,051			3,786,965		(1,191,914	)
DWA Consumer Staples Momentum Portfolio		37,106,161		4,595,652			4,919,233		(323,581	)
DWA Energy Momentum Portfolio		220,458,140		(7,430,769	)		13,671,790		(21,102,559	)
DWA Financial Momentum Portfolio		31,677,893		2,959,963			3,199,851		(239,888	)
DWA Healthcare Momentum Portfolio		99,069,546		14,665,363			15,256,815		(591,452	)
DWA Industrials Momentum Portfolio		113,317,325		6,152,366			9,160,726		(3,008,360	)
DWA Technology Momentum Portfolio		59,835,082		7,010,194			7,765,659		(755,465	)
DWA Utilities Momentum Portfolio		37,010,223		5,187,284			5,660,426		(473,142	)
NASDAQ Internet Portfolio		308,791,551		7,984,802			31,894,087		(23,909,285	)

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and Officer of the Funds. 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

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 in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

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

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

Note 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.

45

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, 2014.

In addition to the fees and expenses which the PowerShares DWA Financial Momentum Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of the estimated investment companies’ expenses that you bear indirectly are included in the Portfolio’s total returns.

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, 2014		Ending Account Value October 31, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)
Actual	$	1,000.00	$	1,042.34		0.60	%	$	3.09
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
Actual		1,000.00		1,051.15		0.60			3.10
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
Actual		1,000.00		1,145.93		0.60			3.25
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares DWA Energy Momentum Portfolio (PXI)
Actual		1,000.00		884.62		0.60			2.85
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06

46

Fees and Expenses (continued)

	Beginning Account Value May 1, 2014		Ending Account Value October 31, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares DWA Financial Momentum Portfolio (PFI)
Actual	$	1,000.00	$	1,087.45		0.60	%	$	3.16
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares DWA Healthcare Momentum Portfolio (PTH)
Actual		1,000.00		1,165.66		0.60			3.28
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares DWA Industrials Momentum Portfolio (PRN)
Actual		1,000.00		1,009.21		0.60			3.04
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares DWA Technology Momentum Portfolio (PTF)
Actual		1,000.00		1,112.51		0.60			3.19
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares DWA Utilities Momentum Portfolio (PUI)
Actual		1,000.00		1,054.27		0.60			3.11
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
PowerShares NASDAQ Internet Portfolio (PNQI)
Actual		1,000.00		1,107.24		0.60			3.19
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, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value of the period, then multiplying the results by 184/365.

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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.

©2014 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 semi-annual period.

Item 3. Audit Committee Financial Expert.

Not required for semi-annual period.

Item 4. Principal Accountant Fees and Services.

Not required for semi-annual period.

Item 5. Audit Committee of Listed Registrants.

Not required for semi-annual period.

Item 6. Schedule of Investments.

(a) The Schedules of Investments are included as a part of the report to shareholders filed under Item 1 of this Form N-CSR.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have concluded that such disclosure controls and procedures are effective.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Code of Ethics
	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 5, 2015

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 5, 2015
By:	/s/ Steven Hill
Name:    Steven Hill
Title:      Treasurer
Date:      December 31, 2014