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)

Daniel E. Draper

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: April 30, 2017

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

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

April 30, 2017

2017 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

The Market Environment	3
Manager’s Analysis	4
Broad Market Portfolios
Schedules of Investments
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)	13
PowerShares Dynamic Market Portfolio (PWC)	15
PowerShares FTSE RAFI US 1000 Portfolio (PRF)	17
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)	27
Statements of Assets and Liabilities	42
Statements of Operations	43
Statements of Changes in Net Assets	44
Financial Highlights	46
Notes to Financial Statements	48
Report of Independent Registered Public Accounting Firm	57
Fees and Expenses	58
Tax Information	59
Trustees and Officers	60
Board Considerations Regarding Continuation of Investment Advisory Agreement	66

2

The Market Environment

US Equity

During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.

While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.

3

DWAQ	Manager’s Analysis
	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

As an index fund, the PowerShares DWA NASDAQ Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® NASDAQ Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) includes securities in the Index pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics based upon their market performance. “Relative Strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider selects approximately 100 common stocks for inclusion in the Index from an eligible universe of approximately 1,000 securities of large capitalization companies that trade on The NASDAQ Stock Market LLC and that are included in the NASDAQ Composite Index (the “Benchmark Index”). The Index Provider then uses its proprietary methodology to determine a “momentum” score for each security within the universe of eligible securities. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index Provider includes in the Index the 100 securities with the highest momentum scores, with higher scoring securities receiving larger weights within the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 23.95%. On a net asset value (“NAV”) basis, the Fund returned 23.98%. During the same time period, the Index returned 24.82%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred as well as trading costs associated with portfolio rebalances during the period.

During this same time period, the Benchmark Index returned 28.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.

The performance of the Fund differed from the Benchmark Index because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the information technology sector.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The materials sector detracted most significantly from the Fund’s return, followed by the telecommunication services sector.

Positions that contributed most significantly to the Fund’s return included Exelixis, Inc., a health care company (portfolio average weight of 2.23%), and MarketAxess Holdings, Inc., a financials company (portfolio average weight of 2.79%). Positions that detracted most significantly from the Fund’s return included Tractor Supply Co., a consumer discretionary company (no longer held at fiscal year-end), and DexCom, Inc., a health care company (no longer held at fiscal year-end).

4

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	35.3
Consumer Discretionary	20.7
Health Care	16.8
Financials	15.7
Industrials	7.5
Consumer Staples	2.5
Energy	1.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Apple, Inc.	3.0
Priceline Group, Inc. (The)	2.9
Arch Capital Group Ltd.	2.8
Exelixis, Inc.	2.7
MarketAxess Holdings, Inc.	2.6
Atrion Corp.	2.1
Skyworks Solutions, Inc.	2.0
Amazon.com, Inc.	2.0
IDEXX Laboratories, Inc.	1.9
Intuit, Inc.	1.8
Total	23.8

* Excluding money market fund holdings.

5

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended Dorsey Wright® NASDAQ Technical Leaders Index†		24.82	%		11.15	%		37.33	%		12.32	%		78.75	%		5.62	%		72.80	%		9.17	%		241.49	%
NASDAQ Composite Index		28.18			15.07			52.36			16.14			111.32			10.31			166.80			N/A			N/A
Fund
NAV Return		23.98			10.43			34.65			11.50			72.37			4.92			61.67			8.46			211.81
Market Price Return		23.95			10.42			34.62			11.50			72.35			4.91			61.54			8.45			211.29

Fund Inception: May 1, 2003

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.81% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® NASDAQ Technical Leaders Index performance is comprised of the performance of the Dynamic OTC Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund and Blended-Index returns are based on the inception date of the Fund.

6

PWC	Manager’s Analysis
	PowerShares Dynamic Market Portfolio (PWC)

As an index fund, the PowerShares Dynamic Market Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Market Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

The Index is composed of stocks that NYSE Group, Inc. (the “Index Provider”), strictly in accordance with its guidelines and mandated procedures, includes pursuant to a proprietary selection methodology. The Index Provider’s selection methodology seeks to identify and select companies from the U.S. marketplace with superior risk-return profiles. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 18.91%. On a net asset value (“NAV”) basis, the Fund returned 18.88%. During the same time period, the Index returned 19.71%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred as well as slippage associated with the portfolio’s quarterly rebalance process.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 17.92%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based U.S. equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. stock market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the real estate sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the information technology and industrials sectors.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and industrials sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., an information technology company (portfolio average weight of 2.97%), and United Continental Holdings, Inc., an industrials company (portfolio average weight of 2.35%). Positions that detracted most significantly from the Fund’s return included Seadrill Ltd., an energy company (portfolio average weight of 0.56%), and Edwards Lifesciences Corp., a health care company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	23.3
Financials	15.3
Health Care	13.3
Consumer Discretionary	12.3
Industrials	10.5
Consumer Staples	9.4
Energy	7.0
Materials	3.3
Utilities	3.0
Telecommunication Services	2.6
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Lam Research Corp.	3.7
Micron Technology, Inc.	3.6
Applied Materials, Inc.	3.4
Costco Wholesale Corp.	3.3
Sysco Corp.	3.2
NVIDIA Corp.	3.2
Advanced Micro Devices, Inc.	2.8
Williams Partners LP	2.8
IDEXX Laboratories, Inc.	2.6
Valero Energy Corp.	2.6
Total	31.2

* Excluding money market fund holdings.

7

PowerShares Dynamic Market Portfolio (PWC) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Dynamic Market IntellidexSM Index		19.71	%		8.10	%		26.33	%		14.61	%		97.75	%		6.58	%		89.06	%		10.26	%		292.45	%
S&P 500® Index		17.92			10.47			34.83			13.68			89.81			7.15			99.55			9.29			246.97
Fund
NAV Return		18.88			7.33			23.62			13.79			90.78			5.88			77.06			9.55			258.74
Market Price Return		18.91			7.33			23.64			13.81			90.91			5.89			77.18			9.55			258.75

Fund Inception: May 1, 2003

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively.

The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

8

PRF	Manager’s Analysis
	PowerShares FTSE RAFI US 1000 Portfolio (PRF)

As an index fund, the PowerShares FTSE RAFI US 1000 Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the FTSE RAFI US 1000 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

Strictly in accordance with their guidelines and mandated procedures, FTSE International Limited and Research Affiliates LLC include stocks in the Index with the intent to track the performance of the largest U.S. equity stocks based on the following four fundamental measures: book value, cash flow, sales and dividends. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 16.19%. On a net asset value (“NAV”) basis, the Fund returned 16.16%. During the same time period, the Index returned 16.62%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Index (the “Benchmark Index”) returned 18.03%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based U.S. large cap equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to its allocation to the energy sector.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the information technology and industrials sectors, respectively. The telecommunication services sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Bank of America Corp., a financials company (portfolio average weight of 1.52%), and Apple, Inc., an information technology company (portfolio average weight of 1.69%). Positions that detracted most significantly from the Fund’s return included Chesapeake Energy Corp., an energy company (portfolio average weight of 0.27%), and Exxon Mobil Corp., an energy company (portfolio average weight of 2.77%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	18.3
Information Technology	13.7
Consumer Discretionary	11.2
Health Care	11.0
Energy	10.6
Industrials	10.4
Consumer Staples	9.5
Utilities	5.0
Materials	3.6
Telecommunication Services	3.6
Real Estate	3.1
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Exxon Mobil Corp.	2.8
Apple, Inc.	2.1
Chevron Corp.	1.9
AT&T, Inc.	1.8
JPMorgan Chase & Co.	1.8
Berkshire Hathaway, Inc., Class B	1.7
Wells Fargo & Co.	1.5
Microsoft Corp.	1.4
General Electric Co.	1.4
Johnson & Johnson	1.2
Total	17.6

* Excluding money market fund holdings.

9

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
FTSE RAFI US 1000 Index		16.62	%		8.89	%		29.12	%		14.08	%		93.21	%		7.78	%		111.57	%		8.99	%		166.16	%
Russell 1000® Index		18.03			10.20			33.82			13.63			89.43			7.25			101.40			8.15			143.50
Fund
NAV Return		16.16			8.49			27.70			13.65			89.64			7.37			103.67			8.54			153.64
Market Price Return		16.19			8.52			27.78			13.66			89.69			7.37			103.55			8.56			154.32

Fund Inception: December 19, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.41% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

10

PRFZ	Manager’s Analysis
	PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

As an index fund, the PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the FTSE RAFI US 1500 Small-Mid Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

Strictly in accordance with their guidelines and mandated procedures, FTSE International Limited and Research Affiliates LLC include stocks in the Index with the intent to track the performance of small and medium-sized U.S. equity stocks based on the following four fundamental measures: book value, sales, cash flow and dividends. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 22.40%. On a net asset value (“NAV”) basis, the Fund returned 22.44%. During the same time period, the Index returned 22.71%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the Russell 2000^® Index (the “Benchmark Index”) returned 25.63%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,940 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based U.S. small cap equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the health care sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight position in the energy sector.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and information technology sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Clayton Williams Energy, Inc., an energy company (no longer held at fiscal year-end), and Tronox Ltd., Class A, a materials company (portfolio average weight of 0.28%). Positions that detracted most significantly from the Fund’s return included Hornbeck Offshore Services, Inc., an energy company (portfolio average weight of 0.13%), and Bill Barrett Corp., an energy company (portfolio average weight of 0.25%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	17.3
Consumer Discretionary	17.3
Industrials	16.6
Information Technology	15.6
Health Care	8.1
Real Estate	7.1
Materials	5.8
Energy	5.8
Consumer Staples	3.2
Utilities	1.8
Telecommunication Services	1.3
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Kratos Defense & Security Solutions, Inc.	0.5
Rent-A-Center, Inc.	0.3
Stone Energy Corp.	0.2
Aaron’s, Inc.	0.2
Hill-Rom Holdings, Inc.	0.2
Sanderson Farms, Inc.	0.2
Sotheby’s	0.2
Michaels Cos., Inc. (The)	0.2
Zebra Technologies Corp., Class A	0.2
Beacon Roofing Supply, Inc.	0.2
Total	2.4

* Excluding money market fund holdings.

11

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
FTSE RAFI US 1500 Small-Mid Index		22.71	%		8.59	%		28.06	%		13.81	%		90.93	%		8.92	%		135.10	%		9.76	%		168.53	%
Russell 2000® Index		25.63			9.03			29.63			12.95			83.84			7.05			97.57			7.75			120.74
Fund
NAV Return		22.44			8.35			27.22			13.56			88.84			8.72			130.75			9.49			161.72
Market Price Return		22.40			8.33			27.13			13.54			88.72			8.72			130.79			9.49			161.62

Fund Inception: September 20, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.41% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

12

Schedule of Investments^(a)

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—20.7%
	708	Amazon.com, Inc.(b)	$	654,893
	1,374	Charter Communications, Inc., Class A(b)		474,250
	1,678	Children’s Place, Inc. (The)		192,634
	4,599	China Lodging Group Ltd. ADR (China)(b)		326,437
	4,922	Comcast Corp., Class A		192,893
	2,012	Cracker Barrel Old Country Store, Inc.		322,302
	16,266	Denny’s Corp.(b)		206,578
	2,744	Dorman Products, Inc.(b)		228,164
	3,311	Grand Canyon Education, Inc.(b)		248,855
	5,556	Liberty Ventures, Series A(b)		299,191
	9,045	Nutrisystem, Inc.		483,455
	1,862	Pool Corp.		222,732
	551	Priceline Group, Inc. (The)(b)		1,017,598
	8,888	Ross Stores, Inc.		577,720
	21,186	Ruth’s Hospitality Group, Inc.		421,601
	9,724	Scientific Games Corp., Class A(b)		230,945
	106,743	Sirius XM Holdings, Inc.		528,378
	5,546	SodaStream International Ltd. (Israel)(b)		301,647
	779	Ulta Beauty, Inc.(b)		219,242
				7,149,515
		Consumer Staples—2.5%
	967	Coca-Cola Bottling Co. Consolidated		204,869
	1,782	J & J Snack Foods Corp.		239,821
	4,675	National Beverage Corp.		414,158
				858,848
		Energy—1.5%
	3,086	Diamondback Energy, Inc.(b)		308,106
	8,810	Golar LNG Partners LP (United Kingdom)		201,133
				509,239
		Financials—15.7%
	4,899	Ameris Bancorp		230,743
	9,859	Arch Capital Group Ltd.(b)		956,027
	12,047	Bank of the Ozarks, Inc.		571,871
	3,588	Banner Corp.		198,058
	6,262	E*TRADE Financial Corp.(b)		216,352
	4,661	Eagle Bancorp, Inc.(b)		279,194
	7,209	East West Bancorp, Inc.		391,233
	6,610	First Merchants Corp.		273,522
	8,116	Home BancShares, Inc.		206,552
	3,089	Independent Bank Group, Inc.		185,803
	4,739	MarketAxess Holdings, Inc.		912,352
	10,224	Meridian Bancorp, Inc.		179,431
	4,081	Pinnacle Financial Partners, Inc.		261,184
	2,305	Texas Capital Bancshares, Inc.(b)		175,411
	7,273	United Community Banks, Inc.		198,917
	4,092	WSFS Financial Corp.		193,142
				5,429,792
		Health Care—16.8%
	3,149	Align Technology, Inc.(b)		423,918
	1,436	Atrion Corp.		742,556
	1,663	Celgene Corp.(b)		206,295
	7,712	Clovis Oncology, Inc.(b)		446,448
	11,284	Epizyme, Inc.(b)		203,676
	16,865	Exact Sciences Corp.(b)		506,119

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	41,886	Exelixis, Inc.(b)	$	938,246
	2,622	ICON PLC(b)		221,533
	1,202	ICU Medical, Inc.(b)		184,868
	3,891	IDEXX Laboratories, Inc.(b)		652,637
	4,131	Masimo Corp.(b)		424,419
	6,444	Merit Medical Systems, Inc.(b)		217,163
	2,909	Neogen Corp.(b)		181,318
	3,672	NuVasive, Inc.(b)		266,257
	6,934	Spectranetics Corp. (The)(b)		198,312
				5,813,765
		Industrials—7.5%
	6,153	AAON, Inc.		225,507
	5,619	Apogee Enterprises, Inc.		306,235
	1,513	Cintas Corp.		185,297
	1,639	Elbit Systems Ltd. (Israel)		194,697
	4,037	Middleby Corp. (The)(b)		549,557
	3,304	Multi-Color Corp.		253,747
	4,628	MYR Group, Inc.(b)		195,579
	2,901	Old Dominion Freight Line, Inc.		256,797
	11,528	SkyWest, Inc.		428,842
				2,596,258
		Information Technology—35.3%
	4,262	Activision Blizzard, Inc.		222,689
	1,584	Adobe Systems, Inc.(b)		211,844
	4,216	Advanced Energy Industries, Inc.(b)		311,141
	7,126	Apple, Inc.		1,023,650
	4,985	Applied Materials, Inc.		202,441
	15,955	Blucora, Inc.(b)		294,370
	2,575	Broadcom Ltd.		568,586
	8,699	Brooks Automation, Inc.		219,737
	9,482	Cadence Design Systems, Inc.(b)		308,829
	1,920	Check Point Software Technologies Ltd. (Israel)(b)		199,699
	4,296	Cirrus Logic, Inc.(b)		276,448
	2,923	Cognex Corp.		249,449
	1,719	Coherent, Inc.(b)		370,616
	8,043	Ebix, Inc.		496,253
	5,343	Electronic Arts, Inc.(b)		506,623
	36,685	Extreme Networks, Inc.(b)		286,693
	3,531	Facebook, Inc., Class A(b)		530,533
	2,306	InterDigital, Inc.		207,309
	4,991	Intuit, Inc.		624,923
	1,989	Jack Henry & Associates, Inc.		192,774
	1,509	Lam Research Corp.		218,579
	3,122	Littelfuse, Inc.		481,256
	9,364	Logitech International SA (Switzerland)		310,698
	887	MercadoLibre, Inc. (Argentina)		203,043
	7,637	Micron Technology, Inc.(b)		211,316
	4,732	Monolithic Power Systems, Inc.		432,978
	1,602	NetEase, Inc. ADR (China)		425,155
	6,546	PC Connection, Inc.		188,132
	4,660	Pegasystems, Inc.		212,263
	4,620	Sanmina Corp.(b)		172,095
	4,067	Seagate Technology PLC		171,343
	6,964	Skyworks Solutions, Inc.		694,589

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

13

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	2,796	Stamps.com, Inc.(b)	$	296,795
	6,841	Take-Two Interactive Software, Inc.(b)		429,957
	13,263	TTM Technologies, Inc.(b)		221,890
	2,721	Universal Display Corp.		243,121
				12,217,817
		Total Common Stocks and Other Equity Interests (Cost $27,888,364)		34,575,234
		Money Market Fund—0.2%
	61,657	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $61,657)		61,657
		Total Investments (Cost $27,950,021)—100.2%		34,636,891
		Other assets less liabilities—(0.2)%		(67,266	)
		Net Assets—100.0%	$	34,569,625

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

14

Schedule of Investments^(a)

PowerShares Dynamic Market Portfolio (PWC)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—12.3%
	8,449	Adient PLC	$	621,508
	27,806	American Axle & Manufacturing Holdings, Inc.(b)		489,108
	32,973	ClubCorp Holdings, Inc.		443,487
	2,991	Domino’s Pizza, Inc.		542,538
	87,263	General Motors Co.		3,022,790
	24,333	Intrawest Resorts Holdings, Inc.(b)		573,772
	22,750	Lear Corp.		3,245,515
	17,746	Marcus Corp. (The)		599,815
	18,954	MDC Holdings, Inc.		587,764
	39,786	Scripps Networks Interactive, Inc., Class A		2,972,810
	17,883	Service Corp. International		576,190
	33,490	Time Warner, Inc.		3,324,552
	5,996	Visteon Corp.(b)		617,288
				17,617,137
		Consumer Staples—9.4%
	19,056	Central Garden & Pet Co.(b)		720,317
	26,299	Costco Wholesale Corp.		4,668,598
	35,848	Dean Foods Co.		707,640
	11,658	Fresh Del Monte Produce, Inc.		714,635
	17,576	SpartanNash Co.		646,797
	87,440	Sysco Corp.		4,622,953
	9,603	Universal Corp.		705,340
	10,291	Weis Markets, Inc.		594,923
				13,381,203
		Energy—7.0%
	28,185	Alliance Holdings GP LP		751,130
	60,019	Archrock, Inc.		708,224
	76,749	Atwood Oceanics, Inc.(b)		600,945
	404,983	Seadrill Ltd. (United Kingdom)(b)		279,357
	58,082	Valero Energy Corp.		3,752,678
	96,035	Williams Partners LP		3,930,713
				10,023,047
		Financials—15.3%
	32,034	Allstate Corp. (The)		2,604,044
	24,784	Ambac Financial Group, Inc.(b)		481,553
	5,653	BancFirst Corp.		542,971
	60,218	CNA Financial Corp.		2,725,467
	5,922	Cullen/Frost Bankers, Inc.		558,978
	16,073	Essent Group Ltd.(b)		594,862
	20,865	Fidelity & Guaranty Life(c)		593,609
	11,616	Hancock Holding Co.		542,467
	28,315	JPMorgan Chase & Co.		2,463,405
	12,606	LegacyTexas Financial Group, Inc.		476,633
	6,164	Meta Financial Group, Inc.		523,324
	55,395	Morgan Stanley		2,402,481
	1,723	National Western Life Group, Inc., Class A		527,652
	25,539	Opus Bank		575,904
	41,042	Principal Financial Group, Inc.		2,673,065
	23,276	Prudential Financial, Inc.		2,491,230
	12,112	Stock Yards Bancorp, Inc.		496,592
	23,135	TriState Capital Holdings, Inc.(b)		576,061
				21,850,298

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care—13.3%
	11,247	Biogen, Inc.(b)	$	3,050,299
	18,057	Cardiovascular Systems, Inc.(b)		539,363
	8,648	Clovis Oncology, Inc.(b)		500,633
	10,740	Five Prime Therapeutics, Inc.(b)		374,396
	12,015	Halyard Health, Inc.(b)		474,592
	22,392	IDEXX Laboratories, Inc.(b)		3,755,810
	5,726	Masimo Corp.(b)		588,289
	21,497	McKesson Corp.		2,972,820
	14,035	Medpace Holdings, Inc.(b)		445,050
	6,776	Mettler-Toledo International, Inc.(b)		3,478,934
	62,778	MiMedx Group, Inc.(b)(c)		796,653
	23,311	Quidel Corp.(b)		563,427
	6,492	Ultragenyx Pharmaceutical, Inc.(b)		418,020
	3,587	WellCare Health Plans, Inc.(b)		550,282
	21,842	Xencor, Inc.(b)		560,684
				19,069,252
		Industrials—10.5%
	8,408	Argan, Inc.		562,075
	16,953	Chart Industries, Inc.(b)		618,954
	24,053	Cummins, Inc.		3,630,560
	13,312	Greenbrier Cos., Inc. (The)		578,406
	18,721	Jeld-Wen Holding, Inc.(b)		618,355
	4,836	Nordson Corp.		605,467
	8,815	Oshkosh Corp.		611,673
	16,338	Rush Enterprises, Inc., Class A(b)		616,759
	48,103	United Continental Holdings, Inc.(b)		3,377,312
	29,666	United Rentals, Inc.(b)		3,253,173
	12,034	Viad Corp.		543,937
				15,016,671
		Information Technology—23.3%
	13,709	Advanced Energy Industries, Inc.(b)		1,011,724
	303,027	Advanced Micro Devices, Inc.(b)		4,030,259
	120,004	Applied Materials, Inc.		4,873,362
	14,550	Aspen Technology, Inc.(b)		894,680
	39,318	Brooks Automation, Inc.		993,173
	12,144	Cabot Microelectronics Corp.		951,482
	50,588	Flex Ltd.(b)		782,090
	36,859	Lam Research Corp.		5,339,026
	184,810	Micron Technology, Inc.(b)		5,113,693
	43,182	NVIDIA Corp.		4,503,883
	14,580	Plexus Corp.(b)		758,014
	20,795	Sanmina Corp.(b)		774,614
	9,604	Science Applications International Corp.		700,996
	11,636	Silicon Laboratories, Inc.(b)		827,901
	9,649	Tech Data Corp.(b)		922,927
	51,513	TTM Technologies, Inc.(b)		861,813
				33,339,637
		Materials—3.3%
	18,593	Advansix, Inc.(b)		506,845
	26,497	Forterra, Inc.(b)		509,802
	37,343	LyondellBasell Industries NV, Class A		3,165,193
	5,286	Packaging Corp. of America		522,151
				4,703,991

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

15

PowerShares Dynamic Market Portfolio (PWC) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—2.6%
	15,998	General Communication, Inc., Class A(b)	$	598,965
	38,107	Iridium Communications, Inc.(b)(c)		403,934
	132,482	Sprint Corp.(b)		1,196,312
	10,365	Telephone & Data Systems, Inc.		284,623
	19,124	T-Mobile US, Inc.(b)		1,286,472
				3,770,306
		Utilities—3.0%
	23,456	MDU Resources Group, Inc.		630,966
	17,748	OGE Energy Corp.		617,276
	45,267	PG&E Corp.		3,035,152
				4,283,394
		Total Common Stocks and Other Equity Interests (Cost $132,698,600)		143,054,936
		Money Market Fund—0.1%
	89,462	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $89,462)		89,462
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $132,788,062)—100.1%		143,144,398
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.7%
	1,020,505	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,020,505)		1,020,505
		Total Investments (Cost $133,808,567)—100.8%		144,164,903
		Other assets less liabilities—(0.8)%		(1,113,150	)
		Net Assets—100.0%	$	143,051,753

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

16

Schedule of Investments^(a)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.2%
	88,041	Abercrombie & Fitch Co., Class A(b)	$	1,055,612
	73,291	Adient PLC		5,391,286
	11,417	Advance Auto Parts, Inc.		1,622,812
	16,204	Amazon.com, Inc.(c)		14,988,538
	11,079	AMC Networks, Inc., Class A(c)		661,195
	37,264	American Axle & Manufacturing Holdings, Inc.(c)		655,474
	79,408	American Eagle Outfitters, Inc.		1,118,859
	64,393	Aramark		2,351,632
	12,794	Asbury Automotive Group, Inc.(c)		782,993
	195,922	Ascena Retail Group, Inc.(c)		766,055
	26,061	Autoliv, Inc. (Sweden)(b)		2,611,052
	48,274	AutoNation, Inc.(c)		2,027,508
	3,926	AutoZone, Inc.(c)		2,717,538
	86,810	Bed Bath & Beyond, Inc.		3,363,887
	126,111	Best Buy Co., Inc.		6,533,811
	17,723	Big Lots, Inc.		894,834
	38,896	Bloomin’ Brands, Inc.		843,654
	54,001	BorgWarner, Inc.		2,283,162
	16,583	Brinker International, Inc.(b)		732,803
	15,193	Brunswick Corp.		862,203
	10,016	Burlington Stores, Inc.(c)		990,783
	16,387	Cabela’s, Inc.(c)		894,730
	66,748	Caesars Entertainment Corp.(b)(c)		740,903
	24,461	CalAtlantic Group, Inc.		885,977
	46,848	CarMax, Inc.(c)		2,740,608
	101,650	Carnival Corp.		6,278,920
	73,557	CBS Corp., Class B		4,895,954
	7,362	Charter Communications, Inc., Class A(c)		2,541,068
	3,437	Chipotle Mexican Grill, Inc.(c)		1,630,753
	25,025	Cinemark Holdings, Inc.		1,081,080
	74,931	Coach, Inc.		2,951,532
	948,481	Comcast Corp., Class A		37,170,970
	21,652	Cooper Tire & Rubber Co.		829,272
	33,898	Core-Mark Holding Co., Inc.		1,187,108
	4,310	Cracker Barrel Old Country Store, Inc.(b)		690,419
	35,773	CST Brands, Inc.		1,727,478
	66,339	D.R. Horton, Inc.		2,181,890
	68,497	Dana, Inc.		1,330,212
	29,538	Darden Restaurants, Inc.		2,516,342
	12,187	Deckers Outdoor Corp.(c)		726,223
	51,778	Delphi Automotive PLC		4,162,951
	18,657	DeVry Education Group, Inc.		706,167
	22,623	Dick’s Sporting Goods, Inc.		1,143,593
	17,228	Dillard’s, Inc., Class A(b)		953,914
	33,011	Discovery Communications, Inc., Class A(c)		950,057
	48,852	Discovery Communications, Inc., Class C(c)		1,366,879
	33,409	DISH Network Corp., Class A(c)		2,152,876
	49,287	Dollar General Corp.		3,583,658
	37,953	Dollar Tree, Inc.(c)		3,141,370
	32,920	DSW, Inc., Class A		678,810
	13,994	Expedia, Inc.		1,871,278
	59,069	Express, Inc.(c)		509,765
	28,238	Foot Locker, Inc.		2,183,927
	2,501,570	Ford Motor Co.		28,693,008
	46,766	Fossil Group, Inc.(c)		806,713

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	80,415	GameStop Corp., Class A	$	1,824,616
	87,479	Gannett Co., Inc.		731,324
	107,285	Gap, Inc. (The)		2,810,867
	27,616	Garmin Ltd.		1,403,997
	696,919	General Motors Co.		24,141,274
	12,543	Genesco, Inc.(c)		668,542
	45,752	Gentex Corp.		944,779
	38,118	Genuine Parts Co.		3,507,618
	101,244	GNC Holdings, Inc., Class A(b)		787,678
	109,574	Goodyear Tire & Rubber Co. (The)		3,969,866
	1,468	Graham Holdings Co., Class B		883,296
	14,990	Group 1 Automotive, Inc.		1,033,560
	54,491	Guess?, Inc.		608,120
	77,763	H&R Block, Inc.		1,927,745
	63,452	Hanesbrands, Inc.		1,383,888
	42,012	Harley-Davidson, Inc.		2,386,702
	17,225	Hasbro, Inc.		1,707,170
	28,144	Hilton Worldwide Holdings, Inc.		1,659,652
	167,687	Home Depot, Inc. (The)		26,175,941
	20,023	HSN, Inc.		738,849
	37,364	International Game Technology PLC		829,481
	86,593	Interpublic Group of Cos., Inc. (The)		2,040,997
	234,256	J.C. Penney Co., Inc.(b)(c)		1,260,297
	119,937	Kohl’s Corp.		4,681,141
	77,092	L Brands, Inc.		4,071,229
	100,240	Las Vegas Sands Corp.		5,913,158
	21,427	Lear Corp.		3,056,776
	29,574	Leggett & Platt, Inc.		1,553,818
	37,846	Lennar Corp., Class A		1,911,223
	1,241	Liberty Broadband Corp., Class A(c)		111,603
	7,780	Liberty Broadband Corp., Class C(c)		709,225
	59,842	Liberty Global PLC, Series A (United Kingdom)(c)		2,119,604
	154,191	Liberty Global PLC, Series C (United Kingdom)(c)		5,336,550
	196,121	Liberty Interactive Corp. QVC Group, Series A(c)		4,153,843
	6,715	Lithia Motors, Inc., Class A		641,618
	43,197	Live Nation Entertainment, Inc.(c)		1,389,216
	54,407	LKQ Corp.(c)		1,699,675
	172,026	Lowe’s Cos., Inc.		14,601,567
	215,160	Macy’s, Inc.		6,286,975
	27,200	Marriott International, Inc., Class A		2,568,224
	128,502	Mattel, Inc.		2,881,015
	163,555	McDonald’s Corp.		22,886,251
	9,756	Meredith Corp.		571,214
	124,938	MGM Resorts International(c)		3,836,846
	42,418	Michael Kors Holdings Ltd.(c)		1,583,464
	10,324	Mohawk Industries, Inc.(c)		2,423,972
	40,281	Murphy USA, Inc.(c)		2,802,349
	9,232	Netflix, Inc.(c)		1,405,110
	40,122	Newell Brands, Inc.		1,915,424
	184,351	News Corp., Class A		2,344,945
	51,926	News Corp., Class B		675,038
	123,160	NIKE, Inc., Class B		6,824,296
	71,197	Nordstrom, Inc.(b)		3,436,679

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

17

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	27,200	Norwegian Cruise Line Holdings Ltd.(c)	$	1,466,896
	562	NVR, Inc.(c)		1,186,522
	476,453	Office Depot, Inc.		2,367,971
	56,642	Omnicom Group, Inc.		4,651,441
	9,197	O’Reilly Automotive, Inc.(c)		2,282,236
	2,992	Panera Bread Co., Class A(c)		935,539
	22,208	Penske Automotive Group, Inc.		1,059,544
	50,278	Pinnacle Entertainment, Inc.(c)		1,034,218
	14,567	Polaris Industries, Inc.(b)		1,241,982
	3,029	Priceline Group, Inc. (The)(c)		5,594,018
	69,089	PulteGroup, Inc.		1,566,248
	21,242	PVH Corp.		2,146,079
	23,021	Ralph Lauren Corp., Class A		1,858,255
	41,236	Regal Entertainment Group, Class A		910,079
	43,185	Ross Stores, Inc.		2,807,025
	26,529	Royal Caribbean Cruises Ltd.		2,827,991
	40,043	Sally Beauty Holdings, Inc.(c)		761,618
	11,106	Scripps Networks Interactive, Inc., Class A		829,840
	105,409	Sears Holdings Corp.(b)(c)		1,077,280
	35,954	SeaWorld Entertainment, Inc.		630,274
	33,597	Service Corp. International		1,082,495
	19,829	Servicemaster Global Holdings, Inc.(c)		755,485
	21,599	Signet Jewelers Ltd.(b)		1,422,078
	13,973	Six Flags Entertainment Corp.		874,850
	35,348	Sonic Automotive, Inc., Class A		692,821
	548,345	Staples, Inc.		5,357,331
	111,441	Starbucks Corp.		6,693,146
	272,314	Target Corp.		15,208,737
	70,275	TEGNA, Inc.		1,790,607
	13,877	Tempur Sealy International, Inc.(b)(c)		651,525
	25,936	Tenneco, Inc.		1,634,746
	6,799	Thor Industries, Inc.		653,928
	21,654	Tiffany & Co.		1,984,589
	151,214	Time Warner, Inc.		15,011,014
	45,805	Time, Inc.		696,236
	95,315	TJX Cos., Inc. (The)		7,495,572
	42,683	Toll Brothers, Inc.		1,536,161
	14,509	Tractor Supply Co.		898,252
	48,170	Tribune Media Co., Class A		1,761,095
	14,291	Tupperware Brands Corp.		1,026,237
	204,626	Twenty-First Century Fox, Inc., Class A		6,249,278
	83,131	Twenty-First Century Fox, Inc., Class B		2,482,292
	20,056	Under Armour, Inc., Class A(b)(c)		431,003
	19,769	Under Armour, Inc., Class C(c)		383,716
	29,113	Urban Outfitters, Inc.(c)		666,105
	68,418	VF Corp.		3,737,675
	130,992	Viacom, Inc., Class B		5,575,020
	36,336	Vista Outdoor, Inc.(c)		710,732
	16,268	Visteon Corp.(c)		1,674,791
	228,471	Walt Disney Co. (The)		26,411,248
	25,168	Whirlpool Corp.		4,673,194
	28,525	Williams-Sonoma, Inc.		1,541,776
	22,417	Wyndham Worldwide Corp.		2,136,564
	32,527	Wynn Resorts Ltd.		4,001,146
	71,681	Yum China Holdings, Inc.(c)		2,445,756
	56,259	Yum! Brands, Inc.		3,699,029
				548,261,689

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples—9.5%
	280,959	Altria Group, Inc.	$	20,167,237
	18,288	Andersons, Inc. (The)		683,057
	336,073	Archer-Daniels-Midland Co.		15,375,340
	453,936	Avon Products, Inc.(c)		2,201,590
	31,754	Brown-Forman Corp., Class B		1,502,599
	105,082	Bunge Ltd.		8,304,631
	32,679	Campbell Soup Co.		1,880,350
	10,899	Casey’s General Stores, Inc.		1,221,451
	32,065	Church & Dwight Co., Inc.		1,588,180
	18,687	Clorox Co. (The)		2,498,265
	787,736	Coca-Cola Co. (The)		33,990,808
	34,262	Coca-Cola European Partners PLC (United Kingdom)		1,323,198
	123,358	Colgate-Palmolive Co.		8,886,710
	86,232	Conagra Brands, Inc.		3,344,077
	14,248	Constellation Brands, Inc., Class A		2,458,350
	116,196	Costco Wholesale Corp.		20,627,114
	367,209	CVS Health Corp.		30,272,710
	82,590	Darling Ingredients, Inc.(c)		1,249,587
	44,579	Dean Foods Co.		879,990
	31,200	Dr Pepper Snapple Group, Inc.		2,859,480
	12,838	Edgewell Personal Care Co.(c)		917,789
	25,896	Estee Lauder Cos., Inc. (The), Class A		2,256,577
	48,317	Flowers Foods, Inc.		947,496
	136,144	General Mills, Inc.		7,829,641
	22,662	Hain Celestial Group, Inc. (The)(c)		838,267
	19,059	Herbalife Ltd.(b)(c)		1,205,672
	21,415	Hershey Co. (The)		2,317,103
	39,325	Hormel Foods Corp.		1,379,521
	41,942	HRG Group, Inc.(c)		839,259
	13,891	Ingredion, Inc.		1,719,984
	24,254	JM Smucker Co. (The)		3,073,467
	50,361	Kellogg Co.		3,575,631
	62,387	Kimberly-Clark Corp.		8,094,713
	95,177	Kraft Heinz Co. (The)		8,603,049
	427,859	Kroger Co. (The)		12,686,019
	27,563	Lamb Weston Holdings, Inc.		1,150,755
	16,297	McCormick & Co., Inc.		1,628,070
	23,031	Mead Johnson Nutrition Co.		2,043,310
	23,356	Molson Coors Brewing Co., Class B		2,239,607
	365,075	Mondelez International, Inc., Class A		16,439,327
	32,112	Monster Beverage Corp.(c)		1,457,243
	15,114	Nu Skin Enterprises, Inc., Class A		834,746
	267,287	PepsiCo, Inc.		30,278,271
	34,382	Performance Food Group Co.(c)		856,112
	309,738	Philip Morris International, Inc.		34,331,360
	18,188	Pinnacle Foods, Inc.		1,057,632
	9,619	Post Holdings, Inc.(c)		809,824
	565,224	Procter & Gamble Co. (The)		49,361,012
	106,467	Reynolds American, Inc.		6,867,122
	586,197	Rite Aid Corp.(c)		2,344,788
	18,808	SpartanNash Co.		692,134
	33,749	Sprouts Farmers Market, Inc.(c)		752,940
	451,267	SUPERVALU, Inc.(c)		1,850,195
	159,843	Sysco Corp.		8,450,899
	11,956	TreeHouse Foods, Inc.(c)		1,047,346

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

18

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	79,852	Tyson Foods, Inc., Class A	$	5,131,290
	26,185	United Natural Foods, Inc.(c)		1,087,463
	11,110	Universal Corp.		816,030
	29,921	US Foods Holding Corp.(c)		843,772
	202,997	Walgreens Boots Alliance, Inc.		17,567,360
	749,793	Wal-Mart Stores, Inc.		56,369,438
	100,393	Whole Foods Market, Inc.		3,651,293
				467,558,251
		Energy—10.6%
	61,030	Aegean Marine Petroleum Network, Inc. (Greece)(b)		680,484
	112,168	Anadarko Petroleum Corp.		6,395,819
	51,217	Antero Resources Corp.(c)		1,085,288
	81,937	Apache Corp.		3,985,416
	77,646	Atwood Oceanics, Inc.(c)		607,968
	125,579	Baker Hughes, Inc.		7,455,625
	44,805	Cabot Oil & Gas Corp.		1,041,268
	36,135	California Resources Corp.(b)(c)		422,779
	352,388	Chesapeake Energy Corp.(b)(c)		1,853,561
	863,666	Chevron Corp.		92,153,162
	8,497	Cimarex Energy Co.		991,430
	19,223	Concho Resources, Inc.(c)		2,434,785
	687,309	ConocoPhillips		32,928,974
	116,260	CONSOL Energy, Inc.(c)		1,764,827
	13,933	Continental Resources, Inc.(c)		590,898
	85,441	Cosan Ltd., Class A (Brazil)		657,041
	54,986	Delek US Holdings, Inc.		1,323,513
	92,940	Devon Energy Corp.		3,670,201
	90,390	Diamond Offshore Drilling, Inc.(b)(c)		1,303,424
	17,808	Energen Corp.(c)		925,838
	311,314	Ensco PLC, Class A		2,456,267
	70,344	EOG Resources, Inc.		6,506,820
	29,446	EQT Corp.		1,711,990
	1,697,964	Exxon Mobil Corp.		138,638,761
	189,935	Halliburton Co.		8,714,218
	34,158	Helmerich & Payne, Inc.		2,071,341
	157,625	Hess Corp.		7,696,829
	183,262	HollyFrontier Corp.		5,156,993
	641,939	Kinder Morgan, Inc.		13,243,202
	556,467	Marathon Oil Corp.		8,274,664
	304,551	Marathon Petroleum Corp.		15,513,828
	106,802	McDermott International, Inc.(c)		698,485
	131,860	Murphy Oil Corp.		3,452,095
	140,905	Nabors Industries Ltd.		1,456,958
	197,930	National Oilwell Varco, Inc.		6,921,612
	16,350	Newfield Exploration Co.(c)		566,037
	424,593	Noble Corp. PLC		2,038,046
	111,082	Noble Energy, Inc.		3,591,281
	69,713	Oasis Petroleum, Inc.(c)		832,373
	263,833	Occidental Petroleum Corp.		16,236,283
	44,393	Oceaneering International, Inc.		1,171,531
	20,869	Oil States International, Inc.(c)		620,853
	60,039	ONEOK, Inc.(b)		3,158,652
	44,272	Patterson-UTI Energy, Inc.		958,267
	104,588	PBF Energy, Inc., Class A		2,334,404
	304,328	Phillips 66		24,212,336

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	13,751	Pioneer Natural Resources Co.	$	2,378,785
	95,135	QEP Resources, Inc.(c)		1,123,544
	29,908	Range Resources Corp.		792,263
	73,251	Rowan Cos. PLC, Class A(c)		1,030,642
	284,854	Schlumberger Ltd.		20,677,552
	39,581	SM Energy Co.		894,135
	75,978	Southwestern Energy Co.(c)		570,595
	64,133	Superior Energy Services, Inc.(c)		774,727
	23,933	Targa Resources Corp.		1,319,426
	62,320	Teekay Corp. (Bermuda)(b)		540,938
	65,052	Tesoro Corp.		5,185,295
	591,194	Tidewater, Inc.(b)(c)		518,182
	405,026	Transocean Ltd.(c)		4,467,437
	322,397	Valero Energy Corp.		20,830,070
	704,775	Weatherford International PLC(b)(c)		4,066,552
	44,112	Western Refining, Inc.(b)		1,521,423
	177,350	Whiting Petroleum Corp.(c)		1,472,005
	228,957	Williams Cos., Inc. (The)		7,012,953
	72,001	World Fuel Services Corp.		2,651,797
	71,697	WPX Energy, Inc.(c)		855,345
				519,190,093
		Financials—18.3%
	9,260	Affiliated Managers Group, Inc.		1,533,363
	138,092	Aflac, Inc.		10,340,329
	154,245	Agnc Investment Corp. REIT		3,249,942
	4,717	Alleghany Corp.(c)		2,880,672
	24,515	Allied World Assurance Co. Holdings AG		1,301,501
	129,145	Allstate Corp. (The)		10,498,197
	310,303	Ally Financial, Inc.		6,143,999
	34,186	Ambac Financial Group, Inc.(c)		664,234
	32,937	American Equity Investment Life Holding Co.		781,266
	185,520	American Express Co.		14,702,460
	22,152	American Financial Group, Inc.		2,155,611
	485,852	American International Group, Inc.		29,593,245
	38,268	Ameriprise Financial, Inc.		4,892,564
	420,429	Annaly Capital Management, Inc. REIT		4,965,266
	38,384	Aon PLC		4,599,939
	22,646	Arch Capital Group Ltd.(c)		2,195,983
	34,809	Arthur J. Gallagher & Co.		1,942,690
	18,823	Aspen Insurance Holdings Ltd. (Bermuda)		985,384
	33,482	Associated Banc-Corp.		833,702
	25,532	Assurant, Inc.		2,457,200
	46,313	Assured Guaranty Ltd.		1,765,915
	29,405	Axis Capital Holdings Ltd.		1,937,789
	2,560,405	Bank of America Corp.		59,759,853
	7,792	Bank of Hawaii Corp.		634,892
	272,280	Bank of New York Mellon Corp. (The)		12,813,497
	21,648	BankUnited, Inc.		763,958
	201,121	BB&T Corp.		8,684,405
	488,803	Berkshire Hathaway, Inc., Class B(c)		80,755,144
	24,215	BlackRock, Inc.		9,312,362
	21,492	Blackstone Mortgage Trust, Inc., Class A REIT		663,673
	18,399	Brown & Brown, Inc.		789,317
	197,761	Capital One Financial Corp.		15,896,029

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

19

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	44,929	Capitol Federal Financial, Inc.	$	657,311
	99,064	Charles Schwab Corp. (The)		3,848,636
	65,636	Chimera Investment Corp. REIT		1,336,349
	83,484	Chubb Ltd.		11,458,179
	35,573	Cincinnati Financial Corp.		2,564,458
	74,407	CIT Group, Inc.(b)		3,445,788
	1,013,793	Citigroup, Inc.		59,935,442
	158,976	Citizens Financial Group, Inc.		5,836,009
	61,270	CME Group, Inc.		7,118,961
	70,700	CNO Financial Group, Inc.		1,489,649
	34,839	Comerica, Inc.		2,463,117
	18,351	Commerce Bancshares, Inc.		1,008,387
	11,182	Cullen/Frost Bankers, Inc.		1,055,469
	93,997	Discover Financial Services		5,883,272
	56,623	E*TRADE Financial Corp.(c)		1,956,325
	21,778	East West Bancorp, Inc.		1,181,892
	21,464	Eaton Vance Corp.		921,449
	9,863	Everest Re Group Ltd.		2,482,616
	48,486	F.N.B. Corp.		690,441
	27,196	Federated Investors, Inc., Class B		729,397
	226,590	Fifth Third Bancorp		5,535,594
	36,073	First American Financial Corp.		1,565,929
	36,496	First Horizon National Corp.		669,702
	16,323	First Republic Bank		1,509,225
	48,299	FNF Group		1,977,844
	101,078	Franklin Resources, Inc.		4,357,473
	41,934	Fulton Financial Corp.		773,682
	1,157,221	Genworth Financial, Inc., Class A(c)		4,675,173
	101,174	Goldman Sachs Group, Inc. (The)		22,642,741
	18,565	Hancock Holding Co.		866,985
	15,087	Hanover Insurance Group, Inc. (The)		1,331,729
	175,489	Hartford Financial Services Group, Inc. (The)		8,486,648
	186,143	Huntington Bancshares, Inc.		2,393,799
	7,493	IBERIABANK Corp.		594,570
	64,120	Intercontinental Exchange, Inc.		3,860,024
	114,460	Invesco Ltd.(d)		3,770,312
	58,360	Invesco Mortgage Capital, Inc. REIT(d)		951,852
	57,595	Investors Bancorp, Inc.		797,691
	56,320	Janus Capital Group, Inc.		769,331
	988,601	JPMorgan Chase & Co.		86,008,287
	14,520	Kemper Corp.		571,362
	199,079	KeyCorp		3,631,201
	32,734	Legg Mason, Inc.		1,223,597
	110,919	Leucadia National Corp.		2,816,233
	69,013	Lincoln National Corp.		4,550,027
	108,909	Loews Corp.		5,077,338
	22,692	LPL Financial Holdings, Inc.		953,972
	30,276	M&T Bank Corp.		4,705,193
	2,615	Markel Corp.(c)		2,535,504
	78,195	Marsh & McLennan Cos., Inc.		5,796,595
	117,244	MBIA, Inc.(c)		984,850
	413,983	MetLife, Inc.		21,448,459
	138,723	MFA Financial, Inc. REIT		1,152,788
	60,000	MGIC Investment Corp.(c)		632,400
	16,271	Moody’s Corp.		1,925,185

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	314,972	Morgan Stanley	$	13,660,336
	23,392	Nasdaq, Inc.		1,611,007
	235,082	Navient Corp.		3,573,246
	65,409	New Residential Investment Corp. REIT		1,090,368
	198,212	New York Community Bancorp, Inc.		2,634,237
	43,182	Northern Trust Corp.		3,886,380
	91,454	Old Republic International Corp.		1,891,269
	20,577	PacWest Bancorp		1,016,298
	43,676	PennyMac Mortgage Investment Trust REIT		780,927
	101,571	People’s United Financial, Inc.		1,774,445
	82,384	PHH Corp.(c)		1,062,754
	123,752	PNC Financial Services Group, Inc. (The)		14,819,302
	30,471	Popular, Inc.		1,277,040
	75,434	Principal Financial Group, Inc.		4,913,016
	18,853	ProAssurance Corp.		1,167,001
	149,364	Progressive Corp. (The)		5,932,738
	12,768	Prosperity Bancshares, Inc.		858,010
	166,453	Prudential Financial, Inc.		17,815,465
	36,276	Radian Group, Inc.		612,339
	19,370	Raymond James Financial, Inc.		1,443,452
	334,947	Regions Financial Corp.		4,605,521
	22,134	Reinsurance Group of America, Inc.		2,767,635
	9,087	RenaissanceRe Holdings Ltd. (Bermuda)		1,291,899
	11,043	RLI Corp.		631,880
	22,590	S&P Global, Inc.		3,031,352
	78,778	Santander Consumer USA Holdings, Inc.(c)		1,003,632
	14,726	Selective Insurance Group, Inc.		777,533
	6,827	Signature Bank(c)		945,198
	150,816	SLM Corp.(c)		1,891,233
	65,156	Starwood Property Trust, Inc. REIT		1,478,390
	91,453	State Street Corp.		7,672,907
	16,891	Stifel Financial Corp.(c)		825,463
	128,856	SunTrust Banks, Inc.		7,320,309
	7,540	SVB Financial Group(c)		1,326,588
	252,663	Synchrony Financial		7,024,031
	23,337	Synovus Financial Corp.		975,487
	56,963	T. Rowe Price Group, Inc.		4,038,107
	43,443	TCF Financial Corp.		717,244
	27,349	TD Ameritrade Holding Corp.		1,046,646
	25,078	Torchmark Corp.		1,923,733
	120,848	Travelers Cos., Inc. (The)		14,702,368
	137,881	Two Harbors Investment Corp. REIT		1,377,431
	370,695	U.S. Bancorp		19,009,240
	59,863	Umpqua Holdings Corp.		1,057,779
	13,932	United Bankshares, Inc.		555,887
	76,226	Unum Group		3,531,551
	23,127	Validus Holdings Ltd.		1,278,461
	73,515	Valley National Bancorp		864,536
	100,312	Voya Financial, Inc.		3,749,663
	26,897	W.R. Berkley Corp.		1,828,458
	49,065	Waddell & Reed Financial, Inc., Class A(b)		882,679
	19,688	Washington Federal, Inc.		663,486
	13,536	Webster Financial Corp.		687,764
	1,382,510	Wells Fargo & Co.		74,434,338
	1,048	White Mountains Insurance Group Ltd.		900,169

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

20

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	14,035	Willis Towers Watson PLC	$	1,861,322
	8,554	Wintrust Financial Corp.		606,136
	90,568	XL Group Ltd. (Bermuda)		3,790,271
	40,691	Zions Bancorporation		1,628,861
				894,625,641
		Health Care—11.0%
	231,746	Abbott Laboratories		10,113,395
	215,059	AbbVie, Inc.		14,180,990
	89,248	Aetna, Inc.		12,054,727
	37,962	Agilent Technologies, Inc.		2,089,808
	20,522	Alere, Inc.(c)		1,009,067
	19,129	Alexion Pharmaceuticals, Inc.(c)		2,444,304
	70,071	Allergan PLC		17,087,514
	50,577	Allscripts Healthcare Solutions, Inc.(c)		605,407
	95,526	AmerisourceBergen Corp.		7,837,908
	95,239	Amgen, Inc.		15,554,434
	99,260	Anthem, Inc.		17,657,361
	103,178	Baxter International, Inc.		5,744,951
	26,159	Becton, Dickinson and Co.		4,890,948
	20,797	Biogen, Inc.(c)		5,640,354
	3,548	Bio-Rad Laboratories, Inc., Class A(c)		774,387
	92,605	Boston Scientific Corp.(c)		2,442,920
	273,646	Bristol-Myers Squibb Co.		15,337,858
	91,798	Brookdale Senior Living, Inc.(c)		1,192,456
	5,691	C.R. Bard, Inc.		1,749,869
	171,437	Cardinal Health, Inc.		12,444,612
	23,105	Catalent, Inc.(c)		676,514
	34,227	Celgene Corp.(c)		4,245,859
	36,730	Centene Corp.(c)		2,732,712
	31,085	Cerner Corp.(c)		2,012,754
	49,343	Cigna Corp.		7,715,765
	421,865	Community Health Systems, Inc.(c)		3,632,258
	4,362	Cooper Cos., Inc. (The)		873,839
	67,887	Danaher Corp.		5,657,024
	60,850	DaVita, Inc.(c)		4,199,259
	17,578	DENTSPLY Sirona, Inc.		1,111,633
	15,389	Edwards Lifesciences Corp.(c)		1,687,712
	174,939	Eli Lilly & Co.		14,355,494
	134,062	Endo International PLC(c)		1,524,285
	13,688	Envision Healthcare Corp.(c)		766,939
	288,554	Express Scripts Holding Co.(c)		17,699,902
	166,946	Gilead Sciences, Inc.		11,444,148
	90,640	HCA Holdings, Inc.(c)		7,632,794
	19,606	HealthSouth Corp.		919,521
	15,406	Henry Schein, Inc.(c)		2,677,563
	29,471	Hologic, Inc.(c)		1,330,616
	40,167	Humana, Inc.		8,916,271
	5,906	Illumina, Inc.(c)		1,091,783
	2,617	Intuitive Surgical, Inc.(c)		2,187,472
	4,969	Jazz Pharmaceuticals PLC(c)		791,462
	486,306	Johnson & Johnson		60,044,202
	140,742	Kindred Healthcare, Inc.		1,351,123
	21,322	Laboratory Corp. of America Holdings(c)		2,988,278
	21,335	LifePoint Health, Inc.(c)		1,325,970
	11,505	Magellan Health, Inc.(c)		791,544
	33,128	Mallinckrodt PLC(c)		1,554,366

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	130,693	McKesson Corp.	$	18,073,535
	17,568	MEDNAX, Inc.(c)		1,060,404
	237,999	Medtronic PLC		19,775,337
	591,451	Merck & Co., Inc.		36,865,141
	1,607	Mettler-Toledo International, Inc.(c)		825,066
	25,559	Molina Healthcare, Inc.(c)		1,272,583
	93,968	Mylan NV(c)		3,509,705
	38,918	Owens & Minor, Inc.		1,348,509
	21,134	Patterson Cos., Inc.		940,252
	276,427	PDL BioPharma, Inc.		621,961
	15,374	PerkinElmer, Inc.		913,369
	29,901	Perrigo Co. PLC		2,210,880
	1,576,660	Pfizer, Inc.		53,480,307
	31,534	Quest Diagnostics, Inc.		3,327,152
	11,398	Quintiles IMS Holdings, Inc.(c)		960,623
	3,481	Regeneron Pharmaceuticals, Inc.(c)		1,352,334
	13,237	ResMed, Inc.		899,984
	57,801	Select Medical Holdings Corp.(c)		794,764
	15,044	STERIS PLC		1,110,247
	34,350	Stryker Corp.		4,684,310
	4,893	Teleflex, Inc.		1,012,313
	159,040	Tenet Healthcare Corp.(b)(c)		2,492,157
	46,902	Thermo Fisher Scientific, Inc.		7,754,308
	5,360	United Therapeutics Corp.(c)		673,752
	185,189	UnitedHealth Group, Inc.		32,385,852
	18,503	Universal Health Services, Inc., Class B		2,234,422
	13,819	Varian Medical Systems, Inc.(c)		1,253,936
	7,220	VCA, Inc.(c)		661,135
	29,590	VWR Corp.(c)		836,213
	7,490	Waters Corp.(c)		1,272,476
	14,753	WellCare Health Plans, Inc.(c)		2,263,258
	28,601	Zimmer Biomet Holdings, Inc.		3,422,110
	35,477	Zoetis, Inc.		1,990,614
				537,071,341
		Industrials—10.4%
	93,443	3M Co.		18,298,943
	13,129	A.O. Smith Corp.		707,391
	20,010	ABM Industries, Inc.		864,232
	3,091	Acuity Brands, Inc.		544,325
	59,303	AECOM(c)		2,028,756
	57,550	AerCap Holdings NV (Ireland)(c)		2,647,876
	31,999	AGCO Corp.		2,047,616
	20,929	Air Lease Corp.		798,232
	26,430	Aircastle Ltd.		624,277
	27,647	Allison Transmission Holdings, Inc.		1,069,386
	1,680	AMERCO		629,093
	35,212	American Airlines Group, Inc.		1,500,735
	31,114	AMETEK, Inc.		1,779,721
	120,526	Arconic, Inc.		3,293,976
	16,659	Armstrong World Industries, Inc.(c)		778,808
	93,217	Avis Budget Group, Inc.(c)		2,843,118
	113,506	Boeing Co. (The)		20,979,314
	12,380	Brink’s Co. (The)		760,132
	34,102	C.H. Robinson Worldwide, Inc.		2,479,215
	10,623	Carlisle Cos., Inc.		1,077,066
	194,033	Caterpillar, Inc.		19,841,815

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

21

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	50,154	Chicago Bridge & Iron Co. NV	$	1,508,632
	11,833	Cintas Corp.		1,449,188
	15,197	Clean Harbors, Inc.(c)		883,098
	32,477	Colfax Corp.(c)		1,314,344
	42,787	Covanta Holding Corp.		622,551
	10,018	Crane Co.		800,538
	167,418	CSX Corp.		8,511,531
	41,074	Cummins, Inc.		6,199,710
	7,274	Curtiss-Wright Corp.		679,828
	95,369	Deere & Co.		10,644,134
	45,897	Delta Air Lines, Inc.		2,085,560
	9,684	Deluxe Corp.		696,376
	19,416	Donaldson Co., Inc.		898,572
	35,942	Dover Corp.		2,835,105
	6,568	Dun & Bradstreet Corp. (The)		719,918
	122,465	Eaton Corp. PLC		9,263,253
	15,104	EMCOR Group, Inc.		992,937
	171,101	Emerson Electric Co.		10,313,968
	8,120	EnerSys		674,853
	11,278	Equifax, Inc.		1,526,026
	35,630	Essendant, Inc.		595,021
	9,571	Esterline Technologies Corp.(c)		875,268
	30,971	Expeditors International of Washington, Inc.		1,737,163
	41,212	Fastenal Co.		1,841,352
	54,662	FedEx Corp.		10,369,381
	31,795	Flowserve Corp.		1,617,412
	70,936	Fluor Corp.		3,640,436
	44,350	Fortive Corp.		2,805,581
	20,895	Fortune Brands Home & Security, Inc.		1,331,847
	15,001	FTI Consulting, Inc.(c)		518,885
	12,612	GATX Corp.(b)		755,459
	21,962	Generac Holdings, Inc.(c)		772,404
	47,582	General Cable Corp.		856,476
	51,427	General Dynamics Corp.		9,966,038
	2,323,099	General Electric Co.		67,346,640
	13,193	Genesee & Wyoming, Inc., Class A(c)		893,958
	6,778	Graco, Inc.		731,007
	47,946	Harsco Corp.(c)		625,695
	40,481	HD Supply Holdings, Inc.(c)		1,631,384
	247,427	Hertz Global Holdings, Inc.(b)(c)		4,080,071
	123,115	Honeywell International, Inc.		16,145,301
	13,605	Hub Group, Inc., Class A(c)		532,636
	10,355	Hubbell, Inc.		1,171,461
	6,954	Huntington Ingalls Industries, Inc.		1,396,989
	11,113	IDEX Corp.		1,164,198
	20,281	IHS Markit Ltd.(c)		880,195
	48,089	Illinois Tool Works, Inc.		6,640,610
	47,158	Ingersoll-Rand PLC		4,185,273
	17,122	ITT, Inc.		721,350
	12,367	J.B. Hunt Transport Services, Inc.		1,108,825
	52,777	Jacobs Engineering Group, Inc.		2,898,513
	107,642	Johnson Controls International PLC		4,474,678
	20,681	Kansas City Southern		1,862,738
	23,067	KAR Auction Services, Inc.		1,006,183
	70,758	KBR, Inc.		994,150

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	21,913	Kennametal, Inc.	$	911,143
	17,195	Kirby Corp.(c)		1,213,967
	14,929	KLX, Inc.(c)		706,142
	8,543	Lincoln Electric Holdings, Inc.		760,583
	53,964	Lockheed Martin Corp.		14,540,600
	38,560	LSC Communications, Inc.		997,547
	15,913	Macquarie Infrastructure Corp.		1,294,841
	32,962	ManpowerGroup, Inc.		3,328,503
	42,643	Masco Corp.		1,578,644
	20,512	MasTec, Inc.(c)		905,605
	45,377	Meritor, Inc.(c)		808,164
	9,514	Moog, Inc., Class A(c)		653,136
	54,541	MRC Global, Inc.(c)		994,282
	8,934	MSC Industrial Direct Co., Inc., Class A		799,861
	37,080	Navistar International Corp.(c)		997,823
	63,513	Nielsen Holdings PLC		2,612,290
	65,471	Norfolk Southern Corp.		7,692,188
	31,663	Northrop Grumman Corp.		7,787,831
	38,750	NOW, Inc.(c)		659,138
	11,922	Old Dominion Freight Line, Inc.		1,055,335
	8,947	Orbital ATK, Inc.		885,753
	19,914	Oshkosh Corp.		1,381,832
	25,941	Owens Corning		1,578,510
	98,518	PACCAR, Inc.		6,574,106
	27,609	Parker-Hannifin Corp.		4,439,527
	37,333	Pentair PLC (United Kingdom)		2,408,352
	132,205	Pitney Bowes, Inc.		1,757,004
	50,419	Quanta Services, Inc.(c)		1,786,849
	56,128	Raytheon Co.		8,711,627
	12,285	Regal Beloit Corp.		968,672
	54,558	Republic Services, Inc.		3,436,608
	30,243	Rexnord Corp.(c)		737,929
	23,883	Robert Half International, Inc.		1,099,812
	18,326	Rockwell Automation, Inc.		2,883,596
	22,014	Rockwell Collins, Inc.		2,291,437
	10,090	Roper Technologies, Inc.		2,206,683
	80,737	RR Donnelley & Sons Co.		1,014,864
	19,019	Rush Enterprises, Inc., Class A(c)		717,967
	28,332	Ryder System, Inc.		1,924,026
	26,851	Sensata Technologies Holding NV(c)		1,105,724
	8,336	Snap-on, Inc.		1,396,530
	21,839	Southwest Airlines Co.		1,227,789
	27,686	Spirit AeroSystems Holdings, Inc., Class A		1,582,532
	25,515	SPX FLOW, Inc.(c)		922,112
	32,294	Stanley Black & Decker, Inc.		4,396,828
	13,634	Stericycle, Inc.(c)		1,163,526
	32,797	Swift Transportation Co., Class A(c)		806,150
	6,224	Teledyne Technologies, Inc.(c)		839,182
	41,684	Terex Corp.		1,458,106
	62,346	Textron, Inc.		2,909,064
	18,908	Timken Co. (The)		912,311
	10,453	TransDigm Group, Inc.		2,579,069
	54,856	Trinity Industries, Inc.		1,475,626
	27,999	Triumph Group, Inc.		733,574
	23,559	Tutor Perini Corp.(c)		726,795
	149,954	Union Pacific Corp.		16,788,850

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

22

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	33,672	United Continental Holdings, Inc.(c)	$	2,364,111
	142,088	United Parcel Service, Inc., Class B		15,268,776
	18,818	United Rentals, Inc.(c)		2,063,582
	195,587	United Technologies Corp.		23,272,897
	38,235	Univar, Inc.(c)		1,141,315
	5,136	Valmont Industries, Inc.		782,470
	12,538	Verisk Analytics, Inc.(c)		1,038,272
	10,393	W.W. Grainger, Inc.		2,002,731
	7,643	WABCO Holdings, Inc.(c)		908,523
	8,287	Wabtec Corp.(b)		695,196
	91,559	Waste Management, Inc.		6,663,664
	5,181	Watsco, Inc.		719,123
	33,399	Welbilt, Inc.(c)		684,680
	23,889	WESCO International, Inc.(c)		1,456,035
	8,788	Woodward, Inc.		594,684
	18,792	XPO Logistics, Inc.(c)		928,137
	28,141	Xylem, Inc.		1,446,729
	57,745	YRC Worldwide, Inc.(c)		615,562
				507,161,759
		Information Technology—13.7%
	88,759	Accenture PLC, Class A		10,766,467
	72,387	Activision Blizzard, Inc.		3,782,221
	25,287	Adobe Systems, Inc.(c)		3,381,883
	21,743	Akamai Technologies, Inc.(c)		1,325,018
	9,232	Alliance Data Systems Corp.		2,304,584
	25,365	Alphabet, Inc., Class A(c)		23,450,450
	24,797	Alphabet, Inc., Class C(c)		22,465,090
	25,088	Amdocs Ltd.		1,536,389
	69,874	Amkor Technology, Inc.(c)		823,116
	29,085	Amphenol Corp., Class A		2,103,136
	38,115	Analog Devices, Inc.		2,904,363
	12,577	Anixter International, Inc.(c)		1,025,654
	8,602	ANSYS, Inc.(c)		947,596
	730,805	Apple, Inc.		104,980,138
	135,718	Applied Materials, Inc.		5,511,508
	33,906	ARRIS International PLC(c)		881,217
	63,051	Arrow Electronics, Inc.(c)		4,445,095
	11,125	Autodesk, Inc.(c)		1,002,029
	57,181	Automatic Data Processing, Inc.		5,974,843
	91,094	Avnet, Inc.		3,524,427
	22,123	Benchmark Electronics, Inc.(c)		701,299
	61,160	Booz Allen Hamilton Holding Corp.		2,197,479
	12,665	Broadcom Ltd.		2,796,559
	14,644	Broadridge Financial Solutions, Inc.		1,024,201
	81,447	Brocade Communications Systems, Inc.		1,023,789
	87,795	CA, Inc.		2,882,310
	7,870	CACI International, Inc., Class A(c)		928,660
	24,808	Cadence Design Systems, Inc.(c)		807,997
	9,814	CDK Global, Inc.		638,008
	27,743	CDW Corp.		1,639,334
	11,483	Check Point Software Technologies Ltd. (Israel)(c)		1,194,347
	938,111	Cisco Systems, Inc.		31,961,442
	16,740	Citrix Systems, Inc.(c)		1,354,936
	82,028	Cognizant Technology Solutions Corp., Class A(c)		4,940,546

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	35,133	CommScope Holding Co., Inc.(c)	$	1,476,991
	26,298	Convergys Corp.		591,968
	16,103	CoreLogic, Inc.(c)		688,242
	246,229	Corning, Inc.		7,103,707
	31,084	Cree, Inc.(c)		680,118
	34,969	CSRA, Inc.		1,016,899
	63,469	Cypress Semiconductor Corp.		889,201
	23,352	Diebold Nixdorf, Inc.		658,526
	6,608	DST Systems, Inc.		813,511
	59,474	Dxc Technology Co.(c)		4,480,771
	101,276	eBay, Inc.(c)		3,383,631
	15,962	EchoStar Corp., Class A(c)		918,773
	19,916	Electronic Arts, Inc.(c)		1,888,435
	6,376	F5 Networks, Inc.(c)		823,333
	82,881	Facebook, Inc., Class A(c)		12,452,870
	49,211	Fidelity National Information Services, Inc.		4,143,074
	77,985	First Data Corp., Class A(c)		1,218,126
	40,903	First Solar, Inc.(b)(c)		1,208,684
	22,335	Fiserv, Inc.(c)		2,660,992
	5,885	FleetCor Technologies, Inc.(c)		830,609
	299,766	Flex Ltd.(c)		4,634,382
	22,252	FLIR Systems, Inc.		817,316
	31,476	Genpact Ltd.		768,644
	13,215	Global Payments, Inc.		1,080,458
	21,480	Harris Corp.		2,403,397
	692,484	Hewlett Packard Enterprise Co.		12,900,977
	680,761	HP, Inc.		12,811,922
	12,516	IAC/InterActiveCorp.(c)		1,038,953
	20,348	Insight Enterprises, Inc.(c)		856,651
	1,246,238	Intel Corp.		45,051,504
	229,727	International Business Machines Corp.		36,822,941
	17,513	Intuit, Inc.		2,192,803
	102,558	Jabil Circuit, Inc.		2,976,233
	62,625	Juniper Networks, Inc.		1,883,134
	32,837	Keysight Technologies, Inc.(c)		1,229,089
	42,957	KLA-Tencor Corp.		4,219,237
	15,610	Lam Research Corp.		2,261,108
	22,556	Leidos Holdings, Inc.		1,187,799
	82,047	Marvell Technology Group Ltd. (Bermuda)		1,232,346
	47,741	Mastercard, Inc., Class A		5,553,233
	45,847	Maxim Integrated Products, Inc.		2,024,145
	26,374	Microchip Technology, Inc.		1,993,347
	291,271	Micron Technology, Inc.(c)		8,059,469
	1,008,248	Microsoft Corp.		69,024,658
	26,713	Motorola Solutions, Inc.		2,296,517
	32,369	NCR Corp.(c)		1,335,221
	52,878	NetApp, Inc.		2,107,188
	17,596	NetScout Systems, Inc.(c)		662,489
	44,568	Nuance Communications, Inc.(c)		797,322
	19,443	NVIDIA Corp.		2,027,905
	33,366	NXP Semiconductors NV (Netherlands)(c)		3,528,455
	72,219	ON Semiconductor Corp.(c)		1,024,065
	530,631	Oracle Corp.		23,857,170
	47,414	Paychex, Inc.		2,810,702
	114,575	PayPal Holdings, Inc.(c)		5,467,519
	26,737	Qorvo, Inc.(c)		1,818,918

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

23

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	346,519	QUALCOMM, Inc.	$	18,621,931
	9,112	Red Hat, Inc.(c)		802,585
	20,686	salesforce.com, inc.(c)		1,781,478
	34,673	Sanmina Corp.(c)		1,291,569
	15,383	ScanSource, Inc.(c)		607,629
	7,206	Science Applications International Corp.		525,966
	105,951	Seagate Technology PLC		4,463,716
	12,710	Skyworks Solutions, Inc.		1,267,695
	186,559	Symantec Corp.		5,900,861
	10,231	SYNNEX Corp.		1,109,347
	18,051	Synopsys, Inc.(c)		1,330,359
	75,341	TE Connectivity Ltd.		5,829,133
	46,083	Tech Data Corp.(c)		4,407,839
	31,312	Teradata Corp.(c)		913,684
	25,955	Teradyne, Inc.		915,433
	125,018	Texas Instruments, Inc.		9,898,925
	18,180	Total System Services, Inc.		1,041,896
	34,577	Trimble, Inc.(c)		1,225,063
	57,027	Twitter, Inc.(c)		939,805
	57,987	Unisys Corp.(b)(c)		655,253
	11,602	Vantiv, Inc., Class A(c)		719,788
	31,569	VeriFone Systems, Inc.(c)		585,289
	115,680	Visa, Inc., Class A		10,552,330
	45,524	Vishay Intertechnology, Inc.		744,317
	64,278	Western Digital Corp.		5,725,241
	133,849	Western Union Co. (The)		2,658,241
	547,203	Xerox Corp.		3,934,390
	34,355	Xilinx, Inc.		2,168,144
	142,273	Yahoo!, Inc.(c)		6,858,981
				673,388,697
		Materials—3.6%
	37,378	Air Products & Chemicals, Inc.		5,251,609
	89,966	AK Steel Holding Corp.(c)		570,384
	16,061	Albemarle Corp.		1,749,204
	143,005	Alcoa Corp.		4,823,559
	59,746	Allegheny Technologies, Inc.(b)		1,096,339
	11,624	AptarGroup, Inc.		933,407
	15,732	Ashland Global Holdings, Inc.		1,942,902
	20,200	Avery Dennison Corp.		1,680,842
	43,909	Axalta Coating Systems Ltd.(c)		1,377,425
	26,880	Ball Corp.		2,066,803
	28,908	Bemis Co., Inc.		1,298,836
	19,394	Berry Global Group, Inc.(c)		969,700
	15,030	Cabot Corp.		904,656
	15,127	Carpenter Technology Corp.		614,156
	22,569	Celanese Corp., Series A		1,964,406
	102,451	CF Industries Holdings, Inc.		2,739,540
	44,777	Chemours Co. (The)		1,804,065
	131,736	Cliffs Natural Resources, Inc.(c)		885,266
	53,016	Commercial Metals Co.		988,218
	8,437	Compass Minerals International, Inc.(b)		556,842
	92,738	Constellium NV, Class A (Netherlands)(c)		644,529
	39,310	Crown Holdings, Inc.(c)		2,204,898
	40,201	Domtar Corp.		1,593,970
	286,231	Dow Chemical Co. (The)		17,975,307
	170,994	E.I. du Pont de Nemours & Co.		13,636,771

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	40,452	Eastman Chemical Co.	$	3,226,047
	34,251	Ecolab, Inc.		4,421,462
	21,454	FMC Corp.		1,571,076
	688,716	Freeport-McMoRan, Inc.(c)		8,781,129
	70,865	Graphic Packaging Holding Co.		962,347
	75,416	Huntsman Corp.		1,868,054
	11,280	International Flavors & Fragrances, Inc.		1,563,295
	135,457	International Paper Co.		7,310,614
	144,683	LyondellBasell Industries NV, Class A		12,263,331
	6,874	Martin Marietta Materials, Inc.		1,513,586
	72,838	Monsanto Co.		8,493,639
	150,670	Mosaic Co. (The)		4,057,543
	1,804	NewMarket Corp.		849,143
	143,975	Newmont Mining Corp.		4,867,795
	93,099	Nucor Corp.		5,709,762
	33,907	Olin Corp.		1,089,432
	101,424	Owens-Illinois, Inc.(c)		2,213,072
	17,653	Packaging Corp. of America		1,743,763
	51,748	Platform Specialty Products Corp.(c)		733,269
	21,243	PolyOne Corp.		832,938
	47,858	PPG Industries, Inc.		5,256,723
	56,781	Praxair, Inc.		7,096,489
	25,158	Reliance Steel & Aluminum Co.		1,982,954
	27,494	RPM International, Inc.		1,445,085
	30,427	Sealed Air Corp.		1,339,397
	7,183	Sherwin-Williams Co. (The)		2,404,006
	10,372	Silgan Holdings, Inc.		628,751
	26,990	Sonoco Products Co.		1,411,847
	24,102	Southern Copper Corp. (Peru)		852,488
	49,748	Steel Dynamics, Inc.		1,797,893
	15,025	Trinseo SA		997,660
	59,083	United States Steel Corp.		1,318,733
	10,716	Valspar Corp. (The)		1,204,907
	12,708	Vulcan Materials Co.		1,536,143
	10,174	W.R. Grace & Co.		709,331
	66,715	WestRock Co.		3,573,255
				177,900,593
		Real Estate—3.1%
	11,187	Alexandria Real Estate Equities, Inc. REIT		1,258,649
	23,778	American Campus Communities, Inc. REIT		1,126,839
	35,323	American Tower Corp. REIT		4,448,579
	24,288	Apartment Investment & Management Co., Class A REIT		1,062,357
	58,470	Apple Hospitality REIT, Inc. REIT		1,095,143
	20,338	AvalonBay Communities, Inc. REIT		3,860,966
	28,772	Boston Properties, Inc. REIT		3,642,535
	53,407	Brandywine Realty Trust REIT		906,317
	71,123	Brixmor Property Group, Inc. REIT		1,404,679
	18,560	Camden Property Trust REIT		1,528,045
	106,304	CBL & Associates Properties, Inc. REIT		983,312
	56,767	CBRE Group, Inc., Class A(c)		2,032,826
	53,134	Columbia Property Trust, Inc. REIT		1,195,515
	50,592	CoreCivic, Inc. REIT(b)		1,742,894
	23,554	Corporate Office Properties Trust REIT		771,158
	38,661	Crown Castle International Corp. REIT		3,657,331
	23,100	CubeSmart REIT		585,354

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

24

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	14,834	DCT Industrial Trust, Inc. REIT	$	750,007
	86,033	DDR Corp. REIT		930,017
	66,301	DiamondRock Hospitality Co. REIT		729,974
	23,823	Digital Realty Trust, Inc. REIT		2,735,833
	21,720	Douglas Emmett, Inc. REIT		818,192
	66,594	Duke Realty Corp. REIT		1,846,652
	10,667	EPR Properties REIT		775,598
	4,009	Equinix, Inc. REIT		1,674,559
	34,329	Equity Commonwealth REIT(c)		1,098,185
	8,851	Equity LifeStyle Properties, Inc. REIT		716,134
	78,819	Equity Residential REIT		5,090,131
	9,225	Essex Property Trust, Inc. REIT		2,255,236
	13,533	Extra Space Storage, Inc. REIT		1,022,147
	8,697	Federal Realty Investment Trust REIT		1,138,350
	42,486	Forest City Realty Trust, Inc., Class A REIT		960,184
	21,906	Gaming and Leisure Properties, Inc. REIT		762,329
	29,778	Geo Group, Inc. (The) REIT		992,203
	98,275	GGP, Inc. REIT		2,123,723
	26,290	Gramercy Property Trust REIT		730,599
	135,123	HCP, Inc. REIT		4,236,106
	22,566	Healthcare Realty Trust, Inc. REIT		740,165
	23,181	Healthcare Trust of America, Inc., Class A REIT		739,242
	19,203	Highwoods Properties, Inc. REIT		977,049
	58,302	Hospitality Properties Trust REIT		1,855,753
	206,273	Host Hotels & Resorts, Inc. REIT		3,702,600
	5,819	Howard Hughes Corp. (The)(c)		716,377
	70,746	Iron Mountain, Inc. REIT		2,459,131
	10,943	Jones Lang LaSalle, Inc.		1,256,913
	13,044	Kilroy Realty Corp. REIT		919,993
	85,952	Kimco Realty Corp. REIT		1,743,966
	10,802	Lamar Advertising Co., Class A REIT		778,500
	34,078	LaSalle Hotel Properties REIT		973,268
	68,696	Lexington Realty Trust REIT		698,638
	38,482	Liberty Property Trust REIT		1,561,215
	33,630	Macerich Co. (The) REIT		2,099,521
	30,461	Mack-Cali Realty Corp. REIT		823,970
	54,996	Medical Properties Trust, Inc. REIT		718,798
	13,434	Mid-America Apartment Communities, Inc. REIT		1,332,787
	22,933	National Retail Properties, Inc. REIT		968,231
	35,980	OMEGA Healthcare Investors, Inc. REIT		1,187,340
	43,505	Outfront Media, Inc. REIT		1,138,091
	42,401	Paramount Group, Inc. REIT		695,376
	35,635	Park Hotels & Resorts, Inc. REIT		914,750
	49,609	Piedmont Office Realty Trust, Inc., Class A REIT		1,083,957
	100,320	Prologis, Inc. REIT		5,458,411
	14,211	Public Storage REIT		2,975,499
	74,362	Quality Care Properties, Inc. REIT(c)		1,290,181
	37,867	Rayonier, Inc. REIT		1,068,607
	61,317	Realogy Holdings Corp.		1,873,234
	33,790	Realty Income Corp. REIT		1,971,646
	14,877	Regency Centers Corp. REIT		939,929
	72,044	Retail Properties of America, Inc., Class A REIT		961,067

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	42,866	RLJ Lodging Trust REIT	$	921,190
	11,474	Ryman Hospitality Properties, Inc. REIT		731,812
	6,040	SBA Communications Corp. REIT(c)		764,000
	82,505	Senior Housing Properties Trust REIT		1,775,508
	41,763	Simon Property Group, Inc. REIT		6,901,753
	20,519	SL Green Realty Corp. REIT		2,153,059
	108,681	Spirit Realty Capital, Inc. REIT		1,023,775
	8,133	Sun Communities, Inc. REIT		680,000
	59,893	Sunstone Hotel Investors, Inc. REIT		891,807
	13,867	Taubman Centers, Inc. REIT		867,381
	43,541	UDR, Inc. REIT		1,625,821
	81,295	Ventas, Inc. REIT		5,203,693
	252,194	VEREIT, Inc. REIT		2,110,864
	30,122	Vornado Realty Trust REIT		2,898,941
	100,374	Washington Prime Group, Inc. REIT		883,291
	23,918	Weingarten Realty Investors REIT		783,793
	92,456	Welltower, Inc. REIT		6,605,057
	115,558	Weyerhaeuser Co. REIT		3,913,949
	19,378	WP Carey, Inc. REIT		1,213,063
	47,826	Xenia Hotels & Resorts, Inc. REIT		835,042
				152,096,662
		Telecommunication Services—3.6%
	2,237,313	AT&T, Inc.		88,664,714
	549,712	CenturyLink, Inc.(b)		14,111,107
	1,364,963	Frontier Communications Corp.(b)		2,566,130
	61,831	Level 3 Communications, Inc.(c)		3,756,852
	54,530	Telephone & Data Systems, Inc.		1,497,394
	47,672	T-Mobile US, Inc.(c)		3,206,895
	1,305,227	Verizon Communications, Inc.		59,922,972
	227,335	Windstream Holdings, Inc.(b)		1,254,889
				174,980,953
		Utilities—5.0%
	471,931	AES Corp. (The)		5,337,540
	12,216	ALLETE, Inc.		854,021
	59,830	Alliant Energy Corp.		2,352,516
	82,607	Ameren Corp.		4,517,777
	172,240	American Electric Power Co., Inc.		11,683,039
	36,621	American Water Works Co., Inc.		2,920,891
	31,848	Aqua America, Inc.		1,053,850
	25,067	Atmos Energy Corp.		2,030,928
	20,463	Avangrid, Inc.		890,141
	22,596	Avista Corp.		911,523
	13,089	Black Hills Corp.		890,314
	223,530	Calpine Corp.(c)		2,280,006
	150,768	CenterPoint Energy, Inc.		4,301,411
	77,762	CMS Energy Corp.		3,530,395
	109,504	Consolidated Edison, Inc.		8,681,477
	145,449	Dominion Resources, Inc.		11,262,116
	56,392	DTE Energy Co.		5,898,039
	256,311	Duke Energy Corp.		21,145,658
	122,600	Dynegy, Inc.(c)		787,092
	93,256	Edison International		7,457,682
	92,491	Entergy Corp.		7,053,364
	90,917	Eversource Energy		5,400,470
	448,064	Exelon Corp.		15,516,456

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

25

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	276,876	FirstEnergy Corp.	$	8,289,668
	62,645	Great Plains Energy, Inc.		1,853,666
	42,017	Hawaiian Electric Industries, Inc.		1,408,410
	12,122	IDACORP, Inc.		1,024,551
	63,129	MDU Resources Group, Inc.		1,698,170
	19,859	National Fuel Gas Co.		1,099,791
	22,738	New Jersey Resources Corp.		917,478
	104,547	NextEra Energy, Inc.		13,963,297
	83,808	NiSource, Inc.		2,032,344
	13,837	NorthWestern Corp.		827,176
	169,361	NRG Energy, Inc.		2,862,201
	58,596	OGE Energy Corp.		2,037,969
	12,651	ONE Gas, Inc.		870,768
	153,567	PG&E Corp.		10,296,667
	36,123	Pinnacle West Capital Corp.		3,073,706
	25,497	PNM Resources, Inc.		949,763
	28,106	Portland General Electric Co.		1,274,326
	224,036	PPL Corp.		8,538,012
	189,633	Public Service Enterprise Group, Inc.		8,353,334
	44,095	SCANA Corp.		2,923,940
	65,672	Sempra Energy		7,422,249
	321,946	Southern Co. (The)		16,032,911
	10,773	Spire, Inc.		738,489
	47,939	UGI Corp.		2,404,620
	24,207	Vectren Corp.		1,438,380
	69,445	WEC Energy Group, Inc.		4,202,811
	38,051	Westar Energy, Inc.		1,979,794
	11,868	WGL Holdings, Inc.		978,635
	160,087	Xcel Energy, Inc.		7,211,919
				243,461,751
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $4,206,655,399)—100.0%		4,895,697,430
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.1%
	56,940,680	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $56,940,680)		56,940,680
		Total Investments (Cost $4,263,596,079)—101.1%		4,952,638,110
		Other assets less liabilities—(1.1)%		(55,550,773	)
		Net Assets—100.0%	$	4,897,087,337

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at April 30, 2017.

^(c)  Non-income producing security.

^(d)  Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, 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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2I.

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

26

Schedule of Investments^(a)

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—17.3%
	35,943	1-800-Flowers.com, Inc., Class A(b)	$	386,387
	100,841	Aaron’s, Inc.		3,624,226
	35,242	AMC Entertainment Holdings, Inc., Class A		1,067,833
	66,352	American Outdoor Brands Corp.(b)(c)		1,469,697
	29,265	American Public Education, Inc.(b)		646,756
	12,921	America’s Car-Mart, Inc.(b)(c)		481,953
	308,111	Arcos Dorados Holdings, Inc., Class A (Uruguay)(b)		2,526,510
	44,508	Ascent Capital Group, Inc., Class A(b)		570,147
	14,759	AV Homes, Inc.(b)		259,020
	142,051	Barnes & Noble Education, Inc.(b)		1,478,751
	238,554	Barnes & Noble, Inc.		2,039,637
	16,716	Bassett Furniture Industries, Inc.		502,316
	108,360	Beazer Homes USA, Inc.(b)		1,344,748
	93,236	Belmond Ltd., Class A (United Kingdom)(b)		1,156,126
	55,044	Big 5 Sporting Goods Corp.		847,678
	1,411	Biglari Holdings, Inc.(b)		601,975
	27,601	BJ’s Restaurants, Inc.(b)		1,244,805
	35,637	Black Diamond, Inc.(b)		187,094
	31,515	Bob Evans Farms, Inc.		2,103,311
	24,033	Boot Barn Holdings, Inc.(b)(c)		254,990
	117,335	Boyd Gaming Corp.(b)		2,661,158
	75,486	Bravo Brio Restaurant Group, Inc.(b)		366,107
	47,464	Bridgepoint Education, Inc.(b)		579,061
	24,586	Bright Horizons Family Solutions, Inc.(b)		1,871,486
	105,988	Buckle, Inc. (The)(c)		1,981,976
	14,683	Buffalo Wild Wings, Inc.(b)		2,313,307
	35,431	Build-A-Bear Workshop, Inc.(b)		368,482
	2,227	Cable One, Inc.		1,518,502
	77,957	Caleres, Inc.		2,246,721
	75,750	Callaway Golf Co.		897,637
	9,104	Capella Education Co.		867,611
	122,195	Career Education Corp.(b)		1,240,279
	13,552	Carriage Services, Inc.		370,647
	37,313	Carrols Restaurant Group, Inc.(b)		522,382
	34,615	Carter’s, Inc.		3,185,965
	57,022	Cato Corp. (The), Class A		1,286,416
	7,032	Cavco Industries, Inc.(b)		835,050
	30,062	Century Casinos, Inc.(b)		247,410
	24,415	Century Communities, Inc.(b)		666,529
	36,636	Cheesecake Factory, Inc. (The)		2,350,566
	51,933	Chegg, Inc.(b)(c)		467,916
	207,180	Chico’s FAS, Inc.		2,863,228
	14,233	Children’s Place, Inc. (The)		1,633,948
	31,036	Choice Hotels International, Inc.		1,945,957
	196,911	Christopher & Banks Corp.(b)		242,201
	8,156	Churchill Downs, Inc.		1,360,421
	11,912	Chuy’s Holdings, Inc.(b)		354,978
	30,128	Citi Trends, Inc.		566,105
	56,028	Clear Channel Outdoor Holdings, Inc., Class A		288,544
	67,419	ClubCorp Holdings, Inc.		906,786
	9,397	Collectors Universe, Inc.		256,632
	19,826	Columbia Sportswear Co.		1,122,548

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	118,476	Conn’s, Inc.(b)(c)	$	2,085,178
	69,848	Container Store Group, Inc. (The)(b)(c)		287,774
	23,492	Cooper-Standard Holdings, Inc.(b)		2,656,240
	182,641	Crocs, Inc.(b)		1,137,853
	20,415	CSS Industries, Inc.		538,139
	10,840	Culp, Inc.		347,964
	17,125	Dave & Buster’s Entertainment, Inc.(b)		1,096,171
	31,073	Del Frisco’s Restaurant Group, Inc.(b)		534,456
	26,582	Del Taco Restaurants, Inc.(b)		349,553
	46,675	Denny’s Corp.(b)		592,772
	53,317	Destination Maternity Corp.(b)		182,344
	31,081	DineEquity, Inc.		1,757,320
	15,397	Domino’s Pizza, Inc.		2,792,862
	12,819	Dorman Products, Inc.(b)		1,065,900
	253,561	Drive Shack, Inc.		1,034,529
	42,309	Dunkin’ Brands Group, Inc.		2,363,381
	50,076	E.W. Scripps Co. (The), Class A(b)		1,115,693
	27,177	El Pollo Loco Holdings, Inc.(b)		341,071
	36,487	Eldorado Resorts, Inc.(b)(c)		697,814
	81,568	Entravision Communications Corp., Class A		505,722
	53,399	Eros International PLC (India)(b)(c)		531,320
	34,665	Ethan Allen Interiors, Inc.		1,033,017
	35,316	Etsy, Inc.(b)		380,000
	105,301	Extended Stay America, Inc.		1,836,449
	31,893	Fiesta Restaurant Group, Inc.(b)		776,595
	109,610	Finish Line, Inc. (The), Class A		1,732,934
	19,964	Five Below, Inc.(b)		980,632
	7,682	Flexsteel Industries, Inc.		408,068
	12,067	Fox Factory Holding Corp.(b)		362,613
	34,644	Francesca’s Holdings Corp.(b)		546,682
	77,482	Fred’s, Inc., Class A(c)		1,140,535
	35,548	FTD Cos., Inc.(b)		710,960
	32,628	Gentherm, Inc.(b)		1,212,130
	77,045	G-III Apparel Group Ltd.(b)		1,825,966
	52,456	Global Eagle Entertainment, Inc.(b)(c)		162,614
	117,719	GoPro, Inc., Class A(b)(c)		971,182
	27,376	Grand Canyon Education, Inc.(b)		2,057,580
	96,133	Gray Television, Inc.(b)		1,408,348
	33,026	Green Brick Partners, Inc.(b)		340,168
	372,627	Groupon, Inc., Class A(b)		1,460,698
	137,301	Harte-Hanks, Inc.(b)		186,729
	37,222	Haverty Furniture Cos., Inc.		917,522
	24,961	Helen of Troy Ltd.(b)		2,346,334
	47,278	Hibbett Sports, Inc.(b)(c)		1,229,228
	43,746	Hilton Grand Vacations, Inc.(b)		1,464,179
	10,890	Hooker Furniture Corp.		473,170
	21,655	Horizon Global Corp.(b)		305,119
	186,861	Houghton Mifflin Harcourt Co.(b)		2,148,901
	438,452	Hovnanian Enterprises, Inc., Class A(b)(c)		1,025,978
	17,715	Hyatt Hotels Corp., Class A(b)		983,182
	135,336	Iconix Brand Group, Inc.(b)		947,352
	64,421	Ilg, Inc.		1,553,190
	39,159	IMAX Corp.(b)		1,194,349
	7,817	Installed Building Products, Inc.(b)		417,037
	30,126	International Speedway Corp., Class A		1,117,675

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)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	13,493	Intrawest Resorts Holdings, Inc.(b)	$	318,165
	17,216	iRobot Corp.(b)		1,372,804
	31,578	Isle of Capri Casinos, Inc.(b)(c)		728,189
	24,976	J. Alexander’s Holdings, Inc.(b)		274,736
	15,264	Jack in the Box, Inc.		1,556,470
	86,054	JAKKS Pacific, Inc.(b)(c)		421,665
	49,327	John Wiley & Sons, Inc., Class A		2,599,533
	6,884	Johnson Outdoors, Inc., Class A		250,027
	70,286	K12, Inc.(b)		1,324,891
	56,710	Kandi Technologies Group, Inc. (China)(b)(c)		232,511
	52,169	Kate Spade & Co.(b)		907,741
	143,929	KB Home(c)		2,964,937
	44,541	Kirkland’s, Inc.(b)		523,802
	130,857	La Quinta Holdings, Inc.(b)		1,846,392
	48,288	Lands’ End, Inc.(b)(c)		1,139,597
	55,380	La-Z-Boy, Inc.		1,545,102
	16,218	LCI Industries(c)		1,640,451
	15,886	LGI Homes, Inc.(b)(c)		505,651
	50,310	Libbey, Inc.		528,255
	24,232	Liberty Expedia Holdings, Inc., Class A(b)		1,170,648
	140,540	Liberty TripAdvisor Holdings, Inc., Series A(b)		2,065,938
	45,833	Liberty Ventures, Series A(b)		2,468,107
	15,958	Lifetime Brands, Inc.		306,394
	24,603	Lions Gate Entertainment Corp., Class A		643,861
	48,584	Lions Gate Entertainment Corp., Class B(b)		1,158,728
	12,123	Loral Space & Communications, Inc.(b)		464,917
	40,665	Lululemon Athletica, Inc.(b)		2,114,580
	75,441	Lumber Liquidators Holdings, Inc.(b)(c)		1,852,077
	60,289	M/I Homes, Inc.(b)		1,637,449
	11,269	Madison Square Garden Co. (The), Class A(b)		2,273,746
	6,729	MakeMyTrip Ltd. (India)(b)(c)		258,394
	8,642	Malibu Boats, Inc., Class A(b)		199,112
	21,724	Marcus Corp. (The)		734,271
	31,700	MarineMax, Inc.(b)		645,095
	13,392	Marriott Vacations Worldwide Corp.		1,475,531
	71,773	MDC Holdings, Inc.		2,225,681
	113,649	MDC Partners, Inc., Class A(c)		1,017,159
	81,806	Meritage Homes Corp.(b)		3,186,344
	142,362	Michaels Cos., Inc. (The)(b)		3,325,576
	121,863	Modine Manufacturing Co.(b)		1,474,542
	12,284	Monarch Casino & Resort, Inc.(b)		362,009
	23,610	Monro Muffler Brake, Inc.(c)		1,224,179
	17,851	Motorcar Parts of America, Inc.(b)		541,242
	27,984	Movado Group, Inc.		654,826
	43,894	MSG Networks, Inc., Class A(b)		1,095,155
	9,277	NACCO Industries, Inc., Class A		785,298
	5,372	Nathan’s Famous, Inc.(b)		366,370
	143,677	National CineMedia, Inc.		1,705,446
	21,596	Nautilus, Inc.(b)		393,047
	19,381	New Home Co., Inc. (The)(b)		225,982
	78,410	New Media Investment Group, Inc.		1,031,876
	122,286	New York Times Co. (The), Class A		1,767,033

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	10,231	Nexstar Media Group, Inc., Class A	$	705,939
	18,360	Nutrisystem, Inc.		981,342
	32,274	Ollie’s Bargain Outlet Holdings, Inc.(b)		1,236,094
	30,855	Overstock.com, Inc.(b)		535,334
	22,412	Oxford Industries, Inc.		1,299,448
	11,976	Papa John’s International, Inc.		946,823
	41,862	Party City Holdco, Inc.(b)(c)		669,792
	119,094	Penn National Gaming, Inc.(b)		2,200,857
	36,321	Perry Ellis International, Inc.(b)		745,307
	25,162	PetMed Express, Inc.(c)		581,242
	285,355	Pier 1 Imports, Inc.		1,923,293
	12,727	Planet Fitness, Inc., Class A		264,722
	19,305	Pool Corp.		2,309,264
	29,090	Potbelly Corp.(b)		405,806
	16,133	RCI Hospitality Holdings, Inc.		268,453
	19,990	Reading International, Inc., Class A(b)		314,443
	24,091	Red Robin Gourmet Burgers, Inc.(b)		1,415,346
	30,059	Red Rock Resorts, Inc., Class A		702,779
	117,377	Regis Corp.(b)		1,280,583
	354,549	Rent-A-Center, Inc.(c)		3,790,129
	65,322	RH(b)(c)		3,133,496
	572,510	Ruby Tuesday, Inc.(b)		1,459,901
	24,152	Ruth’s Hospitality Group, Inc.		480,625
	26,523	Salem Media Group, Inc.		202,901
	51,367	Scholastic Corp.		2,220,595
	51,001	Scientific Games Corp., Class A(b)		1,211,274
	83,897	Sears Hometown and Outlet Stores, Inc.(b)(c)		281,055
	62,053	Select Comfort Corp.(b)		1,917,438
	79,568	Sequential Brands Group, Inc.(b)(c)		268,144
	28,811	Shoe Carnival, Inc.		730,935
	32,002	Shutterfly, Inc.(b)		1,660,904
	74,834	Sinclair Broadcast Group, Inc., Class A		2,952,201
	462,501	Sirius XM Holdings, Inc.(c)		2,289,380
	108,450	Skechers U.S.A., Inc., Class A(b)		2,738,363
	17,074	SodaStream International Ltd. (Israel)(b)(c)		928,655
	26,554	Sonic Corp.		713,772
	70,442	Sotheby’s(b)(c)		3,336,133
	22,347	Speedway Motorsports, Inc.		403,363
	71,417	Sportsman’s Warehouse Holdings, Inc.(b)(c)		292,096
	624,344	Stage Stores, Inc.(c)		1,798,111
	24,004	Standard Motor Products, Inc.		1,220,123
	376,922	Stein Mart, Inc.		930,997
	64,052	Steven Madden Ltd.(b)		2,437,179
	42,027	Stoneridge, Inc.(b)		824,149
	8,944	Strattec Security Corp.		287,550
	13,040	Strayer Education, Inc.		1,130,698
	31,484	Sturm Ruger & Co., Inc.(c)		1,903,208
	43,013	Superior Industries International, Inc.		935,533
	86,121	Tailored Brands, Inc.(c)		1,061,872
	55,264	Taylor Morrison Home Corp., Class A(b)		1,276,598
	6,794	Tesla, Inc.(b)(c)		2,133,792
	37,256	Texas Roadhouse, Inc.		1,746,561
	16,009	Tile Shop Holdings, Inc.		341,792

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)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	26,020	Tilly’s, Inc., Class A	$	248,751
	61,120	TopBuild Corp.(b)		3,128,733
	75,296	Tower International, Inc.		2,040,522
	47,626	Townsquare Media, Inc., Class A(b)		576,275
	200,916	TRI Pointe Group, Inc.(b)		2,501,404
	53,729	TripAdvisor, Inc.(b)		2,418,342
	80,499	tronc, Inc.(b)		1,154,356
	202,433	Tuesday Morning Corp.(b)		657,907
	30,814	Unifi, Inc.(b)		864,949
	10,864	Universal Electronics, Inc.(b)		752,875
	62,252	Universal Technical Institute, Inc.(b)		225,352
	14,809	Vail Resorts, Inc.		2,927,147
	47,744	Vera Bradley, Inc.(b)		436,858
	102,435	Vince Holding Corp.(b)(c)		102,435
	78,290	Vitamin Shoppe, Inc.(b)		1,510,997
	145,454	VOXX International Corp.(b)		945,451
	8,182	Wayfair, Inc., Class A(b)(c)		373,999
	90,638	Weight Watchers International, Inc.(b)(c)		1,892,521
	212,035	Wendy’s Co. (The)		3,125,396
	11,866	Weyco Group, Inc.		331,773
	66,408	William Lyon Homes, Class A(b)(c)		1,460,976
	11,553	Wingstop, Inc.(c)		340,005
	18,751	Winnebago Industries, Inc.		538,154
	124,982	Wolverine World Wide, Inc.		3,013,316
	27,303	World Wrestling Entertainment, Inc., Class A(c)		585,103
	63,905	ZAGG, Inc.(b)		453,726
	10,537	Zoe’s Kitchen, Inc.(b)(c)		190,193
	39,828	Zumiez, Inc.(b)		714,913
				281,722,039
		Consumer Staples—3.2%
	72,181	Adecoagro SA (Argentina)(b)		800,487
	14,081	AdvancePierre Foods Holdings, Inc.		571,970
	29,599	Alliance One International, Inc.(b)		406,986
	42,928	Amira Nature Foods Ltd. (United Arab Emirates)(b)(c)		222,796
	49,588	B&G Foods, Inc.(c)		2,082,696
	51,839	Blue Buffalo Pet Products, Inc.(b)		1,277,831
	5,370	Boston Beer Co., Inc. (The), Class A(b)(c)		775,160
	10,824	Calavo Growers, Inc.		710,054
	40,804	Cal-Maine Foods, Inc.(c)		1,540,351
	12,055	Central Garden & Pet Co.(b)(c)		455,679
	40,434	Central Garden & Pet Co., Class A(b)		1,424,490
	37,290	Chefs’ Warehouse, Inc. (The)(b)		509,009
	4,792	Coca-Cola Bottling Co. Consolidated		1,015,233
	153,008	Coty, Inc., Class A		2,731,193
	12,175	Craft Brew Alliance, Inc.(b)		165,580
	34,378	Energizer Holdings, Inc.		2,036,209
	5,756	Farmer Brothers Co.(b)		204,338
	46,858	Fresh Del Monte Produce, Inc.		2,872,395
	41,133	Ingles Markets, Inc., Class A		1,920,911
	19,737	Inter Parfums, Inc.		749,019
	37,896	Inventure Foods, Inc.(b)(c)		140,215
	9,127	J & J Snack Foods Corp.		1,228,312
	10,693	John B. Sanfilippo & Son, Inc.		785,936
	15,456	Lancaster Colony Corp.		1,945,910

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	44,326	Landec Corp.(b)	$	609,483
	8,773	Medifast, Inc.		406,365
	5,401	MGP Ingredients, Inc.(c)		282,796
	4,973	National Beverage Corp.		440,558
	15,468	Natural Grocers by Vitamin Cottage, Inc.(b)(c)		169,220
	9,294	Nutraceutical International Corp.		294,620
	28,054	Omega Protein Corp.		565,288
	11,716	Orchids Paper Products Co.(c)		285,285
	112,742	Pilgrim’s Pride Corp.		2,926,782
	17,846	PriceSmart, Inc.		1,551,710
	14,780	Revlon, Inc., Class A(b)		383,541
	28,923	Sanderson Farms, Inc.		3,348,705
	26,664	Seneca Foods Corp., Class A(b)		991,901
	73,002	Smart & Final Stores, Inc.(b)(c)		861,424
	60,347	Snyder’s-Lance, Inc.		2,127,835
	18,519	Spectrum Brands Holdings, Inc.		2,661,736
	191,321	SunOpta, Inc. (Canada)(b)(c)		1,396,643
	36,479	Synutra International, Inc.(b)		219,786
	12,601	Tootsie Roll Industries, Inc.(c)		470,647
	9,264	USANA Health Sciences, Inc.(b)		526,658
	107,915	Vector Group Ltd.		2,343,914
	23,021	Village Super Market, Inc., Class A		607,524
	6,576	WD-40 Co.		689,494
	24,534	Weis Markets, Inc.		1,418,311
				52,152,986
		Energy—5.8%
	200,385	Alon USA Energy, Inc.		2,422,655
	269,032	Approach Resources, Inc.(b)(c)		556,896
	118,281	Archrock, Inc.		1,395,716
	46,695	Ardmore Shipping Corp. (Ireland)		361,886
	245,105	Bill Barrett Corp.(b)		941,203
	272,720	Bonanza Creek Energy, Inc.(b)(c)		137,724
	166,318	Bristow Group, Inc.		2,223,672
	35,642	Callon Petroleum Co.(b)		422,001
	84,245	CARBO Ceramics, Inc.(b)(c)		578,763
	33,575	Carrizo Oil & Gas, Inc.(b)		844,411
	182,715	Clean Energy Fuels Corp.(b)		445,825
	468,898	Cloud Peak Energy, Inc.(b)		1,580,186
	1,552,674	Cobalt International Energy, Inc.(b)		607,251
	39,065	Comstock Resources, Inc.(b)(c)		341,428
	56,192	Contango Oil & Gas Co.(b)		402,335
	22,916	Core Laboratories NV(c)		2,539,551
	110,778	CVR Energy, Inc.(c)		2,424,930
	908,565	Denbury Resources, Inc.(b)		2,017,014
	226,792	DHT Holdings, Inc.		1,086,334
	21,736	Diamondback Energy, Inc.(b)		2,170,122
	55,997	Dorian LPG Ltd.(b)		509,013
	41,766	Dril-Quip, Inc.(b)		2,153,037
	96,823	Eclipse Resources Corp.(b)		194,614
	127,356	EP Energy Corp., Class A(b)(c)		575,649
	62,416	Era Group, Inc.(b)		793,307
	624,050	EXCO Resources, Inc.(b)		305,785
	84,048	Exterran Corp.(b)		2,300,394
	94,982	Fairmount Santrol Holdings, Inc.(b)(c)		490,107
	102,115	Forum Energy Technologies, Inc.(b)		1,725,744

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)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	42,626	Frank’s International NV(c)	$	387,897
	112,516	Frontline Ltd. (Norway)(c)		748,231
	48,312	GasLog Ltd. (Monaco)(c)		676,368
	349,364	Gener8 Maritime, Inc.(b)		1,876,085
	34,011	Geospace Technologies Corp.(b)		562,542
	109,536	Golar LNG Ltd. (Bermuda)(c)		2,794,263
	110,248	Green Plains, Inc.		2,535,704
	40,227	Gulf Island Fabrication, Inc.		400,259
	124,863	Gulfport Energy Corp.(b)		1,982,824
	36,537	Halcon Resources Corp.(b)		244,798
	27,367	Hallador Energy Co.		183,085
	249,076	Helix Energy Solutions Group, Inc.(b)		1,524,345
	531,114	Hornbeck Offshore Services, Inc.(b)(c)		1,811,099
	38,139	Independence Contract Drilling, Inc.(b)		175,821
	117,219	ION Geophysical Corp.(b)(c)		504,042
	216,848	Jones Energy, Inc., Class A(b)(c)		433,696
	193,557	Kosmos Energy Ltd.(b)		1,163,278
	28,611	Laredo Petroleum, Inc.(b)		367,938
	15,770	Matador Resources Co.(b)		341,894
	64,970	Matrix Service Co.(b)		763,398
	14,867	Natural Gas Services Group, Inc.(b)		407,356
	58,073	Navigator Holdings Ltd. (United Kingdom)(b)(c)		699,780
	322,934	Navios Maritime Acquisition Corp.		545,758
	207,927	Newpark Resources, Inc.(b)		1,590,642
	248,962	Nordic American Tankers Ltd.(c)		2,066,385
	144,204	North Atlantic Drilling Ltd. (Norway)(b)(c)		364,836
	1,978,755	Ocean Rig UDW, Inc. (Cyprus)(b)		399,709
	233,722	Pacific Drilling SA(b)(c)		397,327
	125,995	Pacific Ethanol, Inc.(b)(c)		856,766
	51,852	Par Pacific Holdings, Inc.(b)(c)		848,817
	451,282	Parker Drilling Co.(b)		744,615
	41,998	Parsley Energy, Inc., Class A(b)		1,251,120
	33,349	PDC Energy, Inc.(b)		1,841,865
	32,727	PHI, Inc.(b)		383,888
	262,668	Pioneer Energy Services Corp.(b)		801,137
	182,478	Renewable Energy Group, Inc.(b)		1,906,895
	9,049	REX American Resources Corp.(b)		856,759
	67,444	Rice Energy, Inc.(b)		1,435,883
	16,939	RigNet, Inc.(b)		332,004
	17,956	Ring Energy, Inc.(b)		215,472
	63,423	RPC, Inc.(c)		1,152,396
	41,909	RSP Permian, Inc.(b)		1,594,637
	16,018	Sanchez Energy Corp.(b)(c)		123,979
	561,361	Scorpio Tankers, Inc. (Monaco)		2,469,988
	32,184	SEACOR Holdings, Inc.(b)		2,113,201
	61,416	SemGroup Corp., Class A		2,045,153
	144,018	Ship Finance International Ltd. (Norway)(c)		2,023,453
	85,728	Src Energy, Inc.(b)		646,389
	180,794	Stone Energy Corp.(b)		3,785,826
	415,304	Teekay Tankers Ltd., Class A (Bermuda)		851,373
	91,469	Tesco Corp.(b)		599,122
	285,885	TETRA Technologies, Inc.(b)		951,997
	298,744	Tsakos Energy Navigation Ltd. (Greece)(c)		1,371,235

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	107,897	Unit Corp.(b)	$	2,318,707
	23,210	US Silica Holdings, Inc.		963,215
	363,658	W&T Offshore, Inc.(b)(c)		741,862
	45,783	Westmoreland Coal Co.(b)		488,047
	159,065	Willbros Group, Inc.(b)		437,429
				94,650,143
		Financials—17.3%
	16,846	1st Source Corp.		813,830
	62,961	AG Mortgage Investment Trust, Inc. REIT		1,193,111
	10,607	Allegiance Bancshares, Inc.(b)		414,203
	14,256	A-Mark Precious Metals, Inc.		251,048
	18,437	American National Insurance Co.		2,155,654
	15,013	Ameris Bancorp		707,112
	16,746	AMERISAFE, Inc.		963,732
	86,034	AmTrust Financial Services, Inc.(c)		1,380,846
	298,945	Anworth Mortgage Asset Corp. REIT		1,751,818
	87,046	Apollo Commercial Real Estate Finance, Inc. REIT		1,679,117
	53,055	Ares Commercial Real Estate Corp. REIT		733,751
	42,209	Argo Group International Holdings Ltd.		2,783,684
	43,744	Arlington Asset Investment Corp., Class A(c)		636,913
	49,664	ARMOUR Residential REIT, Inc. REIT		1,195,412
	12,352	Arrow Financial Corp.		423,056
	27,311	Artisan Partners Asset Management, Inc., Class A		800,212
	107,409	Astoria Financial Corp.		2,190,070
	12,232	Atlas Financial Holdings, Inc.(b)		158,404
	22,339	Baldwin & Lyons, Inc., Class B		547,305
	44,693	Banc of California, Inc.(c)		969,838
	6,412	BancFirst Corp.		615,873
	56,870	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		1,631,032
	95,060	Bancorp, Inc. (The)(b)		613,137
	69,094	BancorpSouth, Inc.		2,103,912
	35,888	Bank Mutual Corp.		330,170
	9,322	Bank of NT Butterfield & Son Ltd. (The) (Bermuda)		309,957
	34,555	Bank of the Ozarks, Inc.		1,640,326
	13,202	BankFinancial Corp.		195,126
	26,094	Banner Corp.		1,440,389
	85,265	Beneficial Bancorp, Inc.		1,364,240
	29,653	Berkshire Hills Bancorp, Inc.		1,111,987
	233,921	BGC Partners, Inc., Class A		2,662,021
	13,166	Blue Capital Reinsurance Holdings Ltd. (Bermuda)		248,837
	17,508	Blue Hills Bancorp, Inc.		316,895
	17,852	BNC Bancorp		597,149
	30,609	BofI Holding, Inc.(b)(c)		731,249
	24,389	BOK Financial Corp.		2,055,749
	76,617	Boston Private Financial Holdings, Inc.		1,195,225
	12,751	Bridge Bancorp, Inc.		462,224
	80,042	Brookline Bancorp, Inc.		1,164,611
	15,347	Bryn Mawr Bank Corp.		658,386
	14,280	Camden National Corp.		610,470
	18,721	Capital Bank Financial Corp., Class A		776,921

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)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	242,313	Capstead Mortgage Corp. REIT	$	2,699,367
	58,796	Cathay General Bancorp		2,237,188
	32,497	CBOE Holdings, Inc.		2,678,078
	21,339	Centerstate Banks, Inc.		538,383
	23,872	Central Pacific Financial Corp.		746,716
	14,460	Charter Financial Corp.		265,341
	32,896	Chemical Financial Corp.		1,560,915
	12,691	Cherry Hill Mortgage Investment Corp. REIT		220,696
	15,156	City Holding Co.		1,077,440
	23,239	Clifton Bancorp, Inc.		388,091
	57,853	CNA Financial Corp.		2,618,427
	23,759	CoBiz Financial, Inc.		390,360
	20,728	Cohen & Steers, Inc.		827,047
	55,187	Columbia Banking System, Inc.		2,180,438
	34,507	Community Bank System, Inc.		1,930,667
	17,768	Community Trust Bancorp, Inc.		798,672
	21,155	ConnectOne Bancorp, Inc.		469,641
	62,009	Cowen Group, Inc., Class A(b)(c)		985,943
	27,349	Crawford & Co., Class B		298,378
	6,153	Credit Acceptance Corp.(b)(c)		1,250,597
	9,669	CU Bancorp(b)		360,412
	22,402	Customers Bancorp, Inc.(b)		692,894
	72,336	CVB Financial Corp.		1,558,117
	364,979	CYS Investments, Inc. REIT		3,113,271
	2,234	Diamond Hill Investment Group, Inc.		451,603
	38,838	Dime Community Bancshares, Inc.		755,399
	16,742	Donegal Group, Inc., Class A		278,922
	85,584	Donnelley Financial Solutions, Inc.(b)		1,901,676
	140,970	Dynex Capital, Inc. REIT		975,512
	17,523	Eagle Bancorp, Inc.(b)		1,049,628
	19,902	eHealth, Inc.(b)		282,210
	14,157	EMC Insurance Group, Inc.		406,023
	35,984	Employers Holdings, Inc.		1,439,360
	50,021	Encore Capital Group, Inc.(b)(c)		1,668,200
	67,679	Enova International, Inc.(b)		961,042
	14,974	Enstar Group Ltd. (Bermuda)(b)		2,916,935
	12,588	Enterprise Financial Services Corp.		531,843
	25,571	Essent Group Ltd.(b)		946,383
	142,332	EverBank Financial Corp.		2,775,474
	21,711	Evercore Partners, Inc., Class A		1,601,186
	190,283	EZCORP, Inc., Class A(b)		1,722,061
	14,548	FactSet Research Systems, Inc.		2,375,106
	16,540	FBL Financial Group, Inc., Class A		1,099,910
	13,695	FBR & Co.		247,879
	19,952	FCB Financial Holdings, Inc., Class A(b)		942,732
	10,538	Federal Agricultural Mortgage Corp., Class C		601,193
	16,130	Federated National Holding Co.		259,370
	19,295	Fidelity & Guaranty Life(c)		548,943
	19,108	Fidelity Southern Corp.		430,312
	15,648	Financial Engines, Inc.		665,040
	16,124	Financial Institutions, Inc.		540,154
	308,087	First BanCorp/Puerto Rico(b)		1,811,552
	19,361	First Bancorp/Southern Pines NC		581,604
	21,319	First Busey Corp.		638,504

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	6,034	First Citizens BancShares, Inc., Class A	$	2,100,194
	82,730	First Commonwealth Financial Corp.		1,068,044
	20,062	First Community Bancshares, Inc.		530,841
	9,335	First Defiance Financial Corp.		500,729
	72,979	First Financial Bancorp		2,017,869
	35,312	First Financial Bankshares, Inc.(c)		1,410,714
	12,577	First Financial Corp.		613,758
	21,830	First Hawaiian, Inc.		649,879
	18,908	First Interstate BancSystem, Inc., Class A		713,777
	27,417	First Merchants Corp.		1,134,515
	69,949	First Midwest Bancorp, Inc.		1,588,542
	83,821	First NBC Bank Holding Co.(b)(c)		222,126
	16,189	First of Long Island Corp. (The)		440,341
	32,688	Firstcash, Inc.		1,698,142
	61,287	Five Oaks Investment Corp. REIT(c)		329,111
	29,870	Flagstar Bancorp, Inc.(b)		873,399
	33,085	Flushing Financial Corp.		975,346
	141,737	FNFV Group(b)		1,941,797
	6,618	Franklin Financial Network, Inc.(b)		268,360
	58,407	Gain Capital Holdings, Inc.		414,106
	14,236	German American Bancorp, Inc.		468,080
	67,596	Glacier Bancorp, Inc.		2,283,393
	21,779	Great Ajax Corp. REIT		296,194
	12,594	Great Southern Bancorp, Inc.		631,589
	47,611	Great Western Bancorp, Inc.		1,961,573
	20,615	Green Bancorp, Inc.(b)		371,070
	44,795	Green Dot Corp., Class A(b)		1,536,021
	48,522	Greenhill & Co., Inc.		1,227,607
	41,741	Greenlight Capital Re Ltd., Class A(b)		899,519
	22,796	Hanmi Financial Corp.		662,224
	26,281	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		576,080
	12,976	HCI Group, Inc.(c)		618,825
	17,687	Heartland Financial USA, Inc.		848,976
	27,565	Heritage Financial Corp.		727,716
	53,079	Heritage Insurance Holdings, Inc.		642,256
	74,762	Hilltop Holdings, Inc.		2,079,131
	60,251	Home BancShares, Inc.		1,533,388
	23,937	HomeStreet, Inc.(b)		622,362
	17,396	HomeTrust Bancshares, Inc.(b)		434,900
	70,214	Hope Bancorp, Inc.		1,285,618
	60,288	Horace Mann Educators Corp.		2,330,131
	14,533	Horizon Bancorp		392,246
	7,179	Houlihan Lokey, Inc., Class A		240,784
	21,694	Impac Mortgage Holdings, Inc.(b)(c)		310,224
	15,949	Independent Bank Corp.		355,663
	19,867	Independent Bank Corp./MA		1,257,581
	6,969	Independent Bank Group, Inc.		419,185
	19,525	Infinity Property & Casualty Corp.		1,937,856
	14,913	Interactive Brokers Group, Inc., Class A		519,420
	62,362	International Bancshares Corp.		2,332,339
	20,170	INTL FCStone, Inc.(b)		753,349
	31,090	Investment Technology Group, Inc.		619,002
	32,441	James River Group Holdings Ltd.		1,413,130
	116,385	KCG Holdings, Inc., Class A(b)		2,316,061
	72,176	Kearny Financial Corp.		1,053,770

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)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	61,463	Ladder Capital Corp., Class A REIT	$	899,204
	29,996	Lakeland Bancorp, Inc.		583,422
	16,276	Lakeland Financial Corp.		743,162
	28,115	LegacyTexas Financial Group, Inc.		1,063,028
	201,133	LendingClub Corp.(b)		1,176,628
	114,774	Maiden Holdings Ltd.		1,417,459
	16,561	MainSource Financial Group, Inc.		566,386
	5,856	MarketAxess Holdings, Inc.		1,127,397
	12,858	Marlin Business Services Corp.		327,236
	62,607	MB Financial, Inc.		2,661,424
	16,330	Mercantile Bank Corp.		549,178
	49,891	Mercury General Corp.		3,067,798
	28,534	Meridian Bancorp, Inc.		500,772
	4,189	Meta Financial Group, Inc.		355,646
	8,765	MidWestOne Financial Group, Inc.		304,145
	5,769	Moelis & Co., Class A		211,722
	10,839	Morningstar, Inc.		792,656
	30,833	MSCI, Inc.		3,093,167
	94,215	Mtge Investment Corp. REIT		1,695,870
	22,749	National Bank Holdings Corp., Class A		718,186
	6,971	National Commerce Corp.(b)		269,778
	46,177	National General Holdings Corp.		1,050,065
	4,044	National Western Life Group, Inc., Class A		1,238,435
	76,376	Nationstar Mortgage Holdings, Inc.(b)(c)		1,230,417
	14,680	Navigators Group, Inc. (The)		793,454
	44,265	NBT Bancorp, Inc.		1,690,038
	26,220	Nelnet, Inc., Class A		1,180,162
	320,829	New York Mortgage Trust, Inc. REIT(c)		2,056,514
	16,658	Newtek Business Services Corp.(c)		275,024
	31,813	NMI Holdings, Inc., Class A(b)		369,031
	38,714	Northfield Bancorp, Inc.		711,563
	149,647	Northwest Bancshares, Inc.		2,415,303
	14,486	OceanFirst Financial Corp.		400,538
	422,669	Ocwen Financial Corp.(b)(c)		967,912
	113,676	OFG Bancorp(c)		1,330,009
	135,071	Old National Bancorp		2,269,193
	19,250	OM Asset Management PLC		299,530
	63,973	On Deck Capital, Inc.(b)(c)		303,872
	44,266	OneBeacon Insurance Group Ltd., Class A		706,043
	96,174	OneMain Holdings, Inc.(b)		2,242,778
	27,375	Oppenheimer Holdings, Inc., Class A		473,588
	22,204	Opus Bank		500,700
	19,509	Orchid Island Capital, Inc. REIT(c)		206,795
	71,830	Oritani Financial Corp.		1,217,519
	15,787	Pacific Continental Corp.		394,675
	11,400	Pacific Premier Bancorp, Inc.(b)		416,670
	16,259	Park National Corp.		1,714,186
	28,435	Park Sterling Corp.		349,751
	10,929	Peapack-Gladstone Financial Corp.		350,384
	12,032	PennyMac Financial Services, Inc., Class A(b)		198,528
	16,542	Peoples Bancorp, Inc.		553,826
	35,364	PICO Holdings, Inc.(b)		569,360
	17,913	Pinnacle Financial Partners, Inc.		1,146,432

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	19,391	Piper Jaffray Cos.	$	1,213,877
	53,610	PRA Group, Inc.(b)		1,726,242
	5,567	Preferred Bank		294,995
	35,516	Primerica, Inc.		2,976,241
	43,630	PrivateBancorp, Inc.		2,520,505
	11,623	Provident Financial Holdings, Inc.		223,510
	75,438	Provident Financial Services, Inc.		1,938,002
	6,476	QCR Holdings, Inc.		295,306
	143,162	Redwood Trust, Inc. REIT		2,443,775
	24,787	Regional Management Corp.(b)		491,526
	35,405	Renasant Corp.		1,501,172
	15,375	Republic Bancorp, Inc., Class A		553,193
	173,245	Resource Capital Corp. REIT		1,619,841
	32,557	S&T Bancorp, Inc.		1,170,750
	15,620	Safeguard Scientifics, Inc.(b)		198,374
	23,016	Safety Insurance Group, Inc.		1,666,358
	21,623	Sandy Spring Bancorp, Inc.		935,195
	16,733	Seacoast Banking Corp. of Florida(b)		404,939
	58,821	SEI Investments Co.		2,982,813
	13,348	ServisFirst Bancshares, Inc.		504,554
	9,959	Sierra Bancorp		249,672
	18,788	Simmons First National Corp., Class A		1,026,764
	14,137	South State Corp.		1,246,177
	22,156	Southside Bancshares, Inc.		769,256
	13,155	Southwest Bancorp, Inc.		341,372
	26,372	State Auto Financial Corp.		708,616
	24,952	State Bank Financial Corp.		670,211
	25,946	State National Cos., Inc.		380,628
	67,945	Sterling Bancorp		1,579,721
	38,310	Stewart Information Services Corp.		1,817,426
	11,733	Stock Yards Bancorp, Inc.		481,053
	6,379	Stonegate Bank		292,796
	8,817	Territorial Bancorp, Inc.		272,886
	31,866	Texas Capital Bancshares, Inc.(b)		2,425,003
	28,055	TFS Financial Corp.		464,030
	77,956	Third Point Reinsurance Ltd. (Bermuda)(b)		943,268
	10,895	Tompkins Financial Corp.		900,690
	35,254	TowneBank		1,143,992
	17,655	TriCo Bancshares		626,046
	16,549	TriState Capital Holdings, Inc.(b)		412,070
	13,162	Triumph Bancorp, Inc.(b)		294,829
	116,721	TrustCo Bank Corp. NY		927,932
	82,896	Trustmark Corp.		2,753,805
	35,850	UMB Financial Corp.		2,598,767
	39,933	Union Bankshares Corp.		1,367,306
	44,659	United Community Banks, Inc.		1,221,424
	48,347	United Financial Bancorp, Inc.		834,953
	32,737	United Fire Group, Inc.		1,440,428
	21,443	United Insurance Holdings Corp.		327,220
	35,744	Universal Insurance Holdings, Inc.(c)		931,131
	23,537	Univest Corp. of Pennsylvania		713,171
	13,686	Virtu Financial, Inc., Class A		210,764
	5,622	Virtus Investment Partners, Inc.		598,181
	30,515	Walker & Dunlop, Inc.(b)		1,368,598
	271,718	Walter Investment Management Corp.(b)(c)		290,738

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

32

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	13,391	Washington Trust Bancorp, Inc.	$	658,837
	22,317	Waterstone Financial, Inc.		424,023
	39,398	WesBanco, Inc.		1,568,434
	25,070	Westamerica Bancorporation(c)		1,379,351
	43,725	Western Alliance Bancorp(b)		2,094,428
	154,516	Western Asset Mortgage Capital Corp. REIT		1,627,053
	46,986	WisdomTree Investments, Inc.(c)		392,333
	25,558	World Acceptance Corp.(b)(c)		1,352,018
	19,111	WSFS Financial Corp.		902,039
				281,763,857
		Health Care—8.1%
	10,839	Abaxis, Inc.		488,080
	4,807	ABIOMED, Inc.(b)		626,448
	54,500	Acadia Healthcare Co., Inc.(b)(c)		2,375,110
	42,319	Accuray, Inc.(b)(c)		192,551
	42,503	Aceto Corp.		673,673
	86,723	Achillion Pharmaceuticals, Inc.(b)		295,725
	38,698	Acorda Therapeutics, Inc.(b)		624,973
	7,507	Addus HomeCare Corp.(b)		254,863
	52,595	Akorn, Inc.(b)		1,759,303
	21,389	Albany Molecular Research, Inc.(b)(c)		342,438
	12,715	Alder Biopharmaceuticals, Inc.(b)		254,936
	14,402	Align Technology, Inc.(b)		1,938,797
	27,566	Alkermes PLC(b)		1,605,720
	7,092	Almost Family, Inc.(b)		352,118
	23,994	Alnylam Pharmaceuticals, Inc.(b)		1,286,078
	46,460	AMAG Pharmaceuticals, Inc.(b)		1,133,624
	27,014	Amedisys, Inc.(b)		1,464,159
	14,355	American Renal Associates Holdings, Inc.(b)(c)		247,050
	55,284	Amicus Therapeutics, Inc.(b)		424,581
	32,947	AMN Healthcare Services, Inc.(b)		1,345,885
	19,545	Amphastar Pharmaceuticals, Inc.(b)		295,129
	11,228	Analogic Corp.		806,732
	44,989	AngioDynamics, Inc.(b)		698,229
	8,645	Anika Therapeutics, Inc.(b)		398,794
	98,445	Arbutus Biopharma Corp. (Canada)(b)		329,791
	17,350	Atara Biotherapeutics, Inc.(b)(c)		296,685
	10,292	athenahealth, Inc.(b)		1,008,719
	13,213	AtriCure, Inc.(b)		270,867
	724	Atrion Corp.		374,380
	31,655	BioMarin Pharmaceutical, Inc.(b)		3,033,815
	323,185	BioScrip, Inc.(b)(c)		491,241
	18,397	Bio-Techne Corp.		1,969,951
	10,111	Bluebird Bio, Inc.(b)		899,373
	73,189	Bruker Corp.		1,785,080
	15,054	Cambrex Corp.(b)		893,455
	6,867	Cantel Medical Corp.		510,973
	32,604	Capital Senior Living Corp.(b)		455,478
	7,250	Cardiovascular Systems, Inc.(b)		216,558
	70,926	Celldex Therapeutics, Inc.(b)(c)		236,184
	30,263	Charles River Laboratories International, Inc.(b)		2,714,591
	9,452	Chemed Corp.		1,903,444
	54,344	Chimerix, Inc.(b)		324,977

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	6,876	China Biologic Products, Inc. (China)(b)	$	811,368
	28,925	Civitas Solutions, Inc.(b)		514,865
	3,355	Clovis Oncology, Inc.(b)		194,221
	25,717	Computer Programs & Systems, Inc.(c)		705,932
	31,455	CONMED Corp.		1,546,328
	10,686	CorVel Corp.(b)		475,527
	5,435	Cotiviti Holdings, Inc.(b)		227,129
	31,675	Cross Country Healthcare, Inc.(b)		442,500
	15,202	CryoLife, Inc.(b)		275,916
	44,955	Depomed, Inc.(b)		539,010
	3,603	DexCom, Inc.(b)		280,890
	65,540	Diplomat Pharmacy, Inc.(b)(c)		1,022,424
	49,697	Dynavax Technologies Corp.(b)(c)		275,818
	31,746	Emergent Biosolutions, Inc.(b)		949,523
	11,736	Enanta Pharmaceuticals, Inc.(b)		372,618
	27,015	Endologix, Inc.(b)(c)		202,342
	51,904	Ensign Group, Inc. (The)		931,677
	7,402	Esperion Therapeutics, Inc.(b)(c)		264,622
	13,171	Evolent Health, Inc., Class A(b)		306,226
	17,000	Exact Sciences Corp.(b)(c)		510,170
	16,028	Exactech, Inc.(b)		475,230
	8,150	FibroGen, Inc.(b)		228,200
	13,656	Five Prime Therapeutics, Inc.(b)		476,048
	159,739	Five Star Senior Living, Inc.(b)		303,504
	125,251	Genesis Healthcare, Inc., Class A(b)		303,107
	42,755	Globus Medical, Inc., Class A(b)		1,296,759
	47,614	Haemonetics Corp.(b)		1,994,074
	67,821	Halyard Health, Inc.(b)		2,678,930
	6,397	HealthEquity, Inc.(b)		291,191
	16,357	HealthStream, Inc.(b)		454,561
	46,584	Hill-Rom Holdings, Inc.		3,523,614
	70,790	HMS Holdings Corp.(b)		1,449,071
	88,210	Horizon Pharma PLC(b)		1,356,670
	28,561	ICON PLC(b)		2,413,119
	6,519	ICU Medical, Inc.(b)		1,002,622
	15,913	IDEXX Laboratories, Inc.(b)		2,669,087
	135,637	Impax Laboratories, Inc.(b)		1,905,700
	21,856	INC Research Holdings, Inc., Class A(b)		983,520
	3,589	Incyte Corp.(b)		446,041
	2,976	Inogen, Inc.(b)		246,681
	44,750	Inovalon Holdings, Inc., Class A(b)(c)		548,188
	20,584	Insmed, Inc.(b)		379,775
	4,292	Insulet Corp.(b)		186,316
	17,256	Insys Therapeutics, Inc.(b)(c)		194,130
	43,777	Integer Holdings Corp.(b)		1,608,805
	15,358	Integra LifeSciences Holdings Corp.(b)		706,007
	2,979	Intercept Pharmaceuticals, Inc.(b)(c)		334,691
	25,896	Intra-Cellular Therapies, Inc.(b)(c)		357,883
	14,664	Intrexon Corp.(b)(c)		305,598
	82,910	Invacare Corp.		1,218,777
	6,707	Ionis Pharmaceuticals, Inc.(b)		323,210
	35,509	Juno Therapeutics, Inc.(b)(c)		885,594
	11,303	K2M Group Holdings, Inc.(b)		250,361
	9,950	Kite Pharma, Inc.(b)		816,696
	9,196	Landauer, Inc.		483,710
	27,372	Lannett Co., Inc.(b)(c)		711,672

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

33

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	12,899	LHC Group, Inc.(b)	$	697,836
	3,334	Ligand Pharmaceuticals, Inc.(b)(c)		370,641
	13,253	LivaNova PLC(b)(c)		698,433
	33,742	Luminex Corp.		635,362
	14,930	MacroGenics, Inc.(b)		322,637
	9,507	Masimo Corp.(b)		976,749
	20,592	Medicines Co. (The)(b)		1,015,597
	8,937	Medidata Solutions, Inc.(b)		584,748
	11,135	Medpace Holdings, Inc.(b)		353,091
	73,490	Meridian Bioscience, Inc.		1,087,652
	34,997	Merit Medical Systems, Inc.(b)		1,179,399
	20,905	Momenta Pharmaceuticals, Inc.(b)		299,987
	91,365	Myriad Genetics, Inc.(b)(c)		1,680,202
	20,075	Natus Medical, Inc.(b)		702,625
	11,530	Neogen Corp.(b)		718,665
	10,201	Neurocrine Biosciences, Inc.(b)		544,733
	2,023	Nevro Corp.(b)		190,607
	11,908	NewLink Genetics Corp.(b)(c)		222,561
	200,536	Novavax, Inc.(b)(c)		163,657
	20,612	NuVasive, Inc.(b)		1,494,576
	13,914	NxStage Medical, Inc.(b)		415,889
	22,541	Omnicell, Inc.(b)		933,197
	142,128	OPKO Health, Inc.(b)(c)		1,104,335
	20,235	OraSure Technologies, Inc.(b)		265,281
	17,801	Orthofix International NV(b)		704,030
	6,509	Pacira Pharmaceuticals, Inc.(b)		316,012
	43,218	PAREXEL International Corp.(b)		2,758,605
	7,676	Patheon NV(b)		206,561
	3,509	Penumbra, Inc.(b)		299,844
	82,232	PharMerica Corp.(b)		1,940,675
	12,266	Phibro Animal Health Corp., Class A		364,914
	12,652	Portola Pharmaceuticals, Inc.(b)		505,953
	22,849	PRA Health Sciences, Inc.(b)		1,461,422
	29,899	Premier, Inc., Class A(b)		1,010,586
	36,595	Prestige Brands Holdings, Inc.(b)		2,100,919
	6,810	Prothena Corp. PLC (Ireland)(b)(c)		368,625
	28,525	Providence Service Corp. (The)(b)		1,255,100
	17,188	PTC Therapeutics, Inc.(b)		208,834
	64,067	Quality Systems, Inc.(b)		913,595
	16,830	Quidel Corp.(b)		406,781
	236,707	Quorum Health Corp.(b)		1,010,739
	8,577	Radius Health, Inc.(b)(c)		335,103
	91,803	RadNet, Inc.(b)		555,408
	10,842	REGENXBIO, Inc.(b)		226,598
	7,317	Repligen Corp.(b)		269,192
	14,892	Retrophin, Inc.(b)		291,734
	111,771	RTI Surgical, Inc.(b)		452,673
	52,171	Sangamo Therapeutics, Inc.(b)		250,421
	6,910	Sarepta Therapeutics, Inc.(b)		250,557
	37,639	SciClone Pharmaceuticals, Inc.(b)		363,216
	9,678	Seattle Genetics, Inc.(b)		661,007
	3,353	Spark Therapeutics, Inc.(b)		194,373
	8,737	Spectranetics Corp. (The)(b)		249,878
	58,979	Spectrum Pharmaceuticals, Inc.(b)		448,830
	17,404	Surgery Partners, Inc.(b)		299,349
	8,679	SurModics, Inc.(b)		198,315

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	12,182	Taro Pharmaceutical Industries Ltd.(b)(c)	$	1,423,467
	38,967	Tetraphase Pharmaceuticals, Inc.(b)		309,008
	6,321	Theravance Biopharma, Inc. (Cayman Islands)(b)(c)		254,926
	28,533	Tivity Health, Inc.(b)		958,709
	58,578	Triple-S Management Corp., Class B(b)		1,060,262
	6,638	U.S. Physical Therapy, Inc.		435,453
	6,427	Ultragenyx Pharmaceutical, Inc.(b)		413,835
	13,716	Veeva Systems, Inc., Class A(b)		735,452
	19,681	Vertex Pharmaceuticals, Inc.(b)		2,328,262
	31,894	West Pharmaceutical Services, Inc.		2,935,205
	46,887	Wright Medical Group NV(b)		1,424,896
	20,290	Zogenix, Inc.(b)		223,190
				132,299,780
		Industrials—16.6%
	14,068	AAON, Inc.		515,592
	66,687	AAR Corp.		2,400,065
	158,317	ACCO Brands Corp.(b)		2,256,017
	68,621	Actuant Corp., Class A		1,873,353
	46,132	Advanced Drainage Systems, Inc.		1,063,343
	21,143	Advisory Board Co. (The)(b)		1,080,407
	74,824	Aegion Corp.(b)		1,707,484
	51,793	Aerojet Rocketdyne Holdings, Inc.(b)		1,160,681
	15,607	Aerovironment, Inc.(b)		445,892
	67,781	Air Transport Services Group, Inc.(b)		1,246,493
	9,514	Alamo Group, Inc.		752,177
	21,975	Alaska Air Group, Inc.		1,869,853
	21,002	Albany International Corp., Class A		1,023,847
	3,101	Allegiant Travel Co.		450,885
	34,545	Allegion PLC		2,716,619
	23,625	Altra Industrial Motion Corp.		1,043,044
	55,317	Ameresco, Inc., Class A(b)		356,795
	14,882	American Railcar Industries, Inc.(c)		624,300
	7,869	American Woodmark Corp.(b)		723,161
	16,309	Apogee Enterprises, Inc.		888,840
	39,393	Applied Industrial Technologies, Inc.		2,521,152
	74,856	ARC Document Solutions, Inc.(b)		275,470
	62,565	ArcBest Corp.		1,654,844
	7,831	Argan, Inc.		523,502
	67,700	Armstrong Flooring, Inc.(b)		1,299,163
	14,702	Astec Industries, Inc.		931,372
	17,081	Astronics Corp.(b)		555,303
	11,207	Atkore International Group, Inc.(b)		294,296
	4,947	Atlas Air Worldwide Holdings, Inc.(b)		286,926
	13,809	Axon Enterprise, Inc.(b)(c)		339,425
	24,014	AZZ, Inc.		1,418,027
	136,088	Babcock & Wilcox Enterprises, Inc.(b)		1,275,145
	41,680	Barnes Group, Inc.		2,291,150
	6,019	Barrett Business Services, Inc.		347,056
	65,344	Beacon Roofing Supply, Inc.(b)		3,239,102
	61,724	BMC Stock Holdings, Inc.(b)		1,438,169
	42,574	Brady Corp., Class A		1,658,257
	88,074	Briggs & Stratton Corp.		2,200,969
	90,957	Builders FirstSource, Inc.(b)		1,456,222
	55,605	BWX Technologies, Inc.		2,734,098
	16,727	Caesarstone Sdot-Yam Ltd. (Israel)(b)		664,062

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

34

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	48,123	CAI International, Inc.(b)	$	992,296
	53,819	Casella Waste Systems, Inc., Class A(b)		809,976
	73,906	CBIZ, Inc.(b)		1,164,019
	43,323	CDI Corp.(b)		353,082
	34,960	CECO Environmental Corp.		394,698
	104,245	Celadon Group, Inc.(c)		411,768
	46,072	Chart Industries, Inc.(b)		1,682,089
	15,741	CIRCOR International, Inc.		1,050,082
	565,389	Civeo Corp.(b)		1,690,513
	26,069	Columbus McKinnon Corp.		681,183
	37,260	Comfort Systems USA, Inc.		1,367,442
	103,363	Commercial Vehicle Group, Inc.(b)		918,897
	28,695	Continental Building Products, Inc.(b)		698,723
	11,235	Copa Holdings SA, Class A (Panama)		1,307,979
	93,768	Copart, Inc.(b)		2,897,431
	170,044	Costamare, Inc. (Monaco)(c)		1,146,097
	32,091	Covenant Transportation Group, Inc., Class A(b)		601,064
	12,187	CRA International, Inc.		462,375
	15,257	CSW Industrials, Inc.(b)		540,098
	25,083	Cubic Corp.		1,301,808
	337,662	Diana Shipping, Inc. (Greece)(b)(c)		1,347,271
	74,528	DigitalGlobe, Inc.(b)		2,399,802
	16,778	DMC Global, Inc.		256,703
	23,222	Douglas Dynamics, Inc.		740,782
	18,186	Ducommun, Inc.(b)		534,487
	29,540	DXP Enterprises, Inc.(b)		1,077,619
	27,700	Dycom Industries, Inc.(b)		2,926,782
	43,640	Eagle Bulk Shipping, Inc.(b)		215,145
	48,758	Echo Global Logistics, Inc.(b)		914,212
	25,914	Encore Wire Corp.		1,145,399
	27,184	Engility Holdings, Inc.(b)		770,666
	54,968	Ennis, Inc.		967,437
	28,570	EnPro Industries, Inc.		2,018,470
	20,093	ESCO Technologies, Inc.		1,182,473
	11,550	Exponent, Inc.		706,282
	63,874	Federal Signal Corp.		997,073
	25,702	Forward Air Corp.		1,366,575
	14,525	Franklin Covey Co.(b)		308,656
	32,127	Franklin Electric Co., Inc.		1,320,420
	38,003	FreightCar America, Inc.		496,319
	27,096	Gibraltar Industries, Inc.(b)		1,063,518
	34,489	Global Brass & Copper Holdings, Inc.		1,229,533
	9,587	GMS, Inc.(b)		346,666
	18,355	GP Strategies Corp.(b)		497,420
	9,527	Graham Corp.		210,261
	35,373	Granite Construction, Inc.		1,864,511
	166,552	Great Lakes Dredge & Dock Corp.(b)		757,812
	46,808	Greenbrier Cos., Inc. (The)(c)		2,033,808
	53,587	Griffon Corp.		1,286,088
	77,628	H&E Equipment Services, Inc.		1,639,503
	14,731	Hawaiian Holdings, Inc.(b)		799,893
	144,103	HC2 Holdings, Inc.(b)		841,562
	44,184	Healthcare Services Group, Inc.		2,028,487
	48,613	Heartland Express, Inc.		978,094
	11,161	HEICO Corp.		793,212

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	23,883	HEICO Corp., Class A	$	1,464,028
	31,434	Heidrick & Struggles International, Inc.		675,831
	51,416	Herc Holdings, Inc.(b)		2,337,886
	14,605	Heritage-Crystal Clean, Inc.(b)		219,805
	74,828	Herman Miller, Inc.		2,476,807
	54,764	Hexcel Corp.		2,834,037
	72,613	Hillenbrand, Inc.		2,679,420
	54,943	HNI Corp.		2,569,135
	40,133	Huron Consulting Group, Inc.(b)		1,785,918
	20,689	Hyster-Yale Materials Handling, Inc.		1,243,616
	28,989	ICF International, Inc.(b)		1,279,864
	69,243	InnerWorkings, Inc.(b)		733,283
	17,604	Insperity, Inc.		1,608,125
	11,727	Insteel Industries, Inc.		408,217
	69,677	Interface, Inc.		1,386,572
	131,179	JetBlue Airways Corp.(b)		2,863,638
	11,881	John Bean Technologies Corp.		1,053,251
	9,685	Kadant, Inc.		601,923
	37,729	Kaman Corp.		1,811,369
	87,048	Kelly Services, Inc., Class A		1,942,911
	34,806	KEYW Holding Corp. (The)(b)(c)		330,309
	34,388	Kforce, Inc.		780,608
	41,289	Kimball International, Inc., Class B		733,706
	44,618	Knight Transportation, Inc.		1,530,397
	52,537	Knoll, Inc.		1,258,787
	47,259	Korn/Ferry International		1,531,192
	959,159	Kratos Defense & Security Solutions, Inc.(b)		7,308,792
	34,166	Landstar System, Inc.		2,919,485
	66,492	Layne Christensen Co.(b)(c)		529,941
	39,500	LB Foster Co., Class A		560,900
	17,946	Lennox International, Inc.		2,968,089
	10,601	Lindsay Corp.(c)		920,803
	36,158	LSI Industries, Inc.		327,953
	11,799	Lydall, Inc.(b)		618,268
	115,222	Manitowoc Co., Inc. (The)(b)		687,875
	32,387	Marten Transport Ltd.		803,198
	26,432	Masonite International Corp.(b)		2,199,142
	13,230	Matson, Inc.		419,391
	22,080	Matthews International Corp., Class A		1,513,584
	28,942	McGrath RentCorp		1,007,471
	13,769	Mercury Systems, Inc.(b)		514,685
	20,010	Middleby Corp. (The)(b)		2,723,961
	19,694	Milacron Holdings Corp.(b)		370,641
	18,704	Miller Industries, Inc.		475,082
	24,081	Mistras Group, Inc.(b)		541,822
	42,055	Mobile Mini, Inc.		1,206,979
	29,011	MSA Safety, Inc.		2,258,506
	49,317	Mueller Industries, Inc.		1,580,117
	103,285	Mueller Water Products, Inc., Class A		1,161,956
	11,240	Multi-Color Corp.		863,232
	30,582	MYR Group, Inc.(b)		1,292,395
	9,421	National Presto Industries, Inc.		983,081
	66,817	Navigant Consulting, Inc.(b)		1,601,603
	707,141	Navios Maritime Holdings, Inc. (Monaco)(b)(c)		1,202,140

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

35

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	46,584	NCI Building Systems, Inc.(b)	$	815,220
	15,798	Neff Corp., Class A(b)		278,045
	31,720	NN, Inc.		875,472
	23,331	Nordson Corp.		2,921,041
	31,441	Northwest Pipe Co.(b)		440,488
	40,812	On Assignment, Inc.(b)		2,112,837
	53,525	Orion Group Holdings, Inc.(b)		404,114
	9,697	P.A.M. Transportation Services, Inc.(b)		182,013
	17,034	Park-Ohio Holdings Corp.		670,288
	8,791	Patrick Industries, Inc.(b)		624,601
	35,060	PGT Innovations, Inc.(b)		382,154
	25,261	Ply Gem Holdings, Inc.(b)		486,274
	18,148	Powell Industries, Inc.		625,925
	42,531	Primoris Services Corp.		976,937
	11,274	Proto Labs, Inc.(b)		653,892
	104,880	Quad/Graphics, Inc., Class A		2,754,149
	45,427	Quanex Building Products Corp.		926,711
	30,370	Raven Industries, Inc.		941,470
	12,434	RBC Bearings, Inc.(b)		1,247,130
	48,574	Resources Connection, Inc.		675,179
	187,556	Roadrunner Transportation Systems, Inc.(b)		1,260,376
	40,507	Rollins, Inc.		1,572,887
	97,998	RPX Corp.(b)		1,258,294
	330,903	Safe Bulkers, Inc. (Greece)(b)		704,823
	34,987	Saia, Inc.(b)		1,684,624
	105,623	Scorpio Bulkers, Inc.(b)(c)		786,891
	245,372	Seaspan Corp. (Hong Kong)(c)		1,727,419
	28,177	Simpson Manufacturing Co., Inc.		1,175,263
	15,670	Siteone Landscape Supply, Inc.(b)		749,183
	28,768	SkyWest, Inc.		1,070,170
	35,817	SP Plus Corp.(b)		1,233,896
	53,127	Spartan Motors, Inc.		438,298
	15,003	Sparton Corp.(b)		334,117
	17,802	Spirit Airlines, Inc.(b)		1,019,521
	45,713	SPX Corp.(b)		1,099,855
	9,099	Standex International Corp.		854,851
	157,994	Steelcase, Inc., Class A		2,693,798
	19,319	Sun Hydraulics Corp.		750,350
	71,474	Sunrun, Inc.(b)(c)		378,097
	29,796	Team, Inc.(b)		801,512
	14,712	Tennant Co.		1,077,654
	49,884	Tetra Tech, Inc.		2,192,402
	77,858	Textainer Group Holdings Ltd.		1,163,977
	37,333	Thermon Group Holdings, Inc.(b)		765,327
	91,939	Titan International, Inc.		984,667
	82,891	Titan Machinery, Inc.(b)		1,313,822
	46,741	Toro Co. (The)		3,034,426
	8,105	Trex Co., Inc.(b)		593,205
	67,146	TriMas Corp.(b)		1,541,001
	29,149	TriNet Group, Inc.(b)		856,981
	63,599	Triton International Ltd. (Bermuda)(b)		1,946,765
	83,794	TrueBlue, Inc.(b)		2,291,766
	16,223	Twin Disc, Inc.(b)		317,971
	14,177	UniFirst Corp.		1,973,438
	21,475	Universal Forest Products, Inc.		2,046,353

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	15,182	US Ecology, Inc.	$	715,831
	39,256	USA Truck, Inc.(b)		263,408
	89,418	USG Corp.(b)		2,709,365
	44,401	Vectrus, Inc.(b)		1,129,561
	47,545	Veritiv Corp.(b)		2,455,699
	28,166	Viad Corp.		1,273,103
	11,718	VSE Corp.		499,773
	101,342	Wabash National Corp.		2,308,571
	7,124	WageWorks, Inc.(b)		525,751
	21,857	Watts Water Technologies, Inc., Class A		1,359,505
	78,644	Werner Enterprises, Inc.		2,146,981
	103,825	Wesco Aircraft Holdings, Inc.(b)		1,261,474
	107,868	West Corp.		2,878,997
	14,470	Willis Lease Finance Corp.(b)		328,614
	38,931	Xerium Technologies, Inc.(b)		276,799
				270,660,198
		Information Technology—15.6%
	5,696	2U, Inc.(b)		258,598
	52,779	3D Systems Corp.(b)(c)		835,492
	27,744	8x8, Inc.(b)		403,675
	97,286	ACI Worldwide, Inc.(b)		2,090,676
	26,586	Actua Corp.(b)		372,204
	59,844	Acxiom Corp.(b)		1,729,492
	49,910	ADTRAN, Inc.		998,200
	12,702	Advanced Energy Industries, Inc.(b)		937,408
	225,435	Advanced Micro Devices, Inc.(b)		2,998,285
	24,427	Alpha & Omega Semiconductor Ltd.(b)		404,267
	11,246	Ambarella, Inc.(b)(c)		632,250
	6,906	Applied Optoelectronics, Inc.(b)(c)		341,087
	6,735	Arista Networks, Inc.(b)		940,475
	8,273	Aspen Technology, Inc.(b)		508,707
	75,352	Avid Technology, Inc.(b)		422,348
	74,969	AVX Corp.		1,267,726
	22,464	Axcelis Technologies, Inc.(b)		432,432
	17,632	Badger Meter, Inc.		700,872
	73,624	Bankrate, Inc.(b)		780,414
	62,575	Bazaarvoice, Inc.(b)		294,102
	13,909	Bel Fuse, Inc., Class B		336,598
	35,194	Belden, Inc.		2,453,022
	71,851	Black Box Corp.		711,325
	10,750	Black Knight Financial Services, Inc., Class A(b)(c)		445,050
	14,087	Blackbaud, Inc.		1,132,736
	51,094	Blackhawk Network Holdings, Inc., Class A(b)		2,066,752
	54,055	Blucora, Inc.(b)		997,315
	23,325	Bottomline Technologies (de), Inc.(b)		543,472
	9,548	BroadSoft, Inc.(b)		366,643
	52,063	Brooks Automation, Inc.		1,315,111
	29,167	Cabot Microelectronics Corp.		2,285,234
	27,551	CalAmp Corp.(b)		494,265
	59,653	Calix, Inc.(b)		399,675
	10,192	Callidus Software, Inc.(b)		214,542
	165,375	Canadian Solar, Inc. (Canada)(b)(c)		2,199,487
	32,952	Cardtronics PLC, Class A(b)		1,370,144
	6,963	Cass Information Systems, Inc.		462,831

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

36

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	9,249	Cavium, Inc.(b)	$	636,794
	7,340	CEVA, Inc.(b)		264,240
	91,532	Ciena Corp.(b)		2,096,998
	18,403	Cimpress NV (Netherlands)(b)(c)		1,510,518
	38,754	Cirrus Logic, Inc.(b)		2,493,820
	17,731	Cognex Corp.		1,513,164
	9,583	Coherent, Inc.(b)		2,066,095
	27,914	Cohu, Inc.		522,829
	18,234	CommVault Systems, Inc.(b)		919,905
	91,535	Comtech Telecommunications Corp.		1,282,405
	12,264	Control4 Corp.(b)		207,262
	10,431	CoStar Group, Inc.(b)		2,512,724
	47,502	Cray, Inc.(b)		850,286
	30,921	CSG Systems International, Inc.		1,159,847
	27,176	CTS Corp.		600,590
	5,380	CyberArk Software Ltd. (Israel)(b)		284,656
	74,751	Daktronics, Inc.		707,144
	25,277	Dell Technologies, Inc. Class V(b)		1,696,339
	93,510	DHI Group, Inc.(b)		360,013
	36,699	Digi International, Inc.(b)		455,068
	49,383	Diodes, Inc.(b)		1,155,068
	34,689	Dolby Laboratories, Inc., Class A		1,829,151
	23,530	DSP Group, Inc.(b)		292,948
	74,789	Eastman Kodak Co.(b)		822,679
	11,246	Ebix, Inc.(c)		693,878
	65,742	Electro Scientific Industries, Inc.(b)		458,879
	37,216	Electronics for Imaging, Inc.(b)		1,703,748
	5,170	Ellie Mae, Inc.(b)		526,099
	21,977	EMCORE Corp.		197,793
	39,845	Endurance International Group Holdings, Inc.(b)		302,822
	52,358	EnerNOC, Inc.(b)		295,823
	74,645	Entegris, Inc.(b)		1,851,196
	17,396	Envestnet, Inc.(b)		605,381
	19,011	EPAM Systems, Inc.(b)		1,463,847
	19,233	ePlus, Inc.(b)		1,370,351
	31,863	Euronet Worldwide, Inc.(b)		2,632,521
	257,786	Everi Holdings, Inc.(b)		1,636,941
	45,745	EVERTEC, Inc.		725,058
	22,856	Exar Corp.(b)		297,357
	17,783	ExlService Holdings, Inc.(b)		848,427
	61,761	Extreme Networks, Inc.(b)		482,662
	22,899	Fabrinet (Thailand)(b)		793,908
	8,817	Fair Isaac Corp.		1,194,527
	17,728	FARO Technologies, Inc.(b)		649,731
	62,820	Finisar Corp.(b)		1,434,809
	94,740	FireEye, Inc.(b)(c)		1,185,197
	183,067	Fitbit, Inc., Class A(b)(c)		1,047,143
	30,987	FormFactor, Inc.(b)		343,956
	8,429	Forrester Research, Inc.		341,796
	33,710	Fortinet, Inc.(b)		1,314,690
	20,662	Gartner, Inc.(b)		2,357,328
	6,510	Gigamon, Inc.(b)		206,367
	6,391	Globant SA(b)(c)		242,155
	153,592	Glu Mobile, Inc.(b)(c)		354,798
	13,046	GoDaddy, Inc., Class A(b)		507,750

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	24,417	Gogo, Inc.(b)(c)	$	307,898
	26,551	GrubHub, Inc.(b)		1,141,162
	7,940	GTT Communications, Inc.(b)		218,350
	14,066	Guidewire Software, Inc.(b)		864,918
	14,461	Hackett Group, Inc. (The)		286,762
	129,347	Harmonic, Inc.(b)		750,213
	45,349	Hollysys Automation Technologies Ltd. (China)		727,398
	41,857	II-VI, Inc.(b)		1,387,560
	6,449	Imperva, Inc.(b)		286,658
	95,800	Infinera Corp.(b)		950,336
	7,680	Inphi Corp.(b)		318,106
	75,928	Inseego Corp.(b)(c)		162,486
	59,763	Integrated Device Technology, Inc.(b)		1,433,714
	17,768	InterDigital, Inc.		1,597,343
	286,083	Internap Corp.(b)(c)		886,857
	26,531	InterXion Holding NV (Netherlands)(b)		1,105,281
	51,370	InvenSense, Inc.(b)		660,618
	11,330	IPG Photonics Corp.(b)		1,431,206
	32,752	Itron, Inc.(b)		2,123,967
	33,529	IXYS Corp.		467,730
	28,101	j2 Global, Inc.		2,535,834
	30,819	Jack Henry & Associates, Inc.		2,986,977
	45,126	Kimball Electronics, Inc.(b)		778,423
	124,316	Knowles Corp.(b)		2,204,123
	81,534	Kulicke & Soffa Industries, Inc. (Singapore)(b)		1,819,839
	23,493	KVH Industries, Inc.(b)		187,944
	87,123	Lattice Semiconductor Corp.(b)		597,664
	60,569	Liquidity Services, Inc.(b)		472,438
	10,308	Littelfuse, Inc.		1,588,978
	45,166	LivePerson, Inc.(b)		318,420
	3,539	LogMeIn, Inc.		399,907
	19,487	Lumentum Holdings, Inc.(b)		833,069
	9,273	Luxoft Holding, Inc., Class A(b)		571,680
	7,009	MACOM Technology Solutions Holdings, Inc.(b)		342,600
	65,836	Magnachip Semiconductor Corp. (South Korea)(b)(c)		559,606
	18,769	Manhattan Associates, Inc.(b)		876,325
	49,727	ManTech International Corp., Class A		1,765,308
	67,981	Marchex, Inc., Class B(b)		184,229
	14,045	Match Group, Inc.(b)(c)		261,658
	31,499	MAXIMUS, Inc.		1,921,124
	12,095	MaxLinear, Inc., Class A(b)		336,604
	54,450	Maxwell Technologies, Inc.(b)		332,145
	26,254	Mellanox Technologies Ltd. (Israel)(b)(c)		1,239,189
	5,808	MercadoLibre, Inc. (Argentina)		1,329,509
	28,276	Methode Electronics, Inc.		1,259,696
	50,952	Microsemi Corp.(b)		2,391,687
	4,663	MicroStrategy, Inc., Class A(b)		886,763
	31,016	MKS Instruments, Inc.		2,427,002
	11,802	Mobileye NV(b)		730,780
	68,951	MoneyGram International, Inc.(b)		1,228,017
	8,431	Monolithic Power Systems, Inc.		771,437
	29,057	Monotype Imaging Holdings, Inc.		591,310

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

37

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	18,246	MTS Systems Corp.	$	847,527
	12,679	Nanometrics, Inc.(b)		400,086
	79,121	National Instruments Corp.		2,762,114
	24,163	NeoPhotonics Corp.(b)		187,505
	93,428	Net 1 UEPS Technologies, Inc. (South Africa)(b)		1,011,825
	37,227	NETGEAR, Inc.(b)		1,755,253
	84,542	NeuStar, Inc., Class A(b)		2,806,794
	35,034	NIC, Inc.		747,976
	22,500	Novanta, Inc.(b)		631,125
	36,870	Oclaro, Inc.(b)(c)		295,329
	37,100	Orbotech Ltd. (Israel)(b)		1,221,703
	18,779	OSI Systems, Inc.(b)		1,453,495
	5,499	Palo Alto Networks, Inc.(b)		596,147
	70,431	Pandora Media, Inc.(b)(c)		764,176
	44,283	Park Electrochemical Corp.		766,982
	3,993	Paycom Software, Inc.(b)		240,578
	27,914	PC Connection, Inc.		802,248
	12,797	PDF Solutions, Inc.(b)		243,399
	9,197	Pegasystems, Inc.		418,923
	42,690	Perficient, Inc.(b)		743,660
	26,979	PFSweb, Inc.(b)		197,486
	130,465	Photronics, Inc.(b)		1,500,348
	25,008	Plantronics, Inc.		1,365,437
	50,653	Plexus Corp.(b)		2,633,449
	11,464	Power Integrations, Inc.		756,051
	39,661	Progress Software Corp.		1,178,725
	46,514	PTC, Inc.(b)		2,514,082
	24,799	Pure Storage, Inc., Class A(b)(c)		263,117
	8,047	Qualys, Inc.(b)		309,005
	83,865	QuinStreet, Inc.(b)		375,715
	21,830	Quotient Technology, Inc.(b)		237,947
	56,170	Radisys Corp.(b)		225,242
	35,789	Radware Ltd. (Israel)(b)		584,434
	63,227	Rambus, Inc.(b)		791,602
	12,855	RealPage, Inc.(b)		476,278
	61,156	RetailMeNot, Inc.(b)		709,410
	90,008	Rocket Fuel, Inc.(b)(c)		452,290
	16,935	Rogers Corp.(b)		1,743,289
	31,974	Rubicon Project, Inc. (The)(b)		182,572
	22,380	Rudolph Technologies, Inc.(b)		548,310
	103,574	Sabre Corp.		2,424,667
	30,486	Semtech Corp.(b)		1,041,097
	9,188	ServiceNow, Inc.(b)		868,082
	37,814	ServiceSource International, Inc.(b)		142,181
	3,123	Shopify, Inc., Class A (Canada)(b)		237,192
	57,250	ShoreTel, Inc.(b)		374,988
	4,448	Shutterstock, Inc.(b)		192,287
	44,251	Sigma Designs, Inc.(b)		274,356
	6,627	Silicom Ltd. (Israel)		359,382
	19,601	Silicon Laboratories, Inc.(b)		1,394,611
	33,198	SINA Corp. (China)(b)		2,549,938
	62,569	Sohu.com, Inc. (China)(b)		2,427,677
	13,295	SolarEdge Technologies, Inc.(b)(c)		214,714
	63,916	Sonus Networks, Inc.(b)		490,875
	16,818	Splunk, Inc.(b)		1,081,566

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	5,978	SPS Commerce, Inc.(b)	$	330,344
	32,148	Square, Inc., Class A(b)		586,380
	73,209	SS&C Technologies Holdings, Inc.		2,689,699
	2,832	Stamps.com, Inc.(b)(c)		300,617
	60,642	Stratasys Ltd.(b)		1,501,496
	130,313	SunPower Corp.(b)(c)		904,372
	50,793	Super Micro Computer, Inc.(b)		1,239,349
	63,885	Sykes Enterprises, Inc.(b)		1,904,412
	33,093	Synaptics, Inc.(b)		1,812,504
	27,962	Synchronoss Technologies, Inc.(b)		447,392
	52,499	Syntel, Inc.		924,507
	13,294	Tableau Software, Inc., Class A(b)		713,622
	38,394	Take-Two Interactive Software, Inc.(b)		2,413,063
	23,086	TeleTech Holdings, Inc.		721,438
	110,016	Tivo Corp.		2,172,816
	185,461	Travelport Worldwide Ltd.		2,442,521
	121,307	TTM Technologies, Inc.(b)		2,029,466
	9,675	Tyler Technologies, Inc.(b)		1,582,733
	6,740	Ubiquiti Networks, Inc.(b)(c)		347,245
	4,256	Ultimate Software Group, Inc. (The)(b)		862,564
	46,649	Ultra Clean Holdings, Inc.(b)		897,527
	18,739	Ultratech, Inc.(b)		571,914
	8,854	Universal Display Corp.		791,105
	28,871	VASCO Data Security International, Inc.(b)		389,759
	47,266	Veeco Instruments, Inc.(b)		1,559,778
	63,205	Verint Systems, Inc.(b)		2,483,957
	31,323	VeriSign, Inc.(b)(c)		2,785,241
	63,245	Versum Materials, Inc.		2,025,105
	39,925	ViaSat, Inc.(b)		2,556,398
	132,451	Viavi Solutions, Inc.(b)		1,324,510
	30,557	Virtusa Corp.(b)		946,656
	22,470	Vishay Precision Group, Inc.(b)		386,484
	29,155	VMware, Inc., Class A(b)(c)		2,744,069
	39,278	Web.com Group, Inc.(b)		758,065
	15,527	WebMD Health Corp.(b)		842,029
	26,341	WEX, Inc.(b)		2,672,558
	10,491	Workday, Inc., Class A(b)		916,913
	62,737	Xcerra Corp.(b)		614,823
	16,502	XO Group, Inc.(b)		289,610
	29,019	Xperi Corp.		975,038
	105,072	Yandex NV, Class A (Russia)(b)		2,864,263
	23,402	Yelp, Inc., Class A(b)		828,665
	34,809	Zebra Technologies Corp., Class A(b)		3,281,444
	8,407	Zendesk, Inc.(b)		241,701
	20,594	Zillow Group, Inc., Class A(b)		792,663
	39,472	Zillow Group, Inc., Class C(b)		1,539,408
	766,867	Zynga, Inc., Class A(b)		2,216,246
				255,326,957
		Materials—5.8%
	65,713	A. Schulman, Inc.		2,079,816
	78,393	Advansix, Inc.(b)		2,136,993
	79,859	Agrofresh Solutions, Inc.(b)(c)		448,009
	34,548	American Vanguard Corp.		578,679
	16,997	Ampco-Pittsburgh Corp.		247,306
	11,580	Balchem Corp.		939,833

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

38

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	100,493	Boise Cascade Co.(b)	$	3,065,036
	51,198	Calgon Carbon Corp.		744,931
	100,492	Century Aluminum Co.(b)		1,370,711
	44,225	Clearwater Paper Corp.(b)		2,149,335
	96,103	Coeur Mining, Inc.(b)		870,693
	16,161	Core Molding Technologies, Inc.(b)		319,665
	5,155	Deltic Timber Corp.		398,842
	20,072	Eagle Materials, Inc.		1,926,310
	104,160	Ferro Corp.(b)		1,866,547
	41,195	Ferroglobe PLC		397,532
	50,209	Flotek Industries, Inc.(b)(c)		603,010
	52,019	FutureFuel Corp.		804,214
	88,330	GCP Applied Technologies, Inc.(b)		2,906,057
	84,471	Gold Resource Corp.(c)		278,754
	278,381	Golden Star Resources Ltd.(b)		200,045
	47,409	Greif, Inc., Class A		2,779,116
	51,817	H.B. Fuller Co.		2,737,492
	10,663	Hawkins, Inc.		544,879
	19,968	Haynes International, Inc.		844,447
	47,079	Headwaters, Inc.(b)		1,118,597
	252,321	Hecla Mining Co.		1,375,149
	28,967	Ingevity Corp.(b)		1,831,583
	32,722	Innophos Holdings, Inc.		1,568,693
	18,831	Innospec, Inc.		1,242,846
	295,783	Intrepid Potash, Inc.(b)(c)		535,367
	22,791	Kaiser Aluminum Corp.		1,923,788
	106,288	KapStone Paper and Packaging Corp.		2,241,614
	7,153	KMG Chemicals, Inc.		375,890
	27,799	Koppers Holdings, Inc.(b)		1,180,068
	62,242	Kraton Corp.(b)		2,035,936
	46,237	Kronos Worldwide, Inc.		810,072
	96,532	Louisiana-Pacific Corp.(b)		2,484,734
	115,879	LSB Industries, Inc.(b)(c)		1,276,987
	37,193	Materion Corp.		1,415,194
	74,581	McEwen Mining, Inc.(b)(c)		226,726
	26,633	Minerals Technologies, Inc.		2,096,017
	42,284	Multi Packaging Solutions International Ltd.(b)		758,998
	45,065	Myers Industries, Inc.		734,559
	15,853	Neenah Paper, Inc.		1,242,083
	30,871	Olympic Steel, Inc.		696,141
	116,803	OMNOVA Solutions, Inc.(b)		1,109,628
	92,541	P.H. Glatfelter Co.		1,990,557
	8,658	Quaker Chemical Corp.		1,251,947
	115,029	Rayonier Advanced Materials, Inc.		1,524,134
	100,609	Rentech, Inc.(b)		52,297
	41,785	Royal Gold, Inc.		2,953,364
	96,053	Ryerson Holding Corp.(b)		1,315,926
	79,328	Schnitzer Steel Industries, Inc., Class A		1,499,299
	41,107	Schweitzer-Mauduit International, Inc.		1,769,656
	30,606	Scotts Miracle-Gro Co. (The)		2,956,540
	35,764	Sensient Technologies Corp.		2,925,495
	21,551	Stepan Co.		1,827,525
	98,760	Stillwater Mining Co.(b)		1,775,705
	68,938	Summit Materials, Inc., Class A(b)		1,768,949
	164,023	SunCoke Energy, Inc.(b)		1,504,091

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	73,521	TimkenSteel Corp.(b)	$	1,108,697
	31,880	Tredegar Corp.		546,742
	152,785	Tronox Ltd., Class A		2,522,480
	11,863	US Concrete, Inc.(b)(c)		735,506
	20,266	Valvoline, Inc.(c)		450,919
	46,033	Westlake Chemical Corp.		2,865,554
	53,136	Worthington Industries, Inc.		2,311,416
				95,175,721
		Real Estate—7.1%
	63,578	Acadia Realty Trust REIT		1,848,848
	13,417	Agree Realty Corp. REIT		650,456
	30,401	Alexander & Baldwin, Inc.		1,398,750
	1,537	Alexander’s, Inc. REIT		668,303
	2,459	Altisource Asset Management Corp.(b)(c)		188,359
	34,179	Altisource Portfolio Solutions SA(b)(c)		755,014
	178,935	Altisource Residential Corp. REIT		2,573,085
	34,663	American Assets Trust, Inc. REIT		1,484,616
	127,389	American Homes 4 Rent, Class A REIT		2,936,316
	41,744	Armada Hoffler Properties, Inc. REIT		595,269
	48,445	Ashford Hospitality Prime, Inc. REIT		513,033
	271,853	Ashford Hospitality Trust, Inc. REIT		1,699,081
	16,449	Bluerock Residential Growth REIT, Inc., Class A REIT		204,955
	79,403	Care Capital Properties, Inc. REIT		2,133,559
	42,628	CareTrust REIT, Inc. REIT		725,529
	44,339	CatchMark Timber Trust, Inc., Class A REIT		519,210
	153,071	Cedar Realty Trust, Inc. REIT		823,522
	53,813	Chatham Lodging Trust REIT		1,041,820
	88,773	Chesapeake Lodging Trust REIT		2,069,299
	16,583	Colony Starwood Homes REIT		573,274
	14,072	CorEnergy Infrastructure Trust, Inc. REIT(c)		513,347
	8,678	CoreSite Realty Corp. REIT		849,142
	171,002	Cousins Properties, Inc. REIT		1,451,807
	34,446	CyrusOne, Inc. REIT		1,882,129
	41,501	DuPont Fabros Technology, Inc. REIT		2,139,377
	17,605	Easterly Government Properties, Inc. REIT		354,213
	26,487	EastGroup Properties, Inc. REIT		2,072,608
	50,825	Education Realty Trust, Inc. REIT		1,970,485
	65,285	Empire State Realty Trust, Inc., Class A REIT		1,357,928
	154,088	FelCor Lodging Trust, Inc. REIT		1,194,182
	75,013	First Industrial Realty Trust, Inc. REIT		2,110,866
	122,533	First Potomac Realty Trust REIT		1,347,863
	49,235	Forestar Group, Inc.(b)		696,675
	22,183	Four Corners Property Trust, Inc. REIT		517,529
	167,339	Franklin Street Properties Corp. REIT		2,029,822
	29,269	Getty Realty Corp. REIT		749,286
	28,034	Gladstone Commercial Corp. REIT		625,158
	55,764	Global NET Lease, Inc. REIT		1,317,703
	120,187	Government Properties Income Trust REIT		2,562,387
	66,700	Hersha Hospitality Trust REIT		1,229,948
	33,099	HFF, Inc., Class A		1,039,309

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

39

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	55,068	Hudson Pacific Properties, Inc. REIT	$	1,892,137
	45,926	Independence Realty Trust, Inc. REIT		422,519
	52,353	InfraREIT, Inc. REIT		999,942
	275,018	Investors Real Estate Trust REIT		1,625,356
	101,187	iStar, Inc. REIT(b)		1,237,517
	66,647	Kennedy-Wilson Holdings, Inc.		1,359,599
	103,663	Kite Realty Group Trust REIT		2,110,579
	32,732	Life Storage, Inc. REIT		2,565,861
	27,691	LTC Properties, Inc. REIT		1,324,737
	10,410	Marcus & Millichap, Inc.(b)		268,578
	21,257	Medequities Realty Trust, Inc. REIT		251,258
	41,421	Monmouth Real Estate Investment Corp. REIT(c)		621,315
	199,105	Monogram Residential Trust, Inc. REIT		2,026,889
	23,364	National Health Investors, Inc. REIT		1,709,544
	19,532	National Storage Affiliates Trust REIT		478,534
	168,389	New Senior Investment Group, Inc. REIT		1,754,613
	14,820	NexPoint Residential Trust, Inc. REIT		355,828
	67,170	NorthStar Realty Europe Corp. REIT		781,187
	19,320	One Liberty Properties, Inc. REIT		469,090
	24,944	Parkway, Inc. REIT		502,622
	89,021	Pebblebrook Hotel Trust REIT		2,649,265
	107,570	Pennsylvania Real Estate Investment Trust REIT		1,489,845
	56,932	Physicians Realty Trust REIT		1,118,144
	38,678	Potlatch Corp. REIT		1,742,444
	43,171	Preferred Apartment Communities, Inc., Class A REIT		610,870
	15,524	PS Business Parks, Inc. REIT		1,886,787
	25,398	QTS Realty Trust, Inc., Class A REIT		1,357,269
	326,862	RAIT Financial Trust REIT		1,003,466
	107,330	Ramco-Gershenson Properties Trust REIT		1,430,709
	12,080	RE/MAX Holdings, Inc., Class A		714,532
	79,107	Retail Opportunity Investments Corp. REIT		1,629,604
	35,638	Rexford Industrial Realty, Inc. REIT		888,812
	4,225	RMR Group, Inc. (The), Class A		222,869
	75,519	Sabra Health Care REIT, Inc. REIT		2,053,362
	11,826	Saul Centers, Inc. REIT		710,151
	94,089	Select Income REIT		2,357,870
	28,311	Seritage Growth Properties, Class A REIT(c)		1,174,907
	28,169	Silver Bay Realty Trust Corp. REIT		603,662
	41,891	St. Joe Co. (The)(b)		733,093
	61,739	STAG Industrial, Inc., Class A REIT		1,627,440
	112,067	STORE Capital Corp. REIT		2,688,487
	85,968	Summit Hotel Properties, Inc. REIT		1,421,051
	82,491	Tanger Factory Outlet Centers, Inc. REIT		2,572,894
	11,747	Tejon Ranch Co.(b)		269,006
	30,731	Terreno Realty Corp. REIT		948,973
	78,743	Tier REIT, Inc. REIT		1,363,041
	27,397	UMH Properties, Inc. REIT		438,900
	8,261	Universal Health Realty Income Trust REIT		576,205
	43,166	Urban Edge Properties REIT		1,100,733

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	34,441	Urstadt Biddle Properties, Inc., Class A REIT	$	677,110
	81,689	Washington REIT		2,587,091
	41,472	Whitestone REIT		520,059
				115,340,418
		Telecommunication Services—1.3%
	11,144	ATN International, Inc.		771,053
	22,111	Boingo Wireless, Inc.(b)		315,966
	125,910	Cincinnati Bell, Inc.(b)		2,373,404
	24,030	Cogent Communications Holdings, Inc.		1,081,350
	85,312	Consolidated Communications Holdings, Inc.(c)		2,019,335
	54,324	FairPoint Communications, Inc.(b)		926,224
	58,416	General Communication, Inc., Class A(b)		2,187,095
	10,467	Hawaiian Telcom Holdco, Inc.(b)		266,385
	43,844	IDT Corp., Class B(b)		665,990
	225,049	Intelsat SA(b)(c)		663,895
	202,928	Iridium Communications, Inc.(b)(c)		2,151,037
	29,618	Lumos Networks Corp.(b)		530,458
	24,768	Magicjack Vocaltec Ltd. (Israel)(b)(c)		203,098
	588,400	NII Holdings, Inc.(b)		507,672
	46,183	ORBCOMM, Inc.(b)		445,204
	8,113	pdvWireless, Inc.(b)(c)		208,098
	30,650	Shenandoah Telecommunications Co.		980,800
	41,003	Spok Holdings, Inc.		736,004
	36,711	United States Cellular Corp.(b)		1,438,337
	202,551	Vonage Holdings Corp.(b)		1,359,117
	46,904	Zayo Group Holdings, Inc.(b)		1,644,923
				21,475,445
		Utilities—1.8%
	35,210	American States Water Co.		1,567,549
	9,437	Artesian Resources Corp., Class A		362,475
	370,782	Atlantic Power Corp.(b)		926,955
	92,293	Atlantica Yield PLC (Spain)		1,923,386
	50,308	California Water Service Group		1,795,996
	14,950	Chesapeake Utilities Corp.		1,095,835
	9,083	Connecticut Water Service, Inc.		487,485
	24,306	Consolidated Water Co. Ltd. (Cayman Islands)		286,811
	60,751	El Paso Electric Co.		3,134,752
	31,241	MGE Energy, Inc.		2,008,796
	15,500	Middlesex Water Co.		590,860
	42,681	Northwest Natural Gas Co.		2,543,788
	33,883	NRG Yield, Inc., Class A		587,531
	61,699	NRG Yield, Inc., Class C		1,092,072
	19,107	Ormat Technologies, Inc.		1,128,459
	48,534	Otter Tail Corp.		1,917,093
	65,709	Pattern Energy Group, Inc.		1,446,912
	16,016	SJW Corp.		782,221
	84,556	South Jersey Industries, Inc.		3,172,541
	100,668	TerraForm Global, Inc., Class A		478,173
	106,539	TerraForm Power, Inc., Class A(b)(c)		1,341,326
	22,725	Unitil Corp.		1,100,572

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

40

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	8,481	York Water Co. (The)	$	318,038
				30,089,626
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,429,307,281)—99.9%		1,630,657,170
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.4%
	121,440,868	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $121,440,868)		121,440,868
		Total Investments (Cost $1,550,748,149)—107.3%		1,752,098,038
		Other assets less liabilities—(7.3)%		(119,570,653	)
		Net Assets—100.0%	$	1,632,527,385

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

41

Statements of Assets and Liabilities

April 30, 2017

	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)	$	34,575,234		$	143,054,936		$	4,890,975,266		$	1,630,657,170
Affiliated investments, at value		61,657			1,109,967			61,662,844			121,440,868
Total investments, at value		34,636,891			144,164,903			4,952,638,110			1,752,098,038
Receivables:
Dividends		4,702			37,411			5,622,241			570,746
Securities lending		—			834			82,849			301,896
Foreign tax reclaims		—			—			3,391			—
Investments sold		—			—			—			3,834,201
Other assets		652			1,200			6,682			2,203
Total Assets		34,642,245			144,204,348			4,958,353,273			1,756,807,084
Liabilities:
Due to custodian		—			—			1,248,036			1,807,168
Payables:
Collateral upon return of securities loaned		—			1,020,505			56,940,680			121,440,868
Accrued advisory fees		7,144			57,543			1,078,672			344,674
Accrued trustees’ and officer’s fees		17,879			32,217			128,526			46,810
Accrued expenses		47,597			42,330			1,870,022			640,179
Total Liabilities		72,620			1,152,595			61,265,936			124,279,699
Net Assets	$	34,569,625		$	143,051,753		$	4,897,087,337		$	1,632,527,385
Net Assets Consist of:
Shares of beneficial interest	$	65,396,997		$	342,894,446		$	4,418,003,546		$	1,551,037,976
Undistributed net investment income		(27,592	)		(31,138	)		8,775,000			1,168,429
Undistributed net realized gain (loss)		(37,486,650	)		(210,167,891	)		(218,733,240	)		(121,028,909	)
Net unrealized appreciation		6,686,870			10,356,336			689,042,031			201,349,889
Net Assets	$	34,569,625		$	143,051,753		$	4,897,087,337		$	1,632,527,385
Shares outstanding (unlimited amount authorized, $0.01 par value)		400,000			1,700,000			47,700,000			13,850,000
Net asset value	$	86.42		$	84.15		$	102.66		$	117.87
Market price	$	86.38		$	84.16		$	102.67		$	117.82
Unaffiliated investments, at cost	$	27,888,364		$	132,698,600		$	4,202,042,205		$	1,429,307,281
Affiliated investments, at cost	$	61,657		$	1,109,967		$	61,553,874		$	121,440,868
Total investments, at cost	$	27,950,021		$	133,808,567		$	4,263,596,079		$	1,550,748,149
(a) Includes securities on loan with an aggregate value of	$	—		$	1,031,481		$	54,989,960		$	117,300,156

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

42

Statements of Operations

For the year ended April 30, 2017

	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	$	235,806		$	1,601,169		$	102,803,632		$	20,209,642
Affiliated dividend income		276			370			234,342			4,819
Securities lending income		—			7,819			804,632			2,783,030
Foreign withholding tax		(1,174	)		(182	)		(5,311	)		(18,778	)
Total Income		234,908			1,609,176			103,837,295			22,978,713
Expenses:
Advisory fees		170,634			694,776			12,953,156			4,180,686
Accounting & administration fees		36,827			36,827			833,837			270,471
Sub-licensing fees		26,208			41,724			4,021,035			1,297,639
Professional fees		25,875			30,617			79,082			42,270
Trustees’ and officer’s fees		7,818			9,510			75,546			28,085
Custodian & transfer agent fees		4,367			6,407			95,206			52,303
Other expenses		18,207			23,832			167,800			48,335
Total Expenses		289,936			843,693			18,225,662			5,919,789
Less: Waivers		(85,298	)		(10,141	)		(810,212	)		(299,926	)
Net Expenses		204,638			833,552			17,415,450			5,619,863
Net Investment Income		30,270			775,624			86,421,845			17,358,850
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(2,305,012	)		(12,622,048	)		(77,236,390	)		(48,969,471	)
In-kind redemptions		4,217,353			28,707,787			233,576,845			134,924,982
Foreign currencies		—			—			—			159
Net realized gain		1,912,341			16,085,739			156,340,455			85,955,670
Net change in unrealized appreciation on investment securities		5,369,013			6,403,892			418,335,665			184,066,542
Net realized and unrealized gain		7,281,354			22,489,631			574,676,120			270,022,212
Net increase in net assets resulting from operations	$	7,311,624		$	23,265,255		$	661,097,965		$	287,381,062

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

43

Statements of Changes in Net Assets

For the years ended April 30, 2017 and 2016

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)						PowerShares Dynamic Market Portfolio (PWC)
	2017			2016			2017			2016
Operations:
Net investment income (loss)	$	30,270		$	(37,908	)	$	775,624		$	1,747,478
Net realized gain (loss)		1,912,341			(4,266,521	)		16,085,739			(858,735	)
Net change in unrealized appreciation (depreciation)		5,369,013			(2,129,082	)		6,403,892			(1,716,563	)
Net increase (decrease) in net assets resulting from operations		7,311,624			(6,433,511	)		23,265,255			(827,820	)
Distributions to Shareholders from:
Net investment income		(29,253	)		(22,077	)		(1,505,949	)		(1,698,632	)
Return of capital		(35,078	)		(2,759	)		—			—
Total distributions to shareholders		(64,331	)		(24,836	)		(1,505,949	)		(1,698,632	)
Shareholder Transactions:
Proceeds from shares sold		19,779,660			35,446,415			222,152,171			152,722,956
Value of shares repurchased		(27,370,608	)		(24,097,986	)		(243,981,797	)		(176,024,640	)
Net increase (decrease) in net assets resulting from shares transactions		(7,590,948	)		11,348,429			(21,829,626	)		(23,301,684	)
Increase (Decrease) in Net Assets		(343,655	)		4,890,082			(70,320	)		(25,828,136	)
Net Assets:
Beginning of year		34,913,280			30,023,198			143,122,073			168,950,209
End of year	$	34,569,625		$	34,913,280		$	143,051,753		$	143,122,073
Undistributed net investment income (loss) at end of year	$	(27,592	)	$	(28,618	)	$	(31,138	)	$	347,577
Changes in Shares Outstanding:
Shares sold		250,000			450,000			2,850,000			2,050,000
Shares repurchased		(350,000	)		(350,000	)		(3,150,000	)		(2,350,000	)
Shares outstanding, beginning of year		500,000			400,000			2,000,000			2,300,000
Shares outstanding, end of year		400,000			500,000			1,700,000			2,000,000

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

44

PowerShares FTSE RAFI US 1000 Portfolio (PRF)						PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
2017			2016			2017			2016
$	86,421,845		$	92,339,251		$	17,358,850		$	14,578,380
	156,340,455			319,111,469			85,955,670			27,325,820
	418,335,665			(458,584,354	)		184,066,542			(101,820,682	)
	661,097,965			(47,133,634	)		287,381,062			(59,916,482	)
	(87,957,739	)		(96,826,783	)		(19,236,098	)		(14,367,669	)
	—			—			—			—
	(87,957,739	)		(96,826,783	)		(19,236,098	)		(14,367,669	)
	792,919,263			761,845,771			624,686,726			284,803,033
	(611,372,688	)		(1,033,501,636	)		(367,598,913	)		(261,733,949	)
	181,546,575			(271,655,865	)		257,087,813			23,069,084
	754,686,801			(415,616,282	)		525,232,777			(51,215,067	)
	4,142,400,536			4,558,016,818			1,107,294,608			1,158,509,675
$	4,897,087,337		$	4,142,400,536		$	1,632,527,385		$	1,107,294,608
$	8,775,000		$	10,310,894		$	1,168,429		$	2,493,309
	7,900,000			8,600,000			5,750,000			3,000,000
	(6,150,000	)		(11,950,000	)		(3,250,000	)		(2,850,000	)
	45,950,000			49,300,000			11,350,000			11,200,000
	47,700,000			45,950,000			13,850,000			11,350,000

45

Financial Highlights

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	69.83		$	75.06		$	64.34		$	55.40		$	51.32
Net investment income (loss)(a)		0.07			(0.06	)		0.06			0.21			0.71	(b)
Net realized and unrealized gain (loss) on investments		16.65			(5.11	)		10.66			9.00			4.18
Total from investment operations		16.72			(5.17	)		10.72			9.21			4.89
Distributions to shareholders from:
Net investment income		(0.06	)		(0.05	)		—			(0.27	)		(0.81	)
Return of capital		(0.07	)		(0.01	)		—			—			—
Total distributions		(0.13	)		(0.06	)		—			(0.27	)		(0.81	)
Net asset value at end of year	$	86.42		$	69.83		$	75.06		$	64.34		$	55.40
Market price at end of year(c)	$	86.38		$	69.82		$	75.10		$	64.32		$	55.32
Net Asset Value Total Return(d)		23.98	%		(6.90	)%		16.66	%		16.64	%		9.75	%
Market Price Total Return(d)		23.95	%		(6.96	)%		16.76	%		16.77	%		9.63	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	34,570		$	34,913		$	30,023		$	25,734		$	22,160
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.60	%(e)		0.60	%
Expenses, prior to Waivers		0.85	%		0.81	%		0.96	%		0.91	%(e)		0.95	%
Net investment income (loss), after Waivers		0.09	%		(0.09	)%		0.09	%		0.32	%		1.42	%(b)
Portfolio turnover rate(f)		89	%		118	%		154	%		296	%		118	%

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

^(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	71.56		$	73.46		$	70.27		$	56.26		$	46.78
Net investment income(a)		0.43			0.82			0.68			0.60			0.82
Net realized and unrealized gain (loss) on investments		12.98			(1.91	)		3.25			13.99			9.51
Total from investment operations		13.41			(1.09	)		3.93			14.59			10.33
Distributions to shareholders from:
Net investment income		(0.82	)		(0.81	)		(0.74	)		(0.58	)		(0.85	)
Net asset value at end of year	$	84.15		$	71.56		$	73.46		$	70.27		$	56.26
Market price at end of year(b)	$	84.16		$	71.55		$	73.40		$	70.27		$	56.23
Net Asset Value Total Return(c)		18.88	%		(1.50	)%		5.58	%		26.09	%		22.39	%
Market Price Total Return(c)		18.91	%		(1.43	)%		5.49	%		26.15	%		22.40	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	143,052		$	143,122		$	168,950		$	186,219		$	140,658
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.59	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.61	%		0.60	%		0.59	%		0.60	%		0.60	%
Net investment income, after Waivers		0.56	%		1.13	%		0.93	%		0.94	%		1.68	%
Portfolio turnover rate(d)		231	%		231	%		237	%		244	%		166	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

46

Financial Highlights (continued)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	90.15		$	92.45		$	85.42		$	71.42		$	59.73
Net investment income(a)		1.86			1.93			1.72			1.45			1.31
Net realized and unrealized gain (loss) on investments		12.56			(2.23	)		6.93			13.89			11.66
Total from investment operations		14.42			(0.30	)		8.65			15.34			12.97
Distributions to shareholders from:
Net investment income		(1.91	)		(2.00	)		(1.62	)		(1.34	)		(1.28	)
Net asset value at end of year	$	102.66		$	90.15		$	92.45		$	85.42		$	71.42
Market price at end of year(b)	$	102.67		$	90.13		$	92.43		$	85.37		$	71.42
Net Asset Value Total Return(c)		16.16	%		(0.23	)%		10.19	%		21.68	%		22.06	%
Market Price Total Return(c)		16.19	%		(0.24	)%		10.23	%		21.61	%		22.09	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	4,897,087		$	4,142,401		$	4,558,017		$	3,305,696		$	1,778,450
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.41	%		0.41	%		0.41	%		0.41	%		0.43	%
Net investment income, after Waivers		1.93	%		2.19	%		1.92	%		1.84	%		2.10	%
Portfolio turnover rate(d)		11	%		12	%		10	%		12	%		13	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

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

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	97.56		$	103.44		$	96.35		$	77.76		$	66.71
Net investment income(a)		1.30			1.25			1.38			0.98			1.13
Net realized and unrealized gain (loss) on investments		20.46			(5.93	)		7.04			18.52			11.08
Total from investment operations		21.76			(4.68	)		8.42			19.50			12.21
Distributions to shareholders from:
Net investment income		(1.45	)		(1.20	)		(1.33	)		(0.91	)		(1.16	)
Net asset value at end of year	$	117.87		$	97.56		$	103.44		$	96.35		$	77.76
Market price at end of year(b)	$	117.82		$	97.55		$	103.45		$	96.38		$	77.67
Net Asset Value Total Return(c)		22.44	%		(4.49	)%		8.80	%		25.22	%		18.56	%
Market Price Total Return(c)		22.40	%		(4.52	)%		8.78	%		25.40	%		18.41	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,632,527		$	1,107,295		$	1,158,510		$	958,731		$	563,763
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.41	%		0.41	%		0.42	%		0.42	%		0.43	%
Net investment income, after Waivers		1.20	%		1.30	%		1.39	%		1.08	%		1.64	%
Portfolio turnover rate(d)		29	%		28	%		26	%		31	%		30	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

47

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2017

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2017, 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.” Shares of Dynamic Market Portfolio and FTSE RAFI US 1000 Portfolio are listed and traded on NYSE Arca, Inc., and Shares of DWA NASDAQ Momentum Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio are listed and traded on The NASDAQ Stock Market LLC. Prior to December 7, 2016, Shares of DWA NASDAQ Momentum Portfolio were listed and traded on NYSE Arca, Inc.

The market price of each Share 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 NASDAQ Momentum Portfolio	Dorsey Wright® NASDAQ Technical Leaders 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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.

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 asked 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 asked 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”).

48

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 asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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 Fund 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 Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in 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.

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

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

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 Mid-Capitalization Company Risk. For Dynamic Market Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio, investing in securities of small- and mid-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 mid-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.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

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 accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

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The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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.

G. 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.

H. Accounting Estimates

The preparation of the financial statements in accordance with 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.

I. Securities Lending

During the fiscal year ended April 30, 2017, Dynamic Market Portfolio, 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% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with

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these loans is generally invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, 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, and 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 Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser 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, 2018. 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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.

Further, through August 31, 2019, 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. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA NASDAQ Momentum Portfolio	$	85,298
Dynamic Market Portfolio		10,141
FTSE RAFI US 1000 Portfolio		810,212
FTSE RAFI US 1500 Small-Mid Portfolio		299,926

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 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 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 Expense Agreement and the expiration schedule at April 30, 2017 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/18		4/30/19		4/30/20
FTSE RAFI US 1000 Portfolio	$	2,467,520	$	811,780	$	851,900	$	803,840
FTSE RAFI US 1500 Small-Mid Portfolio		877,258		320,530		259,243		297,485

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, LLC
Dynamic Market Portfolio	NYSE Group, Inc.
FTSE RAFI US 1000 Portfolio	FTSE International Limited and Research Affiliates LLC
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE International Limited and Research Affiliates 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 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

The 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 FTSE RAFI US 1000 Portfolio’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2017.

FTSE RAFI US 1000 Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Invesco Ltd.	$	3,147,763	$	684,827	$	(257,924	)	$	210,726	$	(15,080	)	$	3,770,312	$	115,620
Invesco Mortgage Capital, Inc. REIT		875,047		193,448		(345,740	)		298,640		(69,543	)		951,852		106,372
Total Investments in Affiliates	$	4,022,810	$	878,275	$	(603,664	)	$	509,366	$	(84,623	)	$	4,722,164	$	221,992

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.

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As of April 30, 2017, 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. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2017 and 2016:

	2017				2016
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
DWA NASDAQ Momentum Portfolio	$	29,253	$	35,078	$	22,077	$	2,759
Dynamic Market Portfolio		1,505,949		—		1,698,632		—
FTSE RAFI US 1000 Portfolio		87,957,739		—		96,826,783		—
FTSE RAFI US 1500 Small-Mid Portfolio		19,236,098		—		14,367,669		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Capital Loss Carryforwards			Late-Year Ordinary/ Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
DWA NASDAQ Momentum Portfolio**	$	—	$	(17,173	)	$	6,640,385	$	(36,467,721	)	$	(982,863	)	$	65,396,997	$	34,569,625
Dynamic Market Portfolio		—		(31,138	)		10,176,135		(205,945,819	)		(4,041,871	)		342,894,446		143,051,753
FTSE RAFI US 1000 Portfolio		8,896,145		(121,145	)		625,677,458		(95,385,223	)		(59,983,444	)		4,418,003,546		4,897,087,337
FTSE RAFI US 1500 Small-Mid Portfolio		2,180,979		(44,433	)		159,821,617		(58,250,243	)		(22,218,511	)		1,551,037,976		1,632,527,385

* Includes net capital losses incurred after October 31 (“Post-October Capital Losses”) and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year (“Late-Year Ordinary Losses”), that are deemed to arise on the first business day of each Fund’s next taxable year.

** The DWA NASDAQ Momentum Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $10,419 and Post –October Capital Losses of $972,444.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards 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 table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2017.

					Post-effective/no expiration
	2018		2019		Short-Term		Long-Term		Total*		Expired
DWA NASDAQ Momentum Portfolio	$	14,947,690	$	3,683,431	$	17,836,600	$	—	$	36,467,721	$	15,764,010
Dynamic Market Portfolio		104,214,879		15,461,574		84,940,699		1,328,667		205,945,819		96,635,542
FTSE RAFI US 1000 Portfolio		49,808,238		38,490,195		4,543,924		2,542,866		95,385,223		36,351,059
FTSE RAFI US 1500 Small-Mid Portfolio		5,168,127		2,475,894		18,355,986		32,250,236		58,250,243		4,933,892

* 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 fiscal year ended April 30, 2017, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
DWA NASDAQ Momentum Portfolio	$	31,414,929	$	34,410,976
Dynamic Market Portfolio		334,197,156		333,672,270
FTSE RAFI US 1000 Portfolio		498,607,014		498,256,678
FTSE RAFI US 1500 Small-Mid Portfolio		417,665,684		418,504,770

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For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA NASDAQ Momentum Portfolio	$	19,787,247	$	24,400,922
Dynamic Market Portfolio		221,964,536		244,503,107
FTSE RAFI US 1000 Portfolio		792,164,260		608,683,938
FTSE RAFI US 1500 Small-Mid Portfolio		621,779,418		364,320,388

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

At April 30, 2017, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation		Cost
DWA NASDAQ Momentum Portfolio	$	6,860,546	$	(220,161	)	$	6,640,385	$	27,996,506
Dynamic Market Portfolio		14,515,969		(4,339,834	)		10,176,135		133,988,768
FTSE RAFI US 1000 Portfolio		796,972,538		(171,295,080	)		625,677,458		4,326,960,652
FTSE RAFI US 1500 Small-Mid Portfolio		264,605,536		(104,783,919	)		159,821,617		1,592,276,421

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, amounts were reclassified between undistributed net investment income, undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2017, the reclassifications were as follows:

	Undistributed Net Investment Income		Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
DWA NASDAQ Momentum Portfolio	$	9	$	11,644,037		$	(11,644,046	)
Dynamic Market Portfolio		351,610		69,030,679			(69,382,289	)
FTSE RAFI US 1000 Portfolio		—		(180,225,067	)		180,225,067
FTSE RAFI US 1500 Small-Mid Portfolio		552,368		(123,409,772	)		122,857,404

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, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated 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 principally 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

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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.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in 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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares DWA NASDAQ Momentum Portfolio, PowerShares Dynamic Market Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PowerShares DWA NASDAQ Momentum Portfolio, PowerShares Dynamic Market Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 23, 2017

57

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2017.

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

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

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		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	$	1,174.40		0.60	%	$	3.23
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares Dynamic Market Portfolio (PWC)
Actual		1,000.00		1,141.60		0.60			3.19
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
Actual		1,000.00		1,129.30		0.39			2.06
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Actual		1,000.00		1,171.90		0.39			2.10
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expenses ratios based on annualized data in the Financial Highlights.

58

Tax Information

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

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2017:

	Qualified Dividend Income*			Dividends Received Deduction*
PowerShares DWA NASDAQ Momentum Portfolio		100	%		100	%
PowerShares Dynamic Market Portfolio		100	%		100	%
PowerShares FTSE RAFI US 1000 Portfolio		100	%		100	%
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		93	%		85	%

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

59

Trustees and Officers

The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and Trustee since 2003	Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).	135	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2010	Assistant Professor of Business, Trinity Christian College (2010-2016); formerly Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank.	135	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

60

Trustees and Officers (continued)

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	135	None
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	135	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

61

Trustees and Officers (continued)

The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Unaffiliated Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex*** Overseen by Unaffiliated Trustee	Other Directorships Held by Unaffiliated Trustee During the Past 5 Years
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee**	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	135	None

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

** Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee.

*** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

62

Trustees and Officers (continued)

The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Interested Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Interested Trustee	Other Directorships Held by Interested Trustee During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP.	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

63

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer and Principal Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chief Compliance Officer	Since 2017	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2012	Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005).

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

64

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), Invesco PowerShares Capital Management LLC (2010-Present); Manager and Assistant Secretary, Invesco Indexing LLC (2017-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2011-Present); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.

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

65

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2016, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable

66

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

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

● 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth Portfolio); and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, were -0.06%, -0.19% and -0.62%, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio).

The Trustees also noted that the Adviser has agreed to waive a portion of its contractual advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2018, as set forth below:

● 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

● 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio;

● 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® Quality Portfolio;

67

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

● 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio			X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X

68

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X		X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio			X
PowerShares International Dividend AchieversTM Portfolio	X	N/A	X
PowerShares S&P 500® Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the contractual advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X

69

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X	X	X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio		X	X
PowerShares International Dividend AchieversTM Portfolio		N/A	X
PowerShares S&P 500® Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

70

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted those Funds for which license fees are included in the Funds’ Expense Caps.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund’s Expense Cap) were reasonable and appropriate in light of the services provided.

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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

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

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

71

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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.powershares.com.

P-PS-AR-2
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515
powershares.com    800 983 0903		@PowerShares

April 30, 2017

2017 Annual Report to Shareholders

PWB	PowerShares Dynamic Large Cap Growth Portfolio
PWV	PowerShares Dynamic Large Cap Value Portfolio
EQWS	PowerShares Russell 2000 Equal Weight Portfolio
PXSG	PowerShares Russell 2000 Pure Growth Portfolio
PXSV	PowerShares Russell 2000 Pure Value Portfolio
EQWM	PowerShares Russell Midcap Equal Weight Portfolio
PXMG	PowerShares Russell Midcap Pure Growth Portfolio
PXMV	PowerShares Russell Midcap Pure Value Portfolio
EQWL	PowerShares Russell Top 200 Equal Weight Portfolio
PXLG	PowerShares Russell Top 200 Pure Growth Portfolio
PXLV	PowerShares Russell Top 200 Pure Value Portfolio
PZI	PowerShares Zacks Micro Cap Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Style Portfolios
Schedules of Investments
PowerShares Dynamic Large Cap Growth Portfolio (PWB)	37
PowerShares Dynamic Large Cap Value Portfolio (PWV)	38
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)	39
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)	57
PowerShares Russell 2000 Pure Value Portfolio (PXSV)	60
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)	64
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)	72
PowerShares Russell Midcap Pure Value Portfolio (PXMV)	74
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)	76
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)	79
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)	81
PowerShares Zacks Micro Cap Portfolio (PZI)	82
Statements of Assets and Liabilities	88
Statements of Operations	90
Statements of Changes in Net Assets	92
Financial Highlights	96
Notes to Financial Statements	105
Report of Independent Registered Public Accounting Firm	116
Fees and Expenses	117
Tax Information	119
Trustees and Officers	120
Board Considerations Regarding Continuation of Investment Advisory Agreement	126

2

The Market Environment

US Equity

During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.

While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.

3

PWB	Manager’s Analysis
	PowerShares Dynamic Large Cap Growth Portfolio (PWB)

As an index fund, the PowerShares Dynamic Large Cap Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Large Cap Growth Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of large capitalization companies that comprise the Index.

NYSE Group, Inc. (the “Index Provider”) considers a company to be a large capitalization company if it falls within the Index model. The Index for the Fund is composed of 50 large capitalization U.S. growth stocks that, strictly in accordance with its guidelines and mandated procedures, the Index Provider includes principally on the basis of their capital appreciation potential. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary Index Provider Intellidex model. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 14.57%. On a net asset value (“NAV”) basis, the Fund returned 14.46%. During the same time period, the Index returned 15.20%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period as well as slippage associated with the portfolio’s quarterly rebalance process.

During this same time period, the Russell 1000^® Growth Index (the “Benchmark Index”) returned 19.50%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 610 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of large cap growth stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap growth market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the health care sector and most underweight the industrials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s relative

underweight allocation in the industrials and consumer discretionary sectors.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The materials sector detracted most significantly from the Fund’s return, followed by the energy sector.

Positions that contributed most significantly to the Fund’s return included Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 3.46%), and NVIDIA Corp., an information technology company (portfolio average weight of 1.18%). Positions that detracted most significantly from the Fund’s return included Bristol-Myers Squibb Co., a health care company (portfolio average weight of 3.22%), and NIKE, Inc., Class B, a consumer discretionary company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	36.0
Consumer Discretionary	20.7
Health Care	14.9
Energy	8.3
Consumer Staples	7.5
Industrials	5.7
Financials	4.1
Telecommunication Services	1.5
Materials	1.3
Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017
Security
Facebook, Inc., Class A	3.6
Alphabet, Inc., Class A	3.5
Amazon.com, Inc.	3.5
Home Depot, Inc. (The)	3.5
UnitedHealth Group, Inc.	3.5
Microsoft Corp.	3.4
Mastercard, Inc., Class A	3.4
Starbucks Corp.	3.4
Comcast Corp., Class A	3.4
Philip Morris International, Inc.	3.3
Total	34.5

4

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

Index	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
																						Average Annualized			Cumulative
Dynamic Large Cap Growth IntellidexSM Index		15.20	%		12.37	%		41.90	%		14.82	%		99.61	%		8.62	%		128.59	%		8.63	%		173.52	%
Russell 1000® Growth Index		19.50			12.11			40.91			13.87			91.44			8.88			134.10			9.15			189.83
Fund
NAV Return		14.46			11.69			39.33			14.13			93.67			7.92			114.29			7.92			152.64
Market Price Return		14.57			11.71			39.41			14.15			93.78			7.92			114.30			7.91			152.28

Fund Inception: March 3, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The

returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^† Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

5

PWV	Manager’s Analysis
	PowerShares Dynamic Large Cap Value Portfolio (PWV)

As an index fund, the PowerShares Dynamic Large Cap Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Large Cap Value Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of large capitalization companies that comprise the Index.

NYSE Group, Inc. (“NYSE Group” or the “Index Provider”) considers a company to be a large capitalization company if it falls within the Index model. The Index for the Fund is composed of 50 large capitalization U.S. value stocks that, strictly in accordance with its guidelines and mandated procedures, the Index Provider includes principally on the basis of their capital appreciation potential. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary NYSE Group Intellidex model. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 20.14%. On a net asset value (“NAV”) basis, the Fund returned 20.06%. During the same time period, the Index returned 20.80%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Value Index (the “Benchmark Index”) returned 16.55%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 690 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of large cap value stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap value market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight the energy sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s relative overweight allocation in the information technology sector.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the information technology and industrials sectors, respectively. The consumer discretionary sector detracted most significantly from the Fund’s return, followed by the energy sector.

Positions that contributed most significantly to the Fund’s return included JPMorgan Chase & Co., a financials company (portfolio average weight of 3.39%), and CSX Corp., an industrials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Target Corp., a consumer discretionary company (portfolio average weight of 0.62%), and Gilead Sciences, Inc., a health care company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	28.5
Information Technology	24.9
Health Care	18.8
Industrials	11.4
Consumer Staples	5.0
Telecommunication Services	3.2
Materials	2.8
Consumer Discretionary	2.6
Energy	1.4
Utilities	1.4
Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017
Security
Wal-Mart Stores, Inc.	3.6
Apple, Inc.	3.6
Oracle Corp.	3.6
Johnson & Johnson	3.4
Cisco Systems, Inc.	3.4
Intel Corp.	3.4
Pfizer, Inc.	3.4
Citigroup, Inc.	3.3
JPMorgan Chase & Co.	3.2
Bank of America Corp.	3.2
Total	34.1

6

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Dynamic Large Cap Value IntellidexSM Index		20.80	%		9.11	%		29.88	%		14.40	%		95.90	%		8.59	%		127.98	%		10.31	%		229.66	%
Russell 1000® Value Index		16.55			8.26			26.89			13.32			86.85			5.53			71.28			7.11			130.55
Fund
NAV Return		20.06			8.44			27.51			13.67			89.74			7.87			113.38			9.58			204.05
Market Price Return		20.14			8.47			27.63			13.69			89.97			7.88			113.44			9.57			203.72

Fund Inception: March 3, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The

returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

7

EQWS	Manager’s Analysis
	PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

As an index fund, the PowerShares Russell 2000 Equal Weight Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell 2000^® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is designed to provide equal-weighted exposure to approximately 2,000 mid and small cap securities in the larger U.S. equity market. The Index generally is composed of all of the securities included in the Russell 2000^® Index, which is composed of the smallest 2,000 securities of the Russell 3000^® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell 2000^® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell 2000^® Index, which employs a market capitalization-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell 2000^® Index. The Fund generally will invest in all of the component securities of the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 23.11%. On a net asset value (“NAV”) basis, the Fund returned 23.21%. During the same time period, the Index returned 23.58%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 2000^® Index (the “Benchmark Index”) returned 25.63%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,000 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar broad-based small cap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance

comparison is a useful measure for investors as a broad representation of the U.S. small cap market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2017, which both contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2017, the industrials sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. There were no detracting sectors.

Positions that contributed most significantly to the Fund’s return included Straight Path Communications, Inc., Class B, a telecommunication services company (portfolio average weight of 0.23%), and Clayton Williams Energy, Inc., an energy company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included GNC Holdings, Inc., Class A, a consumer discretionary company (portfolio average weight of 0.17%), and Cobalt International Energy, Inc., an energy company (portfolio average weight of 0.11%).

8

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Industrials	14.0
Information Technology	13.4
Consumer Discretionary	11.7
Health Care	11.2
Consumer Staples	10.8
Energy	9.4
Financials	8.5
Utilities	7.2
Materials	6.9
Telecommunication Services	4.4
Real Estate	2.4
Money Market Funds Plus Other Assets Less Liabilities	0.1

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Straight Path Communications, Inc., Class B	0.8
General Communication, Inc., Class A	0.3
AdvancePierre Foods Holdings, Inc.	0.3
Sanderson Farms, Inc.	0.3
PetMed Express, Inc.	0.3
Core-Mark Holding Co., Inc.	0.3
Calavo Growers, Inc.	0.3
GNC Holdings, Inc., Class A	0.3
SUPERVALU, Inc.	0.3
National Beverage Corp.	0.3
Total	3.5

* Excluding money market fund holdings.

9

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended-Russell 2000® Equal Weight Index†		23.58	%		8.15	%		26.50	%		12.35	%		79.02	%		5.74	%		74.76	%		6.14	%		86.03	%
Russell 2000® Index		25.63			9.03			29.63			12.95			83.84			7.05			97.57			7.24			107.02
Fund
NAV Return		23.21			7.80			25.28			11.92			75.63			5.13			64.86			5.51			74.77
Market Price Return		23.11			7.81			25.29			11.95			75.81			5.12			64.83			5.51			74.73

Fund Inception: December 1, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.17% and the net annual operating expense ratio was indicated as 0.25%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Russell 2000^® Equal Weight Index is comprised of the performance of the Dynamic Small Cap Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the RAFI^® Fundamental Small Core Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

10

PXSG	Manager’s Analysis
	PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

As an index fund, the PowerShares Russell 2000 Pure Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell 2000^® Pure Growth Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is composed of securities selected from the Russell 2000^® Index, which is composed of the smallest 2,000 securities of the Russell 3000^® Index, an index designed to measure the performance of the largest 3,000 U.S. companies representing 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell 2000^® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 22.82%. On a net asset value (“NAV”) basis, the Fund returned 23.02%. During the same time period, the Index returned 23.13%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the Russell 2000^® Growth Index (the “Benchmark Index”) returned 24.06%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,160 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of small cap growth stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap growth market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the financials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation in the materials sector.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and industrial sectors, respectively. The consumer staples sector detracted most significantly from the Fund’s return, followed by the energy sector.

Positions that contributed most significantly to the Fund’s return included Extreme Networks, Inc., an information technology company (portfolio average weight of 0.74%), and ZELTIQ Aesthetics, Inc., a health care company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Diplomat Pharmacy, Inc., a health care company (portfolio average weight of 0.40%), and Zoe’s Kitchen, Inc., a consumer discretionary company (portfolio average weight of 0.51%).

11

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	34.9
Health Care	24.5
Consumer Discretionary	16.4
Industrials	13.9
Consumer Staples	3.1
Materials	2.5
Real Estate	2.4
Financials	1.6
Telecommunication Services	0.7
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
LogMeIn, Inc.	1.4
Supernus Pharmaceuticals, Inc.	1.4
Extreme Networks, Inc.	1.3
MiMedx Group, Inc.	1.3
Repligen Corp.	1.2
Cavium, Inc.	1.1
Builders FirstSource, Inc.	1.1
Universal Display Corp.	1.1
Nexstar Media Group, Inc., Class A	1.0
Pegasystems, Inc.	1.0
Total	11.9

* Excluding money market fund holdings.

12

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended-Russell 2000® Pure Growth Index†		23.13	%		6.98	%		22.43	%		11.19	%		69.96	%		5.41	%		69.43	%		6.31	%		110.39	%
Russell 2000® Growth Index		24.06			9.27			30.48			12.89			83.31			7.97			115.35			8.68			175.22
Fund
NAV Return		23.02			6.77			21.71			10.89			67.67			4.84			60.46			5.75			97.41
Market Price Return		22.82			6.77			21.72			10.91			67.80			4.84			60.40			5.73			96.95

Fund Inception: March 3, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.67% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^† The Blended-Russell 2000^® Pure Growth Index is comprised of the performance of the Dynamic Small Cap Growth Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the RAFI^® Fundamental Small Growth Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

13

PXSV	Manager’s Analysis
	PowerShares Russell 2000 Pure Value Portfolio (PXSV)

As an index fund, the PowerShares Russell 2000 Pure Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell 2000^® Pure Value Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is composed of securities selected from the Russell 2000^® Index, which is composed of the smallest 2,000 securities of the Russell 3000^® Index, an index designed to measure the performance of the largest 3,000 U.S. companies representing 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell 2000^® Index with lower price-to-book ratios and lower forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 25.54%. On a net asset value (“NAV”) basis, the Fund returned 25.64%. During the same time period, the Index returned 25.97%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 2000^® Value Index (the “Benchmark Index”) returned 27.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,350 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of small cap value stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap value market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the industrials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation in the energy sector.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and consumer discretionary sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the telecommunication services sectors.

Positions that contributed most significantly to the Fund’s return included Clayton Williams Energy, Inc., an energy company (no longer held at fiscal year-end), and Veeco Instruments, Inc., an information technology company (portfolio average weight of 0.66%). Positions that detracted most significantly from the Fund’s return included Seadrill Ltd., an energy company (portfolio average weight of 0.31%), and Hornbeck Offshore Services, Inc., an energy company (portfolio average weight of 0.27%).

14

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	41.1
Energy	13.9
Industrials	8.6
Real Estate	8.4
Consumer Discretionary	7.7
Information Technology	7.5
Materials	5.3
Utilities	3.1
Health Care	3.0
Telecommunication Services	1.2
Consumer Staples	0.3
Money Market Funds Plus Other Assets Less Liabilities	(0.1)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Veeco Instruments, Inc.	1.1
DeVry Education Group, Inc.	0.9
RetailMeNot, Inc.	0.9
Beazer Homes USA, Inc.	0.9
MGIC Investment Corp.	0.9
Bridgepoint Education, Inc.	0.8
Materion Corp.	0.8
Columbus McKinnon Corp.	0.8
Alon USA Energy, Inc.	0.8
Haynes International, Inc.	0.8
Total	8.7

* Excluding money market fund holdings.

15

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended-Russell 2000® Pure Value Index†		25.97	%		8.41	%		27.41	%		14.84	%		99.77	%		6.92	%		95.22	%		7.82	%		149.79	%
Russell 2000® Value Index		27.18			8.71			28.46			12.96			83.93			6.02			79.51			7.48			140.35
Fund
NAV Return		25.64			8.15			26.50			14.56			97.35			6.41			86.15			7.25			134.23
Market Price Return		25.54			8.13			26.41			14.58			97.52			6.41			86.11			7.24			133.87

Fund Inception: March 3, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.50% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Russell 2000^® Pure Value Index is comprised of the performance of the Dynamic Small Cap Value Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the RAFI^® Fundamental Small Value Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

16

EQWM	Manager’s Analysis
	PowerShares Russell Midcap Equal Weight Portfolio (EQWM)

As an index fund, the PowerShares Russell Midcap Equal Weight Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell Midcap^® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is designed to provide equal-weighted exposure to approximately 800 securities of medium sized companies in the larger U.S. equity market. The Index generally is composed of all of the securities included in the Russell Midcap^® Index, which is composed of the smallest 800 securities of the Russell 1000^® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell Midcap^® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell Midcap^® Index, which employs a market capitalization-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell Midcap^® Index. The Fund generally will invest in all of the component securities of the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 14.11%. On a net asset value (“NAV”) basis, the Fund returned 14.00%. During the same time period, the Index returned 14.24%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell Midcap^® Index (the “Benchmark Index”) returned 16.70%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 800 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar broad-based mid cap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance

comparison is a useful measure for investors as a broad representation of the U.S. mid cap market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2017, which both contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and materials sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Sprint Corp., a telecommunication services company (portfolio average weight of 0.30%), and NVIDIA Corp., an information technology company (portfolio average weight of 0.15%). Positions that detracted most significantly from the Fund’s return included Frontier Communications Corp., a telecommunication services company (portfolio average weight of 0.24%), and Rite Aid Corp., a consumer staples company (portfolio average weight of 0.29%).

17

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	13.5
Industrials	12.5
Health Care	12.0
Consumer Staples	11.0
Consumer Discretionary	10.5
Energy	10.2
Utilities	9.1
Materials	9.0
Financials	5.7
Real Estate	4.3
Telecommunication Services	2.1
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Whole Foods Market, Inc.	0.4
Pilgrim’s Pride Corp.	0.4
Herbalife Ltd.	0.4
Blue Buffalo Pet Products, Inc.	0.4
Energizer Holdings, Inc.	0.3
TreeHouse Foods, Inc.	0.3
US Foods Holding Corp.	0.3
Tyson Foods, Inc., Class A	0.3
Ingredion, Inc.	0.3
Spectrum Brands Holdings, Inc.	0.3
Total	3.4

* Excluding money market fund holdings.

18

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended-Russell Midcap® Equal Weight Index†		14.24	%		8.20	%		26.69	%		12.38	%		79.28	%		6.25	%		83.37	%		7.09	%		104.15	%
Russell Midcap® Index		16.70			8.97			29.39			13.34			87.00			7.62			108.41			8.16			126.33
Fund
NAV Return		14.00			7.92			25.69			12.02			76.42			5.73			74.55			6.56			93.83
Market Price Return		14.11			7.98			25.89			12.01			76.30			5.72			74.49			6.57			93.91

Fund Inception: December 1, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was indicated as 0.25%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Russell Midcap^® Equal Weight Index is comprised of the performance of the Dynamic Mid Cap Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the RAFI^® Fundamental Mid Core Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

19

PXMG	Manager’s Analysis
	PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

As an index fund, the PowerShares Russell Midcap Pure Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell Midcap^® Pure Growth Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is composed of securities selected from the Russell Midcap^® Index, which includes the smallest 800 securities of the Russell 1000^® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Midcap^® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 19.98%. On a net asset value (“NAV”) basis, the Fund returned 19.89%. During the same time period, the Index returned 20.32%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell Midcap^® Growth Index (the “Benchmark Index”) returned 15.83%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 470 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of midcap growth stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. midcap growth market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the consumer staples sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation in the healthcare sector.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and industrials sectors, respectively. The materials sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., an information technology company (portfolio average weight of 1.47%), and Incyte Corp., a health care company (portfolio average weight of 1.86%). Positions that detracted most significantly from the Fund’s return included Under Armour, Inc., Class A, a consumer discretionary company (portfolio average weight of 1.21%), and athenahealth, Inc., a health care company (portfolio average weight of 1.29%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	32.7
Health Care	24.8
Consumer Discretionary	21.1
Industrials	9.8
Financials	5.6
Real Estate	3.7
Consumer Staples	2.2
Telecommunication Services	0.1
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Incyte Corp.	2.4
ABIOMED, Inc.	2.1
MarketAxess Holdings, Inc.	2.1
NVIDIA Corp.	2.0
Illumina, Inc.	2.0
Align Technology, Inc.	1.9
Veeva Systems, Inc., Class A	1.9
ServiceNow, Inc.	1.9
Arista Networks, Inc.	1.9
Ulta Beauty, Inc.	1.8
Total	20.0

* Excluding money market fund holdings.

20

PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended-Russell Midcap® Pure Growth Index†		20.32	%		6.26	%		19.98	%		10.43	%		64.21	%		6.27	%		83.62	%		8.30	%		163.64	%
Russell Midcap® Growth Index		15.83			8.95			29.32			12.28			78.49			7.83			112.47			9.00			185.19
Fund
NAV Return		19.89			5.87			18.67			10.01			61.11			5.72			74.37			7.70			146.47
Market Price Return		19.98			5.91			18.79			10.03			61.25			5.72			74.45			7.69			146.15

Fund Inception: March 3, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.44% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Russell Midcap^® Pure Growth Index is comprised of the performance of the Dynamic Mid Cap Growth Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the RAFI^® Fundamental Mid Growth Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2017.

^†† Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

21

PXMV	Manager’s Analysis
	PowerShares Russell Midcap Pure Value Portfolio (PXMV)

As an index fund, the PowerShares Russell Midcap Pure Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell Midcap^® Pure Value Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is composed of securities selected from the Russell Midcap^® Index, which includes the smallest 800 securities of the Russell 1000^® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Midcap^® Index with lower price-to-book ratios and lower forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 16.64%. On a net asset value (“NAV”) basis, the Fund returned 16.60%. During the same time period, the Index returned 17.00%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell Midcap^® Value Index (the “Benchmark Index”) returned 17.52%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 570 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of midcap value stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. midcap value market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation in the information technology sector.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and utilities sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the telecommunication services and information technology sectors, respectively.

Positions that contributed most significantly to the Fund’s return included SLM Corp., a financials company (portfolio average weight of 0.80%), and Assured Guaranty Ltd., a financials company (portfolio average weight of 1.21%). Positions that detracted most significantly from the Fund’s return included Frontier Communications Corp., a telecommunication services company (portfolio average weight of 0.69%), and First Solar, Inc., an information technology company (portfolio average weight of 0.67%).

22

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	29.0
Energy	16.5
Utilities	14.8
Real Estate	11.6
Industrials	10.2
Consumer Discretionary	5.0
Information Technology	4.7
Materials	3.5
Telecommunication Services	2.8
Health Care	1.9
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Assured Guaranty Ltd.	1.7
Comerica, Inc.	1.6
Popular, Inc.	1.5
Chimera Investment Corp.	1.5
Fifth Third Bancorp	1.4
CIT Group, Inc.	1.3
Timken Co. (The)	1.3
MFA Financial, Inc.	1.3
United Continental Holdings, Inc.	1.3
Two Harbors Investment Corp.	1.3
Total	14.2

* Excluding money market fund holdings.

23

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended-Russell Midcap® Pure Value Index†		17.00	%		8.83	%		28.91	%		15.38	%		104.51	%		6.76	%		92.42	%		8.54	%		170.98	%
Russell Midcap® Value Index		17.52			8.86			29.01			14.26			94.78			7.16			99.70			9.05			186.61
Fund
NAV Return		16.60			8.47			27.61			14.97			100.87			6.21			82.72			7.91			152.44
Market Price Return		16.64			8.48			27.66			15.00			101.11			6.21			82.75			7.90			152.15

Fund Inception: March 3, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.54% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Russell Midcap^® Pure Value Index is comprised of the performance of the Dynamic Mid Cap Value Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the RAFI^® Fundamental Mid Value Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

24

EQWL	Manager’s Analysis
	PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)

As an index fund, the PowerShares Russell Top 200 Equal Weight Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell Top 200^® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is designed to provide equal-weighted exposure to the securities of the largest 200 companies in the U.S. equity market. The Index generally is composed of all of the securities included in the Russell Top 200^® Index, which represents the largest 200 companies within the Russell 3000^® Index, an index measuring the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell Top 200^® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell Top 200^® Index, which employs a market capitalization-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell Top 200^® Index. The Fund generally will invest in all of the component securities of the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 19.80%. On a net asset value (“NAV”) basis, the Fund returned 19.58%. During the same time period, the Index returned 19.91%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Index (the “Benchmark Index”) returned 18.03%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar broad-based large cap equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance

comparison is a useful measure for investors as a broad representation of the U.S. large cap market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the health care sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the healthcare sector.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and industrials sectors, respectively. There were no detracting sectors.

Positions that contributed most significantly to the Fund’s return included CSX Corp., an industrials company (portfolio average weight of 0.54%), and Applied Materials, Inc., an information technology company (portfolio average weight of 0.45%). Positions that detracted most significantly from the Fund’s return included Target Corp., a consumer discretionary company (portfolio average weight of 0.47%), and Gilead Sciences, Inc., a health care company (portfolio average weight of 0.47%).

25

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Health Care	16.5
Information Technology	15.1
Financials	15.1
Consumer Discretionary	12.9
Industrials	11.6
Consumer Staples	10.3
Energy	6.2
Materials	5.0
Utilities	3.4
Real Estate	2.5
Telecommunication Services	1.4
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Vertex Pharmaceuticals, Inc.	0.7
Yum China Holdings, Inc.	0.6
Tesla, Inc.	0.6
Bioverativ, Inc.	0.6
Caterpillar, Inc.	0.6
PayPal Holdings, Inc.	0.6
Alphabet, Inc., Class C	0.5
CSX Corp.	0.5
HP, Inc.	0.5
Boston Scientific Corp.	0.5
Total	5.7

* Excluding money market fund holdings.

26

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception††
Index																						Average Annualized			Cumulative
Blended-Russell Top 200® Equal Weight Index†		19.91	%		10.37	%		34.45	%		14.46	%		96.45	%		8.04	%		116.72	%		8.49	%		133.71	%
Russell 1000® Index		18.03			10.20			33.82			13.63			89.43			7.25			101.40			7.66			115.64
Fund
NAV Return		19.58			10.04			33.23			14.07			93.10			7.50			106.01			7.94			121.59
Market Price Return		19.80			10.05			33.27			14.09			93.27			7.50			106.13			7.94			121.60

Fund Inception: December 1, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.54% and the net annual operating expense ratio was indicated as 0.25%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Russell Top 200^® Equal Weight Index is comprised of the performance of the Dynamic Large Cap Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the RAFI^® Fundamental Large Core Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

27

PXLG	Manager’s Analysis
	PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

As an index fund, the PowerShares Russell Top 200 Pure Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell Top 200^® Pure Growth Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.

The Index is composed of securities selected from the Russell Top 200^® Index, which includes the largest 200 securities of the Russell 3000^® Index, an index measuring the performance of 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Top 200^® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 18.09%. On a net asset value (“NAV”) basis, the Fund returned 18.06%. During the same time period, the Index returned 18.52%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Growth Index (the “Benchmark Index”) returned 19.50%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 610 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of large cap growth stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap growth market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation in the information technology sector.

For the fiscal year ended April 30, 2017, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and health care sectors, respectively. The consumer staples sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Netflix, Inc., a consumer discretionary company (portfolio average weight of 2.83%), and Broadcom Ltd., an information technology company (portfolio average weight of 2.55%). Positions that detracted most significantly from the Fund’s return included Gilead Sciences, Inc., a health care company (portfolio average weight of 0.99%), and Monster Beverage Corp., a consumer staples company (portfolio average weight of 0.99%).

28

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Consumer Discretionary	30.3
Information Technology	26.1
Health Care	17.8
Consumer Staples	9.3
Industrials	7.0
Real Estate	4.2
Materials	3.4
Financials	1.8
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Netflix, Inc.	3.6
Priceline Group, Inc. (The)	3.6
Tesla, Inc.	3.5
Amazon.com, Inc.	3.2
Mastercard, Inc., Class A	3.0
American Tower Corp.	2.9
Celgene Corp.	2.9
Broadcom Ltd.	2.8
Boeing Co. (The)	2.6
salesforce.com, inc.	2.6
Total	30.7

* Excluding money market fund holdings.

29

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)

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

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Russell Top 200® Pure Growth Index††		18.52	%		10.93	%		36.52	%		13.77	%		90.58	%		14.15	%		117.53	%
Russell 1000® Growth Index		19.50			12.11			40.91			13.87			91.44			14.47			121.09
Fund
NAV Return		18.06			10.50			34.93			13.32			86.83			13.70			112.63
Market Price Return		18.09			10.52			35.01			13.33			86.96			13.73			112.90

Fund Inception: June 16, 2011

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Russell Top 200^® Pure Growth Index performance is comprised of the performance of the RAFI^® Fundamental Large Growth Index from Fund inception through the conversion date, May 22, 2015, followed by the performance of the Index starting from the conversion date through April 30, 2017.

30

PXLV	Manager’s Analysis
	PowerShares Russell Top 200 Pure Value Portfolio (PXLV)

As an index fund, the PowerShares Russell Top 200 Pure Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Russell Top 200^® Pure Value Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that compose the Index.

The Index is composed of securities selected from the Russell Top 200^® Index, which includes the largest 200 securities of the Russell 3000^® Index, an index measuring the performance of 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Top 200^® Index with lower price-to-book ratios and lower forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 23.69%. On a net asset value (“NAV”) basis, the Fund returned 23.50%. During the same time period, the Index returned 24.00%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Value Index (the “Benchmark Index”) returned 16.55%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 690 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of large cap value stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap value market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the health care sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation in the financials sector.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and information technology sectors, respectively. The real estate sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Morgan Stanley, a financials company (portfolio average weight of 2.61%), and CSX Corp., an industrials company (portfolio average weight of 1.84%). Positions that detracted most significantly from the Fund’s return included General Electric Co., an industrials company (no longer held at fiscal year-end), and Baker Hughes, Inc., an energy company (no longer held at fiscal year-end).

31

PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	38.9
Energy	16.3
Utilities	12.7
Industrials	9.5
Information Technology	9.4
Consumer Staples	4.4
Consumer Discretionary	3.6
Health Care	2.2
Materials	1.6
Telecommunication Services	1.1
Real Estate	0.3
Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017
Security
Yahoo!, Inc.	3.3
Morgan Stanley	3.3
PNC Financial Services Group, Inc. (The)	3.1
Citigroup, Inc.	3.0
JPMorgan Chase & Co.	2.9
CSX Corp.	2.8
Duke Energy Corp.	2.8
Bank of America Corp.	2.8
Kinder Morgan, Inc.	2.8
Eaton Corp. PLC	2.7
Total	29.5

32

PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)

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

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Russell Top 200® Pure Value Index††		24.00	%		9.63	%		31.75	%		14.88	%		100.06	%		13.57	%		111.16	%
Russell 1000® Value Index		16.55			8.26			26.89			13.32			86.85			12.72			102.03
Fund
NAV Return		23.50			9.22			30.30			14.46			96.44			13.15			106.58
Market Price Return		23.69			9.26			30.42			14.49			96.73			13.19			107.01

Fund Inception: June 16, 2011

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.55% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Russell Top 200^® Pure Value Index performance is comprised of the performance of the RAFI^® Fundamental Large Value Index from Fund inception through the conversion date, May 22, 2015, followed by the performance of the Index starting from the conversion date through April 30, 2017.

33

PZI	Manager’s Analysis
	PowerShares Zacks Micro Cap Portfolio (PZI)

As an index fund, the PowerShares Zacks Micro Cap Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Zacks Micro Cap Index^TM (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of micro capitalization companies that comprise the Index.

Zacks Investment Research (the “Index Provider”) considers a company to be a micro capitalization company if it falls within the Index model. For the purpose of this constituent selection, the micro capitalization subset is defined relative to the entire investable universe of stocks, with the upper threshold equal to 0.15% of the capitalization of the largest capitalization domestic company at the time of selection and the lower threshold equal to a minimum capitalization of approximately 0.015% of the largest capitalization domestic company at the time of selection. The Index Provider, strictly in accordance with its guidelines and mandated procedures, selects companies for inclusion in the Index from a universe of 7,000 domestic companies. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 23.81%. On a net asset value (“NAV”) basis, the Fund returned 23.87%. During the same time period, the Index returned 24.91%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period as well as the impact of trading costs associated with the portfolio’s quarterly rebalance process.

During this same time period, the Russell Microcap^® Index (the “Benchmark Index”) returned 25.03%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,490 securities. The Fund selected this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of micro-cap stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the micro-cap segment of the U.S. market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a proprietary stock selection methodology that differs from the stock selection methodology of the Benchmark Index.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the health care sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index

during the period can be attributed due to fees and operating expenses that the Fund incurred during the period as well as the impact of trading costs associated with the portfolio’s quarterly rebalance process.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and information technology sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the telecommunication services sector.

Positions that contributed most significantly to the Fund’s return included SodaStream International Ltd. (Israel), a consumer discretionary company (portfolio average weight of 0.29%), and Tivity Health, Inc., a health care company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Ocean Rig UDW, Inc., an energy company (no longer held at fiscal year-end), and Hornbeck Offshore Services, Inc., an energy company (no longer held at fiscal year-end).

34

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	45.1
Industrials	12.9
Energy	10.6
Information Technology	8.9
Consumer Discretionary	8.1
Real Estate	5.0
Materials	4.5
Health Care	3.1
Consumer Staples	1.3
Telecommunication Services	0.3
Utilities	0.2
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
RetailMeNot, Inc.	0.4
CAI International, Inc.	0.3
Southcross Energy Partners LP	0.3
Resolute Forest Products, Inc.	0.3
NL Industries, Inc.	0.3
VOXX International Corp.	0.3
DMC Global, Inc.	0.3
Ring Energy, Inc.	0.3
Exar Corp.	0.3
Ultra Clean Holdings, Inc.	0.3
Total	3.1

* Excluding money market fund holdings.

35

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Zacks Micro Cap Index™		24.91	%		7.75	%		25.09	%		13.47	%		88.07	%		2.46	%		27.51	%		4.15	%		60.86	%
Russell Microcap® Index		25.03			7.36			23.74			12.99			84.13			5.37			68.76			6.54			109.93
Fund
NAV Return		23.87			6.95			22.33			12.55			80.58			1.62			17.48			3.28			45.79
Market Price Return		23.81			6.95			22.35			12.58			80.83			1.65			17.83			3.26			45.54

Fund Inception: August 18, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.11%, including acquired fund fees and expenses of 0.11% and the net annual operating expense ratio was indicated as 0.81%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and

capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

36

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—20.7%
	16,749	Amazon.com, Inc.(b)	$	15,492,657
	379,110	Comcast Corp., Class A		14,857,321
	98,636	Home Depot, Inc. (The)		15,397,080
	23,003	O’Reilly Automotive, Inc.(b)		5,708,194
	3,736	Priceline Group, Inc. (The)(b)		6,899,719
	90,436	Ross Stores, Inc.		5,878,340
	1,206,549	Sirius XM Holdings, Inc.		5,972,418
	247,633	Starbucks Corp.		14,872,838
	63,025	Time Warner, Inc.		6,256,492
				91,335,059
		Consumer Staples—7.5%
	34,787	Costco Wholesale Corp.		6,175,388
	56,301	Hershey Co. (The)		6,091,768
	133,997	Philip Morris International, Inc.		14,852,228
	115,659	Sysco Corp.		6,114,891
				33,234,275
		Energy—8.3%
	92,713	Anadarko Petroleum Corp.		5,286,495
	102,004	Baker Hughes, Inc.		6,055,977
	128,568	Chevron Corp.		13,718,206
	115,007	Halliburton Co.		5,276,521
	150,893	Williams Partners LP		6,176,051
				36,513,250
		Financials—4.1%
	49,928	CME Group, Inc.		5,801,134
	83,183	Marsh & McLennan Cos., Inc.		6,166,356
	46,773	S&P Global, Inc.		6,276,469
				18,243,959
		Health Care—14.9%
	121,396	Baxter International, Inc.		6,759,329
	255,935	Bristol-Myers Squibb Co.		14,345,157
	119,484	Celgene Corp.(b)		14,821,990
	172,907	Eli Lilly & Co.		14,188,749
	87,784	UnitedHealth Group, Inc.		15,351,666
				65,466,891
		Industrials—5.7%
	127,682	CSX Corp.		6,491,353
	31,997	FedEx Corp.		6,069,831
	99,354	Republic Services, Inc.		6,258,308
	83,901	Waste Management, Inc.		6,106,315
				24,925,807
		Information Technology—36.0%
	49,944	Accenture PLC, Class A		6,058,207
	51,479	Adobe Systems, Inc.(b)		6,884,802
	16,771	Alphabet, Inc., Class A(b)		15,505,125
	87,427	Amphenol Corp., Class A		6,321,846
	74,957	Analog Devices, Inc.		5,711,723
	169,171	Applied Materials, Inc.		6,870,034
	60,186	Automatic Data Processing, Inc.		6,288,835
	70,597	Electronic Arts, Inc.(b)		6,694,008
	105,449	Facebook, Inc., Class A(b)		15,843,712
	53,239	Fiserv, Inc.(b)		6,342,895
	50,681	Intuit, Inc.		6,345,768

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	128,892	Mastercard, Inc., Class A	$	14,992,718
	220,883	Microsoft Corp.		15,121,650
	60,874	NVIDIA Corp.		6,349,158
	101,260	Paychex, Inc.		6,002,693
	161,869	Visa, Inc., Class A		14,765,690
	67,415	VMware, Inc., Class A(b)		6,345,100
	134,711	Yahoo!, Inc.(b)		6,494,417
				158,938,381
		Materials—1.3%
	166,004	Southern Copper Corp. (Peru)		5,871,562
		Telecommunication Services—1.5%
	98,553	T-Mobile US, Inc.(b)		6,629,660
		Total Investments (Cost $385,869,240)—100.0%		441,158,844
		Other assets less liabilities—(0.0)%		(106,259	)
		Net Assets—100.0%	$	441,052,585

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

37

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Value Portfolio (PWV)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—2.6%
	490,345	General Motors Co.	$	16,985,551
	281,091	Target Corp.		15,698,932
				32,684,483
		Consumer Staples—5.0%
	290,757	Tyson Foods, Inc., Class A		18,684,045
	597,657	Wal-Mart Stores, Inc.		44,931,853
				63,615,898
		Energy—1.4%
	272,496	Valero Energy Corp.		17,605,967
		Financials—28.5%
	226,760	Allstate Corp. (The)		18,433,320
	228,175	American Express Co.		18,082,869
	1,733,896	Bank of America Corp.		40,469,133
	703,052	Citigroup, Inc.		41,564,434
	664,922	Fifth Third Bancorp		16,244,044
	425,372	Franklin Resources, Inc.		18,337,787
	467,674	JPMorgan Chase & Co.		40,687,638
	392,129	Morgan Stanley		17,006,635
	142,541	PNC Financial Services Group, Inc. (The)		17,069,285
	467,262	Progressive Corp. (The)		18,559,647
	164,762	Prudential Financial, Inc.		17,634,477
	228,835	State Street Corp.		19,199,256
	305,437	SunTrust Banks, Inc.		17,351,876
	149,275	Travelers Cos., Inc. (The)		18,160,797
	728,656	Wells Fargo & Co.		39,230,839
				358,032,037
		Health Care—18.8%
	244,924	Amgen, Inc.		40,000,988
	111,428	Anthem, Inc.		19,821,927
	64,147	Biogen, Inc.(b)		17,397,308
	257,511	Express Scripts Holding Co.(b)		15,795,725
	350,199	Johnson & Johnson		43,239,070
	122,613	McKesson Corp.		16,956,152
	647,217	Merck & Co., Inc.		40,341,035
	1,251,297	Pfizer, Inc.		42,443,994
				235,996,199
		Industrials—11.4%
	396,213	American Airlines Group, Inc.		16,886,598
	122,497	Cummins, Inc.		18,489,697
	361,829	Delta Air Lines, Inc.		16,441,510
	253,264	Eaton Corp. PLC		19,156,889
	270,839	PACCAR, Inc.		18,073,086
	318,989	Southwest Airlines Co.		17,933,561
	171,185	Union Pacific Corp.		19,165,873
	244,975	United Continental Holdings, Inc.(b)		17,199,695
				143,346,909
		Information Technology—24.9%
	312,161	Apple, Inc.		44,841,928
	1,252,030	Cisco Systems, Inc.		42,656,662
	662,750	Corning, Inc.		19,120,338
	1,037,805	HP, Inc.		19,531,490
	1,177,975	Intel Corp.		42,583,796
	234,622	International Business Machines Corp.		37,607,560
	777,910	Micron Technology, Inc.(b)		21,524,770

Number of Shares			Value
		Common Stocks (continued)
		Information Technology (continued)
	992,065	Oracle Corp.	$	44,603,242
	246,131	TE Connectivity Ltd.		19,043,156
	244,873	Western Digital Corp.		21,810,838
				313,323,780
		Materials—2.8%
	288,234	Dow Chemical Co. (The)		18,101,095
	196,125	LyondellBasell Industries NV, Class A		16,623,555
				34,724,650
		Telecommunication Services—3.2%
	1,015,951	AT&T, Inc.		40,262,138
		Utilities—1.4%
	507,651	Exelon Corp.		17,579,954
		Total Investments (Cost $1,149,157,926)—100.0%		1,257,172,015
		Other assets less liabilities—(0.0)%		(199,338	)
		Net Assets—100.0%	$	1,256,972,677

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.

38

Schedule of Investments^(a)

PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—11.7%
	791	1-800-Flowers.com, Inc., Class A(b)	$	8,503
	284	Aaron’s, Inc.		10,207
	724	Abercrombie & Fitch Co., Class A		8,681
	457	Acushnet Holdings Corp.		8,345
	270	AMC Entertainment Holdings, Inc., Class A		8,181
	617	American Axle & Manufacturing Holdings, Inc.(b)		10,853
	588	American Eagle Outfitters, Inc.		8,285
	431	American Outdoor Brands Corp.(b)		9,547
	373	American Public Education, Inc.(b)		8,243
	233	America’s Car-Mart, Inc.(b)		8,691
	135	Asbury Automotive Group, Inc.(b)		8,262
	2,127	Ascena Retail Group, Inc.(b)		8,317
	662	Ascent Capital Group, Inc., Class A(b)		8,480
	535	At Home Group, Inc.(b)		9,368
	284	AV Homes, Inc.(b)		4,984
	852	Barnes & Noble Education, Inc.(b)		8,869
	926	Barnes & Noble, Inc.		7,917
	322	Bassett Furniture Industries, Inc.		9,676
	695	Beazer Homes USA, Inc.(b)		8,625
	670	Belmond Ltd., Class A (United Kingdom)(b)		8,308
	545	Big 5 Sporting Goods Corp.		8,393
	168	Big Lots, Inc.		8,482
	20	Biglari Holdings, Inc.(b)		8,533
	212	BJ’s Restaurants, Inc.(b)		9,561
	425	Bloomin’ Brands, Inc.		9,218
	132	Bob Evans Farms, Inc.		8,810
	416	Bojangles’, Inc.(b)		9,131
	871	Boot Barn Holdings, Inc.(b)		9,241
	395	Boyd Gaming Corp.(b)		8,959
	766	Bridgepoint Education, Inc.(b)		9,345
	117	Bright Horizons Family Solutions, Inc.(b)		8,906
	451	Buckle, Inc. (The)		8,434
	55	Buffalo Wild Wings, Inc.(b)		8,665
	947	Build-A-Bear Workshop, Inc.(b)		9,849
	552	Caesars Acquisition Co., Class A(b)		9,632
	862	Caesars Entertainment Corp.(b)		9,568
	306	Caleres, Inc.		8,819
	716	Callaway Golf Co.		8,485
	1,585	Cambium Learning Group, Inc.(b)		7,719
	260	Camping World Holdings, Inc., Class A		8,039
	99	Capella Education Co.		9,435
	968	Career Education Corp.(b)		9,825
	301	Carriage Services, Inc.		8,232
	584	Carrols Restaurant Group, Inc.(b)		8,176
	379	Cato Corp. (The), Class A		8,550
	70	Cavco Industries, Inc.(b)		8,312
	2,715	Central European Media Enterprises Ltd., Class A (Bermuda)(b)		11,132
	1,066	Century Casinos, Inc.(b)		8,773
	321	Century Communities, Inc.(b)		8,763
	133	Cheesecake Factory, Inc. (The)		8,533
	1,002	Chegg, Inc.(b)		9,028
	582	Chico’s FAS, Inc.		8,043
	77	Children’s Place, Inc. (The)		8,840
	53	Churchill Downs, Inc.		8,840
	285	Chuy’s Holdings, Inc.(b)		8,493
	470	Citi Trends, Inc.		8,831

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	509	ClubCorp Holdings, Inc.	$	6,846
	331	Collectors Universe, Inc.		9,040
	141	Columbia Sportswear Co.		7,983
	976	Conn’s, Inc.(b)		17,178
	2,052	Container Store Group, Inc. (The)(b)		8,454
	190	Cooper Tire & Rubber Co.		7,277
	74	Cooper-Standard Holdings, Inc.(b)		8,367
	1,705	Core-Mark Holding Co., Inc.		59,709
	52	Cracker Barrel Old Country Store, Inc.		8,330
	1,223	Crocs, Inc.(b)		7,619
	335	CSS Industries, Inc.		8,831
	646	Culp, Inc.		20,737
	40	Daily Journal Corp.(b)		8,361
	442	Dana, Inc.		8,584
	136	Dave & Buster’s Entertainment, Inc.(b)		8,705
	147	Deckers Outdoor Corp.(b)		8,760
	466	Del Frisco’s Restaurant Group, Inc.(b)		8,015
	652	Del Taco Restaurants, Inc.(b)		8,574
	474	Delta Apparel, Inc.(b)		8,309
	671	Denny’s Corp.(b)		8,522
	3,195	Destination XL Group, Inc.(b)		8,147
	248	DeVry Education Group, Inc.		9,387
	160	DineEquity, Inc.		9,046
	103	Dorman Products, Inc.(b)		8,564
	426	DSW, Inc., Class A		8,784
	364	Duluth Holdings, Inc., Class B(b)		8,063
	360	E.W. Scripps Co. (The), Class A(b)		8,021
	702	El Pollo Loco Holdings, Inc.(b)		8,810
	462	Eldorado Resorts, Inc.(b)		8,836
	343	Empire Resorts, Inc.(b)		8,575
	582	Entercom Communications Corp., Class A		7,362
	1,335	Entravision Communications Corp., Class A		8,277
	836	Eros International PLC (India)(b)		8,318
	639	Escalade, Inc.		8,531
	270	Ethan Allen Interiors, Inc.		8,046
	824	Etsy, Inc.(b)		8,866
	942	Express, Inc.(b)		8,129
	364	Fiesta Restaurant Group, Inc.(b)		8,863
	507	Finish Line, Inc. (The), Class A		8,016
	193	Five Below, Inc.(b)		9,480
	170	Flexsteel Industries, Inc.		9,030
	526	Fogo de Chao, Inc.(b)		8,916
	497	Fossil Group, Inc.(b)		8,573
	295	Fox Factory Holding Corp.(b)		8,865
	507	Francesca’s Holdings Corp.(b)		8,000
	592	Fred’s, Inc., Class A(c)		8,714
	415	FTD Cos., Inc.(b)		8,300
	840	Gaia, Inc.(b)		9,198
	1,000	Gannett Co., Inc.		8,360
	146	Genesco, Inc.(b)		7,782
	220	Gentherm, Inc.(b)		8,173
	355	G-III Apparel Group Ltd.(b)		8,413
	3,217	Global Eagle Entertainment, Inc.(b)		9,973
	7,542	GNC Holdings, Inc., Class A(c)		58,677
	621	Golden Entertainment, Inc.		8,719
	974	GoPro, Inc., Class A(b)		8,035

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

39

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	118	Grand Canyon Education, Inc.(b)	$	8,869
	590	Gray Television, Inc.(b)		8,643
	3,139	Green Brick Partners, Inc.(b)		32,332
	112	Group 1 Automotive, Inc.		7,722
	745	Guess?, Inc.		8,314
	501	Habit Restaurants, Inc. (The), Class A(b)		9,469
	347	Haverty Furniture Cos., Inc.		8,554
	87	Helen of Troy Ltd.(b)		8,178
	737	Hemisphere Media Group, Inc., Class A(b)		8,586
	284	Hibbett Sports, Inc.(b)		7,384
	271	Hooker Furniture Corp.		11,775
	621	Horizon Global Corp.(b)		8,750
	853	Houghton Mifflin Harcourt Co.(b)		9,809
	3,573	Hovnanian Enterprises, Inc., Class A(b)		8,361
	225	HSN, Inc.		8,302
	1,156	Iconix Brand Group, Inc.(b)		8,092
	423	Ilg, Inc.		10,199
	240	IMAX Corp.(b)		7,320
	389	Installed Building Products, Inc.(b)		20,753
	223	International Speedway Corp., Class A		8,273
	342	Intrawest Resorts Holdings, Inc.(b)		8,064
	162	iRobot Corp.(b)		12,918
	321	Isle of Capri Casinos, Inc.(b)		7,402
	844	J. Alexander’s Holdings, Inc.(b)		9,284
	82	Jack in the Box, Inc.		8,362
	1,509	JAKKS Pacific, Inc.(b)		7,394
	881	Jamba, Inc.(b)		7,506
	228	Johnson Outdoors, Inc., Class A		8,281
	434	K12, Inc.(b)		8,181
	422	KB Home		8,693
	679	Kirkland’s, Inc.(b)		7,985
	1,381	Kona Grill, Inc.(b)		7,872
	600	La Quinta Holdings, Inc.(b)		8,466
	420	Lands’ End, Inc.(b)		9,912
	597	Laureate Education, Inc., Class A(b)		8,245
	295	La-Z-Boy, Inc.		8,230
	82	LCI Industries		8,294
	256	LGI Homes, Inc.(b)		8,148
	579	Libbey, Inc.		6,079
	364	Liberty Media Corp.-Liberty Braves, Class C(b)		8,925
	242	Liberty Media Corp.-Liberty Formula One, Class C(b)		8,475
	570	Liberty Tax, Inc., Class A		8,008
	590	Liberty TripAdvisor Holdings, Inc., Series A(b)		8,673
	416	Lifetime Brands, Inc.		7,987
	906	Lindblad Expeditions Holdings, Inc.(b)		8,607
	95	Lithia Motors, Inc., Class A		9,077
	253	Loral Space & Communications, Inc.(b)		9,703
	2,562	Luby’s, Inc.(b)		7,532
	434	Lumber Liquidators Holdings, Inc.(b)		10,655
	339	M/I Homes, Inc.(b)		9,207
	388	Malibu Boats, Inc., Class A(b)		8,940
	262	Marcus Corp. (The)		8,856
	756	Marine Products Corp.		9,042
	380	MarineMax, Inc.(b)		7,733
	83	Marriott Vacations Worldwide Corp.		9,145

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	527	MCBC Holdings, Inc.	$	8,827
	276	MDC Holdings, Inc.		8,559
	885	MDC Partners, Inc., Class A		7,921
	314	Media General(b)		93
	129	Meredith Corp.		7,553
	223	Meritage Homes Corp.(b)		8,686
	845	Modine Manufacturing Co.(b)		10,224
	280	Monarch Casino & Resort, Inc.(b)		8,252
	156	Monro Muffler Brake, Inc.		8,089
	287	Motorcar Parts of America, Inc.(b)		8,702
	339	Movado Group, Inc.		7,933
	364	MSG Networks, Inc., Class A(b)		9,082
	133	NACCO Industries, Inc., Class A		11,258
	134	Nathan’s Famous, Inc.(b)		9,139
	656	National CineMedia, Inc.		7,787
	460	Nautilus, Inc.(b)		8,372
	794	New Home Co., Inc. (The)(b)		9,258
	570	New Media Investment Group, Inc.		7,501
	570	New York Times Co. (The), Class A		8,236
	117	Nexstar Media Group, Inc., Class A		8,073
	1,851	Noodles & Co., Class A(b)		10,828
	149	Nutrisystem, Inc.		7,964
	1,806	Office Depot, Inc.		8,976
	250	Ollie’s Bargain Outlet Holdings, Inc.(b)		9,575
	482	Overstock.com, Inc.(b)		8,363
	152	Oxford Industries, Inc.		8,813
	110	Papa John’s International, Inc.		8,697
	586	Party City Holdco, Inc.(b)		9,376
	474	Penn National Gaming, Inc.(b)		8,760
	384	Perry Ellis International, Inc.(b)		7,880
	2,626	PetMed Express, Inc.		60,661
	1,165	Pier 1 Imports, Inc.		7,852
	436	Pinnacle Entertainment, Inc.(b)		8,969
	415	Planet Fitness, Inc., Class A		8,632
	613	Potbelly Corp.(b)		8,551
	2,762	Radio One, Inc., Class D(b)		8,286
	510	Reading International, Inc., Class A(b)		8,022
	1,181	Red Lion Hotels Corp.(b)		7,677
	151	Red Robin Gourmet Burgers, Inc.(b)		8,871
	380	Red Rock Resorts, Inc., Class A		8,884
	683	Regis Corp.(b)		7,452
	932	Rent-A-Center, Inc.(c)		9,963
	220	RH(b)		10,553
	3,259	Ruby Tuesday, Inc.(b)		8,310
	412	Ruth’s Hospitality Group, Inc.		8,199
	161	Saga Communications, Inc., Class A		8,251
	1,198	Salem Media Group, Inc.		9,165
	191	Scholastic Corp.		8,257
	378	Scientific Games Corp., Class A(b)		8,978
	995	Sears Holdings Corp.(b)(c)		10,169
	471	SeaWorld Entertainment, Inc.		8,257
	342	Select Comfort Corp.(b)		10,568
	2,348	Sequential Brands Group, Inc.(b)		7,913
	253	Shake Shack, Inc., Class A(b)		8,587
	328	Shoe Carnival, Inc.		8,321
	174	Shutterfly, Inc.(b)		9,031

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

40

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	205	Sinclair Broadcast Group, Inc., Class A	$	8,087
	402	Sonic Automotive, Inc., Class A		7,879
	353	Sonic Corp.		9,489
	175	Sotheby’s(b)		8,288
	420	Speedway Motorsports, Inc.		7,581
	1,620	Sportsman’s Warehouse Holdings, Inc.(b)		6,626
	4,178	Stage Stores, Inc.		12,033
	169	Standard Motor Products, Inc.		8,590
	2,962	Stein Mart, Inc.		7,316
	216	Steven Madden Ltd.(b)		8,219
	451	Stoneridge, Inc.(b)		8,844
	300	Strattec Security Corp.		9,645
	102	Strayer Education, Inc.		8,844
	153	Sturm Ruger & Co., Inc.		9,249
	318	Superior Industries International, Inc.		6,917
	479	Superior Uniform Group, Inc.		8,737
	560	Tailored Brands, Inc.		6,905
	384	Taylor Morrison Home Corp., Class A(b)		8,870
	130	Tenneco, Inc.		8,194
	187	Texas Roadhouse, Inc.		8,767
	437	Tile Shop Holdings, Inc.		9,330
	937	Tilly’s, Inc., Class A		8,958
	423	Time, Inc.		6,430
	207	TopBuild Corp.(b)		10,596
	306	Tower International, Inc.		8,293
	695	Townsquare Media, Inc., Class A(b)		8,410
	651	TRI Pointe Group, Inc.(b)		8,105
	619	tronc, Inc.(b)		8,876
	2,432	Tuesday Morning Corp.(b)		7,904
	470	UCP, Inc., Class A(b)		5,382
	737	Unifi, Inc.(b)		20,688
	683	Unique Fabricating, Inc.		7,930
	122	Universal Electronics, Inc.(b)		8,455
	956	Vera Bradley, Inc.(b)		8,747
	4,403	Vince Holding Corp.(b)(c)		4,403
	422	Vitamin Shoppe, Inc.(b)		8,145
	213	Wayfair, Inc., Class A(b)(c)		9,736
	540	Weight Watchers International, Inc.(b)		11,275
	893	West Marine, Inc.(b)		9,787
	304	Weyco Group, Inc.		8,500
	394	William Lyon Homes, Class A(b)		8,668
	305	Wingstop, Inc.		8,976
	73	Winmark Corp.		9,424
	274	Winnebago Industries, Inc.		7,864
	328	Wolverine World Wide, Inc.		7,908
	375	World Wrestling Entertainment, Inc., Class A		8,036
	1,225	ZAGG, Inc.(b)		8,698
	478	Zoe’s Kitchen, Inc.(b)		8,628
	471	Zumiez, Inc.(b)		8,454
				2,554,395
		Consumer Staples—10.8%
	1,728	AdvancePierre Foods Holdings, Inc.		70,191
	6,262	Amplify Snack Brands, Inc.(b)(c)		56,358
	1,386	Andersons, Inc. (The)		51,767
	1,886	Avon Products, Inc.(b)		9,147
	1,312	B&G Foods, Inc.		55,104

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	357	Boston Beer Co., Inc. (The), Class A(b)	$	51,533
	907	Calavo Growers, Inc.		59,499
	1,419	Cal-Maine Foods, Inc.(c)		53,567
	237	Central Garden & Pet Co., Class A(b)		8,349
	3,837	Chefs’ Warehouse, Inc. (The)(b)		52,375
	267	Coca-Cola Bottling Co. Consolidated		56,567
	659	Darling Ingredients, Inc.(b)		9,971
	2,771	Dean Foods Co.		54,700
	311	elf Beauty, Inc.(b)		8,475
	1,570	Farmer Brothers Co.(b)		55,735
	910	Fresh Del Monte Produce, Inc.		55,783
	4,855	Freshpet, Inc.(b)		57,046
	247	HRG Group, Inc.(b)		4,942
	1,213	Ingles Markets, Inc., Class A		56,647
	220	Inter Parfums, Inc.		8,349
	388	J & J Snack Foods Corp.		52,217
	771	John B. Sanfilippo & Son, Inc.		56,668
	410	Lancaster Colony Corp.		51,619
	1,687	Landec Corp.(b)		23,196
	2,758	Limoneira Co.		57,035
	1,227	Medifast, Inc.		56,835
	988	MGP Ingredients, Inc.		51,732
	662	National Beverage Corp.		58,647
	1,667	Nutraceutical International Corp.		52,844
	542	Oil-Dri Corp. of America		22,054
	2,771	Omega Protein Corp.		55,836
	2,028	Orchids Paper Products Co.(c)		49,382
	2,272	Performance Food Group Co.(b)		56,573
	89	PriceSmart, Inc.		7,739
	3,928	Primo Water Corp.(b)		47,018
	288	Revlon, Inc., Class A(b)		7,474
	534	Sanderson Farms, Inc.		61,826
	13	Seaboard Corp.		55,042
	1,482	Seneca Foods Corp., Class A(b)		55,130
	4,525	Smart & Final Stores, Inc.(b)		53,395
	1,333	Snyder’s-Lance, Inc.		47,002
	1,572	SpartanNash Co.		57,850
	14,305	SUPERVALU, Inc.(b)		58,650
	1,406	Tootsie Roll Industries, Inc.		52,514
	1,224	United Natural Foods, Inc.(b)		50,833
	754	Universal Corp.		55,381
	913	USANA Health Sciences, Inc.(b)		51,904
	2,637	Vector Group Ltd.		57,276
	2,025	Village Super Market, Inc., Class A		53,440
	482	WD-40 Co.		50,538
	887	Weis Markets, Inc.		51,277
				2,355,032
		Energy—9.4%
	15,154	Abraxas Petroleum Corp.(b)		28,338
	2,434	Alon USA Energy, Inc.		29,427
	2,522	Archrock, Inc.		29,760
	1,279	Ardmore Shipping Corp. (Ireland)		9,912
	3,370	Atwood Oceanics, Inc.(b)		26,387
	7,171	Bill Barrett Corp.(b)		27,537
	692	Bristow Group, Inc.		9,252
	2,381	California Resources Corp.(b)		27,858

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

41

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	2,618	Callon Petroleum Co.(b)	$	30,997
	2,623	CARBO Ceramics, Inc.(b)		18,020
	1,148	Carrizo Oil & Gas, Inc.(b)		28,872
	12,818	Clean Energy Fuels Corp.(b)		31,276
	75,494	Cobalt International Energy, Inc.(b)		29,526
	4,711	Contango Oil & Gas Co.(b)		33,731
	1,582	CVR Energy, Inc.		34,630
	1,218	Delek US Holdings, Inc.		29,317
	13,920	Denbury Resources, Inc.(b)		30,902
	2,108	DHT Holdings, Inc.		10,097
	928	Dorian LPG Ltd.(b)		8,436
	13,857	Eclipse Resources Corp.(b)		27,853
	7,175	EP Energy Corp., Class A(b)(c)		32,431
	2,549	Era Group, Inc.(b)		32,398
	4,129	Evolution Petroleum Corp.		33,032
	1,109	Exterran Corp.(b)		30,353
	4,612	Fairmount Santrol Holdings, Inc.(b)		23,798
	1,654	Forum Energy Technologies, Inc.(b)		27,953
	1,386	Frontline Ltd. (Norway)		9,217
	644	GasLog Ltd. (Monaco)		9,016
	1,786	Gener8 Maritime, Inc.(b)		9,591
	2,062	Geospace Technologies Corp.(b)		34,105
	1,132	Golar LNG Ltd. (Bermuda)		28,877
	1,349	Green Plains, Inc.		31,027
	4,315	Helix Energy Solutions Group, Inc.(b)		26,408
	7,634	Hornbeck Offshore Services, Inc.(b)(c)		26,032
	6,128	Independence Contract Drilling, Inc.(b)		28,250
	477	International Seaways Inc.(b)		9,220
	258	Isramco, Inc.(b)		29,438
	2,564	Jagged Peak Energy, Inc.(b)		28,563
	12,818	Jones Energy, Inc., Class A(b)(c)		25,636
	1,947	Keane Group, Inc.(b)(c)		26,908
	1,531	Mammoth Energy Services, Inc.(b)		29,548
	1,408	Matador Resources Co.(b)		30,525
	1,966	Matrix Service Co.(b)		23,100
	4,891	McDermott International, Inc.(b)		31,987
	1,268	Natural Gas Services Group, Inc.(b)		34,743
	5,409	Navios Maritime Acquisition Corp.		9,141
	4,021	Newpark Resources, Inc.(b)		30,761
	1,183	Nordic American Tankers Ltd.		9,819
	2,524	Oasis Petroleum, Inc.(b)		30,137
	967	Oil States International, Inc.(b)		28,768
	2,343	Overseas Shipholding Group, Inc., Class A(b)		8,528
	4,524	Pacific Ethanol, Inc.(b)		30,763
	1,766	Panhandle Oil and Gas, Inc., Class A		33,466
	1,920	Par Pacific Holdings, Inc.(b)		31,430
	22,662	Parker Drilling Co.(b)		37,392
	493	PDC Energy, Inc.(b)		27,228
	766	PHI, Inc.(b)		8,985
	7,596	Pioneer Energy Services Corp.(b)		23,168
	3,061	Renewable Energy Group, Inc.(b)		31,987
	397	REX American Resources Corp.(b)		37,588
	1,566	RigNet, Inc.(b)		30,694
	3,351	Ring Energy, Inc.(b)		40,212
	797	RSP Permian, Inc.(b)		30,326
	3,422	Sanchez Energy Corp.(b)		26,486

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	2,254	Scorpio Tankers, Inc. (Monaco)	$	9,918
	466	SEACOR Holdings, Inc.(b)		30,598
	21,364	Seadrill Ltd. (United Kingdom)(b)		14,737
	916	SemGroup Corp., Class A		30,503
	655	Ship Finance International Ltd. (Norway)		9,203
	2,110	Smart Sand, Inc.(b)		25,700
	4,158	Src Energy, Inc.(b)		31,351
	1,041	Teekay Corp. (Bermuda)		9,036
	4,507	Teekay Tankers Ltd., Class A (Bermuda)		9,239
	4,048	Tesco Corp.(b)		26,514
	7,929	TETRA Technologies, Inc.(b)		26,404
	1,395	Unit Corp.(b)		29,979
	446	US Silica Holdings, Inc.		18,509
	10,832	W&T Offshore, Inc.(b)		22,097
	871	Western Refining, Inc.		30,041
	2,100	Westmoreland Coal Co.(b)		22,386
	2,661	Wildhorse Resource Development Corp.(b)		29,031
	11,565	Willbros Group, Inc.(b)		31,804
				2,068,213
		Financials—8.5%
	102	1st Source Corp.		4,928
	337	Access National Corp.		9,547
	159	ACNB Corp.		4,921
	265	AG Mortgage Investment Trust, Inc. REIT		5,022
	133	Allegiance Bancshares, Inc.(b)		5,194
	262	Ambac Financial Group, Inc.(b)		5,091
	196	American Equity Investment Life Holding Co.		4,649
	131	American National Bankshares, Inc.		5,030
	107	Ameris Bancorp		5,040
	73	AMERISAFE, Inc.		4,201
	153	Ames National Corp.		4,728
	847	Anworth Mortgage Asset Corp. REIT		4,963
	252	Apollo Commercial Real Estate Finance, Inc. REIT		4,861
	350	Ares Commercial Real Estate Corp. REIT		4,840
	71	Argo Group International Holdings Ltd.		4,682
	325	Arlington Asset Investment Corp., Class A		4,732
	209	ARMOUR Residential REIT, Inc. REIT		5,031
	138	Arrow Financial Corp.		4,726
	126	Associated Capital Group, Inc., Class A		4,240
	231	Astoria Financial Corp.		4,710
	257	Atlantic Capital Bancshares, Inc.(b)		5,037
	348	Atlas Financial Holdings, Inc.(b)		4,507
	315	B. Riley Financial, Inc.		4,741
	197	Baldwin & Lyons, Inc., Class B		4,826
	231	Banc of California, Inc.		5,013
	53	BancFirst Corp.		5,091
	172	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		4,933
	960	Bancorp, Inc. (The)(b)		6,192
	158	BancorpSouth, Inc.		4,811
	504	Bank Mutual Corp.		4,637
	72	Bank of Marin Bancorp		4,547
	148	Bank of NT Butterfield & Son Ltd. (The) (Bermuda)		4,921
	94	Bank of the Ozarks, Inc.		4,462

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

42

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	326	BankFinancial Corp.	$	4,818
	153	Bankwell Financial Group, Inc.		5,529
	85	Banner Corp.		4,692
	152	Bar Harbor Bankshares		4,680
	504	Bear State Financial, Inc.		4,728
	289	Beneficial Bancorp, Inc.		4,624
	134	Berkshire Hills Bancorp, Inc.		5,025
	428	BGC Partners, Inc., Class A		4,871
	249	Blue Capital Reinsurance Holdings Ltd. (Bermuda)		4,706
	277	Blue Hills Bancorp, Inc.		5,014
	139	BNC Bancorp		4,650
	169	BofI Holding, Inc.(b)		4,037
	296	Boston Private Financial Holdings, Inc.		4,618
	138	Bridge Bancorp, Inc.		5,002
	315	Brookline Bancorp, Inc.		4,583
	121	Bryn Mawr Bank Corp.		5,191
	172	BSB Bancorp, Inc.(b)		5,014
	104	C&F Financial Corp.		5,200
	298	California First National Bancorp		4,917
	113	Camden National Corp.		4,831
	110	Capital Bank Financial Corp., Class A		4,565
	233	Capital City Bank Group, Inc.		4,802
	321	Capitol Federal Financial, Inc.		4,696
	245	Capstar Financial Holdings, Inc.(b)		4,322
	446	Capstead Mortgage Corp. REIT		4,968
	164	Carolina Financial Corp.		5,061
	614	Cascade Bancorp(b)		4,593
	127	Cathay General Bancorp		4,832
	187	Centerstate Banks, Inc.		4,718
	159	Central Pacific Financial Corp.		4,974
	243	Central Valley Community Bancorp		5,519
	77	Century Bancorp, Inc., Class A		4,855
	258	Charter Financial Corp.		4,734
	93	Chemical Financial Corp.		4,413
	124	Chemung Financial Corp.		4,711
	204	Citizens & Northern Corp.		4,743
	664	Citizens, Inc.(b)		4,681
	75	City Holding Co.		5,332
	296	Clifton Bancorp, Inc.		4,943
	194	CNB Financial Corp.		4,635
	230	CNO Financial Group, Inc.		4,846
	291	CoBiz Financial, Inc.		4,781
	180	Codorus Valley Bancorp, Inc.		5,218
	123	Cohen & Steers, Inc.		4,908
	124	Columbia Banking System, Inc.		4,899
	88	Community Bank System, Inc.		4,924
	105	Community Trust Bancorp, Inc.		4,720
	205	ConnectOne Bancorp, Inc.		4,551
	160	County Bancorp, Inc.		4,392
	352	Cowen Group, Inc., Class A(b)		5,597
	494	Crawford & Co., Class B		5,390
	122	CU Bancorp(b)		4,548
	151	Customers Bancorp, Inc.(b)		4,670
	219	CVB Financial Corp.		4,717
	603	CYS Investments, Inc. REIT		5,144

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	25	Diamond Hill Investment Group, Inc.	$	5,054
	236	Dime Community Bancshares, Inc.		4,590
	273	Donegal Group, Inc., Class A		4,548
	680	Dynex Capital, Inc. REIT		4,706
	81	Eagle Bancorp, Inc.(b)		4,852
	419	eHealth, Inc.(b)		5,941
	166	EMC Insurance Group, Inc.		4,761
	127	Employers Holdings, Inc.		5,080
	154	Encore Capital Group, Inc.(b)		5,136
	336	Enova International, Inc.(b)		4,771
	25	Enstar Group Ltd. (Bermuda)(b)		4,870
	146	Enterprise Bancorp, Inc.		5,111
	115	Enterprise Financial Services Corp.		4,859
	152	Equity Bancshares, Inc., Class A(b)		4,799
	323	ESSA Bancorp, Inc.		4,887
	133	Essent Group Ltd.(b)		4,922
	239	EverBank Financial Corp.		4,660
	60	Evercore Partners, Inc., Class A		4,425
	571	EZCORP, Inc., Class A(b)		5,168
	322	F.N.B. Corp.		4,585
	122	Farmers Capital Bank Corp.		5,063
	349	Farmers National Banc Corp.		4,991
	148	FB Financial Corp.(b)		5,364
	74	FBL Financial Group, Inc., Class A		4,921
	262	FBR & Co.		4,742
	99	FCB Financial Holdings, Inc., Class A(b)		4,678
	82	Federal Agricultural Mortgage Corp., Class C		4,678
	274	Federated National Holding Co.		4,406
	1,353	Ferroglobe Representation & Warranty Insurance Trust(b)		0
	169	Fidelity & Guaranty Life		4,808
	223	Fidelity Southern Corp.		5,022
	941	Fifth Street Asset Management, Inc., Class A		4,423
	117	Financial Engines, Inc.		4,972
	146	Financial Institutions, Inc.		4,891
	178	First Bancorp, Inc./Me		4,801
	853	First BanCorp/Puerto Rico(b)		5,016
	162	First Bancorp/Southern Pines NC		4,866
	161	First Busey Corp.		4,822
	189	First Business Financial Services, Inc.		5,022
	17	First Citizens BancShares, Inc., Class A		5,917
	359	First Commonwealth Financial Corp.		4,635
	191	First Community Bancshares, Inc.		5,054
	373	First Community Financial Partners, Inc.(b)		4,868
	197	First Connecticut Bancorp, Inc.		5,260
	97	First Defiance Financial Corp.		5,203
	176	First Financial Bancorp		4,866
	119	First Financial Bankshares, Inc.		4,754
	101	First Financial Corp.		4,929
	259	First Financial Northwest, Inc.		4,061
	308	First Foundation, Inc.(b)		4,836
	155	First Internet Bancorp		4,580
	120	First Interstate BancSystem, Inc., Class A		4,530
	123	First Merchants Corp.		5,090
	148	First Mid-Illinois Bancshares, Inc.		4,826
	203	First Midwest Bancorp, Inc.		4,610

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

43

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,179	First NBC Bank Holding Co.(b)	$	3,124
	306	First Northwest Bancorp(b)		5,037
	176	First of Long Island Corp. (The)		4,787
	104	Firstcash, Inc.		5,403
	170	Flagstar Bancorp, Inc.(b)		4,971
	179	Flushing Financial Corp.		5,277
	382	FNFV Group(b)		5,233
	128	Franklin Financial Network, Inc.(b)		5,190
	265	Fulton Financial Corp.		4,889
	561	Gain Capital Holdings, Inc.		3,977
	161	GAMCO Investors, Inc., Class A		4,621
	1,159	Genworth Financial, Inc., Class A(b)		4,682
	154	German American Bancorp, Inc.		5,064
	142	Glacier Bancorp, Inc.		4,797
	126	Global Indemnity Ltd., Class A (Cayman Islands)(b)		5,109
	357	Great Ajax Corp. REIT		4,855
	95	Great Southern Bancorp, Inc.		4,764
	114	Great Western Bancorp, Inc.		4,697
	288	Green Bancorp, Inc.(b)		5,184
	141	Green Dot Corp., Class A(b)		4,835
	203	Greene County Bancorp, Inc.		5,024
	162	Greenhill & Co., Inc.		4,099
	213	Greenlight Capital Re Ltd., Class A(b)		4,590
	200	Guaranty Bancorp		5,030
	426	Hallmark Financial Services, Inc.(b)		4,477
	108	Hancock Holding Co.		5,044
	160	Hanmi Financial Corp.		4,648
	245	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		5,370
	251	HarborOne Bancorp, Inc.(b)		5,226
	103	HCI Group, Inc.		4,912
	97	Heartland Financial USA, Inc.		4,656
	286	Hennessy Advisors, Inc.		4,865
	347	Heritage Commerce Corp.		4,955
	200	Heritage Financial Corp.		5,280
	375	Heritage Insurance Holdings, Inc.		4,537
	176	Hilltop Holdings, Inc.		4,895
	27	Hingham Institution for Savings		4,846
	139	Home Bancorp, Inc.		5,162
	176	Home BancShares, Inc.		4,479
	181	HomeStreet, Inc.(b)		4,706
	205	HomeTrust Bancshares, Inc.(b)		5,125
	248	Hope Bancorp, Inc.		4,541
	116	Horace Mann Educators Corp.		4,483
	184	Horizon Bancorp		4,966
	143	Houlihan Lokey, Inc., Class A		4,796
	61	IBERIABANK Corp.		4,840
	374	Impac Mortgage Holdings, Inc.(b)(c)		5,348
	239	Independence Holding Co.		4,529
	77	Independent Bank Corp./MA		4,874
	233	Independent Bank Corp./MI		5,196
	78	Independent Bank Group, Inc.		4,692
	49	Infinity Property & Casualty Corp.		4,863
	133	International Bancshares Corp.		4,974
	127	INTL FCStone, Inc.(b)		4,743

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	308	Invesco Mortgage Capital, Inc. REIT(d)	$	5,023
	233	Investment Technology Group, Inc.		4,639
	338	Investors Bancorp, Inc.		4,681
	35	Investors Title Co.		6,238
	117	James River Group Holdings Ltd.		5,097
	366	Janus Capital Group, Inc.		5,000
	257	KCG Holdings, Inc., Class A(b)		5,114
	313	Kearny Financial Corp.		4,570
	119	Kemper Corp.		4,683
	143	Kinsale Capital Group, Inc.		5,171
	325	Ladder Capital Corp., Class A REIT		4,755
	2,016	Ladenburg Thalmann Financial Services, Inc.(b)		5,604
	248	Lakeland Bancorp, Inc.		4,824
	111	Lakeland Financial Corp.		5,068
	210	LCNB Corp.		4,651
	120	LegacyTexas Financial Group, Inc.		4,537
	896	LendingClub Corp.(b)		5,242
	39	LendingTree, Inc.(b)		5,495
	225	Live Oak Bancshares, Inc.		5,434
	482	Macatawa Bank Corp.		4,613
	337	Maiden Holdings Ltd.		4,162
	146	MainSource Financial Group, Inc.		4,993
	817	Manning & Napier, Inc.		4,739
	379	Marlin Business Services Corp.		9,646
	113	MB Financial, Inc.		4,804
	579	MBIA, Inc.(b)		4,864
	427	MBT Financial Corp.		4,782
	582	Medley Management, Inc., Class A		4,481
	136	Mercantile Bank Corp.		4,574
	98	Merchants Bancshares, Inc.		4,880
	257	Meridian Bancorp, Inc.		4,510
	55	Meta Financial Group, Inc.		4,669
	465	MGIC Investment Corp.(b)		4,901
	141	Midland States Bancorp, Inc.		4,864
	137	MidWestOne Financial Group, Inc.		4,754
	125	Moelis & Co., Class A		4,587
	278	Mtge Investment Corp. REIT		5,004
	149	Mutualfirst Financial, Inc.		4,910
	149	National Bank Holdings Corp., Class A		4,704
	120	National Bankshares, Inc.		5,046
	131	National Commerce Corp.(b)		5,070
	200	National General Holdings Corp.		4,548
	18	National Western Life Group, Inc., Class A		5,512
	310	Nationstar Mortgage Holdings, Inc.(b)		4,994
	88	Navigators Group, Inc. (The)		4,756
	125	NBT Bancorp, Inc.		4,772
	110	Nelnet, Inc., Class A		4,951
	280	New Residential Investment Corp. REIT		4,668
	748	New York Mortgage Trust, Inc. REIT		4,795
	439	NewStar Financial, Inc.		4,715
	99	Nicolet Bankshares, Inc.(b)		4,881
	421	NMI Holdings, Inc., Class A(b)		4,884
	263	Northfield Bancorp, Inc.		4,834
	160	Northrim Bancorp, Inc.		5,120
	278	Northwest Bancshares, Inc.		4,487
	167	OceanFirst Financial Corp.		4,618

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

44

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,002	Ocwen Financial Corp.(b)	$	2,295
	421	OFG Bancorp		4,926
	168	Old Line Bancshares, Inc.		4,664
	280	Old National Bancorp		4,704
	448	Old Second Bancorp, Inc.		5,376
	323	OM Asset Management PLC		5,026
	976	On Deck Capital, Inc.(b)		4,636
	310	OneBeacon Insurance Group Ltd., Class A		4,944
	284	Oppenheimer Holdings, Inc., Class A		4,913
	246	Opus Bank		5,547
	461	Orchid Island Capital, Inc. REIT		4,887
	282	Oritani Financial Corp.		4,780
	217	Orrstown Financial Services, Inc.		4,655
	270	Owens Realty Mortgage, Inc. REIT		4,903
	199	Pacific Continental Corp.		4,975
	613	Pacific Mercantile Bancorp(b)		4,751
	224	Pacific Premier Bancorp, Inc.(b)		8,187
	91	Paragon Commercial Corp.(b)		5,002
	45	Park National Corp.		4,744
	399	Park Sterling Corp.		4,908
	157	Peapack-Gladstone Financial Corp.		5,033
	105	Penns Woods Bancorp, Inc.		4,378
	281	PennyMac Financial Services, Inc., Class A(b)		4,636
	275	PennyMac Mortgage Investment Trust REIT		4,917
	149	Peoples Bancorp, Inc.		4,989
	117	Peoples Financial Services Corp.		5,258
	179	People’s Utah Bancorp		4,726
	772	PHH Corp.(b)		9,959
	336	PICO Holdings, Inc.(b)		5,410
	73	Pinnacle Financial Partners, Inc.		4,672
	73	Piper Jaffray Cos.		4,570
	133	PJT Partners, Inc., Class A		4,610
	141	PRA Group, Inc.(b)		4,540
	92	Preferred Bank		4,875
	244	Premier Financial Bancorp, Inc.		5,229
	58	Primerica, Inc.		4,860
	83	PrivateBancorp, Inc.		4,795
	68	Prosperity Bancshares, Inc.		4,570
	222	Provident Bancorp, Inc.(b)		4,729
	250	Provident Financial Holdings, Inc.		4,807
	184	Provident Financial Services, Inc.		4,727
	499	Pzena Investment Management, Inc., Class A		5,135
	111	QCR Holdings, Inc.		5,062
	262	Radian Group, Inc.		4,423
	284	Redwood Trust, Inc. REIT		4,848
	245	Regional Management Corp.(b)		4,858
	120	Renasant Corp.		5,088
	140	Republic Bancorp, Inc., Class A		5,037
	590	Republic First Bancorp, Inc.(b)		5,074
	474	Resource Capital Corp. REIT		4,432
	79	RLI Corp.		4,520
	138	S&T Bancorp, Inc.		4,962
	380	Safeguard Scientifics, Inc.(b)		4,826
	67	Safety Insurance Group, Inc.		4,851
	117	Sandy Spring Bancorp, Inc.		5,060
	205	Seacoast Banking Corp. of Florida(b)		4,961

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	99	Selective Insurance Group, Inc.	$	5,227
	130	ServisFirst Bancshares, Inc.		4,914
	297	Shore Bancshares, Inc.		4,927
	333	SI Financial Group, Inc.		4,978
	179	Sierra Bancorp		4,488
	336	Silvercrest Asset Management Group, Inc., Class A		4,586
	87	Simmons First National Corp., Class A		4,755
	54	South State Corp.		4,760
	143	Southern First Bancshares, Inc.(b)		4,819
	142	Southern Missouri Bancorp, Inc.		4,729
	288	Southern National Bancorp of Virginia, Inc.		5,244
	143	Southside Bancshares, Inc.		4,965
	181	Southwest Bancorp, Inc.		4,697
	170	State Auto Financial Corp.		4,568
	186	State Bank Financial Corp.		4,996
	321	State National Cos., Inc.		4,709
	199	Sterling Bancorp		4,627
	107	Stewart Information Services Corp.		5,076
	96	Stifel Financial Corp.(b)		4,692
	117	Stock Yards Bancorp, Inc.		4,797
	101	Stonegate Bank		4,636
	235	Summit Financial Group, Inc.		5,139
	195	Sun Bancorp, Inc.		4,865
	150	Territorial Bancorp, Inc.		4,642
	58	Texas Capital Bancshares, Inc.(b)		4,414
	395	Third Point Reinsurance Ltd. (Bermuda)(b)		4,779
	695	Tiptree, Inc., Class A		4,900
	58	Tompkins Financial Corp.		4,795
	150	TowneBank		4,867
	137	TriCo Bancshares		4,858
	204	TriState Capital Holdings, Inc.(b)		5,080
	187	Triumph Bancorp, Inc.(b)		4,189
	323	Trupanion, Inc.(b)		5,132
	601	TrustCo Bank Corp. NY		4,778
	150	Trustmark Corp.		4,983
	63	UMB Financial Corp.		4,567
	270	Umpqua Holdings Corp.		4,771
	136	Union Bankshares Corp.		4,657
	111	Union Bankshares, Inc./Morrisville VT		4,668
	230	United Bankshares, Inc.		9,177
	176	United Community Banks, Inc.		4,814
	562	United Community Financial Corp.		4,799
	283	United Financial Bancorp, Inc.		4,887
	110	United Fire Group, Inc.		4,840
	299	United Insurance Holdings Corp.		4,563
	196	Universal Insurance Holdings, Inc.		5,106
	177	Univest Corp. of Pennsylvania		5,363
	401	Valley National Bancorp		4,716
	264	Value Line, Inc.		4,615
	169	Veritex Holdings, Inc.(b)		4,553
	281	Virtu Financial, Inc., Class A		4,327
	46	Virtus Investment Partners, Inc.		4,894
	278	Waddell & Reed Financial, Inc., Class A		5,001
	108	Walker & Dunlop, Inc.(b)		4,844
	145	Washington Federal, Inc.		4,886

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

45

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	94	Washington Trust Bancorp, Inc.	$	4,625
	171	WashingtonFirst Bankshares, Inc.		4,810
	259	Waterstone Financial, Inc.		4,921
	92	Webster Financial Corp.		4,675
	130	WesBanco, Inc.		5,175
	217	West Bancorporation, Inc.		5,056
	85	Westamerica Bancorporation		4,677
	471	Western Asset Mortgage Capital Corp. REIT		4,960
	454	Western New England Bancorp, Inc.		4,767
	89	Westwood Holdings Group, Inc.		4,966
	17	Wins Finance Hondings, Inc.(b)		779
	69	Wintrust Financial Corp.		4,889
	544	WisdomTree Investments, Inc.(c)		4,542
	3,450	WMIH Corp.(b)		5,175
	96	World Acceptance Corp.(b)		5,078
	105	WSFS Financial Corp.		4,956
	196	Xenith Bankshares, Inc.(b)		5,296
				1,859,657
		Health Care—11.2%
	904	AAC Holdings, Inc.(b)		6,473
	147	Abaxis, Inc.		6,619
	310	Accelerate Diagnostics, Inc.(b)		8,463
	265	Acceleron Pharma, Inc.(b)		8,750
	1,456	Accuray, Inc.(b)		6,625
	2,355	AcelRx Pharmaceuticals, Inc.(b)		6,123
	1,354	Aceto Corp.		21,461
	1,864	Achillion Pharmaceuticals, Inc.(b)		6,356
	234	Aclaris Therapeutics, Inc.(b)		6,578
	278	Acorda Therapeutics, Inc.(b)		4,490
	405	Adamas Pharmaceuticals, Inc.(b)		6,634
	232	Addus HomeCare Corp.(b)		7,876
	682	Aduro Biotech, Inc.(b)		6,581
	899	Advaxis, Inc.(b)		7,695
	2,717	Adverum Biotechnologies, Inc.(b)		7,743
	155	Aerie Pharmaceuticals, Inc.(b)		6,828
	4,360	Aevi Genomic Medicine, Inc.(b)		6,976
	1,802	Agenus, Inc.(b)		6,469
	2,386	Agile Therapeutics, Inc.(b)		8,566
	310	Aimmune Therapeutics, Inc.(b)		6,026
	776	Akebia Therapeutics, Inc.(b)		10,228
	541	Albany Molecular Research, Inc.(b)		8,661
	341	Alder Biopharmaceuticals, Inc.(b)		6,837
	148	Almost Family, Inc.(b)		7,348
	327	AMAG Pharmaceuticals, Inc.(b)		7,979
	141	Amedisys, Inc.(b)		7,642
	415	American Renal Associates Holdings, Inc.(b)		7,142
	989	Amicus Therapeutics, Inc.(b)		7,596
	183	AMN Healthcare Services, Inc.(b)		7,476
	515	Amphastar Pharmaceuticals, Inc.(b)		7,777
	8,639	Ampio Pharmaceuticals, Inc.(b)(c)		4,830
	96	Analogic Corp.		6,898
	256	Anaptysbio, Inc.(b)		6,830
	1,179	Anavex Life Sciences Corp.(b)		6,638
	417	AngioDynamics, Inc.(b)		6,472
	155	ANI Pharmaceuticals, Inc.(b)		8,389
	169	Anika Therapeutics, Inc.(b)		7,796

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	1,070	Applied Genetic Technologies Corp.(b)	$	5,992
	1,374	Aratana Therapeutics, Inc.(b)		8,519
	529	Ardelyx, Inc.(b)		7,089
	4,871	Arena Pharmaceuticals, Inc.(b)		6,527
	766	Array BioPharma, Inc.(b)		6,641
	3,818	Arrowhead Pharmaceuticals, Inc.(b)		5,918
	2,173	Asterias Biotherapeutics, Inc.(b)		8,040
	336	Atara Biotherapeutics, Inc.(b)		5,746
	6,251	Athersys, Inc.(b)(c)		9,252
	380	AtriCure, Inc.(b)		7,790
	15	Atrion Corp.		7,757
	457	Audentes Therapeutics, Inc.(b)		6,809
	97	Avexis, Inc.(b)		7,809
	4,281	Avinger, Inc.(b)		2,409
	703	AxoGen, Inc.(b)		8,577
	479	Axovant Sciences Ltd.(b)		11,611
	1,909	Axsome Therapeutics, Inc.(b)		7,827
	548	Bellicum Pharmaceuticals, Inc.(b)		7,327
	832	BioCryst Pharmaceuticals, Inc.(b)		5,275
	8,883	Bio-Path Holdings, Inc.(b)		5,603
	3,991	BioScrip, Inc.(b)		6,066
	137	BioSpecifics Technologies Corp.(b)		7,772
	271	BioTelemetry, Inc.(b)		8,916
	2,187	BioTime, Inc.(b)		7,436
	81	Bluebird Bio, Inc.(b)		7,205
	172	Blueprint Medicines Corp.(b)		8,012
	139	Cambrex Corp.(b)		8,250
	94	Cantel Medical Corp.		6,995
	528	Capital Senior Living Corp.(b)		7,376
	423	Cara Therapeutics, Inc.(b)		6,721
	257	Cardiovascular Systems, Inc.(b)		7,677
	2,173	Castlight Health, Inc., Class B(b)		8,366
	253	Catalent, Inc.(b)		7,408
	2,160	Celldex Therapeutics, Inc.(b)		7,193
	634	Cellular Biomedicine Group, Inc.(b)		6,847
	1,744	Cempra, Inc.(b)		7,499
	1,714	Cerus Corp.(b)		7,456
	38	Chemed Corp.		7,652
	998	ChemoCentryx, Inc.(b)		7,226
	1,088	Chimerix, Inc.(b)		6,506
	948	Cidara Therapeutics, Inc.(b)		7,347
	408	Civitas Solutions, Inc.(b)		7,262
	992	Clearside BioMedical, Inc.(b)		7,896
	103	Clovis Oncology, Inc.(b)		5,963
	323	Coherus Biosciences, Inc.(b)		6,202
	555	Collegium Pharmaceutical, Inc.(b)		5,445
	812	Community Health Systems, Inc.(b)		6,991
	256	Computer Programs & Systems, Inc.		7,027
	395	Concert Pharmaceuticals, Inc.(b)		6,269
	1,493	ConforMIS, Inc.(b)		8,391
	164	CONMED Corp.		8,062
	707	Corcept Therapeutics, Inc.(b)		6,745
	5,838	Corindus Vascular Robotics, Inc.(b)		7,356
	174	CorVel Corp.(b)		7,743
	346	Corvus Pharmaceuticals, Inc.(b)		3,436
	180	Cotiviti Holdings, Inc.(b)		7,522

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

46

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	521	Cross Country Healthcare, Inc.(b)	$	7,278
	423	CryoLife, Inc.(b)		7,677
	2,470	Curis, Inc.(b)		5,977
	349	Cutera, Inc.(b)		6,823
	563	Cytokinetics, Inc.(b)		9,233
	405	CytomX Therapeutics, Inc.(b)		6,363
	17,364	CytRx Corp.(b)(c)		8,835
	476	Depomed, Inc.(b)		5,707
	205	Dermira, Inc.(b)		6,982
	3,611	Diplomat Pharmacy, Inc.(b)		56,332
	7,401	Durect Corp.(b)		6,494
	103	Dyax Corp.(b)		114
	1,187	Dynavax Technologies Corp.(b)		6,588
	86	Eagle Pharmaceuticals, Inc.(b)		7,791
	909	Edge Therapeutics, Inc.(b)		9,435
	367	Editas Medicine, Inc.(b)		6,918
	1,481	Egalet Corp.(b)		5,657
	679	Eiger BioPharmaceuticals, Inc.(b)		5,364
	249	Emergent Biosolutions, Inc.(b)		7,448
	231	Enanta Pharmaceuticals, Inc.(b)		7,334
	3,139	Endocyte, Inc.(b)		7,220
	1,064	Endologix, Inc.(b)		7,969
	386	Ensign Group, Inc. (The)		6,929
	514	Entellus Medical, Inc.(b)		7,309
	893	Enzo Biochem, Inc.(b)		7,858
	417	Epizyme, Inc.(b)		7,527
	175	Esperion Therapeutics, Inc.(b)		6,256
	498	Evolent Health, Inc., Class A(b)		11,579
	345	Exact Sciences Corp.(b)		10,353
	265	Exactech, Inc.(b)		7,857
	348	Exelixis, Inc.(b)		7,795
	282	FibroGen, Inc.(b)		7,896
	202	Five Prime Therapeutics, Inc.(b)		7,042
	269	Flexion Therapeutics, Inc.(b)		5,490
	1,280	Fluidigm Corp.(b)		6,323
	2,041	Fortress Biotech, Inc.(b)		7,429
	220	Foundation Medicine, Inc.(b)		7,810
	643	Fulgent Genetics, Inc.(b)		6,552
	2,931	Genesis Healthcare, Inc., Class A(b)		7,093
	538	GenMark Diagnostics, Inc.(b)		6,897
	227	Genomic Health, Inc.(b)		7,459
	3,348	Geron Corp.(b)		8,571
	144	Glaukos Corp.(b)		6,844
	183	Global Blood Therapeutics, Inc.(b)		5,298
	238	Globus Medical, Inc., Class A(b)		7,219
	1,244	Glycomimetics, Inc.(b)		5,349
	180	Haemonetics Corp.(b)		7,538
	525	Halozyme Therapeutics, Inc.(b)		7,319
	187	Halyard Health, Inc.(b)		7,387
	166	HealthEquity, Inc.(b)		7,556
	171	HealthSouth Corp.		8,020
	362	HealthStream, Inc.(b)		10,060
	491	Heron Therapeutics, Inc.(b)		7,537
	72	Heska Corp.(b)		7,794
	397	HMS Holdings Corp.(b)		8,127
	485	Horizon Pharma PLC(b)		7,459

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	46	ICU Medical, Inc.(b)	$	7,075
	2,919	Idera Pharmaceuticals, Inc.(b)		6,860
	794	Ignyta, Inc.(b)		7,027
	1,087	Immune Design Corp.(b)		7,120
	1,930	ImmunoGen, Inc.(b)(c)		8,376
	1,065	Immunomedics, Inc.(b)		6,102
	768	Impax Laboratories, Inc.(b)		10,790
	161	INC Research Holdings, Inc., Class A(b)		7,245
	2,207	Infinity Pharmaceuticals, Inc.(b)		4,745
	547	Innoviva, Inc.(b)		6,446
	94	Inogen, Inc.(b)		7,792
	1,187	Inovio Pharmaceuticals, Inc.(b)		7,466
	451	Insmed, Inc.(b)		8,321
	168	Insulet Corp.(b)		7,293
	668	Insys Therapeutics, Inc.(b)(c)		7,515
	176	Integer Holdings Corp.(b)		6,468
	167	Integra LifeSciences Holdings Corp.(b)		7,677
	536	Intellia Therapeutics, Inc.(b)		7,810
	432	Intersect ENT, Inc.(b)		8,208
	477	Intra-Cellular Therapies, Inc.(b)		6,592
	617	Invacare Corp.		9,070
	667	Invitae Corp.(b)		7,357
	1,744	InVivo Therapeutics Holdings Corp.(b)		6,627
	817	iRadimed Corp.(b)		7,026
	202	iRhythm Technologies, Inc.(b)		7,129
	547	Iridex Corp.(b)		6,236
	412	Ironwood Pharmaceuticals, Inc., Class A(b)		6,724
	292	Jounce Therapeutics, Inc.(b)		8,269
	377	K2M Group Holdings, Inc.(b)		8,351
	682	Karyopharm Therapeutics, Inc.(b)		6,970
	1,280	Keryx Biopharmaceuticals, Inc.(b)(c)		7,578
	872	Kindred Healthcare, Inc.		8,371
	95	Kite Pharma, Inc.(b)		7,798
	202	La Jolla Pharmaceutical Co.(b)		5,858
	153	Landauer, Inc.		8,048
	333	Lannett Co., Inc.(b)(c)		8,658
	293	LeMaitre Vascular, Inc.		8,717
	497	Lexicon Pharmaceuticals, Inc.(b)		7,758
	140	LHC Group, Inc.(b)		7,574
	68	Ligand Pharmaceuticals, Inc.(b)		7,560
	955	Lion Biotechnologies, Inc.(b)		6,542
	1,690	Lipocine, Inc.(b)		7,166
	158	Loxo Oncology, Inc.(b)		7,278
	392	Luminex Corp.		7,381
	395	MacroGenics, Inc.(b)		8,536
	109	Magellan Health, Inc.(b)		7,499
	3,622	Mannkind Corp.(b)(c)		3,164
	76	Masimo Corp.(b)		7,808
	141	Medicines Co. (The)(b)		6,954
	1,216	MediciNova, Inc.(b)		6,992
	128	Medidata Solutions, Inc.(b)		8,375
	261	Medpace Holdings, Inc.(b)		8,276
	545	Meridian Bioscience, Inc.		8,066
	250	Merit Medical Systems, Inc.(b)		8,425
	2,339	Merrimack Pharmaceuticals, Inc.(b)(c)		7,789
	792	MiMedx Group, Inc.(b)		10,050

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

47

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	911	Minerva Neurosciences, Inc.(b)	$	6,924
	1,385	Mirati Therapeutics, Inc.(b)		6,302
	165	Molina Healthcare, Inc.(b)		8,215
	527	Momenta Pharmaceuticals, Inc.(b)		7,562
	508	MyoKardia, Inc.(b)		6,629
	623	Myovant Sciences Ltd. (Bermuda)(b)		8,093
	369	Myriad Genetics, Inc.(b)		6,786
	369	Nanostring Technologies, Inc.(b)		6,450
	1,484	Nanthealth, Inc.(b)		4,615
	805	Natera, Inc.(b)		7,285
	98	National Healthcare Corp.		7,293
	372	National Research Corp., Class A		9,226
	183	Natus Medical, Inc.(b)		6,405
	314	Nektar Therapeutics(b)		5,957
	110	Neogen Corp.(b)		6,856
	932	NeoGenomics, Inc.(b)		7,037
	1,009	Neos Therapeutics, Inc.(b)		7,164
	77	Nevro Corp.(b)		7,255
	348	NewLink Genetics Corp.(b)		6,504
	4,155	Nobilis Health Corp.(b)		5,194
	5,562	Novavax, Inc.(b)		4,539
	1,024	Novocure Ltd.(b)		11,571
	95	NuVasive, Inc.(b)		6,888
	270	NxStage Medical, Inc.(b)		8,070
	692	Obalon Therapeutics, Inc.(b)		7,349
	769	Ocular Therapeutix, Inc.(b)		7,659
	622	Omeros Corp.(b)		10,151
	180	Omnicell, Inc.(b)		7,452
	770	OncoMed Pharmaceuticals, Inc.(b)		3,034
	2,090	Ophthotech Corp.(b)		6,207
	586	OraSure Technologies, Inc.(b)		7,682
	2,347	Organovo Holdings, Inc.(b)		6,806
	181	Orthofix International NV(b)		7,159
	539	Otonomy, Inc.(b)		7,196
	4,155	OvaScience, Inc.(b)		6,274
	208	Owens & Minor, Inc.		7,207
	455	Oxford Immunotec Global PLC(b)		7,002
	1,413	Pacific Biosciences of California, Inc.(b)		5,567
	150	Pacira Pharmaceuticals, Inc.(b)		7,283
	448	Paratek Pharmaceuticals, Inc.(b)		9,610
	114	PAREXEL International Corp.(b)		7,277
	3,480	PDL BioPharma, Inc.		7,830
	90	Penumbra, Inc.(b)		7,691
	1,261	Pfenex, Inc.(b)		6,065
	8,998	PharmAthene, Inc.		6,540
	299	PharMerica Corp.(b)		7,056
	258	Phibro Animal Health Corp., Class A		7,676
	185	Portola Pharmaceuticals, Inc.(b)		7,398
	118	PRA Health Sciences, Inc.(b)		7,547
	126	Prestige Brands Holdings, Inc.(b)		7,234
	637	Progenics Pharmaceuticals, Inc.(b)		5,045
	537	Protagonist Therapeutics, Inc.(b)		5,434
	680	Proteostasis Therapeutics, Inc.(b)		4,111
	136	Prothena Corp. PLC (Ireland)(b)		7,362
	165	Providence Service Corp. (The)(b)		7,260
	836	PTC Therapeutics, Inc.(b)		10,157

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	176	Puma Biotechnology, Inc.(b)	$	7,146
	481	Quality Systems, Inc.(b)		6,859
	326	Quidel Corp.(b)		7,879
	1,033	Quorum Health Corp.(b)		4,411
	320	Ra Pharmaceuticals, Inc.(b)		7,552
	189	Radius Health, Inc.(b)		7,384
	1,197	RadNet, Inc.(b)		7,242
	272	Reata Pharmaceuticals, Inc., Class A(b)		5,641
	352	REGENXBIO, Inc.(b)		7,357
	204	Repligen Corp.(b)		7,505
	403	Retrophin, Inc.(b)		7,895
	356	Revance Therapeutics, Inc.(b)		7,743
	2,316	Rigel Pharmaceuticals, Inc.(b)		6,925
	1,201	Rockwell Medical, Inc.(b)		10,329
	1,884	RTI Surgical, Inc.(b)		7,630
	109	Sage Therapeutics, Inc.(b)		7,739
	1,682	Sangamo Therapeutics, Inc.(b)		8,074
	238	Sarepta Therapeutics, Inc.(b)		8,630
	736	SciClone Pharmaceuticals, Inc.(b)		7,102
	579	Select Medical Holdings Corp.(b)		7,961
	649	Selecta Biosciences, Inc.(b)		7,827
	3,818	Senseonics Holdings, Inc.(b)		6,452
	660	Seres Therapeutics, Inc.(b)		6,488
	1,682	Sorrento Therapeutics, Inc.(b)		3,280
	135	Spark Therapeutics, Inc.(b)		7,826
	260	Spectranetics Corp. (The)(b)		7,436
	1,079	Spectrum Pharmaceuticals, Inc.(b)		8,211
	740	STAAR Surgical Co.(b)		7,696
	831	Stemline Therapeutics, Inc.(b)		7,396
	657	Sucampo Pharmaceuticals, Inc., Class A(b)		6,669
	249	Supernus Pharmaceuticals, Inc.(b)		8,117
	369	Surgery Partners, Inc.(b)		6,347
	301	SurModics, Inc.(b)		6,878
	545	Syndax Pharmaceuticals, Inc.(b)		5,172
	1,580	Synergy Pharmaceuticals, Inc.(b)		6,510
	9,846	Synthetic Biologics, Inc.(b)		5,612
	485	Syros Pharmaceuticals, Inc.(b)		7,367
	1,353	T2 Biosystems, Inc.(b)		6,508
	526	Tabula Rasa Healthcare, Inc.(b)		7,090
	392	Tactile Systems Technology, Inc.(b)		7,389
	295	Teladoc, Inc.(b)		7,316
	969	Teligent, Inc.(b)		7,645
	46	TESARO, Inc.(b)		6,789
	874	Tetraphase Pharmaceuticals, Inc.(b)		6,931
	648	TG Therapeutics, Inc.(b)		7,160
	1,069	TherapeuticsMD, Inc.(b)(c)		5,452
	212	Theravance Biopharma, Inc. (Cayman Islands)(b)		8,550
	2,140	Titan Pharmaceuticals, Inc.(b)		6,313
	252	Tivity Health, Inc.(b)		8,467
	99	Tobira Therapeutics, Inc.(b)		1,360
	6,364	TransEnterix, Inc.(b)		4,137
	1,968	Trevena, Inc.(b)		6,435
	426	Triple-S Management Corp., Class B(b)		7,711
	6,142	Trovagene, Inc.(b)		5,712
	112	U.S. Physical Therapy, Inc.		7,347
	98	Ultragenyx Pharmaceutical, Inc.(b)		6,310

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

48

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	118	Utah Medical Products, Inc.	$	7,387
	501	Vanda Pharmaceuticals, Inc.(b)		7,640
	775	Veracyte, Inc.(b)		6,564
	345	Versartis, Inc.(b)		6,348
	872	Viewray, Inc.(b)		6,017
	1,766	Vital Therapies, Inc.(b)		7,064
	430	Vocera Communications, Inc.(b)		10,905
	617	Voyager Therapeutics, Inc.(b)		6,441
	1,193	vTv Therapeutics, Inc., Class A(b)		6,573
	272	WaVe Life Sciences Ltd.(b)		5,739
	232	Wright Medical Group NV(b)		7,050
	368	XBiotech, Inc.(b)		4,004
	298	Xencor, Inc.(b)		7,650
	1,497	Zafgen, Inc.(b)		7,305
	1,203	ZIOPHARM Oncology, Inc.(b)(c)		8,469
	679	Zogenix, Inc.(b)		7,469
				2,450,280
		Industrials—14.0%
	554	AAON, Inc.		20,304
	277	AAR Corp.		9,969
	218	ABM Industries, Inc.		9,415
	1,887	Acacia Research Corp.(b)		10,284
	723	ACCO Brands Corp.(b)		10,303
	361	Actuant Corp., Class A		9,855
	417	Advanced Disposal Services, Inc.(b)		9,916
	927	Advanced Drainage Systems, Inc.		21,367
	212	Advisory Board Co. (The)(b)		10,833
	428	Aegion Corp.(b)		9,767
	437	Aerojet Rocketdyne Holdings, Inc.(b)		9,793
	346	Aerovironment, Inc.(b)		9,885
	604	Air Transport Services Group, Inc.(b)		11,108
	403	Aircastle Ltd.		9,519
	126	Alamo Group, Inc.		9,962
	212	Albany International Corp., Class A		10,335
	59	Allegiant Travel Co.		8,579
	467	Allied Motion Technologies, Inc.		10,573
	251	Altra Industrial Motion Corp.		11,082
	234	American Railcar Industries, Inc.		9,816
	1,488	American Superconductor Corp.(b)		7,752
	92	American Woodmark Corp.(b)		8,455
	352	Apogee Enterprises, Inc.		19,184
	154	Applied Industrial Technologies, Inc.		9,856
	536	Aqua Metals, Inc.(b)(c)		8,844
	2,649	ARC Document Solutions, Inc.(b)		9,748
	371	ArcBest Corp.		9,813
	146	Argan, Inc.		9,760
	1,094	Armstrong Flooring, Inc.(b)		20,994
	155	Astec Industries, Inc.		9,819
	321	Astronics Corp.(b)		10,436
	367	Atkore International Group, Inc.(b)		9,637
	183	Atlas Air Worldwide Holdings, Inc.(b)		10,614
	418	Axon Enterprise, Inc.(b)		10,274
	167	AZZ, Inc.		9,861
	1,065	Babcock & Wilcox Enterprises, Inc.(b)		9,979
	188	Barnes Group, Inc.		10,334
	181	Barrett Business Services, Inc.		10,436

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	413	Beacon Roofing Supply, Inc.(b)	$	20,472
	572	Blue Bird Corp.(b)		10,639
	890	BMC Stock Holdings, Inc.(b)		20,737
	245	Brady Corp., Class A		9,543
	436	Briggs & Stratton Corp.		10,896
	183	Brink’s Co. (The)		11,236
	1,389	Builders FirstSource, Inc.(b)		22,238
	601	Caesarstone Sdot-Yam Ltd. (Israel)(b)		23,860
	664	CAI International, Inc.(b)		13,692
	682	Casella Waste Systems, Inc., Class A(b)		10,264
	691	CBIZ, Inc.(b)		10,883
	894	CECO Environmental Corp.		10,093
	1,382	Celadon Group, Inc.		5,459
	285	Chart Industries, Inc.(b)		10,405
	166	CIRCOR International, Inc.		11,074
	2,295	Cogint, Inc.(b)(c)		12,163
	385	Columbus McKinnon Corp.		10,060
	576	Comfort Systems USA, Inc.		21,139
	786	Continental Building Products, Inc.(b)		19,139
	1,510	Costamare, Inc. (Monaco)		10,177
	526	Covenant Transportation Group, Inc., Class A(b)		9,852
	273	CRA International, Inc.		10,358
	265	CSW Industrials, Inc.(b)		9,381
	175	Cubic Corp.		9,082
	102	Curtiss-Wright Corp.		9,533
	133	Deluxe Corp.		9,564
	306	DigitalGlobe, Inc.(b)		9,853
	1,606	DMC Global, Inc.		24,572
	318	Douglas Dynamics, Inc.		10,144
	330	Ducommun, Inc.(b)		9,699
	286	DXP Enterprises, Inc.(b)		10,433
	106	Dycom Industries, Inc.(b)		11,200
	461	Echo Global Logistics, Inc.(b)		8,644
	155	EMCOR Group, Inc.		10,190
	209	Encore Wire Corp.		9,238
	617	Energous Corp.(b)(c)		7,787
	1,269	Energy Recovery, Inc.(b)		10,710
	125	EnerSys		10,389
	339	Engility Holdings, Inc.(b)		9,611
	605	Ennis, Inc.		10,648
	148	EnPro Industries, Inc.		10,456
	167	ESCO Technologies, Inc.		9,828
	656	Essendant, Inc.		10,955
	112	Esterline Technologies Corp.(b)		10,242
	950	ExOne Co. (The)(b)		9,585
	163	Exponent, Inc.		9,967
	689	Federal Signal Corp.		10,755
	202	Forward Air Corp.		10,740
	1,172	Foundation Building Materials, Inc.(b)		18,975
	495	Franklin Covey Co.(b)		10,519
	231	Franklin Electric Co., Inc.		9,494
	760	FreightCar America, Inc.		9,926
	236	FTI Consulting, Inc.(b)		8,163
	162	GATX Corp.		9,704
	669	Gencor Industries, Inc.(b)		11,105
	254	Generac Holdings, Inc.(b)		8,933

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

49

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	563	General Cable Corp.	$	10,134
	501	Gibraltar Industries, Inc.(b)		19,664
	564	Global Brass & Copper Holdings, Inc.		20,107
	584	GMS, Inc.(b)		21,117
	317	Gorman-Rupp Co. (The)		9,073
	399	GP Strategies Corp.(b)		10,813
	413	Graham Corp.		9,115
	202	Granite Construction, Inc.		10,647
	2,309	Great Lakes Dredge & Dock Corp.(b)		10,506
	226	Greenbrier Cos., Inc. (The)		9,820
	840	Griffon Corp.		20,160
	389	H&E Equipment Services, Inc.		8,216
	888	Hardinge, Inc.		9,324
	757	Harsco Corp.(b)		9,879
	199	Hawaiian Holdings, Inc.(b)		10,806
	1,602	HC2 Holdings, Inc.(b)		9,356
	225	Healthcare Services Group, Inc.		10,330
	474	Heartland Express, Inc.		9,537
	366	Heidrick & Struggles International, Inc.		7,869
	714	Heritage-Crystal Clean, Inc.(b)		10,746
	300	Herman Miller, Inc.		9,930
	1,932	Hill International, Inc.(b)		7,825
	264	Hillenbrand, Inc.		9,742
	208	HNI Corp.		9,726
	205	Hub Group, Inc., Class A(b)		8,026
	316	Hurco Cos., Inc.		9,164
	238	Huron Consulting Group, Inc.(b)		10,591
	167	Hyster-Yale Materials Handling, Inc.		10,038
	232	ICF International, Inc.(b)		10,243
	520	IES Holdings, Inc.(b)		10,400
	996	InnerWorkings, Inc.(b)		10,548
	109	Insperity, Inc.		9,957
	580	Insteel Industries, Inc.		20,190
	1,081	Interface, Inc.		21,512
	618	Jeld-Wen Holding, Inc.(b)		20,413
	108	John Bean Technologies Corp.		9,574
	162	Kadant, Inc.		10,068
	199	Kaman Corp.		9,554
	439	Kelly Services, Inc., Class A		9,798
	254	Kennametal, Inc.		10,561
	1,014	KEYW Holding Corp. (The)(b)		9,623
	404	Kforce, Inc.		9,171
	572	Kimball International, Inc., Class B		10,164
	214	KLX, Inc.(b)		10,122
	297	Knight Transportation, Inc.		10,187
	403	Knoll, Inc.		9,656
	305	Korn/Ferry International		9,882
	1,167	Kratos Defense & Security Solutions, Inc.(b)		8,893
	886	Lawson Products, Inc.(b)		20,156
	1,206	Layne Christensen Co.(b)		9,612
	118	Lindsay Corp.		10,249
	2,095	LSI Industries, Inc.		19,002
	183	Lydall, Inc.(b)		9,589
	1,638	Manitowoc Co., Inc. (The)(b)		9,779
	395	Marten Transport Ltd.		9,796
	252	Masonite International Corp.(b)		20,966

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	246	MasTec, Inc.(b)	$	10,861
	308	Matson, Inc.		9,764
	123	Matthews International Corp., Class A		8,432
	288	McGrath RentCorp		10,025
	255	Mercury Systems, Inc.(b)		9,532
	490	Meritor, Inc.(b)		8,727
	531	Milacron Holdings Corp.(b)		9,993
	386	Miller Industries, Inc.		9,804
	462	Mistras Group, Inc.(b)		10,395
	317	Mobile Mini, Inc.		9,098
	147	Moog, Inc., Class A(b)		10,092
	1,127	MRC Global, Inc.(b)		20,545
	136	MSA Safety, Inc.		10,588
	608	Mueller Industries, Inc.		19,480
	1,691	Mueller Water Products, Inc., Class A		19,024
	135	Multi-Color Corp.		10,368
	240	MYR Group, Inc.(b)		10,142
	81	National Presto Industries, Inc.		8,452
	424	Navigant Consulting, Inc.(b)		10,163
	376	Navistar International Corp.(b)		10,118
	1,244	NCI Building Systems, Inc.(b)		21,770
	535	Neff Corp., Class A(b)		9,416
	833	NN, Inc.		22,991
	1,904	NOW, Inc.(b)		32,387
	255	NV5 Global, Inc.(b)		9,869
	440	Omega Flex, Inc.		24,715
	204	On Assignment, Inc.(b)		10,561
	1,288	Orion Group Holdings, Inc.(b)		9,724
	266	Park-Ohio Holdings Corp.		10,467
	290	Patrick Industries, Inc.(b)		20,605
	1,947	PGT Innovations, Inc.(b)		21,222
	7,395	Plug Power, Inc.(b)(c)		16,565
	1,044	Ply Gem Holdings, Inc.(b)		20,097
	303	Powell Industries, Inc.		10,450
	196	Preformed Line Products Co.		10,374
	412	Primoris Services Corp.		9,464
	186	Proto Labs, Inc.(b)		10,788
	403	Quad/Graphics, Inc., Class A		10,583
	1,039	Quanex Building Products Corp.		21,196
	1,920	Radiant Logistics, Inc.(b)		11,520
	325	Raven Industries, Inc.		10,075
	218	RBC Bearings, Inc.(b)		21,865
	579	Resources Connection, Inc.		8,048
	341	REV Group, Inc.		9,616
	868	Rexnord Corp.(b)		21,179
	1,500	Roadrunner Transportation Systems, Inc.(b)		10,080
	789	RPX Corp.(b)		10,131
	294	Rush Enterprises, Inc., Class A(b)		11,099
	221	Saia, Inc.(b)		10,641
	1,064	Scorpio Bulkers, Inc.(b)		7,927
	478	Simpson Manufacturing Co., Inc.		19,937
	174	Siteone Landscape Supply, Inc.(b)		8,319
	269	SkyWest, Inc.		10,007
	277	SP Plus Corp.(b)		9,543
	1,288	Spartan Motors, Inc.		10,626
	453	Sparton Corp.(b)		10,088

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

50

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	397	SPX Corp.(b)	$	9,552
	285	SPX FLOW, Inc.(b)		10,300
	100	Standex International Corp.		9,395
	554	Steelcase, Inc., Class A		9,446
	263	Sun Hydraulics Corp.		10,215
	6,356	Sunrun, Inc.(b)		33,623
	491	Supreme Industries, Inc., Class A		9,840
	470	Swift Transportation Co., Class A(b)		11,553
	376	Team, Inc.(b)		10,114
	83	Teledyne Technologies, Inc.(b)		11,191
	134	Tennant Co.		9,816
	236	Tetra Tech, Inc.		10,372
	688	Textainer Group Holdings Ltd.		10,286
	488	Thermon Group Holdings, Inc.(b)		10,004
	981	Titan International, Inc.		10,507
	702	Titan Machinery, Inc.(b)		11,127
	1,918	TPI Composites, Inc.(b)		37,689
	893	TRC Cos., Inc.(b)		15,628
	290	Trex Co., Inc.(b)		21,225
	455	TriMas Corp.(b)		10,442
	329	TriNet Group, Inc.(b)		9,673
	408	Triton International Ltd. (Bermuda)(b)		12,489
	393	Triumph Group, Inc.		10,297
	350	TrueBlue, Inc.(b)		9,573
	324	Tutor Perini Corp.(b)		9,995
	70	UniFirst Corp.		9,744
	671	Univar, Inc.(b)		20,029
	209	Universal Forest Products, Inc.		19,916
	731	Universal Logistics Holdings, Inc.		10,197
	202	US Ecology, Inc.		9,524
	1,298	USA Truck, Inc.(b)		8,710
	425	Vectrus, Inc.(b)		10,812
	388	Veritiv Corp.(b)		20,040
	181	Viad Corp.		8,181
	592	Vicor Corp.(b)		10,656
	251	VSE Corp.		10,705
	461	Wabash National Corp.		10,502
	125	WageWorks, Inc.(b)		9,225
	155	Watts Water Technologies, Inc., Class A		9,641
	361	Werner Enterprises, Inc.		9,855
	849	Wesco Aircraft Holdings, Inc.(b)		10,315
	1,839	West Corp.		49,083
	442	Willis Lease Finance Corp.(b)		10,038
	143	Woodward, Inc.		9,677
	202	XPO Logistics, Inc.(b)		9,977
	881	YRC Worldwide, Inc.(b)		9,391
				3,054,909
		Information Technology—13.4%
	220	2U, Inc.(b)		9,988
	701	3D Systems Corp.(b)		11,097
	3,103	8x8, Inc.(b)		45,149
	1,082	A10 Networks, Inc.(b)		8,764
	177	Acacia Communications, Inc.(b)(c)		8,114
	456	ACI Worldwide, Inc.(b)		9,799
	708	Actua Corp.(b)		9,912
	356	Acxiom Corp.(b)		10,288

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	465	ADTRAN, Inc.	$	9,300
	144	Advanced Energy Industries, Inc.(b)		10,627
	718	Advanced Micro Devices, Inc.(b)		9,549
	2,304	Aerohive Networks, Inc.(b)		8,916
	1,040	Agilysys, Inc.(b)		10,296
	316	Alarm.com Holdings, Inc.(b)		10,305
	2,666	ALJ Regional Holdings, Inc.(b)		8,931
	577	Alpha & Omega Semiconductor Ltd.(b)		9,549
	182	Ambarella, Inc.(b)		10,232
	1,359	Amber Road, Inc.(b)		11,130
	962	American Software, Inc., Class A		10,553
	912	Amkor Technology, Inc.(b)		10,743
	1,465	Angie’s List, Inc.(b)		8,614
	126	Anixter International, Inc.(b)		10,275
	389	AppFolio, Inc., Class A(b)		10,328
	192	Applied Optoelectronics, Inc.(b)		9,483
	840	Apptio, Inc., Class A(b)		10,962
	173	Aspen Technology, Inc.(b)		10,638
	809	Autobytel, Inc.(b)		10,606
	2,030	Avid Technology, Inc.(b)		11,378
	619	AVX Corp.		10,467
	629	Axcelis Technologies, Inc.(b)		12,108
	265	Badger Meter, Inc.		10,534
	1,027	Bankrate, Inc.(b)		10,886
	431	Barracuda Networks, Inc.(b)		8,762
	2,387	Bazaarvoice, Inc.(b)		11,219
	436	Bel Fuse, Inc., Class B		10,551
	297	Belden, Inc.		20,701
	310	Benchmark Electronics, Inc.(b)		9,827
	378	Benefitfocus, Inc.(b)		11,907
	1,132	Black Box Corp.		11,207
	130	Blackbaud, Inc.		10,453
	120	Blackhawk Network Holdings, Inc., Class A(b)		4,854
	344	Blackline, Inc.(b)		11,307
	558	Blucora, Inc.(b)		10,295
	413	Bottomline Technologies (de), Inc.(b)		9,623
	605	Box, Inc., Class A(b)		10,430
	1,238	Brightcove, Inc.(b)		10,771
	236	BroadSoft, Inc.(b)		9,062
	472	Brooks Automation, Inc.		11,923
	275	Cabot Microelectronics Corp.		21,546
	81	CACI International, Inc., Class A(b)		9,558
	599	CalAmp Corp.(b)		10,746
	1,395	Calix, Inc.(b)		9,346
	482	Callidus Software, Inc.(b)		10,146
	512	Carbonite, Inc.(b)		11,059
	102	Cardtronics PLC, Class A(b)		4,241
	696	Care.com, Inc.(b)		8,248
	74	Cass Information Systems, Inc.		4,919
	139	Cavium, Inc.(b)		9,570
	289	CEVA, Inc.(b)		10,404
	922	ChannelAdvisor Corp.(b)		10,880
	419	Ciena Corp.(b)		9,599
	99	Cimpress NV (Netherlands)(b)		8,126
	167	Cirrus Logic, Inc.(b)		10,746
	586	Clearfield, Inc.(b)		8,292

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

51

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	51	Coherent, Inc.(b)	$	10,996
	579	Cohu, Inc.		10,845
	201	CommVault Systems, Inc.(b)		10,140
	673	Comtech Telecommunications Corp.		9,429
	623	Control4 Corp.(b)		10,529
	460	Convergys Corp.		10,355
	257	Cornerstone OnDemand, Inc.(b)		10,095
	417	Coupa Software, Inc.(b)		11,572
	1,059	CPI Card Group, Inc.		3,812
	477	Cray, Inc.(b)		8,538
	269	CSG Systems International, Inc.		10,090
	454	CTS Corp.		10,033
	1,083	Daktronics, Inc.		10,245
	2,281	DHI Group, Inc.(b)		8,782
	338	Diebold Nixdorf, Inc.		9,532
	836	Digi International, Inc.(b)		10,366
	393	Digimarc Corp.(b)		11,338
	418	Diodes, Inc.(b)		9,777
	850	DSP Group, Inc.(b)		10,582
	727	Eastman Kodak Co.(b)		7,997
	163	Ebix, Inc.		10,057
	1,508	Electro Scientific Industries, Inc.(b)		10,526
	204	Electronics for Imaging, Inc.(b)		9,339
	102	Ellie Mae, Inc.(b)		10,380
	1,126	EMCORE Corp.		10,134
	1,254	Endurance International Group Holdings, Inc.(b)		9,530
	5,697	EnerNOC, Inc.(b)		32,188
	435	Entegris, Inc.(b)		10,788
	303	Envestnet, Inc.(b)		10,544
	136	EPAM Systems, Inc.(b)		10,472
	150	ePlus, Inc.(b)		10,688
	511	Everbridge, Inc.(b)		11,860
	292	EVERTEC, Inc.		4,628
	764	Exa Corp.(b)		10,513
	948	Exar Corp.(b)		12,333
	204	ExlService Holdings, Inc.(b)		9,733
	1,531	Extreme Networks, Inc.(b)		11,965
	237	Fabrinet (Thailand)(b)		8,217
	37	Fair Isaac Corp.		5,013
	275	FARO Technologies, Inc.(b)		10,079
	358	Finisar Corp.(b)		8,177
	547	Five9, Inc.(b)		9,980
	865	FormFactor, Inc.(b)		9,602
	244	Forrester Research, Inc.		9,894
	288	Gigamon, Inc.(b)		9,130
	1,101	Global Sources Ltd. (Hong Kong)(b)		10,129
	281	Globant SA(b)		10,647
	4,673	Glu Mobile, Inc.(b)		10,795
	3,982	Gogo, Inc.(b)(c)		50,213
	296	GrubHub, Inc.(b)		12,722
	426	GTT Communications, Inc.(b)		11,715
	1,696	Guidance Software, Inc.(b)		10,261
	498	Hackett Group, Inc. (The)		9,875
	1,708	Harmonic, Inc.(b)		9,906
	1,064	Hortonworks, Inc.(b)		11,076
	165	HubSpot, Inc.(b)		11,063

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	551	Ichor Holdings Ltd.(b)	$	10,689
	268	II-VI, Inc.(b)		8,884
	1,194	Immersion Corp.(b)		10,471
	244	Imperva, Inc.(b)		10,846
	352	Impinj, Inc.(b)		13,193
	912	Infinera Corp.(b)		9,047
	3,063	Information Services Group, Inc.(b)		9,648
	217	Inphi Corp.(b)		8,988
	239	Insight Enterprises, Inc.(b)		10,062
	340	Instructure, Inc.(b)		8,126
	421	Integrated Device Technology, Inc.(b)		10,100
	116	InterDigital, Inc.		10,428
	779	InvenSense, Inc.(b)		10,018
	151	Itron, Inc.(b)		9,792
	698	IXYS Corp.		9,737
	531	j2 Global, Inc.		47,917
	2,277	Jive Software, Inc.(b)		11,499
	619	Kimball Electronics, Inc.(b)		10,678
	527	Knowles Corp.(b)		9,344
	2,483	Kopin Corp.(b)		10,131
	1,216	KVH Industries, Inc.(b)		9,728
	1,407	Lattice Semiconductor Corp.(b)		9,652
	4,060	Limelight Networks, Inc.(b)		12,748
	1,237	Liquidity Services, Inc.(b)		9,649
	60	Littelfuse, Inc.		9,249
	1,501	LivePerson, Inc.(b)		10,582
	104	LogMeIn, Inc.		11,752
	192	Lumentum Holdings, Inc.(b)		8,208
	222	MACOM Technology Solutions Holdings, Inc.(b)		10,851
	280	ManTech International Corp., Class A		9,940
	3,028	Marchex, Inc., Class B(b)		8,206
	154	MAXIMUS, Inc.		9,392
	378	MaxLinear, Inc., Class A(b)		10,520
	1,661	Maxwell Technologies, Inc.(b)		10,132
	1,891	Meet Group, Inc. (The)(b)		11,270
	80	Mesa Laboratories, Inc.		11,186
	226	Methode Electronics, Inc.		10,068
	194	Microsemi Corp.(b)		9,106
	53	MicroStrategy, Inc., Class A(b)		10,079
	368	MINDBODY, Inc., Class A(b)		10,433
	1,585	Mitek Systems, Inc.(b)		13,869
	146	MKS Instruments, Inc.		11,425
	2,252	Mobileiron, Inc.(b)		10,247
	986	Model N, Inc.(b)		10,550
	280	MoneyGram International, Inc.(b)		4,987
	109	Monolithic Power Systems, Inc.		9,974
	515	Monotype Imaging Holdings, Inc.		10,480
	175	MTS Systems Corp.		8,129
	340	Nanometrics, Inc.(b)		10,729
	665	NCI, Inc., Class A(b)		9,875
	1,127	NeoPhotonics Corp.(b)		8,746
	192	NETGEAR, Inc.(b)		9,053
	264	NetScout Systems, Inc.(b)		9,940
	299	NeuStar, Inc., Class A(b)		9,927
	275	New Relic, Inc.(b)		10,995
	484	NIC, Inc.		10,333

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

52

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	368	Novanta, Inc.(b)	$	10,322
	2,168	Numerex Corp., Class A(b)		9,756
	122	NVE Corp.		9,932
	1,035	Oclaro, Inc.(b)		8,290
	133	OSI Systems, Inc.(b)		10,294
	843	Park City Group, Inc.(b)		10,664
	543	Park Electrochemical Corp.		9,405
	183	Paycom Software, Inc.(b)		11,026
	272	Paylocity Holding Corp.(b)		10,728
	345	PC Connection, Inc.		9,915
	447	PDF Solutions, Inc.(b)		8,502
	237	Pegasystems, Inc.		10,795
	572	Perficient, Inc.(b)		9,964
	1,426	PFSweb, Inc.(b)		10,438
	909	Photronics, Inc.(b)		10,454
	1,239	Planet Payment, Inc.(b)		5,167
	187	Plantronics, Inc.		10,210
	173	Plexus Corp.(b)		8,994
	155	Power Integrations, Inc.		10,222
	352	Progress Software Corp.		10,461
	134	Proofpoint, Inc.(b)		10,100
	437	PROS Holdings, Inc.(b)		10,772
	978	Pure Storage, Inc., Class A(b)		10,377
	282	Q2 Holdings, Inc.(b)		10,758
	368	QAD, Inc., Class A		11,114
	276	Qualys, Inc.(b)		10,598
	465	Quantenna Communications, Inc.(b)		8,556
	2,226	QuinStreet, Inc.(b)		9,972
	811	Quotient Technology, Inc.(b)		8,840
	2,567	Radisys Corp.(b)		10,294
	773	Rambus, Inc.(b)		9,678
	687	Rapid7, Inc.(b)		11,645
	2,154	RealNetworks, Inc.(b)		9,844
	284	RealPage, Inc.(b)		10,522
	553	Reis, Inc.		10,396
	1,238	RetailMeNot, Inc.(b)		14,361
	1,057	Rightside Group Ltd.(b)		10,612
	368	RingCentral, Inc., Class A(b)		11,758
	119	Rogers Corp.(b)		12,250
	842	Rosetta Stone, Inc.(b)		9,473
	1,795	Rubicon Project, Inc. (The)(b)		10,249
	453	Rudolph Technologies, Inc.(b)		11,099
	249	Sanmina Corp.(b)		9,275
	757	Sapiens International Corp. NV (Israel)		8,978
	250	ScanSource, Inc.(b)		9,875
	114	Science Applications International Corp.		8,321
	863	SecureWorks Corp., Class A(b)		7,465
	293	Semtech Corp.(b)		10,006
	2,615	ServiceSource International, Inc.(b)		9,832
	1,708	ShoreTel, Inc.(b)		11,187
	201	Shutterstock, Inc.(b)		8,689
	1,753	Sigma Designs, Inc.(b)		10,869
	209	Silicom Ltd. (Israel)		11,334
	137	Silicon Laboratories, Inc.(b)		9,748
	938	Silver Spring Networks, Inc.(b)		10,703
	1,515	Sonus Networks, Inc.(b)		11,635

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	176	SPS Commerce, Inc.(b)	$	9,726
	69	Stamps.com, Inc.(b)		7,324
	517	Stratasys Ltd.(b)		12,801
	388	Super Micro Computer, Inc.(b)		9,467
	320	Sykes Enterprises, Inc.(b)		9,539
	200	Synaptics, Inc.(b)		10,954
	385	Synchronoss Technologies, Inc.(b)		6,160
	85	SYNNEX Corp.		9,217
	591	Syntel, Inc.		10,408
	1,346	Systemax, Inc.		17,821
	172	Take-Two Interactive Software, Inc.(b)		10,810
	107	Tech Data Corp.(b)		10,235
	1,107	TechTarget, Inc.(b)		10,240
	1,201	Telenav, Inc.(b)		10,449
	314	TeleTech Holdings, Inc.		9,813
	553	Tivo Corp.		10,922
	220	Trade Desk, Inc. (The), Class A(b)		8,217
	703	Travelport Worldwide Ltd.		9,259
	655	TrueCar, Inc.(b)		11,476
	637	TTM Technologies, Inc.(b)		10,657
	196	Ubiquiti Networks, Inc.(b)		10,098
	644	Ultra Clean Holdings, Inc.(b)		12,391
	338	Ultratech, Inc.(b)		10,316
	690	Unisys Corp.(b)		7,797
	119	Universal Display Corp.		10,633
	2,477	USA Technologies, Inc.(b)		12,137
	323	Varonis Systems, Inc.(b)		10,142
	774	VASCO Data Security International, Inc.(b)		10,449
	344	Veeco Instruments, Inc.(b)		11,352
	244	Verint Systems, Inc.(b)		9,589
	155	ViaSat, Inc.(b)		9,925
	919	Viavi Solutions, Inc.(b)		9,190
	4,718	VirnetX Holding Corp.(b)(c)		15,569
	336	Virtusa Corp.(b)		10,409
	613	Vishay Intertechnology, Inc.		10,023
	601	Vishay Precision Group, Inc.(b)		10,337
	517	Web.com Group, Inc.(b)		9,978
	140	WebMD Health Corp.(b)		7,592
	654	Workiva, Inc., Class A(b)		10,987
	861	Xactly Corp.(b)		9,988
	1,126	Xcerra Corp.(b)		11,035
	482	XO Group, Inc.(b)		8,459
	271	Xperi Corp.		9,106
	375	Zendesk, Inc.(b)		10,781
	2,144	Zix Corp.(b)		11,642
				2,942,816
		Materials—6.9%
	649	A. Schulman, Inc.		20,541
	2,687	AK Steel Holding Corp.(b)		17,036
	1,165	Allegheny Technologies, Inc.		21,378
	1,260	American Vanguard Corp.		21,105
	1,385	Ampco-Pittsburgh Corp.		20,152
	246	Balchem Corp.		19,965
	746	Boise Cascade Co.(b)		22,753
	1,466	Calgon Carbon Corp.		21,330
	551	Carpenter Technology Corp.		22,371

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

53

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	1,680	Century Aluminum Co.(b)	$	22,915
	212	Chase Corp.		21,730
	584	Chemours Co. (The)		23,529
	363	Clearwater Paper Corp.(b)		17,642
	2,411	Cliffs Natural Resources, Inc.(b)		16,202
	1,570	Codexis, Inc.(b)		6,908
	2,545	Coeur Mining, Inc.(b)		23,058
	1,066	Commercial Metals Co.		19,870
	265	Deltic Timber Corp.		20,503
	1,352	Ferro Corp.(b)		24,228
	2,036	Ferroglobe PLC		19,647
	2,742	Flotek Industries, Inc.(b)		32,931
	1,112	Forterra, Inc.(b)		21,395
	1,452	FutureFuel Corp.		22,448
	612	GCP Applied Technologies, Inc.(b)		20,135
	4,602	Gold Resource Corp.		15,187
	365	Greif, Inc., Class A		21,396
	390	H.B. Fuller Co.		20,604
	416	Hawkins, Inc.		21,258
	563	Haynes International, Inc.		23,809
	857	Headwaters, Inc.(b)		20,362
	3,968	Hecla Mining Co.		21,626
	332	Ingevity Corp.(b)		20,992
	377	Innophos Holdings, Inc.		18,073
	325	Innospec, Inc.		21,450
	249	Kaiser Aluminum Corp.		21,018
	860	KapStone Paper and Packaging Corp.		18,137
	471	KMG Chemicals, Inc.		24,751
	485	Koppers Holdings, Inc.(b)		20,588
	698	Kraton Corp.(b)		22,832
	1,290	Kronos Worldwide, Inc.		22,601
	847	Louisiana-Pacific Corp.(b)		21,802
	2,325	LSB Industries, Inc.(b)(c)		25,621
	620	Materion Corp.		23,591
	275	Minerals Technologies, Inc.		21,642
	1,126	Multi Packaging Solutions International Ltd.(b)		20,212
	1,348	Myers Industries, Inc.		21,972
	265	Neenah Paper, Inc.		20,763
	611	Olin Corp.		19,631
	1,043	Olympic Steel, Inc.		23,520
	2,203	OMNOVA Solutions, Inc.(b)		20,929
	922	P.H. Glatfelter Co.		19,832
	604	PolyOne Corp.		23,683
	156	Quaker Chemical Corp.		22,558
	1,587	Rayonier Advanced Materials, Inc.		21,028
	1,502	Real Industry, Inc.(b)		3,905
	1,824	Ryerson Holding Corp.(b)		24,989
	983	Schnitzer Steel Industries, Inc., Class A		18,579
	488	Schweitzer-Mauduit International, Inc.		21,008
	251	Sensient Technologies Corp.		20,532
	258	Stepan Co.		21,878
	1,158	Stillwater Mining Co.(b)		20,821
	858	Summit Materials, Inc., Class A(b)		22,016
	3,396	SunCoke Energy, Inc.(b)		31,141
	1,120	TimkenSteel Corp.(b)		16,890
	2,862	Trecora Resources(b)		31,625

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	1,179	Tredegar Corp.	$	20,220
	302	Trinseo SA		20,053
	1,210	Tronox Ltd., Class A		19,977
	803	UFP Technologies, Inc.(b)		21,440
	259	United States Lime & Minerals, Inc.		20,492
	302	US Concrete, Inc.(b)		18,724
	403	Worthington Industries, Inc.		17,531
				1,513,061
		Real Estate—2.4%
	155	Acadia Realty Trust REIT		4,507
	97	Agree Realty Corp. REIT		4,703
	108	Alexander & Baldwin, Inc.		4,969
	11	Alexander’s, Inc. REIT		4,783
	161	Altisource Portfolio Solutions SA(b)		3,556
	328	Altisource Residential Corp. REIT		4,717
	111	American Assets Trust, Inc. REIT		4,754
	337	Armada Hoffler Properties, Inc. REIT		4,806
	440	Ashford Hospitality Prime, Inc. REIT		4,660
	799	Ashford Hospitality Trust, Inc. REIT		4,994
	384	Bluerock Residential Growth REIT, Inc., Class A REIT		4,785
	294	CareTrust REIT, Inc. REIT		5,004
	422	CatchMark Timber Trust, Inc., Class A REIT		4,942
	510	CBL & Associates Properties, Inc. REIT		4,717
	926	Cedar Realty Trust, Inc. REIT		4,982
	240	Chatham Lodging Trust REIT		4,646
	198	Chesapeake Lodging Trust REIT		4,615
	391	City Office REIT, Inc. REIT		4,907
	345	Clipper Realty, Inc. REIT		3,795
	138	Colony Starwood Homes REIT		4,771
	203	Community Healthcare Trust, Inc. REIT		5,018
	90	Consolidated-Tomoka Land Co.		4,881
	142	CorEnergy Infrastructure Trust, Inc. REIT		5,180
	52	CoreSite Realty Corp. REIT		5,088
	569	Cousins Properties, Inc. REIT		4,831
	428	DiamondRock Hospitality Co. REIT		4,712
	94	DuPont Fabros Technology, Inc. REIT		4,846
	239	Easterly Government Properties, Inc. REIT		4,809
	64	EastGroup Properties, Inc. REIT		5,008
	116	Education Realty Trust, Inc. REIT		4,497
	426	Farmland Partners, Inc. REIT		4,643
	624	FelCor Lodging Trust, Inc. REIT		4,836
	176	First Industrial Realty Trust, Inc. REIT		4,953
	464	First Potomac Realty Trust REIT		5,104
	358	Forestar Group, Inc.(b)		5,066
	211	Four Corners Property Trust, Inc. REIT		4,923
	391	Franklin Street Properties Corp. REIT		4,743
	117	FRP Holdings, Inc.(b)		4,996
	151	Geo Group, Inc. (The) REIT		5,031
	186	Getty Realty Corp. REIT		4,762
	235	Gladstone Commercial Corp. REIT		5,240
	556	Global Medical REIT, Inc. REIT		5,154
	197	Global NET Lease, Inc. REIT		4,655
	227	Government Properties Income Trust REIT		4,840
	180	Gramercy Property Trust REIT		5,002
	148	Healthcare Realty Trust, Inc. REIT		4,854

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

54

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	250	Hersha Hospitality Trust REIT	$	4,610
	160	HFF, Inc., Class A		5,024
	134	Hudson Pacific Properties, Inc. REIT		4,604
	505	Independence Realty Trust, Inc. REIT		4,646
	268	InfraREIT, Inc. REIT		5,119
	811	Investors Real Estate Trust REIT		4,793
	403	iStar, Inc. REIT(b)		4,929
	221	Kennedy-Wilson Holdings, Inc.		4,508
	221	Kite Realty Group Trust REIT		4,500
	164	LaSalle Hotel Properties REIT		4,684
	455	Lexington Realty Trust REIT		4,627
	100	LTC Properties, Inc. REIT		4,784
	172	Mack-Cali Realty Corp. REIT		4,653
	191	Marcus & Millichap, Inc.(b)		4,928
	427	Medequities Realty Trust, Inc. REIT		5,047
	366	Medical Properties Trust, Inc. REIT		4,784
	330	Monmouth Real Estate Investment Corp. REIT		4,950
	467	Monogram Residential Trust, Inc. REIT		4,754
	65	National Health Investors, Inc. REIT		4,756
	196	National Storage Affiliates Trust REIT		4,802
	478	New Senior Investment Group, Inc. REIT		4,981
	197	NexPoint Residential Trust, Inc. REIT		4,730
	400	NorthStar Realty Europe Corp. REIT		4,652
	207	One Liberty Properties, Inc. REIT		5,026
	246	Parkway, Inc. REIT		4,957
	167	Pebblebrook Hotel Trust REIT		4,970
	326	Pennsylvania Real Estate Investment Trust REIT		4,515
	241	Physicians Realty Trust REIT		4,733
	104	Potlatch Corp. REIT		4,685
	347	Preferred Apartment Communities, Inc., Class A REIT		4,910
	41	PS Business Parks, Inc. REIT		4,983
	96	QTS Realty Trust, Inc., Class A REIT		5,130
	1,595	RAIT Financial Trust REIT		4,897
	338	Ramco-Gershenson Properties Trust REIT		4,506
	81	RE/MAX Holdings, Inc., Class A		4,791
	221	Retail Opportunity Investments Corp. REIT		4,553
	210	Rexford Industrial Realty, Inc. REIT		5,237
	209	RLJ Lodging Trust REIT		4,491
	93	RMR Group, Inc. (The), Class A		4,906
	75	Ryman Hospitality Properties, Inc. REIT		4,783
	169	Sabra Health Care REIT, Inc. REIT		4,595
	76	Saul Centers, Inc. REIT		4,564
	183	Select Income REIT		4,586
	110	Seritage Growth Properties, Class A REIT		4,565
	216	Silver Bay Realty Trust Corp. REIT		4,629
	274	St. Joe Co. (The)(b)		4,795
	186	STAG Industrial, Inc., Class A REIT		4,903
	177	Stratus Properties, Inc.		5,283
	302	Summit Hotel Properties, Inc. REIT		4,992
	317	Sunstone Hotel Investors, Inc. REIT		4,720
	215	Tejon Ranch Co.(b)		4,923
	168	Terreno Realty Corp. REIT		5,188
	271	Tier REIT, Inc. REIT		4,691
	635	Trinity Place Holdings, Inc.(b)		4,528
	312	UMH Properties, Inc. REIT		4,998

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	77	Universal Health Realty Income Trust REIT	$	5,371
	178	Urban Edge Properties REIT		4,539
	228	Urstadt Biddle Properties, Inc., Class A REIT		4,482
	149	Washington REIT		4,719
	579	Washington Prime Group, Inc. REIT		5,095
	346	Whitestone REIT		4,339
	281	Xenia Hotels & Resorts, Inc. REIT		4,906
				518,634
		Telecommunication Services—4.4%
	618	ATN International, Inc.		42,759
	3,371	Boingo Wireless, Inc.(b)		48,172
	2,387	Cincinnati Bell, Inc.(b)		44,995
	1,060	Cogent Communications Holdings, Inc.		47,700
	1,912	Consolidated Communications Holdings, Inc.		45,257
	2,695	FairPoint Communications, Inc.(b)		45,950
	2,036	General Communication, Inc., Class A(b)		76,228
	27,256	Globalstar, Inc.(b)(c)		52,059
	3,564	IDT Corp., Class B(b)		54,137
	4,960	Iridium Communications, Inc.(b)		52,576
	2,510	Lumos Networks Corp.(b)		44,954
	4,815	ORBCOMM, Inc.(b)		46,417
	473	pdvWireless, Inc.(b)		12,132
	1,550	Shenandoah Telecommunications Co.		49,600
	2,444	Spok Holdings, Inc.		43,870
	1,306	Straight Path Communications, Inc., Class B(b)		168,291
	7,053	Vonage Holdings Corp.(b)		47,326
	7,914	Windstream Holdings, Inc.		43,685
				966,108
		Utilities—7.2%
	656	ALLETE, Inc.		45,861
	1,018	American States Water Co.		45,321
	1,344	Artesian Resources Corp., Class A		51,623
	17,102	Atlantic Power Corp.(b)		42,755
	2,094	Atlantica Yield PLC (Spain)		43,639
	1,123	Avista Corp.		45,302
	669	Black Hills Corp.		45,505
	1,271	California Water Service Group		45,375
	645	Chesapeake Utilities Corp.		47,278
	838	Connecticut Water Service, Inc.		44,975
	1,461	Delta Natural Gas Co., Inc.		44,268
	6,315	Dynegy, Inc.(b)		40,542
	901	El Paso Electric Co.		46,492
	536	IDACORP, Inc.		45,303
	704	MGE Energy, Inc.		45,267
	1,220	Middlesex Water Co.		46,506
	1,133	New Jersey Resources Corp.		45,717
	748	Northwest Natural Gas Co.		44,581
	758	NorthWestern Corp.		45,313
	2,634	NRG Yield, Inc., Class C		46,622
	654	ONE Gas, Inc.		45,015
	791	Ormat Technologies, Inc.		46,716
	1,217	Otter Tail Corp.		48,072
	2,188	Pattern Energy Group, Inc.		48,180
	1,190	PNM Resources, Inc.		44,328
	992	Portland General Electric Co.		44,977

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

55

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	935	SJW Corp.	$	45,665
	1,266	South Jersey Industries, Inc.		47,500
	533	Southwest Gas Holdings, Inc.		44,644
	659	Spire, Inc.		45,174
	6,310	TerraForm Global, Inc., Class A		29,973
	2,528	TerraForm Power, Inc., Class A(b)		31,828
	993	Unitil Corp.		48,091
	536	WGL Holdings, Inc.		44,199
	1,295	York Water Co. (The)		48,563
				1,571,170
		Total Common Stocks and Other Equity Interests (Cost $19,792,325)		21,854,275
		Money Market Fund—0.3%
	59,289	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $59,289)		59,289
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $19,851,614)—100.2%		21,913,564
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.9%
	426,605	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $426,605)		426,605
		Total Investments (Cost $20,278,219)—102.1%		22,340,169
		Other assets less liabilities—(2.1)%		(462,740	)
		Net Assets—100.0%	$	21,877,429

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 April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2I.

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

56

Schedule of Investments^(a)

PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—16.4%
	10,385	American Outdoor Brands Corp.(b)(c)	$	230,028
	2,438	Asbury Automotive Group, Inc.(c)		149,206
	3,001	BJ’s Restaurants, Inc.(c)		135,345
	1,605	Buffalo Wild Wings, Inc.(c)		252,868
	421	Cavco Industries, Inc.(c)		49,994
	957	Cheesecake Factory, Inc. (The)		61,401
	925	Churchill Downs, Inc.		154,290
	3,518	Core-Mark Holding Co., Inc.		123,200
	3,736	Dave & Buster’s Entertainment, Inc.(c)		239,141
	811	Dorman Products, Inc.(c)		67,435
	2,808	Duluth Holdings, Inc., Class B(b)(c)		62,197
	682	Etsy, Inc.(c)		7,338
	4,802	Fox Factory Holding Corp.(c)		144,300
	6,700	Francesca’s Holdings Corp.(c)		105,726
	545	Gentherm, Inc.(c)		20,247
	2,916	Grand Canyon Education, Inc.(c)		219,167
	8,928	Habit Restaurants, Inc. (The), Class A(c)		168,739
	2,460	IMAX Corp.(c)		75,030
	3,893	Installed Building Products, Inc.(c)		207,692
	2,953	LCI Industries		298,696
	1,570	Lindblad Expeditions Holdings, Inc.(c)		14,915
	7,439	MCBC Holdings, Inc.		124,603
	331	Monro Muffler Brake, Inc.		17,162
	5,617	Nautilus, Inc.(c)		102,229
	5,077	Nexstar Media Group, Inc., Class A		350,313
	2,902	Ollie’s Bargain Outlet Holdings, Inc.(c)		111,147
	857	Oxford Industries, Inc.		49,689
	767	Papa John’s International, Inc.		60,639
	6,286	Potbelly Corp.(c)		87,690
	9,625	Select Comfort Corp.(c)		297,413
	3,526	Shake Shack, Inc., Class A(b)(c)		119,672
	726	Shutterfly, Inc.(c)		37,679
	7,125	Sinclair Broadcast Group, Inc., Class A		281,081
	2,183	Sturm Ruger & Co., Inc.(b)		131,962
	4,979	Taylor Morrison Home Corp., Class A(c)		115,015
	41	Tenneco, Inc.		2,584
	4,649	Texas Roadhouse, Inc.		217,945
	14,837	Tile Shop Holdings, Inc.		316,770
	1,587	Universal Electronics, Inc.(c)		109,979
	6,972	World Wrestling Entertainment, Inc., Class A		149,410
	7,356	Zoe’s Kitchen, Inc.(b)(c)		132,776
				5,602,713
		Consumer Staples—3.1%
	9,860	Amplify Snack Brands, Inc.(b)(c)		88,740
	4,539	B&G Foods, Inc.		190,638
	2,180	Calavo Growers, Inc.		143,008
	181	Coca-Cola Bottling Co. Consolidated		38,347
	405	Farmer Brothers Co.(c)		14,378
	8,826	HRG Group, Inc.(c)		176,608
	12,163	Lifevantage Corp.(b)(c)		60,328
	603	MGP Ingredients, Inc.		31,573
	3,431	Natural Health Trends Corp.		98,401
	907	PriceSmart, Inc.		78,864
	2,591	USANA Health Sciences, Inc.(c)		147,298
				1,068,183

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—1.6%
	3,549	Cohen & Steers, Inc.	$	141,605
	309	Diamond Hill Investment Group, Inc.		62,464
	1,065	Financial Engines, Inc.		45,263
	418	Firstcash, Inc.		21,715
	2,153	Moelis & Co., Class A		79,015
	1,928	ServisFirst Bancshares, Inc.		72,878
	5,095	Trupanion, Inc.(b)(c)		80,960
	689	Westwood Holdings Group, Inc.		38,446
	4,282	WMIH Corp.(c)		6,423
				548,769
		Health Care—24.5%
	910	Abaxis, Inc.		40,977
	36,423	AcelRx Pharmaceuticals, Inc.(b)(c)		94,700
	2,971	Achillion Pharmaceuticals, Inc.(c)		10,131
	3,736	AMN Healthcare Services, Inc.(c)		152,616
	3,571	Amphastar Pharmaceuticals, Inc.(c)		53,922
	1,018	Ampio Pharmaceuticals, Inc.(c)		569
	3,830	ANI Pharmaceuticals, Inc.(c)		207,280
	440	Aptevo Therapeutics, Inc.(c)		880
	65,270	Arena Pharmaceuticals, Inc.(c)		87,462
	3,394	Avinger, Inc.(c)		1,910
	3,318	BioSpecifics Technologies Corp.(c)		188,230
	7,921	BioTelemetry, Inc.(c)		260,601
	2,404	Cambrex Corp.(c)		142,677
	2,128	Cantel Medical Corp.		158,344
	5,950	Castlight Health, Inc., Class B(c)		22,908
	1,128	Cempra, Inc.(c)		4,850
	22,638	Chromadex Corp.(b)(c)		70,404
	768	Computer Programs & Systems, Inc.		21,082
	2,381	CorVel Corp.(c)		105,955
	6,492	Cross Country Healthcare, Inc.(c)		90,693
	16,048	Cytokinetics, Inc.(c)		263,187
	9,490	Depomed, Inc.(c)		113,785
	7,282	Diplomat Pharmacy, Inc.(c)		113,599
	2,464	Eagle Pharmaceuticals, Inc.(b)(c)		223,214
	939	Emergent Biosolutions, Inc.(c)		28,085
	5,811	Endologix, Inc.(b)(c)		43,524
	3,633	Fluidigm Corp.(c)		17,947
	6,356	GenMark Diagnostics, Inc.(c)		81,484
	4,081	Genomic Health, Inc.(c)		134,102
	30,855	Geron Corp.(b)(c)		78,989
	1,585	Glaukos Corp.(c)		75,335
	12,333	Halozyme Therapeutics, Inc.(c)		171,922
	4,405	HealthEquity, Inc.(c)		200,516
	597	HealthStream, Inc.(c)		16,591
	9,102	ImmunoGen, Inc.(b)(c)		39,503
	1,779	INC Research Holdings, Inc., Class A(c)		80,055
	2,640	Inogen, Inc.(c)		218,830
	7,800	Inovio Pharmaceuticals, Inc.(b)(c)		49,062
	10	Insulet Corp.(c)		434
	1,325	Intra-Cellular Therapies, Inc.(c)		18,312
	2,450	iRadimed Corp.(b)(c)		21,070
	4,529	Ironwood Pharmaceuticals, Inc., Class A(c)		73,913
	22,596	Keryx Biopharmaceuticals, Inc.(b)(c)		133,768
	9,259	Lexicon Pharmaceuticals, Inc.(b)(c)		144,533
	1,592	Ligand Pharmaceuticals, Inc.(b)(c)		176,983

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

57

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	1,269	Masimo Corp.(c)	$	130,377
	13,765	MediciNova, Inc.(c)		79,149
	4,449	Medidata Solutions, Inc.(c)		291,098
	34,276	MiMedx Group, Inc.(b)(c)		434,962
	2,422	Myriad Genetics, Inc.(b)(c)		44,541
	2,976	Neogen Corp.(c)		185,494
	9,236	NeoGenomics, Inc.(c)		69,732
	621	Nevro Corp.(c)		58,511
	15,056	Novavax, Inc.(b)(c)		12,287
	2,373	Novocure Ltd.(b)(c)		26,815
	2,098	NuVasive, Inc.(c)		152,126
	4,597	Ocular Therapeutix, Inc.(b)(c)		45,786
	3,851	Omnicell, Inc.(c)		159,431
	14,014	Pacific Biosciences of California, Inc.(c)		55,215
	1,943	Paratek Pharmaceuticals, Inc.(c)		41,677
	3,279	PAREXEL International Corp.(c)		209,299
	4,482	PRA Health Sciences, Inc.(c)		286,669
	2,191	Prothena Corp. PLC (Ireland)(b)(c)		118,599
	812	Providence Service Corp. (The)(c)		35,728
	1,527	Radius Health, Inc.(b)(c)		59,660
	7,224	RadNet, Inc.(c)		43,705
	11,032	Repligen Corp.(c)		405,867
	4,119	Spectranetics Corp. (The)(c)		117,803
	1,602	STAAR Surgical Co.(b)(c)		16,661
	20,834	Sucampo Pharmaceuticals, Inc., Class A(b)(c)		211,465
	14,070	Supernus Pharmaceuticals, Inc.(c)		458,682
	4,573	T2 Biosystems, Inc.(b)(c)		21,996
	5,867	Tandem Diabetes Care, Inc.(c)		5,589
	7,932	Teligent, Inc.(c)		62,583
	519	U.S. Physical Therapy, Inc.		34,046
	9,991	Vanda Pharmaceuticals, Inc.(c)		152,363
	17,438	ZIOPHARM Oncology, Inc.(b)(c)		122,764
				8,385,614
		Industrials—13.9%
	4,161	AAON, Inc.		152,501
	5,185	Advanced Drainage Systems, Inc.		119,514
	2,571	Advisory Board Co. (The)(c)		131,378
	2	Allegiant Travel Co.		291
	5,198	Allied Motion Technologies, Inc.		117,683
	1,977	American Woodmark Corp.(c)		181,686
	525	Apogee Enterprises, Inc.		28,612
	321	Argan, Inc.		21,459
	461	Astronics Corp.(c)		14,987
	5,594	Axon Enterprise, Inc.(b)(c)		137,501
	240	AZZ, Inc.		14,172
	1,972	Barrett Business Services, Inc.		113,706
	23,208	Builders FirstSource, Inc.(c)		371,560
	1,674	Comfort Systems USA, Inc.		61,436
	3,633	Continental Building Products, Inc.(c)		88,464
	2,603	Dycom Industries, Inc.(c)		275,033
	1,003	Forward Air Corp.		53,330
	197	GP Strategies Corp.(c)		5,339
	5,336	Hawaiian Holdings, Inc.(c)		289,745
	5,818	Healthcare Services Group, Inc.		267,104
	19	Heartland Express, Inc.		382
	2,190	Insperity, Inc.		200,056

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	352	John Bean Technologies Corp.	$	31,205
	9,566	Kforce, Inc.		217,148
	2,311	Masonite International Corp.(c)		192,275
	5,903	Mistras Group, Inc.(c)		132,817
	1,602	On Assignment, Inc.(c)		82,936
	3,010	Patrick Industries, Inc.(c)		213,860
	22,007	PGT Innovations, Inc.(c)		239,876
	2,191	Proto Labs, Inc.(c)		127,078
	675	RBC Bearings, Inc.(c)		67,702
	1,275	Trex Co., Inc.(c)		93,317
	11,197	TriNet Group, Inc.(c)		329,192
	6,759	Univar, Inc.(c)		201,756
	3,859	US Ecology, Inc.		181,952
				4,757,053
		Information Technology—34.9%
	1,502	3D Systems Corp.(b)(c)		23,777
	19,339	8x8, Inc.(c)		281,382
	22,105	A10 Networks, Inc.(c)		179,050
	850	Acacia Communications, Inc.(b)(c)		38,964
	16,680	Aerohive Networks, Inc.(c)		64,552
	6,885	Alarm.com Holdings, Inc.(c)		224,520
	20,709	Amber Road, Inc.(c)		169,607
	6,416	Angie’s List, Inc.(c)		37,726
	1,518	AppFolio, Inc., Class A(c)		40,303
	3,405	Aspen Technology, Inc.(c)		209,373
	4,287	Badger Meter, Inc.		170,408
	42	Benefitfocus, Inc.(c)		1,323
	2,256	Blackbaud, Inc.		181,405
	1,616	Box, Inc., Class A(c)		27,860
	27,393	Brightcove, Inc.(c)		238,319
	3,888	BroadSoft, Inc.(c)		149,299
	5,508	CalAmp Corp.(c)		98,814
	2,440	Callidus Software, Inc.(c)		51,362
	1,479	Carbonite, Inc.(c)		31,946
	920	Cardtronics PLC, Class A(c)		38,254
	12,560	Care.com, Inc.(c)		148,836
	5,461	Cavium, Inc.(c)		375,990
	883	CEVA, Inc.(c)		31,788
	1,148	Cimpress NV (Netherlands)(c)		94,228
	2,491	Cirrus Logic, Inc.(c)		160,296
	12,916	Clearfield, Inc.(b)(c)		182,761
	1,948	CommVault Systems, Inc.(c)		98,277
	1,009	Cornerstone OnDemand, Inc.(c)		39,634
	2,074	Ebix, Inc.(b)		127,966
	26	Electronics for Imaging, Inc.(c)		1,190
	3,003	Ellie Mae, Inc.(c)		305,585
	11,402	Endurance International Group Holdings, Inc.(c)		86,655
	5,219	Envestnet, Inc.(c)		181,621
	2,486	EPAM Systems, Inc.(c)		191,422
	2,596	ExlService Holdings, Inc.(c)		123,855
	58,444	Extreme Networks, Inc.(c)		456,740
	1,511	Fair Isaac Corp.		204,710
	14,671	Five9, Inc.(c)		267,672
	2,319	Forrester Research, Inc.		94,035
	8,075	Gigamon, Inc.(c)		255,977
	5,938	Globant SA(b)(c)		224,991

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

58

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	7,362	Gogo, Inc.(b)(c)	$	92,835
	4,981	Hackett Group, Inc. (The)		98,773
	1,450	Hortonworks, Inc.(c)		15,094
	3,123	HubSpot, Inc.(c)		209,397
	6,459	Imperva, Inc.(c)		287,103
	494	j2 Global, Inc.		44,579
	3,230	Jive Software, Inc.(c)		16,311
	83	Littelfuse, Inc.		12,794
	4,370	LogMeIn, Inc.		493,810
	1,914	MACOM Technology Solutions Holdings, Inc.(c)		93,556
	2,218	MAXIMUS, Inc.		135,276
	11,274	MaxLinear, Inc., Class A(c)		313,755
	1,406	Mesa Laboratories, Inc.		196,587
	914	Microsemi Corp.(c)		42,903
	1,317	MINDBODY, Inc., Class A(c)		37,337
	10,866	Mitek Systems, Inc.(c)		95,078
	1,894	Monolithic Power Systems, Inc.		173,301
	612	New Relic, Inc.(c)		24,468
	766	NIC, Inc.		16,354
	4,050	Paycom Software, Inc.(c)		244,013
	906	Paylocity Holding Corp.(c)		35,733
	7,573	Pegasystems, Inc.		344,950
	2,628	Plantronics, Inc.		143,489
	5,809	PROS Holdings, Inc.(c)		143,192
	838	Q2 Holdings, Inc.(c)		31,970
	22,069	Quotient Technology, Inc.(c)		240,552
	1,801	Rapid7, Inc.(c)		30,527
	8,434	RealPage, Inc.(c)		312,480
	1,121	RingCentral, Inc., Class A(c)		35,816
	9,179	Sapiens International Corp. NV (Israel)		108,863
	2,875	SPS Commerce, Inc.(c)		158,873
	976	Stamps.com, Inc.(c)		103,602
	3,790	Synchronoss Technologies, Inc.(c)		60,640
	3,766	Ubiquiti Networks, Inc.(b)(c)		194,024
	4,048	Universal Display Corp.		361,689
	6,077	Varonis Systems, Inc.(c)		190,818
	30,764	VirnetX Holding Corp.(b)(c)		101,521
	7,394	Web.com Group, Inc.(c)		142,704
	3,157	WebMD Health Corp.(c)		171,204
	1,659	Workiva, Inc., Class A(c)		27,871
	2,521	Xactly Corp.(c)		29,244
	6,032	XO Group, Inc.(c)		105,862
	729	Zendesk, Inc.(c)		20,959
	51,628	Zix Corp.(c)		280,340
				11,932,720
		Materials—2.5%
	1,939	Balchem Corp.		157,369
	1,642	Chase Corp.		168,305
	87	Deltic Timber Corp.		6,731
	1,112	Multi Packaging Solutions International Ltd.(c)		19,960
	632	PolyOne Corp.		24,781
	13,169	Real Industry, Inc.(c)		34,240
	12,156	Summit Materials, Inc., Class A(c)		311,923
	1,184	US Concrete, Inc.(c)		73,408
	926	Worthington Industries, Inc.		40,281
				836,998

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate—2.4%
	868	Altisource Portfolio Solutions SA(b)(c)	$	19,174
	2,498	CoreSite Realty Corp. REIT		244,429
	4,557	DuPont Fabros Technology, Inc. REIT		234,913
	3,059	HFF, Inc., Class A		96,053
	3,564	Marcus & Millichap, Inc.(c)		91,951
	530	Potlatch Corp. REIT		23,877
	502	PS Business Parks, Inc. REIT		61,013
	180	Ryman Hospitality Properties, Inc. REIT		11,480
	514	Universal Health Realty Income Trust REIT		35,852
				818,742
		Telecommunication Services—0.7%
	6,511	General Communication, Inc., Class A(c)		243,772
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $30,366,424)—100.0%		34,194,564
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—9.3%
	3,170,573	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $3,170,573)		3,170,573
		Total Investments (Cost $33,536,997)—109.3%		37,365,137
		Other assets less liabilities—(9.3)%		(3,169,846	)
		Net Assets—100.0%	$	34,195,291

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

59

Schedule of Investments^(a)

PowerShares Russell 2000 Pure Value Portfolio (PXSV)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Consumer Discretionary—7.7%
	1,134	Abercrombie & Fitch Co., Class A	$	13,597
	13,070	Barnes & Noble, Inc.		111,748
	59,188	Beazer Homes USA, Inc.(b)		734,523
	41,115	Big 5 Sporting Goods Corp.		633,171
	56,667	Bridgepoint Education, Inc.(b)		691,337
	52,597	Career Education Corp.(b)		533,860
	3,660	Cooper Tire & Rubber Co.		140,178
	17,067	Del Taco Restaurants, Inc.(b)		224,431
	1,314	Delta Apparel, Inc.(b)		23,034
	20,502	DeVry Education Group, Inc.		776,001
	10,135	Entercom Communications Corp., Class A		128,208
	1,763	FTD Cos., Inc.(b)		35,260
	32,364	Green Brick Partners, Inc.(b)		333,349
	18,491	Guess?, Inc.		206,360
	1,212	Haverty Furniture Cos., Inc.		29,876
	8,298	International Speedway Corp., Class A		307,856
	3,696	Monarch Casino & Resort, Inc.(b)		108,921
	2,654	National CineMedia, Inc.		31,503
	91,721	Office Depot, Inc.		455,853
	6,797	Perry Ellis International, Inc.(b)		139,474
	22,558	Regis Corp.(b)		246,108
	2,151	Scholastic Corp.		92,988
	22,126	Speedway Motorsports, Inc.		399,374
	11,008	Stage Stores, Inc.(c)		31,703
	3,066	Tuesday Morning Corp.(b)		9,965
				6,438,678
		Consumer Staples—0.3%
	2,437	Universal Corp.		178,998
	525	Weis Markets, Inc.		30,350
				209,348
		Energy—13.9%
	55,824	Alon USA Energy, Inc.		674,912
	44,538	Archrock, Inc.		525,548
	5,627	Ardmore Shipping Corp. (Ireland)		43,609
	56,874	Bill Barrett Corp.(b)		218,396
	7,152	Bristow Group, Inc.		95,622
	27,810	CARBO Ceramics, Inc.(b)(c)		191,055
	62,113	Clean Energy Fuels Corp.(b)		151,556
	47,835	Cobalt International Energy, Inc.(b)		18,708
	33,498	Contango Oil & Gas Co.(b)		239,846
	48,153	Dawson Geophysical Co.(b)		242,210
	22,622	Delek US Holdings, Inc.		544,512
	94,698	Denbury Resources, Inc.(b)		210,230
	88,322	DHT Holdings, Inc.		423,062
	24,591	Eclipse Resources Corp.(b)		49,428
	11,481	Era Group, Inc.(b)		145,924
	74,913	EXCO Resources, Inc.(b)		36,707
	14,456	Exterran Corp.(b)		395,661
	8,251	Fairmount Santrol Holdings, Inc.(b)(c)		42,575
	9,146	Forum Energy Technologies, Inc.(b)		154,567
	42,096	Frontline Ltd. (Norway)		279,938
	13,156	Gener8 Maritime, Inc.(b)		70,648
	8,948	Geospace Technologies Corp.(b)		148,000
	19,865	Golar LNG Ltd. (Bermuda)(c)		506,756
	622	Green Plains, Inc.		14,306

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	52,423	Helix Energy Solutions Group, Inc.(b)	$	320,829
	36,255	Hornbeck Offshore Services, Inc.(b)(c)		123,630
	44,099	Independence Contract Drilling, Inc.(b)		203,296
	2,710	International Seaways Inc.(b)		52,384
	23,908	Jones Energy, Inc., Class A(b)(c)		47,816
	78,181	McDermott International, Inc.(b)		511,304
	2,792	Natural Gas Services Group, Inc.(b)		76,501
	200,614	Navios Maritime Acquisition Corp.		339,038
	65,819	Newpark Resources, Inc.(b)		503,515
	9,549	Oil States International, Inc.(b)		284,083
	8,124	Overseas Shipholding Group, Inc., Class A(b)		29,571
	61,085	Pacific Ethanol, Inc.(b)		415,378
	116,933	Parker Drilling Co.(b)		192,939
	365	PDC Energy, Inc.(b)		20,159
	70,657	Pioneer Energy Services Corp.(b)		215,504
	3,083	Ring Energy, Inc.(b)		36,996
	69,148	Scorpio Tankers, Inc. (Monaco)		304,251
	6,038	SEACOR Holdings, Inc.(b)		396,455
	123,224	Seadrill Ltd. (United Kingdom)(b)		85,000
	3,682	SemGroup Corp., Class A		122,611
	11,458	Ship Finance International Ltd. (Norway)(c)		160,985
	29,526	Teekay Corp. (Bermuda)(c)		256,286
	53,546	Teekay Tankers Ltd., Class A (Bermuda)		109,769
	46,968	Tesco Corp.(b)		307,640
	39,968	Tidewater, Inc.(b)(c)		35,032
	22,151	Unit Corp.(b)		476,025
	77,687	W&T Offshore, Inc.(b)(c)		158,481
	2,536	Western Refining, Inc.(c)		87,467
	98,866	Willbros Group, Inc.(b)		271,881
				11,568,602
		Financials—41.1%
	8,327	1st Source Corp.		402,277
	27,197	AG Mortgage Investment Trust, Inc. REIT		515,383
	8,649	American Equity Investment Life Holding Co.		205,154
	24,076	Apollo Commercial Real Estate Finance, Inc. REIT		464,426
	22,274	Ares Commercial Real Estate Corp. REIT		308,050
	1,755	Argo Group International Holdings Ltd.		115,742
	24,007	Arlington Asset Investment Corp., Class A(c)		349,542
	14,114	ARMOUR Residential REIT, Inc. REIT		339,724
	4,125	Arrow Financial Corp.		141,281
	26,465	Astoria Financial Corp.		539,621
	1,728	Baldwin & Lyons, Inc., Class B		42,336
	2,378	BancFirst Corp.		228,407
	29,988	Bank Mutual Corp.		275,890
	6,300	Bank of Marin Bancorp		397,845
	19,200	BankFinancial Corp.		283,776
	6,028	Banner Corp.		332,746
	9,134	Berkshire Hills Bancorp, Inc.		342,525
	5,676	Boston Private Financial Holdings, Inc.		88,546
	7,440	Camden National Corp.		318,060
	27,410	Capitol Federal Financial, Inc.		401,008
	48,611	Capstead Mortgage Corp. REIT		541,527
	4,606	Cathay General Bancorp		175,258
	5,117	Central Pacific Financial Corp.		160,060
	5,062	City Holding Co.		359,858

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

60

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	12,190	Clifton Bancorp, Inc.	$	203,573
	2,557	Columbia Banking System, Inc.		101,027
	3,825	Community Bank System, Inc.		214,009
	7,180	Community Trust Bancorp, Inc.		322,741
	9,491	CVB Financial Corp.		204,436
	58,165	CYS Investments, Inc. REIT		496,148
	23,823	Dime Community Bancshares, Inc.		463,357
	54,601	Dynex Capital, Inc. REIT		377,839
	6,974	EMC Insurance Group, Inc.		200,014
	3,037	Enterprise Financial Services Corp.		128,313
	16	Equity Bancshares, Inc., Class A(b)		505
	5,351	EverBank Financial Corp.		104,345
	31,688	EZCORP, Inc., Class A(b)		286,776
	26,030	F.N.B. Corp.		370,667
	5,610	FBL Financial Group, Inc., Class A		373,065
	8,728	Federal Agricultural Mortgage Corp., Class C		497,932
	43,490	Ferroglobe Representation & Warranty Insurance Trust(b)		0
	4,912	Fidelity & Guaranty Life(c)		139,746
	16,864	Fidelity Southern Corp.		379,777
	13,131	Financial Institutions, Inc.		439,889
	13,538	First Bancorp/Southern Pines NC		406,682
	418	First Citizens BancShares, Inc., Class A		145,489
	1,977	First Community Bancshares, Inc.		52,311
	8,307	First Defiance Financial Corp.		445,588
	11,051	First Financial Bancorp		305,560
	6,423	First Financial Corp.		313,442
	14,030	First Financial Northwest, Inc.		219,990
	2,902	First Internet Bancorp		85,754
	6,271	First Interstate BancSystem, Inc., Class A		236,730
	8,046	First Merchants Corp.		332,944
	1,918	First Midwest Bancorp, Inc.		43,558
	2,565	First NBC Bank Holding Co.(b)(c)		6,797
	732	First of Long Island Corp. (The)		19,910
	19,884	Flagstar Bancorp, Inc.(b)		581,408
	20,590	Flushing Financial Corp.		606,993
	27,802	Fulton Financial Corp.		512,947
	2,748	German American Bancorp, Inc.		90,354
	1,683	Glacier Bancorp, Inc.		56,852
	8,822	Great Southern Bancorp, Inc.		442,423
	15,522	Greenlight Capital Re Ltd., Class A(b)		334,499
	7,802	Guaranty Bancorp		196,220
	4,710	Hancock Holding Co.		219,957
	11,375	Hanmi Financial Corp.		330,444
	2,589	Heartland Financial USA, Inc.		124,272
	17,151	Heritage Financial Corp.		452,786
	6,705	Heritage Insurance Holdings, Inc.		81,131
	4,395	Hilltop Holdings, Inc.		122,225
	3,326	HomeStreet, Inc.(b)		86,476
	1,690	Hope Bancorp, Inc.		30,944
	888	IBERIABANK Corp.		70,463
	21,589	Independent Bank Corp./MI		481,435
	9,164	International Bancshares Corp.		342,734
	7,233	INTL FCStone, Inc.(b)		270,153
	27,424	Invesco Mortgage Capital, Inc. REIT(d)		447,286
	3,640	James River Group Holdings Ltd.		158,558

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	13,575	Lakeland Bancorp, Inc.	$	264,034
	12,187	MainSource Financial Group, Inc.		416,795
	34,254	Manning & Napier, Inc., Class A		198,673
	5,112	Mercantile Bank Corp.		171,917
	116	Meta Financial Group, Inc.		9,848
	66,680	MGIC Investment Corp.(b)		702,807
	24,098	Mtge Investment Corp. REIT		433,764
	835	National Western Life Group, Inc., Class A		255,710
	788	Navigators Group, Inc. (The)		42,591
	14,585	NBT Bancorp, Inc.		556,855
	5,089	Nelnet, Inc., Class A		229,056
	17,091	New Residential Investment Corp. REIT		284,907
	16,300	Old National Bancorp		273,840
	17,984	On Deck Capital, Inc.(b)(c)		85,424
	14,230	OneBeacon Insurance Group Ltd., Class A		226,969
	10,253	Oppenheimer Holdings, Inc., Class A		177,377
	563	Park National Corp.		59,357
	12,742	Peapack-Gladstone Financial Corp.		408,509
	20,897	PennyMac Financial Services, Inc., Class A(b)		344,801
	5,314	Peoples Bancorp, Inc.		177,913
	27,435	PHH Corp.(b)		353,912
	5,954	Prosperity Bancshares, Inc.		400,109
	7,899	Radian Group, Inc.		133,335
	1,965	Redwood Trust, Inc. REIT		33,543
	14,041	Republic Bancorp, Inc., Class A		505,195
	4,506	Resource Capital Corp. REIT		42,131
	8,692	S&T Bancorp, Inc.		312,564
	346	Safety Insurance Group, Inc.		25,050
	7,222	Sandy Spring Bancorp, Inc.		312,352
	4,393	Selective Insurance Group, Inc.		231,950
	15,746	Sierra Bancorp		394,752
	16,436	Southwest Bancorp, Inc.		426,514
	8,037	Stewart Information Services Corp.		381,275
	8,931	Territorial Bancorp, Inc.		276,415
	5,539	TowneBank		179,741
	10,657	TriCo Bancshares		377,897
	19,263	TrustCo Bank Corp. NY		153,141
	9,420	Trustmark Corp.		312,932
	7,001	Umpqua Holdings Corp.		123,708
	9,222	Union Bankshares Corp.		315,761
	6,979	United Bankshares, Inc.		278,462
	2,109	United Community Banks, Inc.		57,681
	10,994	Univest Corp. of Pennsylvania		333,118
	16,768	Washington Federal, Inc.		565,082
	1,933	Washington Trust Bancorp, Inc.		95,104
	1,298	Webster Financial Corp.		65,951
	10,873	WesBanco, Inc.		432,854
	41,955	Western Asset Mortgage Capital Corp. REIT		441,786
	2,081	Wintrust Financial Corp.		147,460
				34,319,438
		Health Care—3.0%
	15,577	AngioDynamics, Inc.(b)		241,755
	34,033	Chimerix, Inc.(b)		203,517
	28,540	Community Health Systems, Inc.(b)		245,729
	8,310	Enanta Pharmaceuticals, Inc.(b)		263,842
	4,039	Halyard Health, Inc.(b)		159,541

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

61

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	19,410	Invacare Corp.	$	285,327
	40,466	Kindred Healthcare, Inc.		388,474
	1,041	PharMerica Corp.(b)		24,568
	37,901	Tetraphase Pharmaceuticals, Inc.(b)		300,555
	38,353	Zogenix, Inc.(b)(c)		421,883
				2,535,191
		Industrials—8.6%
	12,412	AAR Corp.		446,708
	4,366	Acacia Research Corp.(b)		23,795
	6,893	ACCO Brands Corp.(b)		98,225
	76,129	ARC Document Solutions, Inc.(b)		280,155
	2,282	ArcBest Corp.		60,359
	990	Atlas Air Worldwide Holdings, Inc.(b)		57,420
	107	Barnes Group, Inc.		5,882
	1,756	CBIZ, Inc.(b)		27,657
	2,468	Celadon Group, Inc.(c)		9,749
	25,833	Columbus McKinnon Corp.		675,016
	25,494	Costamare, Inc. (Monaco)		171,830
	2,064	Covenant Transportation Group, Inc., Class A(b)		38,659
	5,871	DigitalGlobe, Inc.(b)		189,046
	8,725	DMC Global, Inc.		133,492
	18,999	Engility Holdings, Inc.(b)		538,622
	4,865	Ennis, Inc.		85,624
	585	Esterline Technologies Corp.(b)		53,498
	1,734	GATX Corp.(c)		103,867
	31,201	Hardinge, Inc.		327,610
	8,502	Harsco Corp.(b)		110,951
	6,216	Kennametal, Inc.		258,461
	62,463	Kratos Defense & Security Solutions, Inc.(b)		475,968
	78,459	Manitowoc Co., Inc. (The)(b)		468,400
	17,458	MRC Global, Inc.(b)		318,259
	9,204	Powell Industries, Inc.		317,446
	3,399	Saia, Inc.(b)		163,662
	10,107	SPX FLOW, Inc.(b)		365,267
	35,180	Sunrun, Inc.(b)(c)		186,102
	35,770	Titan International, Inc.		383,097
	20,841	Titan Machinery, Inc.(b)		330,330
	11,605	TriMas Corp.(b)		266,335
	5,827	Triton International Ltd. (Bermuda)(b)		178,364
				7,149,856
		Information Technology—7.5%
	1,182	Actua Corp.(b)		16,548
	3,028	Alpha & Omega Semiconductor Ltd.(b)		50,113
	23,348	AVX Corp.		394,815
	49,917	Bankrate, Inc.(b)		529,120
	14,975	Black Box Corp.		148,252
	9,931	Cohu, Inc.		186,008
	5,740	Comtech Telecommunications Corp.		80,417
	12,944	Electro Scientific Industries, Inc.(b)		90,349
	15,609	Glu Mobile, Inc.(b)		36,057
	18,740	Kopin Corp.(b)		76,459
	60,354	Liquidity Services, Inc.(b)		470,761
	8,718	ManTech International Corp., Class A		309,489
	92,720	Marchex, Inc., Class B(b)		251,271
	1,570	Maxwell Technologies, Inc.(b)		9,577

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	5,423	MoneyGram International, Inc.(b)	$	96,584
	17,574	NCI, Inc., Class A(b)		260,974
	29,747	Photronics, Inc.(b)		342,091
	20,725	QAD, Inc., Class A		625,895
	66,733	RetailMeNot, Inc.(b)		774,103
	11,215	Sanmina Corp.(b)		417,759
	4,969	TTM Technologies, Inc.(b)		83,131
	26,649	Veeco Instruments, Inc.(b)		879,417
	13,021	Viavi Solutions, Inc.(b)		130,210
				6,259,400
		Materials—5.3%
	32,972	Agrofresh Solutions, Inc.(b)(c)		184,973
	32,956	AK Steel Holding Corp.(b)		208,941
	15,173	Allegheny Technologies, Inc.(c)		278,425
	11,354	Ampco-Pittsburgh Corp.		165,201
	8,570	Carpenter Technology Corp.		347,942
	20,437	Commercial Metals Co.		380,946
	51,406	Ferroglobe PLC		496,068
	1,077	Greif, Inc., Class A		63,134
	15,438	Haynes International, Inc.		652,873
	4,241	Hecla Mining Co.		23,113
	4,010	LSB Industries, Inc.(b)(c)		44,190
	17,920	Materion Corp.		681,856
	3,029	Olympic Steel, Inc.		68,304
	8,517	Stillwater Mining Co.(b)		153,136
	49,532	SunCoke Energy, Inc.(b)		454,208
	83,989	Terravia Holdings, Inc.(b)(c)		39,609
	9,851	TimkenSteel Corp.(b)		148,553
				4,391,472
		Real Estate—8.4%
	4,867	Agree Realty Corp. REIT		235,952
	13,634	Ashford Hospitality Prime, Inc. REIT		144,384
	93,118	Ashford Hospitality Trust, Inc. REIT		581,987
	18,944	Bluerock Residential Growth REIT, Inc., Class A REIT		236,042
	24,499	CatchMark Timber Trust, Inc., Class A REIT		286,883
	11,199	Cedar Realty Trust, Inc. REIT		60,251
	7,855	Colony Starwood Homes REIT		271,547
	34,638	Cousins Properties, Inc. REIT		294,077
	35,141	First Potomac Realty Trust REIT		386,551
	1,108	Getty Realty Corp. REIT		28,365
	8,754	Gladstone Commercial Corp. REIT		195,214
	2,395	Global NET Lease, Inc. REIT		56,594
	7,815	Government Properties Income Trust REIT(c)		166,616
	59,077	Independence Realty Trust, Inc. REIT		543,508
	16,214	InfraREIT, Inc. REIT		309,687
	23,567	Investors Real Estate Trust REIT		139,281
	3,421	Kite Realty Group Trust REIT		69,652
	6,320	LaSalle Hotel Properties REIT		180,499
	21,437	Lexington Realty Trust REIT		218,014
	9,640	Mack-Cali Realty Corp. REIT		260,762
	6,846	NorthStar Realty Europe Corp. REIT		79,619
	4,197	Parkway, Inc. REIT		84,570
	124,804	RAIT Financial Trust REIT		383,148
	15,503	Ramco-Gershenson Properties Trust REIT		206,655

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

62

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	5,929	RE/MAX Holdings, Inc., Class A	$	350,700
	2,960	Select Income REIT		74,178
	7,323	Silver Bay Realty Trust Corp. REIT		156,932
	9,789	Summit Hotel Properties, Inc. REIT		161,812
	36,430	Sunstone Hotel Investors, Inc. REIT		542,443
	1,050	Tejon Ranch Co.(b)		24,045
	16,057	Tier REIT, Inc. REIT		277,947
				7,007,915
		Telecommunication Services—1.2%
	54,899	Iridium Communications, Inc.(b)(c)		581,929
	71,920	NII Holdings, Inc.(b)		62,053
	20,026	Spok Holdings, Inc.		359,467
				1,003,449
		Utilities—3.1%
	909	ALLETE, Inc.		63,548
	89,211	Atlantic Power Corp.(b)		223,028
	9,273	Avista Corp.		374,073
	6,556	Consolidated Water Co. Ltd. (Cayman Islands)		77,361
	25,185	Dynegy, Inc.(b)		161,688
	1,400	Northwest Natural Gas Co.		83,440
	1,996	NorthWestern Corp.		119,321
	649	NRG Yield, Inc., Class C		11,487
	2,990	Otter Tail Corp.		118,105
	5,305	PNM Resources, Inc.		197,611
	698	Portland General Electric Co.		31,647
	7,262	South Jersey Industries, Inc.		272,470
	5,202	Spire, Inc.		356,597
	41,915	TerraForm Global, Inc., Class A		199,096
	13,564	TerraForm Power, Inc., Class A(b)		170,771
	31,935	Vivint Solar, Inc.(b)(c)		95,805
				2,556,048
		Total Common Stocks and Other Equity Interests (Cost $76,366,609)		83,439,397
		Money Market Fund—0.0%
	31,625	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $31,625)		31,625
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $76,398,234)—100.1%		83,471,022

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—5.6%
	4,672,920	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $4,672,920)	$	4,672,920
		Total Investments (Cost $81,071,154)—105.7%		88,143,942
		Other assets less liabilities—(5.7)%		(4,728,821	)
		Net Assets—100.0%	$	83,415,121

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 April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2I.

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

63

Schedule of Investments^(a)

PowerShares Russell Midcap Equal Weight Portfolio (EQWM)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—10.5%
	310	Adient PLC	$	22,804
	140	Advance Auto Parts, Inc.		19,900
	370	AMC Networks, Inc., Class A(b)		22,082
	578	Aramark		21,109
	504	AutoNation, Inc.(b)		21,168
	29	AutoZone, Inc.(b)		20,073
	552	Bed Bath & Beyond, Inc.		21,390
	475	Best Buy Co., Inc.		24,610
	514	BorgWarner, Inc.		21,732
	498	Brinker International, Inc.		22,007
	347	Brunswick Corp.		19,692
	223	Burlington Stores, Inc.(b)		22,059
	454	Cabela’s, Inc.(b)		24,788
	33	Cable One, Inc.		22,501
	578	CalAtlantic Group, Inc.		20,935
	353	CarMax, Inc.(b)		20,650
	236	Carter’s, Inc.		21,721
	51	Chipotle Mexican Grill, Inc.(b)		24,198
	338	Choice Hotels International, Inc.		21,193
	490	Cinemark Holdings, Inc.		21,168
	3,558	Clear Channel Outdoor Holdings, Inc., Class A		18,324
	545	Coach, Inc.		21,468
	440	CST Brands, Inc.		21,248
	637	D.R. Horton, Inc.		20,951
	276	Darden Restaurants, Inc.		23,512
	269	Delphi Automotive PLC		21,628
	447	Dick’s Sporting Goods, Inc.		22,596
	448	Dillard’s, Inc., Class A		24,806
	765	Discovery Communications, Inc., Class A(b)		22,017
	307	Dollar General Corp.		22,322
	285	Dollar Tree, Inc.(b)		23,589
	115	Domino’s Pizza, Inc.		20,860
	371	Dunkin’ Brands Group, Inc.		20,724
	167	Expedia, Inc.		22,331
	1,303	Extended Stay America, Inc.		22,724
	291	Foot Locker, Inc.		22,506
	884	GameStop Corp., Class A		20,058
	909	Gap, Inc. (The)		23,816
	411	Garmin Ltd.		20,895
	1,010	Gentex Corp.		20,856
	227	Genuine Parts Co.		20,889
	589	Goodyear Tire & Rubber Co. (The)		21,339
	37	Graham Holdings Co., Class B		22,263
	8,653	Groupon, Inc., Class A(b)		33,920
	930	H&R Block, Inc.		23,055
	1,042	Hanesbrands, Inc.		22,726
	350	Harley-Davidson, Inc.		19,883
	212	Hasbro, Inc.		21,011
	734	Hilton Grand Vacations, Inc.(b)		24,567
	363	Hilton Worldwide Holdings, Inc.		21,406
	400	Hyatt Hotels Corp., Class A(b)		22,200
	904	International Game Technology PLC		20,069
	872	Interpublic Group of Cos., Inc. (The)		20,553
	3,850	J.C. Penney Co., Inc.(b)(c)		20,713
	401	John Wiley & Sons, Inc., Class A		21,133
	923	Kate Spade & Co.(b)		16,060
	564	Kohl’s Corp.		22,013

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	440	L Brands, Inc.	$	23,236
	154	Lear Corp.		21,970
	420	Leggett & Platt, Inc.		22,067
	416	Lennar Corp., Class A		21,008
	249	Liberty Broadband Corp., Class C(b)		22,699
	465	Liberty Expedia Holdings, Inc., Class A(b)		22,464
	1,098	Liberty Interactive Corp. QVC Group, Series A(b)		23,256
	548	Liberty Media Corp.-Liberty SiriusXM, Class C(b)		20,819
	489	Liberty Ventures, Series A(b)		26,333
	836	Lions Gate Entertainment Corp., Class A		21,878
	723	Live Nation Entertainment, Inc.(b)		23,252
	717	LKQ Corp.(b)		22,399
	336	Lululemon Athletica, Inc.(b)		17,472
	749	Macy’s, Inc.		21,886
	108	Madison Square Garden Co. (The), Class A(b)		21,791
	227	Marriott International, Inc., Class A		21,433
	844	Mattel, Inc.		18,922
	817	MGM Resorts International(b)		25,090
	569	Michael Kors Holdings Ltd.(b)		21,241
	972	Michaels Cos., Inc. (The)(b)		22,706
	92	Mohawk Industries, Inc.(b)		21,601
	300	Murphy USA, Inc.(b)		20,871
	442	Newell Brands, Inc.		21,101
	1,687	News Corp., Class A		21,459
	509	Nordstrom, Inc.		24,569
	414	Norwegian Cruise Line Holdings Ltd.(b)		22,327
	10	NVR, Inc.(b)		21,112
	251	Omnicom Group, Inc.		20,612
	78	O’Reilly Automotive, Inc.(b)		19,356
	86	Panera Bread Co., Class A(b)		26,890
	458	Penske Automotive Group, Inc.		21,851
	252	Polaris Industries, Inc.(c)		21,486
	178	Pool Corp.		21,292
	904	PulteGroup, Inc.		20,494
	215	PVH Corp.		21,721
	267	Ralph Lauren Corp., Class A		21,552
	966	Regal Entertainment Group, Class A		21,320
	322	Ross Stores, Inc.		20,930
	213	Royal Caribbean Cruises Ltd.		22,706
	1,050	Sally Beauty Holdings, Inc.(b)		19,971
	271	Scripps Networks Interactive, Inc., Class A		20,249
	696	Service Corp. International		22,425
	537	Servicemaster Global Holdings, Inc.(b)		20,460
	310	Signet Jewelers Ltd.		20,410
	4,127	Sirius XM Holdings, Inc.(c)		20,429
	367	Six Flags Entertainment Corp.		22,978
	772	Skechers U.S.A., Inc., Class A(b)		19,493
	2,485	Staples, Inc.		24,278
	826	TEGNA, Inc.		21,046
	477	Tempur Sealy International, Inc.(b)(c)		22,395
	217	Thor Industries, Inc.		20,871
	222	Tiffany & Co.		20,346
	591	Toll Brothers, Inc.		21,270
	306	Tractor Supply Co.		18,944
	564	Tribune Media Co., Class A		20,620
	498	TripAdvisor, Inc.(b)		22,415

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

64

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	339	Tupperware Brands Corp.	$	24,344
	79	Ulta Beauty, Inc.(b)		22,234
	1,116	Under Armour, Inc., Class A(b)(c)		23,983
	921	Urban Outfitters, Inc.(b)		21,072
	112	Vail Resorts, Inc.		22,138
	493	Viacom, Inc., Class B		20,982
	1,023	Vista Outdoor, Inc.(b)		20,010
	222	Visteon Corp.(b)		22,855
	1,572	Wendy’s Co. (The)		23,171
	124	Whirlpool Corp.		23,024
	437	Williams-Sonoma, Inc.		23,620
	252	Wyndham Worldwide Corp.		24,018
	189	Wynn Resorts Ltd.		23,249
				2,755,283
		Consumer Staples—11.0%
	3,564	Blue Buffalo Pet Products, Inc.(b)		87,853
	1,757	Brown-Forman Corp., Class B		83,141
	1,039	Bunge Ltd.		82,112
	1,444	Campbell Soup Co.		83,088
	744	Casey’s General Stores, Inc.		83,380
	1,646	Church & Dwight Co., Inc.		81,526
	604	Clorox Co. (The)		80,749
	2,061	Conagra Brands, Inc.		79,926
	1,151	Coty, Inc., Class A		20,545
	860	Dr Pepper Snapple Group, Inc.		78,819
	1,129	Edgewell Personal Care Co.(b)		80,712
	1,480	Energizer Holdings, Inc.		87,660
	4,282	Flowers Foods, Inc.		83,970
	2,230	Hain Celestial Group, Inc. (The)(b)		82,488
	1,461	Herbalife Ltd.(b)(c)		92,423
	766	Hershey Co. (The)		82,881
	2,396	Hormel Foods Corp.		84,052
	689	Ingredion, Inc.		85,312
	622	JM Smucker Co. (The)		78,820
	1,138	Kellogg Co.		80,798
	1,934	Lamb Weston Holdings, Inc.		80,744
	822	McCormick & Co., Inc.		82,118
	942	Mead Johnson Nutrition Co.		83,574
	855	Molson Coors Brewing Co., Class B		81,986
	1,535	Nu Skin Enterprises, Inc., Class A		84,778
	3,761	Pilgrim’s Pride Corp.		97,636
	1,433	Pinnacle Foods, Inc.		83,329
	984	Post Holdings, Inc.(b)		82,843
	18,226	Rite Aid Corp.(b)		72,904
	592	Spectrum Brands Holdings, Inc.		85,088
	3,652	Sprouts Farmers Market, Inc.(b)		81,476
	991	TreeHouse Foods, Inc.(b)		86,812
	1,329	Tyson Foods, Inc., Class A		85,401
	3,056	US Foods Holding Corp.(b)		86,179
	2,843	Whole Foods Market, Inc.		103,400
				2,878,523
		Energy—10.2%
	2,293	Antero Resources Corp.(b)		48,589
	863	Baker Hughes, Inc.		51,236
	2,234	Cabot Oil & Gas Corp.		51,918

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	1,146	Cheniere Energy, Inc.(b)	$	51,971
	10,028	Chesapeake Energy Corp.(b)(c)		52,747
	436	Cimarex Energy Co.		50,873
	415	Concho Resources, Inc.(b)		52,564
	3,251	CONSOL Energy, Inc.(b)		49,350
	1,211	Continental Resources, Inc.(b)		51,359
	1,306	Devon Energy Corp.		51,574
	3,266	Diamond Offshore Drilling, Inc.(b)		47,096
	524	Diamondback Energy, Inc.(b)		52,316
	989	Dril-Quip, Inc.(b)		50,983
	980	Energen Corp.(b)		50,950
	6,062	Ensco PLC, Class A		47,829
	895	EQT Corp.		52,035
	3,035	Extraction Oil & Gas, Inc.(b)		47,498
	5,187	Frank’s International NV(c)		47,202
	3,212	Gulfport Energy Corp.(b)		51,007
	774	Helmerich & Payne, Inc.		46,935
	1,097	Hess Corp.		53,567
	1,888	HollyFrontier Corp.		53,128
	9,018	Kosmos Energy Ltd.(b)		54,198
	3,960	Laredo Petroleum, Inc.(b)		50,926
	3,477	Marathon Oil Corp.		51,703
	1,035	Marathon Petroleum Corp.		52,723
	1,960	Murphy Oil Corp.		51,313
	4,032	Nabors Industries Ltd.		41,691
	1,329	National Oilwell Varco, Inc.		46,475
	1,524	Newfield Exploration Co.(b)		52,761
	8,755	Noble Corp. PLC		42,024
	1,548	Noble Energy, Inc.		50,047
	2,014	Oceaneering International, Inc.		53,149
	977	ONEOK, Inc.		51,400
	1,691	Parsley Energy, Inc., Class A(b)		50,375
	2,084	Patterson-UTI Energy, Inc.		45,108
	2,440	PBF Energy, Inc., Class A		54,461
	4,261	QEP Resources, Inc.(b)		50,322
	1,874	Range Resources Corp.		49,642
	2,452	Rice Energy, Inc.(b)		52,203
	3,520	Rowan Cos. PLC, Class A(b)		49,526
	2,935	RPC, Inc.(c)		53,329
	2,420	SM Energy Co.		54,668
	6,769	Southwestern Energy Co.(b)		50,835
	3,704	Superior Energy Services, Inc.(b)		44,744
	900	Targa Resources Corp.		49,617
	624	Tesoro Corp.		49,739
	4,160	Transocean Ltd.(b)		45,885
	8,695	Weatherford International PLC(b)		50,170
	6,105	Whiting Petroleum Corp.(b)		50,672
	1,797	Williams Cos., Inc. (The)		55,042
	1,452	World Fuel Services Corp.		53,477
	4,232	WPX Energy, Inc.(b)		50,488
				2,671,440
		Financials—5.7%
	88	Affiliated Managers Group, Inc.		14,572
	702	Agnc Investment Corp. REIT		14,791
	24	Alleghany Corp.(b)		14,657
	262	Allied World Assurance Co. Holdings AG		13,910

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

65

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	692	Ally Financial, Inc.	$	13,702
	148	American Financial Group, Inc.		14,402
	121	American National Insurance Co.		14,147
	111	Ameriprise Financial, Inc.		14,191
	784	AmTrust Financial Services, Inc.		12,583
	1,245	Annaly Capital Management, Inc. REIT		14,703
	149	Arch Capital Group Ltd.(b)		14,449
	248	Arthur J. Gallagher & Co.		13,841
	518	Artisan Partners Asset Management, Inc., Class A		15,177
	265	Aspen Insurance Holdings Ltd. (Bermuda)		13,873
	592	Associated Banc-Corp.		14,741
	146	Assurant, Inc.		14,051
	378	Assured Guaranty Ltd.		14,413
	274	Athene Holding Ltd., Class A(b)		14,607
	209	Axis Capital Holdings Ltd.		13,773
	176	Bank of Hawaii Corp.		14,341
	390	BankUnited, Inc.		13,763
	185	BOK Financial Corp.		15,594
	328	Brown & Brown, Inc.		14,071
	175	CBOE Holdings, Inc.		14,422
	694	Chimera Investment Corp. REIT		14,130
	192	Cincinnati Financial Corp.		13,841
	341	CIT Group, Inc.		15,792
	403	Citizens Financial Group, Inc.		14,794
	320	CNA Financial Corp.		14,483
	208	Comerica, Inc.		14,706
	255	Commerce Bancshares, Inc.		14,012
	75	Credit Acceptance Corp.(b)(c)		15,244
	163	Cullen/Frost Bankers, Inc.		15,386
	724	Donnelley Financial Solutions, Inc.(b)		16,087
	413	E*TRADE Financial Corp.(b)		14,269
	276	East West Bancorp, Inc.		14,979
	311	Eaton Vance Corp.		13,351
	115	Erie Indemnity Co., Class A		14,239
	60	Everest Re Group Ltd.		15,103
	79	FactSet Research Systems, Inc.		12,898
	545	Federated Investors, Inc., Class B		14,617
	556	Fifth Third Bancorp		13,583
	361	First American Financial Corp.		15,671
	473	First Hawaiian, Inc.		14,081
	766	First Horizon National Corp.		14,056
	154	First Republic Bank		14,239
	362	FNF Group		14,824
	155	Hanover Insurance Group, Inc. (The)		13,682
	293	Hartford Financial Services Group, Inc. (The)		14,169
	1,071	Huntington Bancshares, Inc.		13,773
	398	Interactive Brokers Group, Inc., Class A		13,862
	461	Invesco Ltd.(d)		15,185
	808	KeyCorp		14,738
	309	Lazard Ltd., Class A		13,268
	400	Legg Mason, Inc.		14,952
	541	Leucadia National Corp.		13,736
	218	Lincoln National Corp.		14,373
	301	Loews Corp.		14,033
	354	LPL Financial Holdings, Inc.		14,882

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	90	M&T Bank Corp.	$	13,987
	15	Markel Corp.(b)		14,544
	75	MarketAxess Holdings, Inc.		14,439
	236	Mercury General Corp.		14,512
	1,711	MFA Financial, Inc. REIT		14,218
	124	Moody’s Corp.		14,672
	178	Morningstar, Inc.		13,017
	144	MSCI, Inc.		14,446
	200	Nasdaq, Inc.		13,774
	994	Navient Corp.		15,109
	1,003	New York Community Bancorp, Inc.		13,330
	161	Northern Trust Corp.		14,490
	693	Old Republic International Corp.		14,331
	548	OneMain Holdings, Inc.(b)		12,779
	273	PacWest Bancorp		13,483
	780	People’s United Financial, Inc.		13,627
	360	Popular, Inc.		15,088
	224	Principal Financial Group, Inc.		14,589
	236	ProAssurance Corp.		14,608
	352	Progressive Corp. (The)		13,981
	186	Raymond James Financial, Inc.		13,861
	980	Regions Financial Corp.		13,475
	111	Reinsurance Group of America, Inc.		13,879
	95	RenaissanceRe Holdings Ltd. (Bermuda)		13,506
	1,076	Santander Consumer USA Holdings, Inc.(b)		13,708
	275	SEI Investments Co.		13,945
	96	Signature Bank(b)		13,291
	1,188	SLM Corp.(b)		14,898
	619	Starwood Property Trust, Inc. REIT		14,045
	254	SunTrust Banks, Inc.		14,430
	78	SVB Financial Group(b)		13,723
	417	Synchrony Financial		11,593
	354	Synovus Financial Corp.		14,797
	204	T. Rowe Price Group, Inc.		14,462
	881	TCF Financial Corp.		14,545
	368	TD Ameritrade Holding Corp.		14,083
	850	TFS Financial Corp.		14,059
	182	Torchmark Corp.		13,961
	1,434	Two Harbors Investment Corp. REIT		14,326
	303	Unum Group		14,038
	248	Validus Holdings Ltd.		13,709
	372	Voya Financial, Inc.		13,905
	197	W.R. Berkley Corp.		13,392
	295	Western Alliance Bancorp(b)		14,131
	16	White Mountains Insurance Group Ltd.		13,743
	349	XL Group Ltd. (Bermuda)		14,606
	341	Zions Bancorporation		13,650
				1,506,597
		Health Care—12.0%
	335	ABIOMED, Inc.(b)		43,657
	1,047	Acadia Healthcare Co., Inc.(b)		45,628
	1,202	ACADIA Pharmaceuticals, Inc.(b)		41,265
	779	Agilent Technologies, Inc.		42,884
	765	Agios Pharmaceuticals, Inc.(b)		38,028
	1,858	Akorn, Inc.(b)		62,150
	1,093	Alere, Inc.(b)		53,743

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

66

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	368	Align Technology, Inc.(b)	$	49,540
	706	Alkermes PLC(b)		41,124
	3,568	Allscripts Healthcare Solutions, Inc.(b)		42,709
	779	Alnylam Pharmaceuticals, Inc.(b)		41,754
	482	AmerisourceBergen Corp.		39,548
	383	athenahealth, Inc.(b)		37,538
	477	BioMarin Pharmaceutical, Inc.(b)		45,716
	207	Bio-Rad Laboratories, Inc., Class A(b)		45,180
	400	Bio-Techne Corp.		42,832
	3,443	Brookdale Senior Living, Inc.(b)		44,725
	1,784	Bruker Corp.		43,512
	167	C.R. Bard, Inc.		51,349
	634	Centene Corp.(b)		47,170
	733	Cerner Corp.(b)		47,462
	472	Charles River Laboratories International, Inc.(b)		42,338
	213	Cooper Cos., Inc. (The)		42,670
	627	DaVita, Inc.(b)		43,269
	665	DENTSPLY Sirona, Inc.		42,055
	544	DexCom, Inc.(b)		42,410
	439	Edwards Lifesciences Corp.(b)		48,145
	4,147	Endo International PLC(b)		47,151
	665	Envision Healthcare Corp.(b)		37,260
	242	Henry Schein, Inc.(b)		42,060
	596	Hill-Rom Holdings, Inc.		45,081
	981	Hologic, Inc.(b)		44,292
	271	IDEXX Laboratories, Inc.(b)		45,455
	247	Illumina, Inc.(b)		45,660
	298	Incyte Corp.(b)		37,035
	2,956	Inovalon Holdings, Inc., Class A(b)(c)		36,211
	358	Intercept Pharmaceuticals, Inc.(b)		40,221
	2,188	Intrexon Corp.(b)(c)		45,598
	56	Intuitive Surgical, Inc.(b)		46,809
	1,092	Ionis Pharmaceuticals, Inc.(b)		52,623
	2,043	Juno Therapeutics, Inc.(b)(c)		50,952
	293	Laboratory Corp. of America Holdings(b)		41,064
	691	LifePoint Health, Inc.(b)		42,946
	959	Mallinckrodt PLC(b)		44,996
	611	MEDNAX, Inc.(b)		36,880
	59	Mettler-Toledo International, Inc.(b)		30,292
	998	Neurocrine Biosciences, Inc.(b)		53,293
	5,415	OPKO Health, Inc.(b)(c)		42,075
	1,569	Patheon NV(b)		42,222
	937	Patterson Cos., Inc.		41,687
	719	PerkinElmer, Inc.		42,716
	608	Perrigo Co. PLC		44,955
	1,388	Premier, Inc., Class A(b)		46,914
	1,441	Qiagen N.V.		43,360
	422	Quest Diagnostics, Inc.		44,525
	535	Quintiles IMS Holdings, Inc.(b)		45,090
	581	ResMed, Inc.		39,502
	655	Seattle Genetics, Inc.(b)		44,736
	213	Teleflex, Inc.		44,068
	2,434	Tenet Healthcare Corp.(b)		38,141
	298	United Therapeutics Corp.(b)		37,459
	349	Universal Health Services, Inc., Class B		42,145
	1,332	Varex Imaging Corp.(b)		44,702

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	454	Varian Medical Systems, Inc.(b)	$	41,196
	452	VCA, Inc.(b)		41,390
	832	Veeva Systems, Inc., Class A(b)		44,612
	1,501	VWR Corp.(b)		42,418
	180	Waters Corp.(b)		30,580
	302	WellCare Health Plans, Inc.(b)		46,330
	521	West Pharmaceutical Services, Inc.		47,948
	344	Zimmer Biomet Holdings, Inc.		41,160
	770	Zoetis, Inc.		43,205
				3,137,416
		Industrials—12.5%
	547	A.O. Smith Corp.		29,472
	244	Acuity Brands, Inc.		42,968
	811	AECOM(b)		27,744
	469	AGCO Corp.		30,011
	738	Air Lease Corp.		28,147
	298	Alaska Air Group, Inc.		25,357
	374	Allegion PLC		29,411
	792	Allison Transmission Holdings, Inc.		30,635
	57	AMERCO		21,344
	677	American Airlines Group, Inc.		28,854
	524	AMETEK, Inc.		29,973
	1,050	Arconic, Inc.		28,696
	1,098	Armstrong World Industries, Inc.(b)		51,331
	741	Avis Budget Group, Inc.(b)		22,600
	585	BWX Technologies, Inc.		28,764
	361	C.H. Robinson Worldwide, Inc.		26,245
	261	Carlisle Cos., Inc.		26,463
	966	Chicago Bridge & Iron Co. NV		29,057
	222	Cintas Corp.		27,188
	508	Clean Harbors, Inc.(b)		29,520
	736	Colfax Corp.(b)		29,786
	257	Copa Holdings SA, Class A (Panama)		29,920
	912	Copart, Inc.(b)		28,181
	1,838	Covanta Holding Corp.		26,743
	382	Crane Co.		30,526
	184	Cummins, Inc.		27,773
	623	Donaldson Co., Inc.		28,832
	358	Dover Corp.		28,239
	134	Dun & Bradstreet Corp. (The)		14,688
	103	Equifax, Inc.		13,937
	502	Expeditors International of Washington, Inc.		28,157
	966	Fastenal Co.		43,161
	608	Flowserve Corp.		30,929
	531	Fluor Corp.		27,251
	352	Fortune Brands Home & Security, Inc.		22,436
	429	Genesee & Wyoming, Inc., Class A(b)		29,069
	299	Graco, Inc.		32,247
	693	HD Supply Holdings, Inc.(b)		27,928
	410	HEICO Corp.		29,139
	599	Herc Holdings, Inc.(b)		27,237
	1,189	Hertz Global Holdings, Inc.(b)		19,607
	927	Hexcel Corp.		47,972
	237	Hubbell, Inc.		26,812
	135	Huntington Ingalls Industries, Inc.		27,120
	306	IDEX Corp.		32,057

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

67

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	617	Ingersoll-Rand PLC	$	54,759
	709	ITT, Inc.		29,870
	309	J.B. Hunt Transport Services, Inc.		27,705
	512	Jacobs Engineering Group, Inc.		28,119
	1,407	JetBlue Airways Corp.(b)		30,715
	675	Johnson Controls International PLC		28,060
	340	Kansas City Southern		30,624
	486	KAR Auction Services, Inc.		21,199
	2,003	KBR, Inc.		28,142
	412	Kirby Corp.(b)		29,087
	167	L3 Technologies, Inc.		28,686
	335	Landstar System, Inc.		28,626
	289	Lennox International, Inc.		47,798
	328	Lincoln Electric Holdings, Inc.		29,202
	1,143	LSC Communications, Inc.		29,569
	353	Macquarie Infrastructure Corp.		28,724
	281	ManpowerGroup, Inc.		28,375
	1,441	Masco Corp.		53,346
	206	Middleby Corp. (The)(b)		28,043
	279	MSC Industrial Direct Co., Inc., Class A		24,979
	513	Nielsen Holdings PLC		21,100
	228	Nordson Corp.		28,546
	329	Old Dominion Freight Line, Inc.		29,123
	283	Orbital ATK, Inc.		28,017
	410	Oshkosh Corp.		28,450
	803	Owens Corning		48,863
	415	PACCAR, Inc.		27,693
	177	Parker-Hannifin Corp.		28,462
	460	Pentair PLC (United Kingdom)		29,675
	2,229	Pitney Bowes, Inc.		29,623
	769	Quanta Services, Inc.(b)		27,253
	381	Regal Beloit Corp.		30,042
	447	Republic Services, Inc.		28,157
	575	Robert Half International, Inc.		26,479
	182	Rockwell Automation, Inc.		28,638
	423	Rockwell Collins, Inc.		44,030
	778	Rollins, Inc.		30,210
	135	Roper Technologies, Inc.		29,525
	2,383	RR Donnelley & Sons Co.		29,954
	385	Ryder System, Inc.		26,145
	175	Snap-on, Inc.		29,318
	490	Spirit AeroSystems Holdings, Inc., Class A		28,008
	557	Spirit Airlines, Inc.(b)		31,899
	214	Stanley Black & Decker, Inc.		29,136
	342	Stericycle, Inc.(b)		29,186
	936	Terex Corp.		32,741
	597	Textron, Inc.		27,856
	1,116	Timken Co. (The)		53,847
	458	Toro Co. (The)		29,733
	137	TransDigm Group, Inc.		33,802
	370	TransUnion(b)		14,811
	1,070	Trinity Industries, Inc.		28,783
	415	United Continental Holdings, Inc.(b)		29,137
	232	United Rentals, Inc.(b)		25,441
	1,479	USG Corp.(b)		44,814
	326	Valmont Industries, Inc.		49,666

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	350	Verisk Analytics, Inc.(b)	$	28,984
	121	W.W. Grainger, Inc.		23,317
	182	WABCO Holdings, Inc.(b)		21,634
	369	Wabtec Corp.		30,955
	345	Watsco, Inc.		47,886
	1,456	Welbilt, Inc.(b)		29,848
	411	WESCO International, Inc.(b)		25,050
	573	Xylem, Inc.		29,458
				3,294,450
		Information Technology—13.5%
	541	Akamai Technologies, Inc.(b)		32,969
	62	Alliance Data Systems Corp.		15,477
	553	Amdocs Ltd.		33,866
	486	Amphenol Corp., Class A		35,143
	422	Analog Devices, Inc.		32,156
	323	ANSYS, Inc.(b)		35,582
	265	Arista Networks, Inc.(b)		37,005
	1,291	ARRIS International PLC(b)		33,553
	473	Arrow Electronics, Inc.(b)		33,346
	1,176	Atlassian Corp. PLC, Class A (Australia)(b)		40,548
	402	Autodesk, Inc.(b)		36,208
	776	Avnet, Inc.		30,023
	904	Black Knight Financial Services, Inc., Class A(b)		37,426
	766	Booz Allen Hamilton Holding Corp.		27,522
	205	Broadridge Financial Solutions, Inc.		14,338
	2,759	Brocade Communications Systems, Inc.		34,681
	1,079	CA, Inc.		35,424
	1,085	Cadence Design Systems, Inc.(b)		35,338
	529	CDK Global, Inc.		34,390
	593	CDW Corp.		35,040
	413	Citrix Systems, Inc.(b)		33,428
	429	Cognex Corp.		36,611
	2,232	CommerceHub, Inc., Series C(b)		35,533
	851	CommScope Holding Co., Inc.(b)		35,776
	1,753	Conduent, Inc.(b)		28,591
	356	CoreLogic, Inc.(b)		15,215
	136	CoStar Group, Inc.(b)		32,761
	1,292	Cree, Inc.(b)		28,269
	1,175	CSRA, Inc.		34,169
	2,456	Cypress Semiconductor Corp.		34,409
	673	Dolby Laboratories, Inc., Class A		35,487
	301	DST Systems, Inc.		37,056
	625	EchoStar Corp., Class A(b)		35,975
	389	Electronic Arts, Inc.(b)		36,885
	167	Euronet Worldwide, Inc.(b)		13,798
	235	F5 Networks, Inc.(b)		30,346
	175	Fidelity National Information Services, Inc.		14,733
	2,825	FireEye, Inc.(b)		35,341
	928	First Data Corp., Class A(b)		14,495
	1,786	First Solar, Inc.(b)		52,776
	120	Fiserv, Inc.(b)		14,297
	3,928	Fitbit, Inc., Class A(b)		22,468
	88	FleetCor Technologies, Inc.(b)		12,420
	772	FLIR Systems, Inc.		28,356
	947	Fortinet, Inc.(b)		36,933
	316	Gartner, Inc.(b)		36,052

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

68

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,153	Genpact Ltd.	$	28,156
	177	Global Payments, Inc.		14,471
	940	GoDaddy, Inc., Class A(b)		36,585
	620	Guidewire Software, Inc.(b)		38,124
	309	Harris Corp.		34,574
	476	IAC/InterActiveCorp.(b)		39,513
	290	IPG Photonics Corp.(b)		36,633
	1,197	Jabil Circuit, Inc.		34,737
	149	Jack Henry & Associates, Inc.		14,441
	1,237	Juniper Networks, Inc.		37,197
	753	Keysight Technologies, Inc.(b)		28,185
	362	KLA-Tencor Corp.		35,556
	275	Lam Research Corp.		39,834
	654	Leidos Holdings, Inc.		34,440
	701	Manhattan Associates, Inc.(b)		32,730
	2,165	Marvell Technology Group Ltd. (Bermuda)		32,518
	2,155	Match Group, Inc.(b)(c)		40,148
	763	Maxim Integrated Products, Inc.		33,686
	473	Microchip Technology, Inc.		35,749
	1,301	Micron Technology, Inc.(b)		35,999
	411	Motorola Solutions, Inc.		35,334
	872	National Instruments Corp.		30,442
	789	NCR Corp.(b)		32,546
	842	NetApp, Inc.		33,554
	2,096	Nuance Communications, Inc.(b)		37,497
	1,778	Nutanix, Inc., Class A(b)(c)		27,008
	322	NVIDIA Corp.		33,585
	2,302	ON Semiconductor Corp.(b)		32,642
	308	Palo Alto Networks, Inc.(b)		33,390
	1,838	Pandora Media, Inc.(b)(c)		19,942
	456	Paychex, Inc.		27,032
	661	PTC, Inc.(b)		35,727
	515	Qorvo, Inc.(b)		35,035
	416	Red Hat, Inc.(b)		36,641
	1,645	Sabre Corp.		38,509
	408	ServiceNow, Inc.(b)		38,548
	357	Skyworks Solutions, Inc.		35,607
	567	Splunk, Inc.(b)		36,464
	839	Square, Inc., Class A(b)		15,303
	965	SS&C Technologies Holdings, Inc.		35,454
	8,206	SunPower Corp.(b)(c)		56,950
	1,122	Symantec Corp.		35,489
	484	Synopsys, Inc.(b)		35,671
	720	Tableau Software, Inc., Class A(b)		38,650
	1,131	Teradata Corp.(b)		33,003
	1,127	Teradyne, Inc.		39,749
	267	Total System Services, Inc.		15,302
	897	Trimble, Inc.(b)		31,781
	1,185	Twilio, Inc., Class A(b)(c)		39,164
	2,307	Twitter, Inc.(b)		38,019
	223	Tyler Technologies, Inc.(b)		36,481
	180	Ultimate Software Group, Inc. (The)(b)		36,481
	218	Vantiv, Inc., Class A(b)		13,525
	1,835	VeriFone Systems, Inc.(b)		34,021
	394	VeriSign, Inc.(b)(c)		35,034
	452	Western Digital Corp.		40,260

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	693	Western Union Co. (The)	$	13,763
	136	WEX, Inc.(b)		13,799
	423	Workday, Inc., Class A(b)		36,970
	3,892	Xerox Corp.		27,983
	585	Xilinx, Inc.		36,919
	1,051	Yelp, Inc., Class A(b)		37,216
	323	Zebra Technologies Corp., Class A(b)		30,449
	416	Zillow Group, Inc., Class C(b)		16,224
	12,255	Zynga, Inc., Class A(b)		35,417
				3,544,071
		Materials—9.0%
	469	Albemarle Corp.		51,079
	1,479	Alcoa Corp.		49,887
	639	AptarGroup, Inc.		51,312
	411	Ashland Global Holdings, Inc.		50,758
	352	Avery Dennison Corp.		29,290
	1,574	Axalta Coating Systems Ltd.(b)		49,376
	663	Ball Corp.		50,978
	1,003	Bemis Co., Inc.		45,065
	1,019	Berry Global Group, Inc.(b)		50,950
	846	Cabot Corp.		50,921
	546	Celanese Corp., Series A		47,524
	1,677	CF Industries Holdings, Inc.		44,843
	735	Compass Minerals International, Inc.(c)		48,510
	924	Crown Holdings, Inc.(b)		51,827
	1,301	Domtar Corp.		51,585
	503	Eagle Materials, Inc.		48,273
	632	Eastman Chemical Co.		50,402
	801	FMC Corp.		58,657
	3,841	Freeport-McMoRan, Inc.(b)		48,973
	3,759	Graphic Packaging Holding Co.		51,047
	2,146	Huntsman Corp.		53,156
	365	International Flavors & Fragrances, Inc.		50,585
	960	International Paper Co.		51,811
	231	Martin Marietta Materials, Inc.		50,864
	1,699	Mosaic Co. (The)		45,754
	110	NewMarket Corp.		51,777
	1,466	Newmont Mining Corp.		49,565
	804	Nucor Corp.		49,309
	2,435	Owens-Illinois, Inc.(b)		53,132
	533	Packaging Corp. of America		52,650
	3,905	Platform Specialty Products Corp.(b)		55,334
	621	Reliance Steel & Aluminum Co.		48,947
	734	Royal Gold, Inc.		51,879
	906	RPM International, Inc.		47,619
	534	Scotts Miracle-Gro Co. (The)		51,584
	1,084	Sealed Air Corp.		47,718
	819	Silgan Holdings, Inc.		49,648
	918	Sonoco Products Co.		48,021
	1,354	Southern Copper Corp. (Peru)		47,891
	1,428	Steel Dynamics, Inc.		51,608
	6,642	Tahoe Resources, Inc.		53,535
	1,449	United States Steel Corp.		32,342
	444	Valspar Corp. (The)		49,923
	2,148	Valvoline, Inc.(c)		47,793
	427	Vulcan Materials Co.		51,616

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

69

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	704	W.R. Grace & Co.	$	49,083
	755	Westlake Chemical Corp.		46,999
	931	WestRock Co.		49,864
				2,371,264
		Real Estate—4.3%
	124	Alexandria Real Estate Equities, Inc. REIT		13,951
	291	American Campus Communities, Inc. REIT		13,791
	593	American Homes 4 Rent, Class A REIT		13,669
	312	Apartment Investment & Management Co., Class A REIT		13,647
	748	Apple Hospitality REIT, Inc. REIT		14,010
	75	AvalonBay Communities, Inc. REIT		14,238
	104	Boston Properties, Inc. REIT		13,166
	857	Brandywine Realty Trust REIT		14,543
	649	Brixmor Property Group, Inc. REIT		12,818
	171	Camden Property Trust REIT		14,078
	553	Care Capital Properties, Inc. REIT		14,859
	399	CBRE Group, Inc., Class A(b)		14,288
	1,078	Colony Northstar, Inc., Class A REIT		14,089
	640	Columbia Property Trust, Inc. REIT		14,400
	428	CoreCivic, Inc. REIT		14,745
	412	Corporate Office Properties Trust REIT		13,489
	522	CubeSmart REIT		13,227
	274	CyrusOne, Inc. REIT		14,971
	293	DCT Industrial Trust, Inc. REIT		14,814
	1,096	DDR Corp. REIT		11,848
	133	Digital Realty Trust, Inc. REIT		15,274
	362	Douglas Emmett, Inc. REIT		13,637
	537	Duke Realty Corp. REIT		14,891
	669	Empire State Realty Trust, Inc., Class A REIT		13,915
	190	EPR Properties REIT		13,815
	36	Equinix, Inc. REIT		15,037
	444	Equity Commonwealth REIT(b)		14,204
	176	Equity LifeStyle Properties, Inc. REIT		14,240
	59	Essex Property Trust, Inc. REIT		14,424
	185	Extra Space Storage, Inc. REIT		13,973
	103	Federal Realty Investment Trust REIT		13,482
	643	Forest City Realty Trust, Inc., Class A REIT		14,532
	436	Gaming and Leisure Properties, Inc. REIT		15,173
	606	GGP, Inc. REIT		13,096
	456	HCP, Inc. REIT		14,296
	451	Healthcare Trust of America, Inc., Class A REIT		14,382
	281	Highwoods Properties, Inc. REIT		14,297
	447	Hospitality Properties Trust REIT		14,228
	774	Host Hotels & Resorts, Inc. REIT		13,893
	121	Howard Hughes Corp. (The)(b)		14,896
	649	Invitation Homes, Inc. REIT(b)		13,986
	398	Iron Mountain, Inc. REIT		13,834
	129	Jones Lang LaSalle, Inc.		14,817
	191	Kilroy Realty Corp. REIT		13,471
	620	Kimco Realty Corp. REIT		12,580
	182	Lamar Advertising Co., Class A REIT		13,117
	362	Liberty Property Trust REIT		14,686
	165	Life Storage, Inc. REIT		12,934
	220	Macerich Co. (The) REIT		13,735
	137	Mid-America Apartment Communities, Inc. REIT		13,592

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate (continued)
	318	National Retail Properties, Inc. REIT	$	13,426
	435	OMEGA Healthcare Investors, Inc. REIT		14,355
	527	Outfront Media, Inc. REIT		13,786
	860	Paramount Group, Inc. REIT		14,104
	531	Park Hotels & Resorts, Inc. REIT		13,631
	649	Piedmont Office Realty Trust, Inc., Class A REIT		14,181
	274	Prologis, Inc. REIT		14,908
	763	Quality Care Properties, Inc. REIT(b)		13,238
	502	Rayonier, Inc. REIT		14,166
	481	Realogy Holdings Corp.		14,695
	234	Realty Income Corp. REIT		13,654
	207	Regency Centers Corp. REIT		13,078
	968	Retail Properties of America, Inc., Class A REIT		12,913
	118	SBA Communications Corp. REIT(b)		14,926
	695	Senior Housing Properties Trust REIT		14,956
	130	SL Green Realty Corp. REIT		13,641
	1,375	Spirit Realty Capital, Inc. REIT		12,953
	594	STORE Capital Corp. REIT		14,250
	172	Sun Communities, Inc. REIT		14,381
	432	Tanger Factory Outlet Centers, Inc. REIT		13,474
	214	Taubman Centers, Inc. REIT		13,386
	383	UDR, Inc. REIT		14,301
	544	Uniti Group, Inc. REIT		14,938
	221	Ventas, Inc. REIT		14,146
	1,633	VEREIT, Inc. REIT		13,668
	136	Vornado Realty Trust REIT		13,089
	414	Weingarten Realty Investors REIT		13,567
	200	Welltower, Inc. REIT		14,288
	417	Weyerhaeuser Co. REIT		14,124
	226	WP Carey, Inc. REIT		14,148
				1,119,449
		Telecommunication Services—2.1%
	3,216	CenturyLink, Inc.(c)		82,555
	37,552	Frontier Communications Corp.(c)		70,598
	1,299	Level 3 Communications, Inc.(b)		78,927
	8,615	Sprint Corp.(b)		77,793
	2,886	Telephone & Data Systems, Inc.		79,250
	1,990	United States Cellular Corp.(b)		77,968
	2,201	Zayo Group Holdings, Inc.(b)		77,189
				544,280
		Utilities—9.1%
	6,517	AES Corp. (The)		73,707
	1,829	Alliant Energy Corp.		71,916
	1,301	Ameren Corp.		71,152
	953	American Water Works Co., Inc.		76,011
	2,300	Aqua America, Inc.		76,107
	892	Atmos Energy Corp.		72,270
	1,697	Avangrid, Inc.		73,819
	6,794	Calpine Corp.(b)		69,299
	2,625	CenterPoint Energy, Inc.		74,891
	1,617	CMS Energy Corp.		73,412
	932	Consolidated Edison, Inc.		73,889
	715	DTE Energy Co.		74,782
	908	Edison International		72,613
	948	Entergy Corp.		72,294

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

70

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	1,208	Eversource Energy	$	71,755
	2,337	FirstEnergy Corp.		69,970
	2,527	Great Plains Energy, Inc.		74,774
	2,178	Hawaiian Electric Industries, Inc.		73,007
	2,688	MDU Resources Group, Inc.		72,307
	1,181	National Fuel Gas Co.		65,404
	3,068	NiSource, Inc.		74,399
	4,014	NRG Energy, Inc.		67,837
	2,050	OGE Energy Corp.		71,299
	871	Pinnacle West Capital Corp.		74,113
	1,938	PPL Corp.		73,857
	1,618	Public Service Enterprise Group, Inc.		71,273
	1,092	SCANA Corp.		72,410
	651	Sempra Energy		73,576
	1,458	UGI Corp.		73,133
	1,256	Vectren Corp.		74,632
	1,201	WEC Energy Group, Inc.		72,685
	1,335	Westar Energy, Inc.		69,460
	1,634	Xcel Energy, Inc.		73,612
				2,395,665
		Total Common Stocks and Other Equity Interests (Cost $24,401,310)		26,218,438
		Money Market Fund—0.3%
	72,772	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $72,772)		72,772
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $24,474,082)—100.2%		26,291,210
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.7%
	982,310	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $982,310)		982,310
		Total Investments (Cost $25,456,392)—103.9%		27,273,520
		Other assets less liabilities—(3.9)%		(1,031,101	)
		Net Assets—100.0%	$	26,242,419

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 April 30, 2017.

^(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.

^(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2I.

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

71

Schedule of Investments^(a)

PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—21.1%
	14,737	AMC Networks, Inc., Class A(b)	$	879,504
	869	Cable One, Inc.		592,536
	5,630	Carter’s, Inc.		518,185
	2,115	Delphi Automotive PLC		170,046
	5,691	Dollar General Corp.		413,793
	9,394	Dollar Tree, Inc.(b)		777,541
	4,724	Domino’s Pizza, Inc.		856,886
	8,657	Interpublic Group of Cos., Inc. (The)		204,046
	9,860	Lululemon Athletica, Inc.(b)		512,720
	1,086	Newell Brands, Inc.		51,846
	413	NVR, Inc.(b)		871,946
	3,142	O’Reilly Automotive, Inc.(b)		779,687
	3,685	Panera Bread Co., Class A(b)		1,152,226
	8,777	Pool Corp.		1,049,905
	7,293	Ross Stores, Inc.		474,045
	3,000	Servicemaster Global Holdings, Inc.(b)		114,300
	16,642	Tempur Sealy International, Inc.(b)(c)		781,342
	8,037	Tractor Supply Co.		497,571
	4,425	Ulta Beauty, Inc.(b)		1,245,372
	26,352	Under Armour, Inc., Class A(b)(c)		566,304
	3,923	Vail Resorts, Inc.		775,420
	11,203	Wyndham Worldwide Corp.		1,067,758
				14,352,979
		Consumer Staples—2.2%
	41,129	Blue Buffalo Pet Products, Inc.(b)		1,013,830
	21,152	Sprouts Farmers Market, Inc.(b)		471,901
				1,485,731
		Financials—5.6%
	4,477	Eaton Vance Corp.		192,198
	4,588	FactSet Research Systems, Inc.		749,037
	7,264	MarketAxess Holdings, Inc.		1,398,465
	823	Morningstar, Inc.		60,186
	10,438	MSCI, Inc.		1,047,140
	7,275	SEI Investments Co.		368,915
				3,815,941
		Health Care—24.8%
	10,810	ABIOMED, Inc.(b)		1,408,759
	6,499	Agios Pharmaceuticals, Inc.(b)		323,065
	12,857	Akorn, Inc.(b)		430,067
	9,810	Align Technology, Inc.(b)		1,320,622
	5,397	Alkermes PLC(b)		314,375
	10,368	AmerisourceBergen Corp.		850,694
	152	Aquabounty Technologies, Inc.(b)		1,181
	8,392	athenahealth, Inc.(b)		822,500
	1,991	BioMarin Pharmaceutical, Inc.(b)		190,818
	428	C.R. Bard, Inc.		131,602
	18,182	Cerner Corp.(b)		1,177,285
	5,340	Charles River Laboratories International, Inc.(b)		478,998
	6,132	DexCom, Inc.(b)		478,051
	8,017	Edwards Lifesciences Corp.(b)		879,224
	1,087	Henry Schein, Inc.(b)		188,921
	3,590	Hologic, Inc.(b)		162,089
	7,455	Illumina, Inc.(b)		1,378,131
	13,015	Incyte Corp.(b)		1,617,504

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	8,689	Inovalon Holdings, Inc., Class A(b)(c)	$	106,440
	10,266	Intrexon Corp.(b)(c)		213,944
	302	Intuitive Surgical, Inc.(b)		252,433
	14,537	Ionis Pharmaceuticals, Inc.(b)		700,538
	1,436	Mettler-Toledo International, Inc.(b)		737,271
	14,340	Seattle Genetics, Inc.(b)		979,422
	9,131	Tenet Healthcare Corp.(b)		143,083
	688	VCA, Inc.(b)		63,000
	24,136	Veeva Systems, Inc., Class A(b)		1,294,172
	2,114	West Pharmaceutical Services, Inc.		194,551
	365	Zoetis, Inc.		20,480
				16,859,220
		Industrials—9.8%
	2,109	Acuity Brands, Inc.		371,395
	3,155	C.H. Robinson Worldwide, Inc.		229,369
	4,552	Cintas Corp.		557,483
	35,726	Copart, Inc.(b)		1,103,933
	597	Equifax, Inc.		80,780
	10,963	HEICO Corp.		779,140
	6,288	J.B. Hunt Transport Services, Inc.		563,782
	6,933	Middleby Corp. (The)(b)		943,789
	6,145	Nordson Corp.		769,354
	4,750	Robert Half International, Inc.		218,738
	8,784	Toro Co. (The)		570,257
	390	Verisk Analytics, Inc.(b)		32,296
	2,987	Watsco, Inc.		414,596
				6,634,912
		Information Technology—32.7%
	2,960	Alliance Data Systems Corp.		738,905
	8,028	Amphenol Corp., Class A		580,505
	9,181	Arista Networks, Inc.(b)		1,282,035
	16,712	Atlassian Corp. PLC, Class A (Australia)(b)		576,230
	13,812	Black Knight Financial Services, Inc., Class A(b)		571,817
	471	Broadridge Financial Solutions, Inc.		32,942
	14,681	CDK Global, Inc.		954,412
	3,380	Citrix Systems, Inc.(b)		273,577
	2,164	CoStar Group, Inc.(b)		521,286
	15,380	CSRA, Inc.		447,250
	397	DST Systems, Inc.		48,875
	6,756	Euronet Worldwide, Inc.(b)		558,181
	3,122	F5 Networks, Inc.(b)		403,144
	57,348	First Data Corp., Class A(b)		895,776
	3,428	Fiserv, Inc.(b)		408,412
	1,553	FleetCor Technologies, Inc.(b)		219,190
	27,097	Fortinet, Inc.(b)		1,056,783
	4,850	Gartner, Inc.(b)		553,336
	11,383	Genpact Ltd.		277,973
	11,383	Global Payments, Inc.		930,674
	10,286	GoDaddy, Inc., Class A(b)		400,331
	3,099	Jack Henry & Associates, Inc.		300,355
	13,339	Manhattan Associates, Inc.(b)		622,798
	15,303	Match Group, Inc.(b)(c)		285,095
	7,971	Microchip Technology, Inc.		602,448
	13,390	NVIDIA Corp.		1,396,577
	5,704	Palo Alto Networks, Inc.(b)		618,371

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

72

PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	3,852	Paychex, Inc.	$	228,346
	11,745	Red Hat, Inc.(b)		1,034,500
	13,678	ServiceNow, Inc.(b)		1,292,297
	5,066	Splunk, Inc.(b)		325,794
	24,358	Square, Inc., Class A(b)		444,290
	8,286	Tableau Software, Inc., Class A(b)		444,792
	11,154	Total System Services, Inc.		639,236
	5,870	Tyler Technologies, Inc.(b)		960,273
	4,764	Ultimate Software Group, Inc. (The)(b)		965,520
	3,833	Workday, Inc., Class A(b)		335,004
				22,227,330
		Real Estate—3.7%
	50,530	Colony Northstar, Inc., Class A REIT		660,427
	2,436	Equinix, Inc. REIT		1,017,517
	4,554	Extra Space Storage, Inc. REIT		343,964
	15,082	Gaming and Leisure Properties, Inc. REIT		524,854
				2,546,762
		Telecommunication Services—0.1%
	1,377	Zayo Group Holdings, Inc.(b)		48,291
		Total Common Stocks and Other Equity Interests (Cost $57,403,327)		67,971,166
		Money Market Fund—0.1%
	74,905	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $74,905)		74,905
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $57,478,232)—100.1%		68,046,071
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.9%
	1,988,851	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,988,851)		1,988,851
		Total Investments (Cost $59,467,083)—103.0%		70,034,922
		Other assets less liabilities—(3.0)%		(2,067,820	)
		Net Assets—100.0%	$	67,967,102

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

73

Schedule of Investments^(a)

PowerShares Russell Midcap Pure Value Portfolio (PXMV)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—5.0%
	7,891	Best Buy Co., Inc.	$	408,833
	1,262	GameStop Corp., Class A		28,635
	7,708	Garmin Ltd.		391,875
	227	Graham Holdings Co., Class B		136,586
	31,037	J.C. Penney Co., Inc.(b)(c)		166,979
	4,734	John Wiley & Sons, Inc., Class A		249,482
	1,387	Liberty Broadband Corp., Class C(c)		126,439
	58,759	News Corp., Class A		747,414
	3,428	Penske Automotive Group, Inc.		163,550
	1,946	PVH Corp.		196,604
	83,219	Staples, Inc.		813,049
				3,429,446
		Energy—16.5%
	12,160	Baker Hughes, Inc.		721,939
	10,753	Cheniere Energy, Inc.(c)		487,649
	30,558	CONSOL Energy, Inc.(c)		463,871
	21,970	Diamond Offshore Drilling, Inc.(b)(c)		316,807
	7,108	Energen Corp.(c)		369,545
	59,761	Ensco PLC, Class A		471,514
	26,613	Frank’s International NV(b)		242,178
	7,354	Helmerich & Payne, Inc.		445,947
	9,569	Hess Corp.		467,254
	21,978	HollyFrontier Corp.		618,461
	41,867	Marathon Oil Corp.		622,562
	13,926	Murphy Oil Corp.		364,583
	62,910	Nabors Industries Ltd.		650,489
	9,723	National Oilwell Varco, Inc.		340,013
	19,219	Noble Corp. PLC		92,251
	14,940	Noble Energy, Inc.		483,010
	29,002	Patterson-UTI Energy, Inc.		627,748
	17,103	QEP Resources, Inc.(c)		201,987
	33,724	Superior Energy Services, Inc.(c)		407,386
	13,343	Targa Resources Corp.		735,600
	78	Tesoro Corp.		6,217
	60,525	Transocean Ltd.(c)		667,591
	100,852	Weatherford International PLC(b)(c)		581,916
	37,430	Whiting Petroleum Corp.(c)		310,669
	45,320	WPX Energy, Inc.(c)		540,668
				11,237,855
		Financials—29.0%
	35,811	Agnc Investment Corp. REIT		754,538
	1,212	American National Insurance Co.		141,707
	73,383	Annaly Capital Management, Inc. REIT		866,653
	1,805	Arch Capital Group Ltd.(c)		175,031
	1,958	Aspen Insurance Holdings Ltd. (Bermuda)		102,501
	13,823	Associated Banc-Corp.		344,193
	55	Assurant, Inc.		5,293
	29,178	Assured Guaranty Ltd.		1,112,557
	2,484	Bank of Hawaii Corp.		202,396
	2,317	BankUnited, Inc.		81,767
	9,959	BOK Financial Corp.		839,444
	50,044	Chimera Investment Corp. REIT		1,018,896
	19,315	CIT Group, Inc.(b)		894,478
	15,529	Comerica, Inc.		1,097,900
	227	Commerce Bancshares, Inc.		12,474
	5,039	Cullen/Frost Bankers, Inc.		475,631

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	6,668	E*TRADE Financial Corp.(c)	$	230,380
	5,606	East West Bancorp, Inc.		304,238
	39,445	Fifth Third Bancorp		963,641
	1,810	First American Financial Corp.		78,572
	12,423	Hartford Financial Services Group, Inc. (The)		600,776
	3,937	Huntington Bancshares, Inc.		50,630
	2,707	KeyCorp		49,376
	903	M&T Bank Corp.		140,335
	106,266	MFA Financial, Inc. REIT		883,071
	19,014	Navient Corp.		289,013
	45,973	New York Community Bancorp, Inc.		610,981
	32,028	Old Republic International Corp.		662,339
	14,681	PacWest Bancorp		725,095
	24,886	Popular, Inc.		1,042,972
	44	Principal Financial Group, Inc.		2,866
	4,766	ProAssurance Corp.		295,015
	54,175	Regions Financial Corp.		744,906
	1,305	RenaissanceRe Holdings Ltd. (Bermuda)		185,532
	68,092	SLM Corp.(c)		853,874
	14,279	SunTrust Banks, Inc.		811,190
	87,181	Two Harbors Investment Corp. REIT		870,938
	7,236	Validus Holdings Ltd.		400,006
	961	White Mountains Insurance Group Ltd.		825,441
				19,746,646
		Health Care—1.9%
	3,104	Bio-Rad Laboratories, Inc., Class A(c)		677,479
	47,146	Endo International PLC(c)		536,050
	1,209	Perrigo Co. PLC		89,393
				1,302,922
		Industrials—10.2%
	4,611	AGCO Corp.		295,058
	27,597	Arconic, Inc.		754,226
	6	Fluor Corp.		308
	12,435	ITT, Inc.		523,886
	9,829	Jacobs Engineering Group, Inc.		539,809
	45,473	KBR, Inc.		638,896
	2,515	Macquarie Infrastructure Corp.		204,646
	4,308	Oshkosh Corp.		298,932
	267	Pentair PLC (United Kingdom)		17,224
	9,052	Regal Beloit Corp.		713,750
	5,852	Ryder System, Inc.		397,409
	16,743	Terex Corp.		585,670
	18,332	Timken Co. (The)		884,519
	12,466	United Continental Holdings, Inc.(c)		875,238
	3,248	WESCO International, Inc.(c)		197,966
				6,927,537
		Information Technology—4.7%
	8,824	Avnet, Inc.		341,400
	27,005	Brocade Communications Systems, Inc.		339,453
	10,122	CA, Inc.		332,305
	10,296	Conduent, Inc.(c)		167,928
	8,788	EchoStar Corp., Class A(c)		505,837
	10,309	First Solar, Inc.(b)(c)		304,631
	16,087	Marvell Technology Group Ltd. (Bermuda)		241,627
	29,206	SunPower Corp.(b)(c)		202,690
	2,669	Western Digital Corp.		237,728

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

74

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	51,481	Xerox Corp.	$	370,148
	66,417	Zynga, Inc., Class A(c)		191,945
				3,235,692
		Materials—3.5%
	9,163	Alcoa Corp.		309,068
	1,540	Ashland Global Holdings, Inc.		190,190
	10,203	CF Industries Holdings, Inc.		272,828
	24,387	Huntsman Corp.		604,066
	6,645	Mosaic Co. (The)		178,950
	14,748	United States Steel Corp.		329,176
	3,617	Westlake Chemical Corp.		225,158
	5,466	WestRock Co.		292,759
				2,402,195
		Real Estate—11.6%
	33,446	American Homes 4 Rent, Class A REIT		770,930
	783	AvalonBay Communities, Inc. REIT		148,645
	20,773	Brandywine Realty Trust REIT		352,518
	6,254	CoreCivic, Inc. REIT		215,450
	23,001	Corporate Office Properties Trust REIT		753,053
	8,506	DCT Industrial Trust, Inc. REIT		430,064
	30,404	DDR Corp. REIT		328,667
	20,089	Duke Realty Corp. REIT		557,068
	1,376	EPR Properties REIT		100,049
	18,596	Equity Commonwealth REIT(c)		594,886
	34,799	Host Hotels & Resorts, Inc. REIT		624,642
	11,224	Liberty Property Trust REIT		455,358
	1,704	Macerich Co. (The) REIT		106,381
	2,129	Mid-America Apartment Communities, Inc. REIT		211,218
	20,748	Paramount Group, Inc. REIT		340,267
	2,264	Prologis, Inc. REIT		123,184
	19,508	Rayonier, Inc. REIT		550,516
	1,897	SL Green Realty Corp. REIT		199,052
	5,008	Sun Communities, Inc. REIT		418,719
	12,142	Uniti Group, Inc. REIT		333,419
	30,382	VEREIT, Inc. REIT		254,297
	796	Weingarten Realty Investors REIT		26,085
				7,894,468
		Telecommunication Services—2.8%
	5,073	CenturyLink, Inc.(b)		130,224
	117,377	Frontier Communications Corp.(b)		220,669
	56,729	Sprint Corp.(c)		512,263
	15,895	Telephone & Data Systems, Inc.		436,476
	15,407	United States Cellular Corp.(c)		603,646
				1,903,278
		Utilities—14.8%
	28,227	AES Corp. (The)		319,247
	8,794	Alliant Energy Corp.		345,780
	13,097	Ameren Corp.		716,275
	548	American Water Works Co., Inc.		43,709
	7,590	Atmos Energy Corp.		614,942
	2,276	CenterPoint Energy, Inc.		64,934
	10,192	Consolidated Edison, Inc.		808,022
	1,191	DTE Energy Co.		124,567
	10,798	Edison International		863,516

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	6,924	Entergy Corp.	$	528,024
	11,474	Eversource Energy		681,556
	22,472	FirstEnergy Corp.		672,812
	16,787	Hawaiian Electric Industries, Inc.		562,700
	2,838	National Fuel Gas Co.		157,168
	9,781	Pinnacle West Capital Corp.		832,265
	12,270	PPL Corp.		467,610
	11,647	Public Service Enterprise Group, Inc.		513,050
	10,339	SCANA Corp.		685,579
	945	Sempra Energy		106,804
	2,483	UGI Corp.		124,547
	1,956	WEC Energy Group, Inc.		118,377
	16,792	Xcel Energy, Inc.		756,480
				10,107,964
		Total Common Stocks and Other Equity Interests (Cost $66,852,200)		68,188,003
		Money Market Fund—0.1%
	53,914	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $53,914)		53,914
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $66,906,114)—100.1%		68,241,917
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.6%
	1,807,860	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,807,860)		1,807,860
		Total Investments (Cost $68,713,974)—102.7%		70,049,777
		Other assets less liabilities—(2.7)%		(1,846,467	)
		Net Assets—100.0%	$	68,203,310

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

75

Schedule of Investments^(a)

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—12.9%
	227	Amazon.com, Inc.(b)	$	209,973
	3,302	Carnival Corp.		203,964
	2,896	CBS Corp., Class B		192,758
	597	Charter Communications, Inc., Class A(b)		206,060
	5,194	Comcast Corp., Class A		203,553
	3,124	DISH Network Corp., Class A(b)		201,310
	16,562	Ford Motor Co.		189,966
	5,642	General Motors Co.		195,439
	1,307	Home Depot, Inc. (The)		204,023
	3,477	Las Vegas Sands Corp.		205,108
	2,344	Lowe’s Cos., Inc.		198,959
	1,498	McDonald’s Corp.		209,615
	1,363	Netflix, Inc.(b)		207,449
	3,490	NIKE, Inc., Class B		193,381
	111	Priceline Group, Inc. (The)(b)		204,997
	3,461	Starbucks Corp.		207,868
	3,638	Target Corp.		203,182
	759	Tesla, Inc.(b)		238,379
	1,988	Time Warner, Inc.		197,349
	2,464	TJX Cos., Inc. (The)		193,769
	6,170	Twenty-First Century Fox, Inc., Class A		188,432
	3,587	VF Corp.		195,958
	1,722	Walt Disney Co. (The)		199,063
	7,343	Yum China Holdings, Inc.(b)		250,543
	3,059	Yum! Brands, Inc.		201,129
				5,102,227
		Consumer Staples—10.3%
	2,611	Altria Group, Inc.		187,418
	4,237	Archer-Daniels-Midland Co.		193,843
	4,584	Coca-Cola Co. (The)		197,800
	2,615	Colgate-Palmolive Co.		188,385
	1,188	Constellation Brands, Inc., Class A		204,977
	1,157	Costco Wholesale Corp.		205,391
	2,468	CVS Health Corp.		203,462
	2,234	Estee Lauder Cos., Inc. (The), Class A		194,671
	3,256	General Mills, Inc.		187,252
	1,454	Kimberly-Clark Corp.		188,656
	2,101	Kraft Heinz Co. (The)		189,909
	6,606	Kroger Co. (The)		195,868
	4,391	Mondelez International, Inc., Class A		197,727
	4,151	Monster Beverage Corp.(b)		188,372
	1,729	PepsiCo, Inc.		195,861
	1,711	Philip Morris International, Inc.		189,647
	2,129	Procter & Gamble Co. (The)		185,925
	3,104	Reynolds American, Inc.		200,208
	3,671	Sysco Corp.		194,086
	2,329	Walgreens Boots Alliance, Inc.		201,552
	2,766	Wal-Mart Stores, Inc.		207,948
				4,098,958
		Energy—6.2%
	3,179	Anadarko Petroleum Corp.		181,267
	3,859	Apache Corp.		187,702
	1,791	Chevron Corp.		191,100
	4,345	ConocoPhillips		208,169
	2,039	EOG Resources, Inc.		188,607

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	2,361	Exxon Mobil Corp.	$	192,776
	3,889	Halliburton Co.		178,427
	9,139	Kinder Morgan, Inc.		188,537
	3,066	Occidental Petroleum Corp.		188,682
	2,463	Phillips 66		195,956
	1,065	Pioneer Natural Resources Co.		184,234
	2,488	Schlumberger Ltd.		180,604
	2,880	Valero Energy Corp.		186,077
				2,452,138
		Financials—15.1%
	2,684	Aflac, Inc.		200,978
	2,379	Allstate Corp. (The)		193,389
	2,483	American Express Co.		196,778
	3,151	American International Group, Inc.		191,927
	1,645	Aon PLC		197,137
	8,378	Bank of America Corp.		195,542
	4,176	Bank of New York Mellon Corp. (The)		196,523
	4,361	BB&T Corp.		188,308
	1,137	Berkshire Hathaway, Inc., Class B(b)		187,844
	515	BlackRock, Inc.		198,054
	2,307	Capital One Financial Corp.		185,437
	4,811	Charles Schwab Corp. (The)		186,907
	1,414	Chubb Ltd.		194,071
	3,330	Citigroup, Inc.		196,870
	1,621	CME Group, Inc.		188,344
	2,868	Discover Financial Services		179,508
	4,662	Franklin Resources, Inc.		200,979
	833	Goldman Sachs Group, Inc. (The)		186,425
	3,228	Intercontinental Exchange, Inc.		194,326
	2,212	JPMorgan Chase & Co.		192,444
	2,590	Marsh & McLennan Cos., Inc.		191,997
	3,713	MetLife, Inc.		192,371
	4,539	Morgan Stanley		196,856
	1,620	PNC Financial Services Group, Inc. (The)		193,995
	1,832	Prudential Financial, Inc.		196,079
	1,497	S&P Global, Inc.		200,882
	2,501	State Street Corp.		209,834
	4,431	Thomson Reuters Corp.		201,300
	1,594	Travelers Cos., Inc. (The)		193,926
	3,676	U.S. Bancorp		188,505
	3,498	Wells Fargo & Co.		188,332
				6,005,868
		Health Care—16.5%
	4,317	Abbott Laboratories		188,394
	2,944	AbbVie, Inc.		194,127
	1,512	Aetna, Inc.		204,226
	1,608	Alexion Pharmaceuticals, Inc.(b)		205,470
	821	Allergan PLC		200,209
	1,165	Amgen, Inc.		190,268
	1,169	Anthem, Inc.		207,953
	3,740	Baxter International, Inc.		208,243
	1,052	Becton, Dickinson and Co.		196,692
	702	Biogen, Inc.(b)		190,389
	3,830	Bioverativ, Inc.(b)		225,242
	7,970	Boston Scientific Corp.(b)		210,249

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

76

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	3,465	Bristol-Myers Squibb Co.	$	194,213
	2,383	Cardinal Health, Inc.		172,982
	1,568	Celgene Corp.(b)		194,510
	1,296	Cigna Corp.		202,656
	2,240	Danaher Corp.		186,659
	2,290	Eli Lilly & Co.		187,917
	3,020	Express Scripts Holding Co.(b)		185,247
	2,865	Gilead Sciences, Inc.		196,396
	2,324	HCA Holdings, Inc.(b)		195,704
	920	Humana, Inc.		204,222
	1,535	Johnson & Johnson		189,527
	1,326	McKesson Corp.		183,373
	2,391	Medtronic PLC		198,668
	3,055	Merck & Co., Inc.		190,418
	4,646	Mylan NV(b)		173,528
	5,637	Pfizer, Inc.		191,207
	530	Regeneron Pharmaceuticals, Inc.(b)		205,900
	1,469	Stryker Corp.		200,328
	1,251	Thermo Fisher Scientific, Inc.		206,828
	1,170	UnitedHealth Group, Inc.		204,610
	2,171	Vertex Pharmaceuticals, Inc.(b)		256,829
				6,543,184
		Industrials—11.6%
	1,006	3M Co.		197,005
	1,090	Boeing Co. (The)		201,465
	2,096	Caterpillar, Inc.		214,337
	4,192	CSX Corp.		213,121
	1,765	Deere & Co.		196,992
	4,209	Delta Air Lines, Inc.		191,257
	2,655	Eaton Corp. PLC		200,824
	3,277	Emerson Electric Co.		197,537
	1,021	FedEx Corp.		193,684
	3,302	Fortive Corp.		208,884
	1,019	General Dynamics Corp.		197,472
	6,525	General Electric Co.		189,160
	1,540	Honeywell International, Inc.		201,955
	1,448	Illinois Tool Works, Inc.		199,954
	717	Lockheed Martin Corp.		193,196
	1,748	Norfolk Southern Corp.		205,372
	808	Northrop Grumman Corp.		198,736
	1,262	Raytheon Co.		195,875
	3,691	Southwest Airlines Co.		207,508
	1,860	Union Pacific Corp.		208,246
	1,830	United Parcel Service, Inc., Class B		196,652
	1,728	United Technologies Corp.		205,615
	2,664	Waste Management, Inc.		193,886
				4,608,733
		Information Technology—15.1%
	1,600	Accenture PLC, Class A		194,080
	3,962	Activision Blizzard, Inc.		207,014
	1,524	Adobe Systems, Inc.(b)		203,820
	236	Alphabet, Inc., Class C(b)		213,807
	1,372	Apple, Inc.		197,088
	4,975	Applied Materials, Inc.		202,035
	1,867	Automatic Data Processing, Inc.		195,083

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	891	Broadcom Ltd.	$	196,742
	5,691	Cisco Systems, Inc.		193,892
	3,290	Cognizant Technology Solutions Corp., Class A(b)		198,157
	7,070	Corning, Inc.		203,969
	3,064	Dell Technologies, Inc., Class V(b)		205,625
	728	Dxc Technology Co.(b)		54,848
	5,766	eBay, Inc.(b)		192,642
	1,386	Facebook, Inc., Class A(b)		208,247
	8,478	Hewlett Packard Enterprise Co.		157,945
	11,231	HP, Inc.		211,367
	5,480	Intel Corp.		198,102
	1,105	International Business Machines Corp.		177,120
	1,611	Intuit, Inc.		201,713
	1,732	Mastercard, Inc., Class A		201,466
	2,980	Microsoft Corp.		204,011
	4,300	Oracle Corp.		193,328
	4,481	PayPal Holdings, Inc.(b)		213,833
	3,402	QUALCOMM, Inc.		182,823
	2,372	salesforce.com, inc.(b)		204,277
	2,396	Texas Instruments, Inc.		189,715
	6,456	Versum Materials, Inc.		206,721
	2,175	Visa, Inc., Class A		198,404
	2,121	VMware, Inc., Class A(b)		199,629
	4,147	Yahoo!, Inc.(b)		199,927
				6,007,430
		Materials—5.0%
	7,230	Advansix, Inc.(b)		197,090
	1,411	Air Products & Chemicals, Inc.		198,246
	3,028	Dow Chemical Co. (The)		190,158
	2,399	E.I. du Pont de Nemours & Co.		191,320
	1,557	Ecolab, Inc.		200,993
	2,189	LyondellBasell Industries NV, Class A		185,540
	1,707	Monsanto Co.		199,053
	1,847	PPG Industries, Inc.		202,874
	1,643	Praxair, Inc.		205,342
	623	Sherwin-Williams Co. (The)		208,506
				1,979,122
		Real Estate—2.5%
	1,625	American Tower Corp. REIT		204,653
	2,078	Crown Castle International Corp. REIT		196,579
	3,061	Equity Residential REIT		197,679
	855	Public Storage REIT		179,020
	1,153	Simon Property Group, Inc. REIT		190,545
				968,476
		Telecommunication Services—1.4%
	4,641	AT&T, Inc.		183,923
	3,062	T-Mobile US, Inc.(b)		205,981
	3,894	Verizon Communications, Inc.		178,773
				568,677
		Utilities—3.4%
	2,866	American Electric Power Co., Inc.		194,401
	2,469	Dominion Resources, Inc.		191,175
	2,338	Duke Energy Corp.		192,885
	5,375	Exelon Corp.		186,136

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

77

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	1,463	NextEra Energy, Inc.	$	195,398
	2,862	PG&E Corp.		191,897
	3,838	Southern Co. (The)		191,133
				1,343,025
		Total Common Stocks and Other Equity Interests (Cost $34,942,852)		39,677,838
		Money Market Fund—0.1%
	46,473	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $46,473)		46,473
		Total Investments (Cost $34,989,325)—100.1%		39,724,311
		Other assets less liabilities—(0.1)%		(20,880	)
		Net Assets—100.0%	$	39,703,431

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

78

Schedule of Investments^(a)

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—30.3%
	5,015	Amazon.com, Inc.(b)	$	4,638,825
	20,548	CBS Corp., Class B		1,367,675
	2,827	Charter Communications, Inc., Class A(b)		975,767
	17,247	Home Depot, Inc. (The)		2,692,257
	16,232	Las Vegas Sands Corp.		957,526
	38,201	Lowe’s Cos., Inc.		3,242,501
	3,872	McDonald’s Corp.		541,809
	35,126	Netflix, Inc.(b)		5,346,177
	55,874	NIKE, Inc., Class B		3,095,978
	2,867	Priceline Group, Inc. (The)(b)		5,294,833
	59,681	Starbucks Corp.		3,584,441
	16,317	Tesla, Inc.(b)(c)		5,124,680
	35,420	TJX Cos., Inc. (The)		2,785,429
	22,696	VF Corp.		1,239,882
	9,496	Walt Disney Co. (The)		1,097,738
	22,912	Yum China Holdings, Inc.(b)		781,757
	22,885	Yum! Brands, Inc.		1,504,689
				44,271,964
		Consumer Staples—9.3%
	1,425	Altria Group, Inc.		102,286
	16,732	Constellation Brands, Inc., Class A		2,886,939
	11,358	Costco Wholesale Corp.		2,016,272
	23,983	Estee Lauder Cos., Inc. (The), Class A		2,089,879
	2,807	General Mills, Inc.		161,431
	66,367	Kroger Co. (The)		1,967,782
	61,983	Monster Beverage Corp.(b)		2,812,788
	29,247	Sysco Corp.		1,546,289
				13,583,666
		Financials—1.8%
	6,562	Aon PLC		786,390
	14,644	Marsh & McLennan Cos., Inc.		1,085,560
	5,418	S&P Global, Inc.		727,041
				2,598,991
		Health Care—17.8%
	49,027	AbbVie, Inc.		3,232,840
	10,949	Alexion Pharmaceuticals, Inc.(b)		1,399,063
	8,816	Amgen, Inc.		1,439,829
	13,127	Becton, Dickinson and Co.		2,454,355
	7,459	Biogen, Inc.(b)		2,022,956
	3,720	Bioverativ, Inc.(b)		218,773
	30,171	Boston Scientific Corp.(b)		795,911
	5,052	Bristol-Myers Squibb Co.		283,165
	34,178	Celgene Corp.(b)		4,239,781
	2,940	Eli Lilly & Co.		241,257
	12,563	Gilead Sciences, Inc.		861,194
	4,321	McKesson Corp.		597,551
	9,172	Regeneron Pharmaceuticals, Inc.(b)		3,563,230
	12,025	Stryker Corp.		1,639,849
	1,182	UnitedHealth Group, Inc.		206,708
	24,260	Vertex Pharmaceuticals, Inc.(b)		2,869,958
				26,066,420
		Industrials—7.0%
	6,247	3M Co.		1,223,350
	20,666	Boeing Co. (The)		3,819,697

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,667	FedEx Corp.	$	316,230
	2,399	Honeywell International, Inc.		314,605
	3,532	Illinois Tool Works, Inc.		487,734
	5,221	Lockheed Martin Corp.		1,406,798
	1,929	Northrop Grumman Corp.		474,457
	21,872	Southwest Airlines Co.		1,229,644
	8,747	United Parcel Service, Inc., Class B		939,952
				10,212,467
		Information Technology—26.1%
	17,963	Accenture PLC, Class A		2,178,912
	21,407	Activision Blizzard, Inc.		1,118,516
	20,041	Adobe Systems, Inc.(b)		2,680,283
	2,910	Alphabet, Inc., Class C(b)		2,636,344
	22,198	Automatic Data Processing, Inc.		2,319,469
	18,281	Broadcom Ltd.		4,036,628
	18,732	Cognizant Technology Solutions Corp., Class A(b)		1,128,228
	6,993	eBay, Inc.(b)		233,636
	23,488	Facebook, Inc., Class A(b)		3,529,072
	24,342	Intuit, Inc.		3,047,862
	37,690	Mastercard, Inc., Class A		4,384,101
	22,698	Microsoft Corp.		1,553,905
	21,853	PayPal Holdings, Inc.(b)		1,042,825
	43,730	salesforce.com, inc.(b)		3,766,028
	11,114	Texas Instruments, Inc.		880,006
	40,840	Visa, Inc., Class A		3,725,425
				38,261,240
		Materials—3.4%
	98	Advansix, Inc.(b)		2,671
	8,494	E.I. du Pont de Nemours & Co.		677,397
	10,814	Ecolab, Inc.		1,395,979
	18,252	PPG Industries, Inc.		2,004,800
	2,590	Sherwin-Williams Co. (The)		866,821
				4,947,668
		Real Estate—4.2%
	33,807	American Tower Corp. REIT		4,257,653
	9,376	Public Storage REIT		1,963,147
				6,220,800
		Total Common Stocks and Other Equity Interests (Cost $125,481,110)		146,163,216
		Money Market Fund—0.1%
	86,282	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $86,282)		86,282
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $125,567,392)—100.0%		146,249,498

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

79

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)

April 30, 2017

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.5%
	5,088,195	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $5,088,195)	$	5,088,195
		Total Investments (Cost $130,655,587)—103.5%		151,337,693
		Other assets less liabilities—(3.5)%		(5,082,069	)
		Net Assets—100.0%	$	146,255,624

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

80

Schedule of Investments^(a)

PowerShares Russell Top 200 Pure Value Portfolio (PXLV)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—3.6%
	18,444	Carnival Corp.	$	1,139,285
	84,504	Ford Motor Co.		969,261
	15,767	General Motors Co.		546,169
				2,654,715
		Consumer Staples—4.4%
	28,659	Archer-Daniels-Midland Co.		1,311,149
	17,231	Mondelez International, Inc., Class A		775,912
	8,405	Procter & Gamble Co. (The)		734,009
	5,968	Wal-Mart Stores, Inc.		448,674
				3,269,744
		Energy—16.3%
	25,204	Anadarko Petroleum Corp.		1,437,132
	7,005	Chevron Corp.		747,434
	39,092	ConocoPhillips		1,872,898
	16,476	Exxon Mobil Corp.		1,345,265
	2,394	Halliburton Co.		109,837
	100,622	Kinder Morgan, Inc.		2,075,832
	1,107	Occidental Petroleum Corp.		68,125
	21,063	Phillips 66		1,675,772
	759	Pioneer Natural Resources Co.		131,299
	12,019	Schlumberger Ltd.		872,459
	28,134	Valero Energy Corp.		1,817,738
				12,153,791
		Financials—38.9%
	13,283	Aflac, Inc.		994,631
	970	Allstate Corp. (The)		78,851
	1,318	American Express Co.		104,452
	16,580	American International Group, Inc.		1,009,888
	89,007	Bank of America Corp.		2,077,423
	16,151	Bank of New York Mellon Corp. (The)		760,066
	23,606	BB&T Corp.		1,019,307
	3,007	Berkshire Hathaway, Inc., Class B(b)		496,786
	434	BlackRock, Inc.		166,903
	8,195	Capital One Financial Corp.		658,714
	8,126	Chubb Ltd.		1,115,294
	37,515	Citigroup, Inc.		2,217,887
	8,272	CME Group, Inc.		961,124
	26,396	Franklin Resources, Inc.		1,137,932
	8,806	Goldman Sachs Group, Inc. (The)		1,970,783
	25,057	JPMorgan Chase & Co.		2,179,959
	17,416	MetLife, Inc.		902,323
	56,596	Morgan Stanley		2,454,569
	19,031	PNC Financial Services Group, Inc. (The)		2,278,962
	8,249	Prudential Financial, Inc.		882,890
	14,054	State Street Corp.		1,179,131
	23,336	Thomson Reuters Corp.		1,060,154
	6,163	Travelers Cos., Inc. (The)		749,791
	26,315	U.S. Bancorp		1,349,433
	24,349	Wells Fargo & Co.		1,310,950
				29,118,203
		Health Care—2.2%
	6,872	Abbott Laboratories		299,894
	8,099	Medtronic PLC		672,946

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	10,674	Merck & Co., Inc.	$	665,310
				1,638,150
		Industrials—9.5%
	16,221	Caterpillar, Inc.		1,658,760
	41,788	CSX Corp.		2,124,502
	27,024	Eaton Corp. PLC		2,044,095
	5,396	Norfolk Southern Corp.		633,976
	5,411	United Technologies Corp.		643,855
				7,105,188
		Information Technology—9.4%
	12,654	Cisco Systems, Inc.		431,122
	31,016	Corning, Inc.		894,812
	8,202	Dxc Technology Co.(b)		617,939
	95,466	Hewlett Packard Enterprise Co.		1,778,531
	45,549	HP, Inc.		857,232
	51,223	Yahoo!, Inc.(b)		2,469,461
				7,049,097
		Materials—1.6%
	19,098	Dow Chemical Co. (The)		1,199,354
		Real Estate—0.3%
	2,848	Equity Residential REIT		183,924
		Telecommunication Services—1.1%
	21,422	AT&T, Inc.		848,954
		Utilities—12.7%
	28,837	American Electric Power Co., Inc.		1,956,014
	25,399	Duke Energy Corp.		2,095,417
	40,130	Exelon Corp.		1,389,702
	9,006	NextEra Energy, Inc.		1,202,841
	17,357	PG&E Corp.		1,163,787
	34,544	Southern Co. (The)		1,720,291
				9,528,052
		Total Investments (Cost $67,670,142)—100.0%		74,749,172
		Other assets less liabilities—0.0%		21,258
		Net Assets—100.0%	$	74,770,430

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.

81

Schedule of Investments^(a)

PowerShares Zacks Micro Cap Portfolio (PZI)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—8.1%
	1,631	America’s Car-Mart, Inc.(b)(c)	$	60,836
	3,524	AV Homes, Inc.(c)		61,846
	6,103	Barnes & Noble Education, Inc.(c)		63,532
	4,263	Beasley Broadcast Group, Inc., Class A		56,058
	4,964	Beazer Homes USA, Inc.(c)		61,603
	4,083	Big 5 Sporting Goods Corp.		62,878
	10,542	Black Diamond, Inc.(c)		55,346
	6,702	Career Education Corp.(c)		68,025
	2,308	Century Communities, Inc.(c)		63,008
	11,258	China Automotive Systems, Inc. (China)(c)		53,701
	12,078	China XD Plastics Co. Ltd. (China)(c)		58,578
	4,453	Del Taco Restaurants, Inc.(c)		58,557
	4,112	Entercom Communications Corp., Class A		52,017
	5,419	Eros International PLC (India)(b)(c)		53,919
	6,008	Gaia, Inc.(c)		65,788
	5,827	Green Brick Partners, Inc.(c)		60,018
	1,629	Johnson Outdoors, Inc., Class A		59,165
	3,119	K12, Inc.(c)		58,793
	2,406	M/I Homes, Inc.(c)		65,347
	1,855	Marcus Corp. (The)		62,699
	1,982	Monarch Casino & Resort, Inc.(c)		58,410
	2,777	Perry Ellis International, Inc.(c)		56,984
	3,473	RCI Hospitality Holdings, Inc.		57,791
	8,224	Salem Media Group, Inc.		62,914
	4,409	Shiloh Industries, Inc.(c)		54,231
	1,222	SodaStream International Ltd. (Israel)(b)(c)		66,465
	6,671	Tilly’s, Inc., Class A		63,775
	4,909	Townsquare Media, Inc., Class A(c)		59,399
	9,663	TravelCenters of America LLC(c)		58,944
	2,155	Unifi, Inc.(c)		60,491
	11,372	VOXX International Corp.(c)		73,918
	2,776	William Lyon Homes, Class A(b)(c)		61,072
				1,936,108
		Consumer Staples—1.3%
	4,443	Craft Brew Alliance, Inc.(c)		60,425
	2,988	Omega Protein Corp.		60,208
	13,483	Pingtan Marine Enterprise Ltd.(b)		64,314
	1,654	Seneca Foods Corp., Class A(c)		61,529
	8,653	SunOpta, Inc. (Canada)(c)		63,167
				309,643
		Energy—10.6%
	5,085	Aegean Marine Petroleum Network, Inc. (Greece)(b)		56,698
	4,057	ARC Logistics Partners LP(b)		60,733
	4,872	Archrock, Inc.		57,490
	7,579	Ardmore Shipping Corp. (Ireland)		58,737
	6,449	Atwood Oceanics, Inc.(c)		50,496
	17,255	Capital Product Partners LP (Greece)		60,220
	13,483	Cloud Peak Energy, Inc.(c)		45,438
	3,904	CNX Coal Resources LP(b)		62,659
	2,738	Cone Midstream Partners LP		61,660
	6,407	CSI Compressco LP(b)		51,897
	10,542	Dawson Geophysical Co.(c)		53,026
	5,798	Dorian LPG Ltd.(c)		52,704
	3,415	Dynagas LNG Partners LP (Monaco)(b)		55,699

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	24,991	Eclipse Resources Corp.(c)	$	50,232
	2,047	Enviva Partners LP(b)		59,670
	5,029	Era Group, Inc.(c)		63,919
	1,981	Exterran Corp.(c)		54,220
	2,411	GasLog Partners LP (Monaco)		57,502
	3,837	Geospace Technologies Corp.(c)		63,464
	3,084	Global Partners LP		57,517
	2,681	Golar LNG Partners LP (United Kingdom)		61,207
	2,554	Green Plains, Inc.		58,742
	5,154	Gulf Island Fabrication, Inc.		51,282
	7,608	Hallador Energy Co.		50,898
	8,354	Helix Energy Solutions Group, Inc.(c)		51,126
	2,961	Hoegh LNG Partners LP (Bermuda)(b)		59,960
	12,336	Independence Contract Drilling, Inc.(c)		56,869
	25,207	Jones Energy, Inc., Class A(b)(c)		50,414
	2,630	KNOT Offshore Partners LP (United Kingdom)		62,988
	1,614	Natural Resource Partners LP		51,567
	5,294	Navios Maritime Midstream Partners LP (Monaco)(b)		63,846
	7,731	Newpark Resources, Inc.(c)		59,142
	12,985	North American Energy Partners, Inc. (Canada)		61,679
	8,526	Pacific Ethanol, Inc.(c)		57,977
	15,257	Pioneer Energy Services Corp.(c)		46,534
	5,766	Renewable Energy Group, Inc.(c)		60,255
	675	REX American Resources Corp.(c)		63,909
	5,941	Ring Energy, Inc.(c)		71,292
	17,622	Seadrill Partners LLC(b)		53,923
	18,582	Southcross Energy Partners LP(b)(c)		78,230
	15,138	StealthGas, Inc. (Greece)(c)		51,772
	6,477	Teekay Corp. (Bermuda)(b)		56,220
	3,497	USA Compression Partners LP		58,575
	22,214	Willbros Group, Inc.(c)		61,088
				2,533,476
		Financials—45.1%
	3,151	1st Constitution Bancorp		56,403
	3,296	AG Mortgage Investment Trust, Inc. REIT		62,459
	1,638	Allegiance Bancshares, Inc.(c)		63,964
	3,270	Ambac Financial Group, Inc.(c)		63,536
	1,635	American National Bankshares, Inc.		62,784
	10,561	Anworth Mortgage Asset Corp. REIT		61,887
	7,096	Arbor Realty Trust, Inc. REIT		61,238
	4,376	Ares Commercial Real Estate Corp. REIT		60,520
	3,985	Arlington Asset Investment Corp., Class A(b)		58,022
	2,564	ARMOUR Residential REIT, Inc. REIT		61,715
	1,546	Associated Capital Group, Inc., Class A		52,023
	3,151	Atlantic Capital Bancshares, Inc.(c)		61,760
	2,123	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		60,888
	6,201	Bank Mutual Corp.		57,049
	5,394	Bank of Commerce Holdings		60,682
	1,893	Bankwell Financial Group, Inc.		68,413
	3,514	Bcb Bancorp, Inc.		55,521
	3,411	Blue Hills Bancorp, Inc.		61,739
	1,498	Bryn Mawr Bank Corp.		64,264
	3,705	California First National Bancorp		61,132
	1,374	Camden National Corp.		58,738

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

82

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,806	Capital City Bank Group, Inc.	$	57,832
	4,082	Capitala Finance Corp.		57,842
	5,535	Capstead Mortgage Corp. REIT		61,660
	1,986	Carolina Financial Corp.		61,288
	2,035	CB Financial Services, Inc.(b)		57,590
	1,983	Central Pacific Financial Corp.		62,028
	2,883	Central Valley Community Bancorp		65,473
	959	Century Bancorp, Inc., Class A		60,465
	3,030	Charter Financial Corp.		55,600
	1,526	Chemung Financial Corp.		57,973
	3,471	Cherry Hill Mortgage Investment Corp. REIT		60,361
	2,695	Civista Bancshares, Inc.		58,562
	5,656	CM Finance, Inc.(b)		57,126
	2,396	CNB Financial Corp.		57,240
	2,230	Codorus Valley Bancorp, Inc.		64,648
	1,314	Community Trust Bancorp, Inc.		59,064
	2,526	ConnectOne Bancorp, Inc.		56,077
	13,088	Consumer Portfolio Services, Inc.(c)		63,739
	2,013	County Bancorp, Inc.		55,257
	4,295	Cowen Group, Inc., Class A(c)		68,290
	1,480	CU Bancorp(c)		55,167
	1,901	Customers Bancorp, Inc.(c)		58,798
	2,936	Dime Community Bancshares, Inc.		57,105
	3,367	Donegal Group, Inc., Class A		56,094
	8,489	Dynex Capital, Inc. REIT		58,744
	3,925	Ellington Residential Mortgage REIT REIT(b)		59,267
	1,880	Encore Capital Group, Inc.(c)		62,698
	4,094	Enova International, Inc.(c)		58,135
	2,521	Entegra Financial Corp.(c)		59,622
	1,430	Enterprise Financial Services Corp.		60,417
	1,896	Equity Bancshares, Inc., Class A(c)		59,857
	7,247	EZCORP, Inc., Class A(c)		65,585
	1,483	Farmers Capital Bank Corp.		61,544
	4,392	Farmers National Banc Corp.		62,806
	1,036	Federal Agricultural Mortgage Corp., Class C		59,104
	2,736	Fidelity Southern Corp.		61,615
	3,379	Fidus Investment Corp.		60,585
	12,284	Fifth Street Finance Corp.		56,384
	6,742	Fifth Street Senior Floating Rate Corp.(b)		54,947
	1,982	First Bancorp/Southern Pines NC		59,539
	2,035	First Bancshares, Inc. (The)		58,303
	2,398	First Community Bancshares, Inc.		63,451
	2,431	First Connecticut Bancorp, Inc.		64,908
	1,214	First Defiance Financial Corp.		65,119
	1,252	First Financial Corp.		61,098
	3,257	First Financial Northwest, Inc.		51,070
	3,697	First Foundation, Inc.(c)		58,043
	2,416	First Guaranty Bancshares, Inc.(b)		61,004
	1,949	First Internet Bancorp		57,593
	3,789	First Northwest Bancorp(c)		62,367
	2,188	First of Long Island Corp. (The)		59,514
	2,223	Flushing Financial Corp.		65,534
	4,657	FNFV Group(c)		63,801
	1,575	Franklin Financial Network, Inc.(c)		63,866
	1,589	FS Bancorp, Inc.		69,709
	6,985	Gain Capital Holdings, Inc.		49,524

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,962	German American Bancorp, Inc.	$	64,511
	6,395	Gladstone Capital Corp.(b)		62,799
	6,627	Gladstone Investment Corp.(b)		64,149
	1,531	Global Indemnity Ltd., Class A (Cayman Islands)(c)		62,082
	2,330	Goldman Sachs BDC, Inc.		58,250
	3,006	Golub Capital BDC, Inc.(b)		61,052
	4,543	Great Ajax Corp. REIT		61,785
	1,183	Great Southern Bancorp, Inc.		59,327
	3,363	Green Bancorp, Inc.(c)		60,534
	2,678	Greenlight Capital Re Ltd., Class A(c)		57,711
	2,462	Guaranty Bancorp		61,919
	1,962	Hanmi Financial Corp.		56,996
	1,281	HCI Group, Inc.(b)		61,091
	4,054	Health Insurance Innovations, Inc., Class A(c)		67,904
	3,912	Hercules Capital, Inc.		60,714
	2,488	Heritage Financial Corp.		65,683
	2,188	HomeStreet, Inc.(c)		56,888
	2,600	HomeTrust Bancshares, Inc.(c)		65,000
	2,311	Horizon Bancorp		62,374
	2,890	Independence Holding Co.		54,765
	2,914	Independent Bank Corp./MI		64,982
	1,599	INTL FCStone, Inc.(c)		59,723
	2,630	Investar Holding Corp.		58,517
	3,777	Kingstone Cos., Inc.		56,466
	4,024	Ladder Capital Corp., Class A REIT		58,871
	3,059	Lakeland Bancorp, Inc.		59,498
	1,828	MainSource Financial Group, Inc.		62,518
	2,274	Marlin Business Services Corp.		57,873
	7,680	Medley Capital Corp.		59,290
	1,693	Mercantile Bank Corp.		56,936
	3,185	Meridian Bancorp, Inc.		55,897
	669	Meta Financial Group, Inc.		56,798
	2,123	Mid Penn Bancorp, Inc.		58,701
	4,053	MidSouth Bancorp, Inc.		61,808
	1,713	MidWestOne Financial Group, Inc.		59,441
	2,489	MMA Capital Management LLC(c)		57,994
	3,809	Monroe Capital Corp.(b)		61,249
	3,471	Mtge Investment Corp. REIT		62,478
	6,552	MVC Capital, Inc.		59,230
	1,817	National Bank Holdings Corp., Class A		57,363
	1,582	National Commerce Corp.(c)		61,223
	3,906	New Mountain Finance Corp.		58,199
	9,489	New York Mortgage Trust, Inc. REIT(b)		60,824
	5,394	NewStar Financial, Inc.		57,932
	5,098	NMI Holdings, Inc., Class A(c)		59,137
	3,753	Northeast Bancorp		62,863
	1,992	Northrim Bancorp, Inc.		63,744
	1,557	Norwood Financial Corp.		57,905
	2,071	OceanFirst Financial Corp.		57,263
	11,856	Ocwen Financial Corp.(b)(c)		27,150
	5,247	OFG Bancorp		61,390
	1,918	Old Point Financial Corp.		59,055
	1,573	Pacific Premier Bancorp, Inc.(c)		57,493
	4,957	Park Sterling Corp.		60,971
	2,650	Parke Bancorp, Inc.		63,070

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

83

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,943	Peapack-Gladstone Financial Corp.	$	62,293
	4,235	Pennantpark Floating Rate Capital Ltd.		58,612
	7,321	PennantPark Investment Corp.		58,641
	3,524	PennyMac Financial Services, Inc., Class A(c)		58,146
	2,001	Peoples Bancorp of North Carolina, Inc.		56,708
	1,883	Peoples Bancorp, Inc.		63,043
	4,694	PHH Corp.(c)		60,553
	4,263	PICO Holdings, Inc.(c)		68,634
	916	Piper Jaffray Cos.		57,342
	1,148	Preferred Bank		60,833
	3,032	Premier Financial Bancorp, Inc.		64,976
	2,815	Provident Bancorp, Inc.(c)		59,959
	1,392	QCR Holdings, Inc.		63,475
	2,975	Regional Management Corp.(c)		58,994
	1,733	Republic Bancorp, Inc., Class A		62,353
	7,339	Republic First Bancorp, Inc.(c)		63,115
	7,877	Riverview Bancorp, Inc.		57,187
	843	Safety Insurance Group, Inc.		61,033
	1,439	Sandy Spring Bancorp, Inc.		62,237
	2,536	Saratoga Investment Corp.		55,336
	2,458	Seacoast Banking Corp. of Florida(c)		59,484
	3,588	Shore Bancshares, Inc.		59,525
	2,204	Sierra Bancorp		55,254
	2,607	Solar Capital Ltd.		59,466
	3,235	Solar Senior Capital Ltd.		59,233
	1,792	Southside Bancshares, Inc.		62,218
	2,338	State Bank Financial Corp.		62,799
	4,094	Stellus Capital Investment Corp.(b)		58,790
	2,872	Sunshine Bancorp, Inc.(c)		61,719
	2,472	Sussex Bancorp		63,778
	3,356	TCP Capital Corp.		57,388
	2,713	Timberland Bancorp, Inc.		60,147
	8,403	Tiptree, Inc., Class A		59,241
	1,686	TriCo Bancshares		59,786
	4,076	TriplePoint Venture Growth BDC Corp.(b)		58,368
	2,533	TriState Capital Holdings, Inc.(c)		63,072
	2,269	Triumph Bancorp, Inc.(c)		50,826
	7,529	TrustCo Bank Corp. NY		59,856
	3,280	Two River Bancorp		60,352
	7,061	United Community Financial Corp.		60,301
	3,523	United Financial Bancorp, Inc.		60,842
	3,411	Unity Bancorp, Inc.		55,770
	2,209	Univest Corp. of Pennsylvania		66,933
	2,075	Veritex Holdings, Inc.(c)		55,901
	3,221	Waterstone Financial, Inc.		61,199
	4,314	WhiteHorse Finance, Inc.		60,655
	1,183	World Acceptance Corp.(c)		62,581
	2,375	Xenith Bankshares, Inc.(c)		64,173
				10,808,282
		Health Care—3.1%
	11,954	Abeona Therapeutics, Inc.(c)		67,540
	1,888	Addus HomeCare Corp.(c)		64,098
	2,584	Albireo Pharma, Inc.(c)		53,463
	2,617	AMAG Pharmaceuticals, Inc.(c)		63,855
	3,414	AngioDynamics, Inc.(c)		52,985
	3,649	Aquinox Pharmaceuticals, Inc. (Canada)(b)(c)		53,567

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	27,615	Chelsea Therapeutics International Ltd.(c)	$	2,209
	9,059	Chimerix, Inc.(c)		54,173
	2,690	Evolent Health, Inc., Class A(c)		62,542
	12,003	Fate Therapeutics, Inc.(b)(c)		55,094
	1,982	Flexion Therapeutics, Inc.(c)		40,453
	2,849	REGENXBIO, Inc.(c)		59,544
	5,549	Syneron Medical Ltd. (Israel)(c)		60,762
	6,935	Tetraphase Pharmaceuticals, Inc.(c)		54,994
				745,279
		Industrials—12.9%
	10,638	Acacia Research Corp.(c)		57,977
	9,827	Ameresco, Inc., Class A(c)		63,384
	2,282	ArcBest Corp.		60,359
	3,865	CAI International, Inc.(c)		79,696
	4,265	CBIZ, Inc.(c)		67,174
	7,247	CDI Corp.(c)		59,063
	5,564	CECO Environmental Corp.		62,817
	1,766	Chart Industries, Inc.(c)		64,477
	3,208	China Yuchai International Ltd. (Singapore)		62,235
	21,239	Civeo Corp.(c)		63,505
	2,384	Columbus McKinnon Corp.		62,294
	1,674	CRA International, Inc.		63,512
	12,883	Diana Shipping, Inc. (Greece)(c)		51,403
	4,694	DMC Global, Inc.		71,818
	2,082	Ducommun, Inc.(c)		61,190
	1,838	DXP Enterprises, Inc.(c)		67,050
	7,813	Golden Ocean Group Ltd. (Norway)(c)		59,535
	10,084	Goldfield Corp. (The)(c)		54,958
	8,975	Hudson Technologies, Inc.(c)		63,722
	1,416	ICF International, Inc.(c)		62,516
	3,266	IES Holdings, Inc.(c)		65,320
	2,727	Kelly Services, Inc., Class A		60,867
	2,872	Kelly Services, Inc., Class B		66,056
	5,990	KEYW Holding Corp. (The)(b)(c)		56,845
	7,258	Kratos Defense & Security Solutions, Inc.(c)		55,306
	8,427	Manitex International, Inc.(c)		62,360
	10,503	Manitowoc Co., Inc. (The)(c)		62,703
	1,441	MYR Group, Inc.(c)		60,897
	2,566	Navigant Consulting, Inc.(c)		61,507
	30,041	Navios Maritime Partners LP (Greece)(b)(c)		62,786
	9,131	NL Industries, Inc.(c)		73,961
	2,457	NN, Inc.		67,813
	3,748	Northwest Pipe Co.(c)		52,509
	7,761	Orion Group Holdings, Inc.(c)		58,595
	17,309	Pangea Logistics Solutions(c)		56,947
	1,827	Powell Industries, Inc.		63,013
	1,174	Preformed Line Products Co.		62,140
	11,689	Radiant Logistics, Inc.(c)		70,134
	7,761	Revolution Lighting Technologies, Inc.(c)		68,685
	6,234	Scorpio Bulkers, Inc.(c)		46,443
	7,680	Spartan Motors, Inc.		63,360
	5,652	Star Bulk Carriers Corp. (Greece)(c)		53,468
	6,182	Sterling Construction Co., Inc.(c)		58,791
	2,945	Supreme Industries, Inc., Class A		59,018
	4,069	Textainer Group Holdings Ltd.		60,831
	5,922	Titan International, Inc.		63,425

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

84

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	4,301	Titan Machinery, Inc.(c)	$	68,171
	3,048	Twin Disc, Inc.(c)		59,741
	1,126	Veritiv Corp.(c)		58,158
	2,665	Willis Lease Finance Corp.(c)		60,522
				3,099,057
		Information Technology—8.9%
	4,156	Actua Corp.(c)		58,184
	3,391	Alpha & Omega Semiconductor Ltd.(c)		56,121
	953	Applied Optoelectronics, Inc.(b)(c)		47,069
	8,463	AudioCodes Ltd. (Israel)(c)		54,671
	10,355	AXT, Inc.(c)		69,896
	13,804	Bazaarvoice, Inc.(c)		64,879
	2,554	Bel Fuse, Inc., Class B		61,807
	3,234	Blucora, Inc.(c)		59,667
	15,421	Camtek Ltd. (Israel)(c)		57,366
	17,521	Ceragon Networks Ltd. (Israel)(c)		58,345
	3,213	Cohu, Inc.		60,179
	3,768	Control4 Corp.(c)		63,679
	2,377	CyberOptics Corp.(c)		51,462
	4,811	Digi International, Inc.(c)		59,656
	6,521	EMCORE Corp.		58,689
	5,472	Exar Corp.(c)		71,191
	10,450	EXFO, Inc. (Canada)(c)		48,593
	4,955	FormFactor, Inc.(c)		55,001
	6,806	GSI Technology, Inc.(c)		54,652
	9,997	Harmonic, Inc.(c)		57,983
	4,851	Intevac, Inc.(c)		61,850
	4,026	IXYS Corp.		56,163
	3,568	Kimball Electronics, Inc.(c)		61,548
	14,387	Kopin Corp.(c)		58,699
	7,386	Liquidity Services, Inc.(c)		57,611
	7,997	Magal Security Systems Ltd. (Israel)(c)		53,420
	10,846	Meet Group, Inc. (The)(c)		64,642
	1,945	Nanometrics, Inc.(c)		61,374
	4,718	Net 1 UEPS Technologies, Inc. (South Africa)(c)		51,096
	2,114	PCM, Inc.(c)		53,273
	5,319	Photronics, Inc.(c)		61,169
	7,247	RetailMeNot, Inc.(c)		84,065
	2,600	Rudolph Technologies, Inc.(c)		63,700
	2,093	Sierra Wireless, Inc. (Canada)(c)		52,953
	3,651	Ultra Clean Holdings, Inc.(c)		70,245
	6,368	Xcerra Corp.(c)		62,406
				2,143,304
		Materials—4.5%
	22,129	Asanko Gold, Inc. (Canada)(c)		54,216
	2,204	Boise Cascade Co.(c)		67,222
	4,689	Century Aluminum Co.(c)		63,958
	3,550	Core Molding Technologies, Inc.(c)		70,219
	5,085	Flotek Industries, Inc.(b)(c)		61,071
	12,799	Gold Resource Corp.		42,237
	14,038	Klondex Mines Ltd. (Canada)(c)		50,396
	2,034	Kraton Corp.(c)		66,532
	1,820	Materion Corp.		69,251
	18,406	McEwen Mining, Inc.(b)(c)		55,954
	3,084	Olympic Steel, Inc.		69,544

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	11,954	Resolute Forest Products, Inc.(c)	$	74,713
	13,122	Sandstorm Gold Ltd. (Canada)(c)		45,665
	2,842	Schnitzer Steel Industries, Inc., Class A		53,714
	3,878	SunCoke Energy Partners LP(b)		63,211
	6,514	SunCoke Energy, Inc.(c)		59,733
	3,241	TimkenSteel Corp.(c)		48,874
	2,315	Westlake Chemical Partners LP		58,570
				1,075,080
		Real Estate—5.0%
	3,866	Altisource Residential Corp. REIT		55,593
	4,310	Armada Hoffler Properties, Inc. REIT		61,461
	9,997	Ashford Hospitality Trust, Inc. REIT		62,481
	7,028	BRT Realty Trust REIT(c)		56,716
	2,483	Community Healthcare Trust, Inc. REIT		61,380
	1,792	CorEnergy Infrastructure Trust, Inc. REIT(b)		65,372
	3,012	Easterly Government Properties, Inc. REIT		60,601
	5,334	Farmland Partners, Inc. REIT(b)		58,141
	4,392	Forestar Group, Inc.(c)		62,147
	6,302	Independence Realty Trust, Inc. REIT		57,978
	3,197	InfraREIT, Inc. REIT		61,063
	4,964	iStar, Inc. REIT(c)		60,710
	2,539	Jernigan Capital, Inc. REIT		59,133
	2,439	National Storage Affiliates Trust REIT		59,755
	2,459	NexPoint Residential Trust, Inc. REIT		59,041
	3,094	Parkway, Inc. REIT		62,344
	4,373	Preferred Apartment Communities, Inc., Class A REIT		61,878
	19,721	RAIT Financial Trust REIT		60,543
	1,173	RMR Group, Inc. (The), Class A		61,876
	3,451	Tier REIT, Inc. REIT		59,737
				1,207,950
		Telecommunication Services—0.3%
	6,514	Iridium Communications, Inc.(b)(c)		69,048
		Utilities—0.2%
	4,346	8Point3 Energy Partners LP, Class A		53,716
		Total Common Stocks and Other Equity Interests (Cost $21,343,580)		23,980,943
		Money Market Fund—0.3%
	75,020	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $75,020)		75,020
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $21,418,600)—100.3%		24,055,963

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

85

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2017

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—6.8%
	1,641,268	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,641,268)	$	1,641,268
		Total Investments (Cost $23,059,868)—107.1%		25,697,231
		Other assets less liabilities—(7.1)%		(1,709,867	)
		Net Assets—100.0%	$	23,987,364

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

86

(This Page Intentionally Left Blank)

87

Statements of Assets and Liabilities

April 30, 2017

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Russell 2000 Equal Weight Portfolio (EQWS)			PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Assets:
Unaffiliated investments, at value(a)	$	441,158,844		$	1,257,172,015		$	21,849,252		$	34,194,564
Affiliated investments, at value		—			—			490,917			3,170,573
Total investments, at value		441,158,844			1,257,172,015			22,340,169			37,365,137
Cash		—			—			153			—
Receivables:
Dividends		216,692			1,067,090			6,396			2,987
Investments sold		—			—			7,172			669,220
Expenses absorbed		—			—			4,680			—
Securities lending		—			—			3,578			8,651
Foreign tax reclaims		—			—			—			—
Other assets		1,401			2,093			621			640
Total Assets		441,376,937			1,258,241,198			22,362,769			38,046,635
Liabilities:
Due to custodian		17,425			496,332			—			79,763
Payables:
Collateral upon return of securities loaned		—			—			426,605			3,170,573
Investments purchased		—			—			—			538,118
Shares repurchased		—			—			—			—
Expenses recaptured		—			—			—			—
Accrued advisory fees		177,659			511,283			—			4,827
Accrued trustees’ and officer’s fees		35,044			47,714			15,899			17,295
Accrued expenses		94,224			213,192			42,836			40,768
Total Liabilities		324,352			1,268,521			485,340			3,851,344
Net Assets	$	441,052,585		$	1,256,972,677		$	21,877,429		$	34,195,291
Net Assets Consist of:
Shares of beneficial interest	$	585,082,988		$	1,379,099,947		$	27,621,161		$	56,507,825
Undistributed net investment income		330,271			2,944,814			4,999			19,525
Undistributed net realized gain (loss)		(199,650,278	)		(233,086,173	)		(7,810,681	)		(26,160,199	)
Net unrealized appreciation		55,289,604			108,014,089			2,061,950			3,828,140
Net Assets	$	441,052,585		$	1,256,972,677		$	21,877,429		$	34,195,291
Shares outstanding (unlimited amount authorized, $0.01 par value)		12,600,000			35,650,000			550,000			1,200,000
Net asset value	$	35.00		$	35.26		$	39.78		$	28.50
Market price	$	35.02		$	35.27		$	39.77		$	28.49
Unaffiliated investments, at cost	$	385,869,240		$	1,149,157,926		$	19,787,598		$	30,366,424
Affiliated investments, at cost	$	—		$	—		$	490,621		$	3,170,573
Total investments, at cost	$	385,869,240		$	1,149,157,926		$	20,278,219		$	33,536,997
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	387,194		$	3,109,478

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

88

PowerShares Russell 2000 Pure Value Portfolio (PXSV)			PowerShares Russell Midcap Equal Weight Portfolio (EQWM)			PowerShares Russell Midcap Pure Growth Portfolio (PXMG)			PowerShares Russell Midcap Pure Value Portfolio (PXMV)			PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)			PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)			PowerShares Russell Top 200 Pure Value Portfolio (PXLV)			PowerShares Zacks Micro Cap Portfolio (PZI)
$	82,992,111		$	26,203,253		$	67,971,166		$	68,188,003		$	39,677,838		$	146,163,216		$	74,749,172		$	23,980,943
	5,151,831			1,070,267			2,063,756			1,861,774			46,473			5,174,477			—			1,716,288
	88,143,942			27,273,520			70,034,922			70,049,777			39,724,311			151,337,693			74,749,172			25,697,231
	—			—			—			—			—			—			—			—
	31,252			11,701			1,992			40,155			35,865			106,076			110,766			7,216
	1,406,582			—			—			—			—			—			—			3,037
	—			3,313			—			—			—			—			—			—
	6,250			1,565			2,547			2,524			—			2,666			—			4,768
	320			—			—			—			872			—			592			—
	687			633			683			671			648			857			734			1,151
	89,589,033			27,290,732			70,040,144			70,093,127			39,761,696			151,447,292			74,861,264			25,713,403
	—			—			—			—			—			—			9,725			—
	4,672,920			982,310			1,988,851			1,807,860			—			5,088,195			—			1,641,268
	—			—			—			—			—			—			—			—
	1,406,582			—			—			—			—			—			—			—
	—			—			—			—			—			1,935			—			—
	22,563			—			12,624			15,061			2,550			34,488			18,358			6,614
	19,276			16,415			24,348			17,986			17,045			13,663			11,676			18,644
	52,571			49,588			47,219			48,910			38,670			53,387			51,075			59,513
	6,173,912			1,048,313			2,073,042			1,889,817			58,265			5,191,668			90,834			1,726,039
$	83,415,121		$	26,242,419		$	67,967,102		$	68,203,310		$	39,703,431		$	146,255,624		$	74,770,430		$	23,987,364
$	106,339,300		$	32,537,793		$	173,039,354		$	94,944,895		$	43,879,372		$	136,615,244		$	70,638,329		$	64,257,597
	98,267			21,065			45,489			291,580			69,479			142,666			134,805			56,423
	(30,095,207	)		(8,133,567	)		(115,685,580	)		(28,368,968	)		(8,980,406	)		(11,184,392	)		(3,081,734	)		(42,964,019	)
	7,072,761			1,817,128			10,567,839			1,335,803			4,734,986			20,682,106			7,079,030			2,637,363
$	83,415,121		$	26,242,419		$	67,967,102		$	68,203,310		$	39,703,431		$	146,255,624		$	74,770,430		$	23,987,364
	2,850,000			600,000			1,950,000			2,200,000			850,000			3,800,000			2,100,000			1,300,000
$	29.27		$	43.74		$	34.85		$	31.00		$	46.71		$	38.49		$	35.60		$	18.45
$	29.26		$	43.74		$	34.85		$	31.00		$	46.75		$	38.50		$	35.63		$	18.44
$	75,951,426		$	24,383,771		$	57,403,327		$	66,852,200		$	34,942,852		$	125,481,110		$	67,670,142		$	21,343,580
$	5,119,728		$	1,072,621		$	2,063,756		$	1,861,774		$	46,473		$	5,174,477		$	—		$	1,716,288
$	81,071,154		$	25,456,392		$	59,467,083		$	68,713,974		$	34,989,325		$	130,655,587		$	67,670,142		$	23,059,868
$	4,520,801		$	951,673		$	1,928,639		$	1,756,950		$	—		$	5,073,173		$	—		$	1,559,620

89

Statements of Operations

For the year ended April 30, 2017

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Russell 2000 Equal Weight Portfolio (EQWS)			PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Investment Income:
Unaffiliated dividend income	$	5,605,859		$	28,273,824		$	175,159		$	108,943
Affiliated dividend income		1,014			2,583			607			274
Securities lending income		—			—			10,946			85,328
Foreign withholding tax		(13,755	)		—			(95	)		—
Total Income		5,593,118			28,276,407			186,617			194,545
Expenses:
Advisory fees		2,133,922			5,437,483			38,005			83,381
Sub-licensing fees		128,034			326,246			2,836			5,699
Accounting & administration fees		79,382			198,087			36,060			35,953
Professional fees		32,878			37,993			25,526			26,502
Trustees’ and officer’s fees		14,120			23,729			7,501			7,727
Custodian & transfer agent fees		8,908			45,090			24,483			7,807
Recapture (Note 3)		—			—			—			—
Other expenses		51,735			74,143			17,849			19,373
Total Expenses		2,448,979			6,142,771			152,260			186,442
Less: Waivers		(502	)		(1,343	)		(114,365	)		(74,440	)
Net Expenses		2,448,477			6,141,428			37,895			112,002
Net Investment Income		3,144,641			22,134,979			148,722			82,543
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(15,360,958	)		(26,328,316	)		(175,221	)		(3,256,004	)
In-kind redemptions		49,815,250			138,404,084			392,133			2,191,030
Foreign currencies		—			—			—			—
Net realized gain (loss)		34,454,292			112,075,768			216,912			(1,064,974	)
Change in net unrealized appreciation (depreciation) on:
Investment securities		19,256,044			59,582,637			2,570,917			6,816,011
Foreign currencies		—			—			—			—
Net change in unrealized appreciation		19,256,044			59,582,637			2,570,917			6,816,011
Net realized and unrealized gain		53,710,336			171,658,405			2,787,829			5,751,037
Net increase in net assets resulting from operations	$	56,854,977		$	193,793,384		$	2,936,551		$	5,833,580

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

90

PowerShares Russell 2000 Pure Value Portfolio (PXSV)			PowerShares Russell Midcap Equal Weight Portfolio (EQWM)			PowerShares Russell Midcap Pure Growth Portfolio (PXMG)			PowerShares Russell Midcap Pure Value Portfolio (PXMV)			PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)			PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)			PowerShares Russell Top 200 Pure Value Portfolio (PXLV)			PowerShares Zacks Micro Cap Portfolio (PZI)
$	1,471,120		$	370,814		$	398,710		$	1,477,366		$	656,311		$	1,727,830		$	1,810,927		$	1,039,878
	38,750			731			355			262			230			555			264			366
	147,259			17,461			37,946			33,329			—			23,068			—			36,454
	(86	)		(411	)		—			(2,133	)		(783	)		—			(3,425	)		(752	)
	1,657,043			388,595			437,011			1,508,824			655,758			1,751,453			1,807,766			1,075,946
	209,436			61,734			184,203			163,815			82,548			411,897			200,877			117,547
	15,848			4,181			12,479			13,483			5,594			28,413			21,512			23,509
	36,142			36,222			36,135			36,028			36,128			36,074			36,125			35,790
	25,244			25,861			25,248			25,090			24,868			26,358			25,444			34,217
	8,338			7,675			8,300			8,070			7,814			9,553			8,316			7,687
	11,722			13,703			4,505			5,938			3,179			4,083			4,229			7,248
	—			—			—			—			—			15,151			—			—
	23,490			18,652			21,741			22,097			19,522			22,401			18,910			17,747
	330,220			168,028			292,611			274,521			179,653			553,930			315,413			243,745
	(48,779	)		(106,412	)		(45,058	)		(54,360	)		(97,214	)		(263	)		(45,396	)		(79,349	)
	281,441			61,616			247,553			220,161			82,439			553,667			270,017			164,396
	1,375,602			326,979			189,458			1,288,663			573,319			1,197,786			1,537,749			911,550
	(7,792,451	)		(720,435	)		(8,543,761	)		(3,515,353	)		(224,952	)		(9,792,401	)		(2,122,492	)		(1,215,138	)
	7,524,978			—			1,884,026			5,686,190			727,972			8,581,218			8,282,876			4,154,018
	(6	)		—			—			—			—			—			—			—
	(267,479	)		(720,435	)		(6,659,735	)		2,170,837			503,020			(1,211,183	)		6,160,384			2,938,880
	12,294,857			3,633,321			17,543,731			2,742,235			4,764,560			21,973,094			5,632,709			1,096,744
	(29	)		—			—			—			—			—			—			—
	12,294,828			3,633,321			17,543,731			2,742,235			4,764,560			21,973,094			5,632,709			1,096,744
	12,027,349			2,912,886			10,883,996			4,913,072			5,267,580			20,761,911			11,793,093			4,035,624
$	13,402,951		$	3,239,865		$	11,073,454		$	6,201,735		$	5,840,899		$	21,959,697		$	13,330,842		$	4,947,174

91

Statements of Changes in Net Assets

For the years ended April 30, 2017 and 2016

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)						PowerShares Dynamic Large Cap Value Portfolio (PWV)
	2017			2016			2017			2016
Operations:
Net investment income	$	3,144,641		$	2,394,933		$	22,134,979		$	24,237,976
Net realized gain (loss)		34,454,292			6,768,820			112,075,768			(23,521,415	)
Net change in unrealized appreciation (depreciation)		19,256,044			1,296,040			59,582,637			(24,474,487	)
Net increase (decrease) in net assets resulting from operations		56,854,977			10,459,793			193,793,384			(23,757,926	)
Distributions to Shareholders from:
Net investment income		(3,353,714	)		(2,182,044	)		(22,676,158	)		(23,938,985	)
Shareholder Transactions:
Proceeds from shares sold		372,304,835			266,442,635			1,311,062,395			396,601,556
Value of shares repurchased		(428,505,381	)		(158,547,925	)		(1,200,505,766	)		(460,948,721	)
Net increase (decrease) in net assets resulting from shares transactions		(56,200,546	)		107,894,710			110,556,629			(64,347,165	)
Increase (Decrease) in Net Assets		(2,699,283	)		116,172,459			281,673,855			(112,044,076	)
Net Assets:
Beginning of year		443,751,868			327,579,409			975,298,822			1,087,342,898
End of year	$	441,052,585		$	443,751,868		$	1,256,972,677		$	975,298,822
Undistributed net investment income at end of year	$	330,271		$	539,344		$	2,944,814		$	3,485,993
Changes in Shares Outstanding:
Shares sold		11,450,000			8,650,000			39,700,000			13,300,000
Shares repurchased		(13,250,000	)		(5,100,000	)		(36,550,000	)		(15,400,000	)
Shares outstanding, beginning of year		14,400,000			10,850,000			32,500,000			34,600,000
Shares outstanding, end of year		12,600,000			14,400,000			35,650,000			32,500,000

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

92

PowerShares Russell 2000 Equal Weight Portfolio (EQWS)						PowerShares Russell 2000 Pure Growth Portfolio (PXSG)						PowerShares Russell 2000 Pure Value Portfolio (PXSV)						PowerShares Russell Midcap Equal Weight Portfolio (EQWM)
2017			2016			2017			2016			2017			2016			2017			2016
$	148,722		$	127,115		$	82,543		$	80,568		$	1,375,602		$	1,724,311		$	326,979		$	426,021
	216,912			1,476,128			(1,064,974	)		5,313,096			(267,479	)		8,397,908			(720,435	)		5,053,874
	2,570,917			(2,766,711	)		6,816,011			(8,134,006	)		12,294,828			(14,486,084	)		3,633,321			(6,753,851	)
	2,936,551			(1,163,468	)		5,833,580			(2,740,342	)		13,402,951			(4,363,865	)		3,239,865			(1,273,956	)
	(170,196	)		(138,899	)		(78,015	)		(145,600	)		(1,722,034	)		(1,647,876	)		(354,780	)		(425,755	)
	7,821,834			12,873,920			11,461,400			35,117,426			48,264,771			68,582,873			—			24,737,975
	(1,786,067	)		(14,648,979	)		(9,740,909	)		(38,302,893	)		(36,198,182	)		(74,996,370	)		—			(33,973,183	)
	6,035,767			(1,775,059	)		1,720,491			(3,185,467	)		12,066,589			(6,413,497	)		—			(9,235,208	)
	8,802,122			(3,077,426	)		7,476,056			(6,071,409	)		23,747,506			(12,425,238	)		2,885,085			(10,934,919	)
	13,075,307			16,152,733			26,719,235			32,790,644			59,667,615			72,092,853			23,357,334			34,292,253
$	21,877,429		$	13,075,307		$	34,195,291		$	26,719,235		$	83,415,121		$	59,667,615		$	26,242,419		$	23,357,334
$	4,999		$	14,585		$	19,525		$	14,997		$	98,267		$	322,551		$	21,065		$	48,478
	200,000			350,000			450,000			1,350,000			1,800,000			2,600,000			—			600,000
	(50,000	)		(400,000	)		(400,000	)		(1,500,000	)		(1,450,000	)		(2,900,000	)		—			(850,000	)
	400,000			450,000			1,150,000			1,300,000			2,500,000			2,800,000			600,000			850,000
	550,000			400,000			1,200,000			1,150,000			2,850,000			2,500,000			600,000			600,000

93

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2017 and 2016

	PowerShares Russell Midcap Pure Growth Portfolio (PXMG)						PowerShares Russell Midcap Pure Value Portfolio (PXMV)
	2017			2016			2017			2016
Operations:
Net investment income	$	189,458		$	192,398		$	1,288,663		$	1,160,598
Net realized gain (loss)		(6,659,735	)		16,044,559			2,170,837			10,092,452
Net change in unrealized appreciation (depreciation)		17,543,731			(24,188,266	)		2,742,235			(11,073,689	)
Net increase (decrease) in net assets resulting from operations		11,073,454			(7,951,309	)		6,201,735			179,361
Distributions to Shareholders from:
Net investment income		(160,836	)		(409,368	)		(1,190,811	)		(1,090,750	)
Shareholder Transactions:
Proceeds from shares sold		12,023,198			91,126,421			49,978,805			43,244,079
Value of shares repurchased		(21,983,708	)		(103,621,188	)		(37,150,015	)		(44,306,740	)
Net increase (decrease) in net assets resulting from shares transactions		(9,960,510	)		(12,494,767	)		12,828,790			(1,062,661	)
Increase (Decrease) in Net Assets		952,108			(20,855,444	)		17,839,714			(1,974,050	)
Net Assets:
Beginning of year		67,014,994			87,870,438			50,363,596			52,337,646
End of year	$	67,967,102		$	67,014,994		$	68,203,310		$	50,363,596
Undistributed net investment income at end of year	$	45,489		$	16,867		$	291,580		$	193,728
Changes in Shares Outstanding:
Shares sold		400,000			2,800,000			1,650,000			1,550,000
Shares repurchased		(750,000	)		(3,250,000	)		(1,300,000	)		(1,600,000	)
Shares outstanding, beginning of year		2,300,000			2,750,000			1,850,000			1,900,000
Shares outstanding, end of year		1,950,000			2,300,000			2,200,000			1,850,000

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

94

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)						PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)						PowerShares Russell Top 200 Pure Value Portfolio (PXLV)						PowerShares Zacks Micro Cap Portfolio (PZI)
2017			2016			2017			2016			2017			2016			2017			2016
$	573,319		$	735,628		$	1,197,786		$	1,176,283		$	1,537,749		$	1,194,351		$	911,550		$	344,756
	503,020			7,178,998			(1,211,183	)		31,202,722			6,160,384			2,691,966			2,938,880			(1,028,304	)
	4,764,560			(8,004,214	)		21,973,094			(32,667,566	)		5,632,709			(1,493,930	)		1,096,744			22,641
	5,840,899			(89,588	)		21,959,697			(288,561	)		13,330,842			2,392,387			4,947,174			(660,907	)
	(585,203	)		(736,635	)		(1,357,534	)		(1,168,868	)		(1,576,335	)		(1,133,932	)		(1,069,483	)		(314,529	)
	6,718,231			30,707,855			37,553,154			179,576,353			46,557,912			57,153,056			19,783,952			—
	(6,075,183	)		(38,325,557	)		(63,314,455	)		(172,206,268	)		(51,570,518	)		(31,730,490	)		(20,698,564	)		(6,919,902	)
	643,048			(7,617,702	)		(25,761,301	)		7,370,085			(5,012,606	)		25,422,566			(914,612	)		(6,919,902	)
	5,898,744			(8,443,925	)		(5,159,138	)		5,912,656			6,741,901			26,681,021			2,963,079			(7,895,338	)
	33,804,687			42,248,612			151,414,762			145,502,106			68,028,529			41,347,508			21,024,285			28,919,623
$	39,703,431		$	33,804,687		$	146,255,624		$	151,414,762		$	74,770,430		$	68,028,529		$	23,987,364		$	21,024,285
$	69,479		$	81,363		$	142,666		$	302,414		$	134,805		$	173,391		$	56,423		$	93,697
	150,000			750,000			1,100,000			5,350,000			1,400,000			2,000,000			1,100,000			—
	(150,000	)		(950,000	)		(1,900,000	)		(5,050,000	)		(1,600,000	)		(1,050,000	)		(1,150,000	)		(450,000	)
	850,000			1,050,000			4,600,000			4,300,000			2,300,000			1,350,000			1,350,000			1,800,000
	850,000			850,000			3,800,000			4,600,000			2,100,000			2,300,000			1,300,000			1,350,000

95

Financial Highlights

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	30.82		$	30.19		$	25.62		$	21.29		$	18.73
Net investment income(a)		0.24			0.19			0.18			0.10			0.21
Net realized and unrealized gain on investments		4.19			0.62			4.56			4.34			2.55
Total from investment operations		4.43			0.81			4.74			4.44			2.76
Distributions to shareholders from:
Net investment income		(0.25	)		(0.18	)		(0.17	)		(0.11	)		(0.20	)
Net asset value at end of year	$	35.00		$	30.82		$	30.19		$	25.62		$	21.29
Market price at end of year(b)	$	35.02		$	30.81		$	30.17		$	25.62		$	21.28
Net Asset Value Total Return(c)		14.46	%		2.70	%		18.52	%		20.91	%		14.91	%
Market Price Total Return(c)		14.57	%		2.73	%		18.44	%		20.96	%		14.92	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	441,053		$	443,752		$	327,579		$	285,675		$	212,897
Ratio to average net assets of:
Expenses, after Waivers		0.57	%		0.57	%		0.58	%		0.58	%		0.59	%
Expenses, prior to Waivers		0.57	%		0.57	%		0.58	%		0.58	%		0.59	%
Net investment income, after Waivers		0.74	%		0.64	%		0.63	%		0.43	%		1.08	%
Portfolio turnover rate(d)		116	%		97	%		143	%		123	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Large Cap Value Portfolio (PWV)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	30.01		$	31.43		$	29.51		$	25.21		$	20.73
Net investment income(a)		0.67			0.73			0.64			0.55			0.52
Net realized and unrealized gain (loss) on investments		5.28			(1.43	)		1.88			4.30			4.48
Total from investment operations		5.95			(0.70	)		2.52			4.85			5.00
Distributions to shareholders from:
Net investment income		(0.70	)		(0.72	)		(0.60	)		(0.55	)		(0.52	)
Net asset value at end of year	$	35.26		$	30.01		$	31.43		$	29.51		$	25.21
Market price at end of year(b)	$	35.27		$	30.00		$	31.42		$	29.49		$	25.22
Net Asset Value Total Return(c)		20.06	%		(2.17	)%		8.56	%		19.48	%		24.55	%
Market Price Total Return(c)		20.14	%		(2.18	)%		8.60	%		19.35	%		24.72	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,256,973		$	975,299		$	1,087,343		$	801,088		$	574,825
Ratio to average net assets of:
Expenses, after Waivers		0.56	%		0.57	%		0.57	%		0.57	%		0.59	%
Expenses, prior to Waivers		0.56	%		0.57	%		0.57	%		0.57	%		0.59	%
Net investment income, after Waivers		2.04	%		2.44	%		2.10	%		2.04	%		2.36	%
Portfolio turnover rate(d)		118	%		98	%		82	%		103	%		58	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

96

Financial Highlights (continued)

PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	32.69		$	35.89		$	32.85		$	27.80		$	24.21
Net investment income(a)		0.36			0.31			0.41			0.33			0.46
Net realized and unrealized gain (loss) on investments		7.19			(3.17	)		3.03			5.12			3.60
Total from investment operations		7.55			(2.86	)		3.44			5.45			4.06
Distributions to shareholders from:
Net investment income		(0.46	)		(0.34	)		(0.40	)		(0.40	)		(0.47	)
Net asset value at end of year	$	39.78		$	32.69		$	35.89		$	32.85		$	27.80
Market price at end of year(b)	$	39.77		$	32.71		$	35.90		$	32.84		$	27.76
Net Asset Value Total Return(c)		23.21	%		(8.00	)%		10.53	%		19.76	%		17.05	%
Market Price Total Return(c)		23.11	%		(7.97	)%		10.59	%		19.90	%		17.03	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	21,877		$	13,075		$	16,153		$	14,784		$	15,290
Ratio to average net assets of:
Expenses, after Waivers		0.25	%		0.26	%(d)		0.39	%(d)		0.39	%		0.39	%
Expenses, prior to Waivers		1.00	%		1.17	%(d)		0.98	%(d)		0.94	%		1.22	%
Net investment income, after Waivers		0.98	%		0.94	%		1.20	%		1.06	%		1.88	%
Portfolio turnover rate(e)		47	%		143	%		7	%		50	%		45	%

^(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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

97

Financial Highlights (continued)

PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	23.23		$	25.22		$	23.90		$	19.74		$	17.66
Net investment income(a)		0.07			0.06			0.25			0.20			0.13
Net realized and unrealized gain (loss) on investments		5.27			(1.93	)		1.39			4.17			2.08
Total from investment operations		5.34			(1.87	)		1.64			4.37			2.21
Distributions to shareholders from:
Net investment income		(0.07	)		(0.12	)		(0.32	)		(0.21	)		(0.13	)
Net asset value at end of year	$	28.50		$	23.23		$	25.22		$	23.90		$	19.74
Market price at end of year(b)	$	28.49		$	23.26		$	25.21		$	23.89		$	19.72
Net Asset Value Total Return(c)		23.02	%		(7.47	)%		6.92	%		22.31	%		12.63	%
Market Price Total Return(c)		22.82	%		(7.31	)%		6.92	%		22.38	%		12.65	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	34,195		$	26,719		$	32,791		$	29,872		$	26,646
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%(d)		0.39	%(d)		0.39	%(d)		0.39	%(d)
Expenses, prior to Waivers		0.65	%		0.67	%(d)		0.69	%(d)		0.70	%(d)		0.92	%(d)
Net investment income, after Waivers		0.29	%		0.27	%		1.02	%		0.90	%		0.72	%
Portfolio turnover rate(e)		55	%		144	%		6	%		39	%		39	%

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

^(e) Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

98

Financial Highlights (continued)

PowerShares Russell 2000 Pure Value Portfolio (PXSV)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	23.87		$	25.75		$	24.67		$	19.63		$	16.35
Net investment income(a)		0.52			0.63			0.42			0.30			0.32
Net realized and unrealized gain (loss) on investments		5.55			(1.91	)		1.03			5.03			3.31
Total from investment operations		6.07			(1.28	)		1.45			5.33			3.63
Distributions to shareholders from:
Net investment income		(0.67	)		(0.60	)		(0.37	)		(0.29	)		(0.35	)
Net asset value at end of year	$	29.27		$	23.87		$	25.75		$	24.67		$	19.63
Market price at end of year(b)	$	29.26		$	23.88		$	25.75		$	24.68		$	19.61
Net Asset Value Total Return(c)		25.64	%		(4.93	)%		5.91	%		27.29	%		22.56	%
Market Price Total Return(c)		25.54	%		(4.90	)%		5.87	%		27.47	%		22.58	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	83,415		$	59,668		$	72,093		$	65,376		$	48,084
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.46	%		0.50	%		0.55	%		0.54	%		0.70	%
Net investment income, after Waivers		1.90	%		2.67	%		1.65	%		1.31	%		1.87	%
Portfolio turnover rate(d)		50	%		137	%		5	%		43	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Russell Midcap Equal Weight Portfolio (EQWM)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	38.93		$	40.34		$	36.31		$	30.41		$	26.60
Net investment income(a)		0.54			0.56			0.50			0.40			0.43
Net realized and unrealized gain (loss) on investments		4.86			(1.41	)		4.03			5.90			3.80
Total from investment operations		5.40			(0.85	)		4.53			6.30			4.23
Distributions to shareholders from:
Net investment income		(0.59	)		(0.56	)		(0.50	)		(0.40	)		(0.42	)
Net asset value at end of year	$	43.74		$	38.93		$	40.34		$	36.31		$	30.41
Market price at end of year(b)	$	43.74		$	38.89		$	40.35		$	36.25		$	30.39
Net Asset Value Total Return(c)		14.00	%		(2.02	)%		12.52	%		20.85	%		16.16	%
Market Price Total Return(c)		14.11	%		(2.14	)%		12.73	%		20.73	%		16.00	%
Ratios/Supplemental Data:
Net assets at end of year(000’s omitted)	$	26,242		$	23,357		$	34,292		$	30,867		$	19,768
Ratio to average net assets of:
Expenses, after Waivers		0.25	%		0.26	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.68	%		0.69	%		0.66	%		0.69	%		1.00	%
Net investment income, after Waivers		1.32	%		1.50	%		1.31	%		1.19	%		1.58	%
Portfolio turnover rate(d)		36	%		135	%		5	%		50	%		38	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

99

Financial Highlights (continued)

PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	29.14		$	31.95		$	30.02		$	26.06		$	22.65
Net investment income(a)		0.09			0.07			0.47			0.33			0.26
Net realized and unrealized gain (loss) on investments		5.70			(2.72	)		1.92			4.01			3.38
Total from investment operations		5.79			(2.65	)		2.39			4.34			3.64
Distributions to shareholders from:
Net investment income		(0.08	)		(0.16	)		(0.46	)		(0.38	)		(0.23	)
Net asset value at end of year	$	34.85		$	29.14		$	31.95		$	30.02		$	26.06
Market price at end of year(b)	$	34.85		$	29.12		$	31.95		$	29.99		$	26.04
Net Asset Value Total Return(c)		19.89	%		(8.34	)%		7.98	%		16.80	%		16.23	%
Market Price Total Return(c)		19.98	%		(8.40	)%		8.09	%		16.77	%		16.25	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	67,967		$	67,015		$	87,870		$	91,555		$	82,101
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.46	%		0.44	%		0.46	%		0.45	%		0.54	%
Net investment income, after Waivers		0.30	%		0.25	%		1.51	%		1.19	%		1.14	%
Portfolio turnover rate(d)		49	%		147	%		3	%		33	%		33	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

100

Financial Highlights (continued)

PowerShares Russell Midcap Pure Value Portfolio (PXMV)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	27.22		$	27.55		$	25.88		$	20.98		$	17.06
Net investment income(a)		0.68			0.68			0.43			0.37			0.37
Net realized and unrealized gain (loss) on investments		3.80			(0.37	)		1.63			4.87			3.94
Total from investment operations		4.48			0.31			2.06			5.24			4.31
Distributions to shareholders from:
Net investment income		(0.70	)		(0.64	)		(0.39	)		(0.34	)		(0.39	)
Net asset value at end of year	$	31.00		$	27.22		$	27.55		$	25.88		$	20.98
Market price at end of year(b)	$	31.00		$	27.21		$	27.53		$	25.87		$	20.98
Net Asset Value Total Return(c)		16.60	%		1.35	%		7.98	%		25.19	%		25.74	%
Market Price Total Return(c)		16.64	%		1.39	%		7.94	%		25.14	%		25.89	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	68,203		$	50,364		$	52,338		$	42,709		$	28,321
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%(d)		0.39	%(d)		0.39	%		0.39	%
Expenses, prior to Waivers		0.49	%		0.54	%(d)		0.56	%(d)		0.62	%		0.82	%
Net investment income, after Waivers		2.28	%		2.62	%		1.58	%		1.56	%		2.08	%
Portfolio turnover rate(e)		39	%		131	%		4	%		33	%		25	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Russell Top 200 Equal Weight Portfolio (EQWL)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	39.77		$	40.24		$	37.06		$	30.97		$	26.66
Net investment income(a)		0.74			0.78			0.75			0.63			0.65
Net realized and unrealized gain (loss) on investments		6.95			(0.48	)		3.14			6.03			4.35
Total from investment operations		7.69			0.30			3.89			6.66			5.00
Distributions to shareholders from:
Net investment income		(0.75	)		(0.77	)		(0.71	)		(0.57	)		(0.69	)
Net asset value at end of year	$	46.71		$	39.77		$	40.24		$	37.06		$	30.97
Market price at end of year(b)	$	46.75		$	39.73		$	40.21		$	37.08		$	30.98
Net Asset Value Total Return(c)		19.58	%		0.81	%		10.52	%		21.69	%		19.10	%
Market Price Total Return(c)		19.80	%		0.78	%		10.38	%		21.72	%		19.15	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	39,703		$	33,805		$	42,249		$	40,770		$	27,874
Ratio to average net assets of:
Expenses, after Waivers		0.25	%		0.26	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.54	%		0.54	%		0.57	%		0.60	%		0.80	%
Net investment income, after Waivers		1.74	%		1.99	%		1.92	%		1.85	%		2.38	%
Portfolio turnover rate(d)		27	%		101	%		3	%		38	%		43	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

101

Financial Highlights (continued)

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	32.92		$	33.84		$	29.53		$	25.10		$	22.20
Net investment income(a)		0.29			0.28			0.55			0.50			0.39
Net realized and unrealized gain (loss) on investments		5.61			(0.91	)		4.29			4.57			2.87
Total from investment operations		5.90			(0.63	)		4.84			5.07			3.26
Distributions to shareholders from:
Net investment income		(0.33	)		(0.29	)		(0.53	)		(0.62	)		(0.36	)
Net realized gains		—			—			—			(0.02	)		—
Total distributions		(0.33	)		(0.29	)		(0.53	)		(0.64	)		(0.36	)
Net asset value at end of year	$	38.49		$	32.92		$	33.84		$	29.53		$	25.10
Market price at end of year(b)	$	38.50		$	32.92		$	33.82		$	29.52		$	25.08
Net Asset Value Total Return(c)		18.06	%		(1.89	)%		16.49	%		20.54	%		14.87	%
Market Price Total Return(c)		18.09	%		(1.83	)%		16.46	%		20.59	%		14.83	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	146,256		$	151,415		$	145,502		$	106,322		$	82,816
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.39	%		0.39	%		0.43	%		0.45	%		0.79	%
Net investment income, after Waivers		0.84	%		0.85	%		1.73	%		1.84	%		1.63	%
Portfolio turnover rate(d)		30	%		105	%		2	%		22	%		90	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

102

Financial Highlights (continued)

PowerShares Russell Top 200 Pure Value Portfolio (PXLV)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	29.58		$	30.63		$	29.40		$	25.16		$	20.37
Net investment income(a)		0.73			0.80			0.72			0.63			0.52
Net realized and unrealized gain (loss) on investments		6.13			(1.09	)		1.16			4.17			4.77
Total from investment operations		6.86			(0.29	)		1.88			4.80			5.29
Distributions to shareholders from:
Net investment income		(0.84	)		(0.76	)		(0.65	)		(0.54	)		(0.50	)
Net realized gains		—			—			—			(0.02	)		—
Total distributions		(0.84	)		(0.76	)		(0.65	)		(0.56	)		(0.50	)
Net asset value at end of year	$	35.60		$	29.58		$	30.63		$	29.40		$	25.16
Market price at end of year(b)	$	35.63		$	29.55		$	30.62		$	29.39		$	25.16
Net Asset Value Total Return(c)		23.47	%		(0.84	)%		6.41	%		19.27	%		26.41	%
Market Price Total Return(c)		23.69	%		(0.92	)%		6.41	%		19.23	%		26.53	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	74,770		$	68,029		$	41,348		$	14,701		$	7,549
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.46	%		0.55	%		0.62	%		1.05	%		2.10	%
Net investment income, after Waivers		2.23	%		2.78	%		2.37	%		2.32	%		2.43	%
Portfolio turnover rate(d)		28	%		77	%		2	%		23	%		9	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

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Financial Highlights (continued)

PowerShares Zacks Micro Cap Portfolio (PZI)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	15.57		$	16.07		$	16.26		$	13.57		$	11.34
Net investment income(a)		0.67	(b)		0.21			0.21			0.20			0.20
Net realized and unrealized gain (loss) on investments		3.00			(0.52	)		(0.09	)		2.65			2.25
Total from investment operations		3.67			(0.31	)		0.12			2.85			2.45
Distributions to shareholders from:
Net investment income		(0.79	)		(0.19	)		(0.31	)		(0.16	)		(0.22	)
Net asset value at end of year	$	18.45		$	15.57		$	16.07		$	16.26		$	13.57
Market price at end of year(c)	$	18.44		$	15.57		$	16.05		$	16.25		$	13.54
Net Asset Value Total Return(d)		23.87	%		(1.94	)%		0.71	%		21.06	%		21.95	%
Market Price Total Return(d)		23.81	%		(1.82	)%		0.64	%		21.25	%		21.90	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	23,987		$	21,024		$	28,920		$	61,782		$	42,055
Ratio to average net assets of:
Expenses, after Waivers(e)		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers(e)		1.04	%		1.00	%		0.90	%		0.79	%		0.98	%
Net investment income, after Waivers		3.89	%(b)		1.37	%		1.28	%		1.29	%		1.72	%
Portfolio turnover rate(f)		141	%		134	%		115	%		123	%		96	%

^(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 period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.25 and 1.45%, 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.

^(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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

April 30, 2017

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2017, 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 Russell 2000 Equal Weight Portfolio (EQWS)	“Russell 2000 Equal Weight Portfolio”
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)	“Russell 2000 Pure Growth Portfolio”
PowerShares Russell 2000 Pure Value Portfolio (PXSV)	“Russell 2000 Pure Value Portfolio”
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)	“Russell Midcap Equal Weight Portfolio”
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)	“Russell Midcap Pure Growth Portfolio”
PowerShares Russell Midcap Pure Value Portfolio (PXMV)	“Russell Midcap Pure Value Portfolio”
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)	“Russell Top 200 Equal Weight Portfolio”
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)	“Russell Top 200 Pure Growth Portfolio”
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)	“Russell Top 200 Pure 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 price of each Share 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
Dynamic Large Cap Growth Portfolio	Dynamic Large Cap Growth IntellidexSM Index
Dynamic Large Cap Value Portfolio	Dynamic Large Cap Value IntellidexSM Index
Russell 2000 Equal Weight Portfolio	Russell 2000® Equal Weight Index
Russell 2000 Pure Growth Portfolio	Russell 2000® Pure Growth Index
Russell 2000 Pure Value Portfolio	Russell 2000® Pure Value Index
Russell Midcap Equal Weight Portfolio	Russell Midcap® Equal Weight Index
Russell Midcap Pure Growth Portfolio	Russell Midcap® Pure Growth Index
Russell Midcap Pure Value Portfolio	Russell Midcap® Pure Value Index
Russell Top 200 Equal Weight Portfolio	Russell Top 200® Equal Weight Index
Russell Top 200 Pure Growth Portfolio	Russell Top 200® Pure Growth Index
Russell Top 200 Pure Value Portfolio	Russell Top 200® Pure Value Index
Zacks Micro Cap Portfolio	Zacks Micro Cap IndexTM

Note 2. Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.

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A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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 asked 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 asked 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 asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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 Fund 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 Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in 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 will 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. Russell Top 200 Pure Growth Portfolio and Russell Top 200 Pure Value 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.

Small- and Mid-Capitalization Company Risk. For Russell 2000 Equal Weight Portfolio, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio and Russell Midcap Pure Value Portfolio, investing in securities of small- and mid-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 mid-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, Russell 2000 Pure Growth Portfolio, Russell Midcap Pure Growth Portfolio and Russell Top 200 Pure 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.

Value Risk. For Dynamic Large Cap Value Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Pure Value Portfolio and Russell Top 200 Pure 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.

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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 accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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.

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G. 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.

H. Accounting Estimates

The preparation of the financial statements in accordance with 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.

I. Securities Lending

During the fiscal year ended April 30, 2017, Russell 2000 Equal Weight Portfolio, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio, Russell Midcap Pure Value Portfolio, Russell Top 200 Pure Growth 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% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is generally invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight 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 Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio has agreed to pay the Adviser an annual fee of 0.25% 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 Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser 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, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight 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, 2018. The Expense Cap for each of Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio is 0.25% of the Fund’s average daily net assets per year, through at least August 31, 2018. 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, 2018, and sub-licensing fees are excluded from the expenses subject to the Expense Cap for these Funds in addition to the excluded expenses above. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or

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pay Fund expenses during the period under this Expense Cap for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Russell Top 200 Pure Growth Portfolio.

Further, through August 31, 2019, 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. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Dynamic Large Cap Growth Portfolio	$	502
Dynamic Large Cap Value Portfolio		1,343
Russell 2000 Equal Weight Portfolio		114,365
Russell 2000 Pure Growth Portfolio		74,440
Russell 2000 Pure Value Portfolio		48,779
Russell Midcap Equal Weight Portfolio		106,412
Russell Midcap Pure Growth Portfolio		45,058
Russell Midcap Pure Value Portfolio		54,360
Russell Top 200 Equal Weight Portfolio		97,214
Russell Top 200 Pure Growth Portfolio		263
Russell Top 200 Pure Value Portfolio		45,396
Zacks Micro Cap Portfolio		79,349

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 April 30, 2017 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/18		4/30/19		4/30/20
Russell 2000 Equal Weight Portfolio	$	328,201	$	91,595	$	122,351	$	114,255
Russell 2000 Pure Growth Portfolio		253,103		93,101		85,694		74,308
Russell 2000 Pure Value Portfolio		226,526		108,992		68,966		48,568
Russell Midcap Equal Weight Portfolio		307,486		80,056		121,137		106,293
Russell Midcap Pure Growth Portfolio		152,118		64,245		42,984		44,889
Russell Midcap Pure Value Portfolio		208,383		86,833		67,330		54,220
Russell Top 200 Equal Weight Portfolio		277,390		76,197		104,089		97,104
Russell Top 200 Pure Growth Portfolio		45,493		45,493		—		—
Russell Top 200 Pure Value Portfolio		192,745		79,809		67,669		45,267
Zacks Micro Cap Portfolio		232,325		77,042		76,103		79,180

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 Group, Inc.
Dynamic Large Cap Value Portfolio	NYSE Group, Inc.
Russell 2000 Equal Weight Portfolio	Frank Russell Company
Russell 2000 Pure Growth Portfolio	Frank Russell Company
Russell 2000 Pure Value Portfolio	Frank Russell Company
Russell Midcap Equal Weight Portfolio	Frank Russell Company

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Fund	Licensor
Russell Midcap Pure Growth Portfolio	Frank Russell Company
Russell Midcap Pure Value Portfolio	Frank Russell Company
Russell Top 200 Equal Weight Portfolio	Frank Russell Company
Russell Top 200 Pure Growth Portfolio	Frank Russell Company
Russell Top 200 Pure Value Portfolio	Frank Russell Company
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

The 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 tables below show certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2017.

Russell 2000 Equal Weight Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	3,238	$	1,997	$	(1,113	)	$	922	$	(21	)	$	5,023	$	372

Russell 2000 Pure Value Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	257,964	$	253,532	$	(145,978	)	$	90,363	$	(8,595	)	$	447,286	$	38,332

Russell Midcap Equal Weight Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Invesco Ltd.	$	12,559	$	2,591	$	(1,158	)	$	1,538	$	(345	)	$	15,185	$	479

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.

111

Except for the Funds listed below, as of April 30, 2017, 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
Russell 2000 Equal Weight Portfolio
Equity Securities	$	22,338,602	$	—	$	1,567	$	22,340,169
Russell 2000 Pure Value Portfolio
Equity Securities	$	88,143,942	$	—	$	0	$	88,143,942
Zacks Micro Cap Portfolio
Equity Securities	$	25,695,022	$	—	$	2,209	$	25,697,231

Note 6. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2017 and 2016:

	2017		2016
	Ordinary Income		Ordinary Income
Dynamic Large Cap Growth Portfolio	$	3,353,714	$	2,182,044
Dynamic Large Cap Value Portfolio		22,676,158		23,938,985
Russell 2000 Equal Weight Portfolio		170,196		138,899
Russell 2000 Pure Growth Portfolio		78,015		145,600
Russell 2000 Pure Value Portfolio		1,722,034		1,647,876
Russell Midcap Equal Weight Portfolio		354,780		425,755
Russell Midcap Pure Growth Portfolio		160,836		409,368
Russell Midcap Pure Value Portfolio		1,190,811		1,090,750
Russell Top 200 Equal Weight Portfolio		585,203		736,635
Russell Top 200 Pure Growth Portfolio		1,357,534		1,168,868
Russell Top 200 Pure Value Portfolio		1,576,335		1,133,932
Zacks Micro Cap Portfolio		1,069,483		314,529

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Net Unrealized Appreciation (Depreciation)— Other Investments			Capital Loss Carryforwards			Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic Large Cap Growth Portfolio	$	364,230	$	(33,959	)	$	53,609,967	$	—		$	(193,281,817	)	$	(4,688,824	)	$	585,082,988	$	441,052,585
Dynamic Large Cap Value Portfolio		2,990,368		(45,554	)		95,362,691		—			(213,426,146	)		(7,008,629	)		1,379,099,947		1,256,972,677
Russell 2000 Equal Weight Portfolio		25,126		(15,173	)		1,925,808		—			(7,656,420	)		(23,073	)		27,621,161		21,877,429
Russell 2000 Pure Growth Portfolio		36,049		(16,524	)		3,591,739		—			(25,923,798	)		—			56,507,825		34,195,291
Russell 2000 Pure Value Portfolio		116,709		(18,442	)		6,063,264		(27	)		(28,930,390	)		(155,293	)		106,339,300		83,415,121
Russell Midcap Equal Weight Portfolio		36,714		(15,649	)		1,646,904		—			(7,835,286	)		(128,057	)		32,537,793		26,242,419
Russell Midcap Pure Growth Portfolio		68,983		(23,494	)		10,191,531		—			(115,309,272	)		—			173,039,354		67,967,102
Russell Midcap Pure Value Portfolio		308,744		(17,164	)		711,738		—			(27,662,549	)		(82,354	)		94,944,895		68,203,310
Russell Top 200 Equal Weight Portfolio		85,722		(16,243	)		4,478,672		—			(8,724,092	)		—			43,879,372		39,703,431

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	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Net Unrealized Appreciation (Depreciation)— Other Investments		Capital Loss Carryforwards			Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Russell Top 200 Pure Growth Portfolio	$	155,444	$	(12,778	)	$	19,849,049	$	—	$	(10,329,158	)	$	(22,177	)	$	136,615,244	$	146,255,624
Russell Top 200 Pure Value Portfolio		145,692		(10,887	)		6,039,424		—		(2,042,128	)		—			70,638,329		74,770,430
Zacks Micro Cap Portfolio		77,139		(18,047	)		2,557,652		—		(41,481,146	)		(1,405,831	)		64,257,597		23,987,364

* The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital Losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards 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 table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2017:

					Post-effective/no expiration
	2018		2019		Short-Term		Long-Term		Total*		Expired
Dynamic Large Cap Growth Portfolio	$	131,638,879	$	15,986,258	$	44,638,676	$	1,018,004	$	193,281,817	$	68,715,641
Dynamic Large Cap Value Portfolio		56,819,182		17,964,198		119,916,863		18,725,903		213,426,146		22,558,581
Russell 2000 Equal Weight Portfolio		2,009,294		2,491,519		1,968,785		1,186,822		7,656,420		2,738,120
Russell 2000 Pure Growth Portfolio		10,392,627		4,547,805		6,459,754		4,523,612		25,923,798		9,888,431
Russell 2000 Pure Value Portfolio		9,588,502		5,376,983		7,538,252		6,426,653		28,930,390		16,547,947
Russell Midcap Equal Weight Portfolio		3,611,366		741,893		1,781,930		1,700,097		7,835,286		3,815,763
Russell Midcap Pure Growth Portfolio		82,364,246		12,021,724		12,534,125		8,389,177		115,309,272		54,769,394
Russell Midcap Pure Value Portfolio		18,996,863		2,751,107		4,741,951		1,172,628		27,662,549		12,697,113
Russell Top 200 Equal Weight Portfolio		5,621,834		1,626,267		743,656		732,335		8,724,092		2,328,337
Russell Top 200 Pure Growth Portfolio		—		—		4,325,577		6,003,581		10,329,158		—
Russell Top 200 Pure Value Portfolio		—		—		770,987		1,271,141		2,042,128		—
Zacks Micro Cap Portfolio		12,380,833		7,234,973		20,320,056		1,545,284		41,481,146		28,782,755

* Capital loss carryforwards as of the date listed above is 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 fiscal year ended April 30, 2017, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
Dynamic Large Cap Growth Portfolio	$	504,939,053	$	504,603,514
Dynamic Large Cap Value Portfolio		1,310,397,704		1,310,488,955
Russell 2000 Equal Weight Portfolio		7,220,162		7,194,970
Russell 2000 Pure Growth Portfolio		16,139,776		15,782,444
Russell 2000 Pure Value Portfolio		36,588,019		35,853,318
Russell Midcap Equal Weight Portfolio		8,889,956		8,899,600
Russell Midcap Pure Growth Portfolio		31,363,201		31,558,266
Russell Midcap Pure Value Portfolio		22,534,913		22,336,891
Russell Top 200 Equal Weight Portfolio		8,972,590		8,968,340
Russell Top 200 Pure Growth Portfolio		41,866,693		42,245,481
Russell Top 200 Pure Value Portfolio		19,241,275		19,743,639
Zacks Micro Cap Portfolio		32,885,414		33,868,643

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For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Large Cap Growth Portfolio	$	372,180,295	$	428,639,383
Dynamic Large Cap Value Portfolio		1,310,269,241		1,199,804,193
Russell 2000 Equal Weight Portfolio		7,776,970		1,776,017
Russell 2000 Pure Growth Portfolio		11,446,931		10,033,759
Russell 2000 Pure Value Portfolio		47,950,174		36,407,526
Russell Midcap Equal Weight Portfolio		—		—
Russell Midcap Pure Growth Portfolio		12,026,348		21,812,068
Russell Midcap Pure Value Portfolio		49,905,946		37,022,639
Russell Top 200 Equal Weight Portfolio		6,720,047		6,070,895
Russell Top 200 Pure Growth Portfolio		37,550,921		63,131,874
Russell Top 200 Pure Value Portfolio		46,536,413		51,002,181
Zacks Micro Cap Portfolio		19,632,608		19,546,704

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

At April 30, 2017, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation		Cost
Dynamic Large Cap Growth Portfolio	$	57,039,622	$	(3,429,655	)	$	53,609,967	$	387,548,877
Dynamic Large Cap Value Portfolio		120,583,033		(25,220,342	)		95,362,691		1,161,809,324
Russell 2000 Equal Weight Portfolio		3,297,548		(1,371,740	)		1,925,808		20,414,361
Russell 2000 Pure Growth Portfolio		5,804,308		(2,212,569	)		3,591,739		33,773,398
Russell 2000 Pure Value Portfolio		12,790,462		(6,727,198	)		6,063,264		82,080,678
Russell Midcap Equal Weight Portfolio		3,599,205		(1,952,301	)		1,646,904		25,626,616
Russell Midcap Pure Growth Portfolio		13,896,556		(3,705,025	)		10,191,531		59,843,391
Russell Midcap Pure Value Portfolio		5,834,777		(5,123,039	)		711,738		69,338,039
Russell Top 200 Equal Weight Portfolio		5,495,334		(1,016,662	)		4,478,672		35,245,639
Russell Top 200 Pure Growth Portfolio		24,149,547		(4,300,498	)		19,849,049		131,488,644
Russell Top 200 Pure Value Portfolio		7,225,075		(1,185,651	)		6,039,424		68,709,748
Zacks Micro Cap Portfolio		3,277,202		(719,550	)		2,557,652		23,139,579

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, amounts were reclassified between undistributed net investment income, undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2017, the reclassifications were as follows:

	Undistributed Net Investment Income		Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Large Cap Growth Portfolio	$	—	$	22,172,538		$	(22,172,538	)
Dynamic Large Cap Value Portfolio		—		(105,076,601	)		105,076,601
Russell 2000 Equal Weight Portfolio		11,888		2,342,201			(2,354,089	)
Russell 2000 Pure Growth Portfolio		—		7,841,744			(7,841,744	)
Russell 2000 Pure Value Portfolio		122,148		9,411,652			(9,533,800	)
Russell Midcap Equal Weight Portfolio		388		3,815,450			(3,815,838	)
Russell Midcap Pure Growth Portfolio		—		53,073,804			(53,073,804	)
Russell Midcap Pure Value Portfolio		—		7,404,080			(7,404,080	)
Russell Top 200 Equal Weight Portfolio		—		1,659,350			(1,659,350	)
Russell Top 200 Pure Growth Portfolio		—		(7,430,964	)		7,430,964
Russell Top 200 Pure Value Portfolio		—		(7,938,571	)		7,938,571
Zacks Micro Cap Portfolio		120,659		24,580,293			(24,700,952	)

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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, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated 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 principally 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.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in 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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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.

115

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio and PowerShares Zacks Micro Cap Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio and PowerShares Zacks Micro Cap Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 23, 2017

116

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2017.

In addition to the fees and expenses which the PowerShares Zacks Micro Cap 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 the Portfolio bears indirectly is included in the Portfolio’s total return.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		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	$	1,130.80		0.58	%	$	3.06
Hypothetical (5% return before expenses)		1,000.00		1,021.92		0.58			2.91
PowerShares Dynamic Large Cap Value Portfolio (PWV)
Actual		1,000.00		1,147.60		0.57			3.04
Hypothetical (5% return before expenses)		1,000.00		1,021.97		0.57			2.86
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)
Actual		1,000.00		1,175.60		0.25			1.35
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Actual		1,000.00		1,177.60		0.39			2.11
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Russell 2000 Pure Value Portfolio (PXSV)
Actual		1,000.00		1,179.80		0.39			2.11
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96

117

Fees and Expenses (continued)

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)
Actual	$	1,000.00	$	1,121.80		0.25	%	$	1.32
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)
Actual		1,000.00		1,164.00		0.39			2.09
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Russell Midcap Pure Value Portfolio (PXMV)
Actual		1,000.00		1,115.00		0.39			2.05
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)
Actual		1,000.00		1,148.60		0.25			1.33
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)
Actual		1,000.00		1,164.70		0.39			2.09
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)
Actual		1,000.00		1,141.20		0.39			2.07
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Zacks Micro Cap Portfolio (PZI)
Actual		1,000.00		1,166.20		0.70			3.76
Hypothetical (5% return before expenses)		1,000.00		1,021.32		0.70			3.51

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

118

Tax Information

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

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2017:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares Dynamic Large Cap Growth Portfolio		100	%		100	%
PowerShares Dynamic Large Cap Value Portfolio		100	%		100	%
PowerShares Russell 2000 Equal Weight Portfolio		100	%		97	%
PowerShares Russell 2000 Pure Growth Portfolio		100	%		100	%
PowerShares Russell 2000 Pure Value Portfolio		91	%		82	%
PowerShares Russell Midcap Equal Weight Portfolio		100	%		100	%
PowerShares Russell Midcap Pure Growth Portfolio		100	%		100	%
PowerShares Russell Midcap Pure Value Portfolio		92	%		86	%
PowerShares Russell Top 200 Equal Weight Portfolio		100	%		100	%
PowerShares Russell Top 200 Pure Growth Portfolio		100	%		100	%
PowerShares Russell Top 200 Pure Value Portfolio		100	%		100	%
PowerShares Zacks Micro Cap Portfolio		55	%		51	%

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

119

Trustees and Officers

The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and Trustee since 2003	Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).	135	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2010	Assistant Professor of Business, Trinity Christian College (2010-2016); formerly Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank.	135	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	135	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

120

Trustees and Officers (continued)

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	135	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

121

Trustees and Officers (continued)

The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Unaffiliated Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex*** Overseen by Unaffiliated Trustee	Other Directorships Held by Unaffiliated Trustee During the Past 5 Years
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee**	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	135	None

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

** Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee.

*** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

122

Trustees and Officers (continued)

The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Interested Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Interested Trustee	Other Directorships Held by Interested Trustee During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP.	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

123

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer and Principal Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chief Compliance Officer	Since 2017	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2012	Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005).

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

124

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), Invesco PowerShares Capital Management LLC (2010-Present); Manager and Assistant Secretary, Invesco Indexing LLC (2017-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2011-Present); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.

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

125

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2016, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and

126

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

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

● 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth Portfolio); and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, were -0.06%, -0.19% and -0.62%, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio).

The Trustees also noted that the Adviser has agreed to waive a portion of its contractual advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2018, as set forth below:

● 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

● 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio;

● 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® Quality Portfolio;

127

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

● 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio			X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X

128

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X		X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio			X
PowerShares International Dividend AchieversTM Portfolio	X	N/A	X
PowerShares S&P 500® Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the contractual advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X

129

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X	X	X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio		X	X
PowerShares International Dividend AchieversTM Portfolio		N/A	X
PowerShares S&P 500® Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X

130

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted those Funds for which license fees are included in the Funds’ Expense Caps.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund’s Expense Cap) were reasonable and appropriate in light of the services provided.

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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

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

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

131

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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.powershares.com.

P-PS-AR-5
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515
powershares.com    800 983 0903		@PowerShares

April 30, 2017

2017 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® Quality Portfolio
PHO	PowerShares Water Resources Portfolio
PBW	PowerShares WilderHill Clean Energy Portfolio
PUW	PowerShares WilderHill Progressive Energy Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Specialty Portfolios
Schedules of Investments
PowerShares Aerospace & Defense Portfolio (PPA)	29
PowerShares CleantechTM Portfolio (PZD)	30
PowerShares DWA Momentum Portfolio (PDP)	32
PowerShares Global Listed Private Equity Portfolio (PSP)	34
PowerShares Golden Dragon China Portfolio (PGJ)	36
PowerShares S&P 500 BuyWrite Portfolio (PBP)	38
PowerShares S&P 500® Quality Portfolio (SPHQ)	44
PowerShares Water Resources Portfolio (PHO)	46
PowerShares WilderHill Clean Energy Portfolio (PBW)	47
PowerShares WilderHill Progressive Energy Portfolio (PUW)	48
Statements of Assets and Liabilities	50
Statements of Operations	52
Statements of Changes in Net Assets	54
Financial Highlights	58
Notes to Financial Statements	64
Report of Independent Registered Public Accounting Firm	77
Fees and Expenses	78
Tax Information	80
Trustees and Officers	81
Board Considerations Regarding Continuation of Investment Advisory Agreements	87

2

The Market Environment

US Equity

During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.

While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.

Global Equity

The fiscal year ended April 30, 2017, began on a negative note, with global equity investors concerned about economic weakness in China, falling oil prices and uncertainty over the US Federal Reserve’s (the “Fed”) monetary policy. Central banks, including the Fed, the European Central Bank and the Bank of Japan, soothed investors’ nerves throughout the reporting period with accommodative monetary policies and dovish rhetoric. Other factors contributing to investor sentiment included rebounding oil prices and, in the US, generally positive economic data.

In June 2016, the decision by UK voters to leave the European Union caused global markets to decline sharply, but only briefly. The outcome of the November US presidential election caused US stocks, particularly in the health care and financials sector, to rally. However, non-US equities, particularly emerging market equities, traded lower due to currency weakness and the potential for a less favorable trade environment. Also in November, OPEC agreed to cut production for the first time in eight years; the agreement helped support higher oil prices and energy stocks.

Global equity markets began calendar 2017 with a broad rally that marked the best first quarter for equities since 2013. Volatility was largely absent, and emerging market equities posted double-digit gains in the quarter. Improved consumer confidence and eurozone employment data fueled positive market sentiment, while investors generally shrugged off Fed interest rate hikes in

December 2016 and March 2017. For the reporting period as a whole, US equities outperformed non-US equities, and emerging markets outperformed their developed-market counterparts (excluding the US)—a reversal from previous years.

3

PPA	Manager’s Analysis
	PowerShares Aerospace & Defense Portfolio (PPA)

As an index fund, the PowerShares Aerospace & Defense Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the SPADE^® Defense Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of aerospace and defense companies that comprise the Index. These companies are engaged principally in the development, manufacture, operation and support of defense, military, homeland security and space operations. These may include, for example, companies that provide the following products or services: defense electronics, aircraft, naval vessels, missiles, spacecraft and launch vehicles, ground vehicles, communications, sensors, information technology and network centric warfare, unmanned vehicles, satellite-based services and ground-based equipment and electronics, products or services.

Strictly in accordance with its guidelines and mandated procedures, ISBC, LLC (the “Index Provider”) identifies common stocks for inclusion in the Index and weights them according to its modified market capitalization methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 25.18%. On a net asset value (“NAV”) basis, the Fund returned 25.06%. During the same time period, the Index returned 25.83%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500^® Aerospace & Defense Index (the “Benchmark Index”) returned 26.90%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors due primarily to its exposure to the aerospace and defense industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that limits its constituents to companies that are involved in U.S. defense, military, homeland security and space operations, whereas the Benchmark Index includes companies that are involved in the commercial aerospace industry as well.

Relative to the Benchmark Index, the Fund was most overweight in the IT services industry and most underweight in the aerospace & defense industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to being underweight the aerospace & defense industry, and fees and operating expenses that the Fund incurred.

For the fiscal year ended April 30, 2017, the aerospace & defense industry contributed most significantly to the Fund’s return, followed by the IT services and communications equipment industries, respectively. The software industry detracted most significantly from the Fund’s return, followed by the construction & engineering industry.

Positions that contributed most significantly to the Fund’s return included Boeing Co. (The), an aerospace & defense company (portfolio average weight of 6.89%), and General Dynamics Corp., an aerospace & defense company (portfolio average weight of 6.70%). Positions that detracted most significantly from the Fund’s return included FireEye, Inc., a software company (portfolio average weight of 0.78%), and ViaSat, Inc., a communications equipment company (portfolio average weight of 1.18%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Aerospace & Defense	71.1
IT Services	7.2
Industrial Conglomerates	7.0
Communications Equipment	4.9
Containers & Packaging	3.8
Machinery	2.6
Electronic Equipment, Instruments & Components	1.8
Software	0.6
Construction & Engineering	0.6
Trading Companies & Distributors	0.4
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
United Technologies Corp.	7.0
Honeywell International, Inc.	7.0
Boeing Co. (The)	7.0
General Dynamics Corp.	6.9
Lockheed Martin Corp.	6.7
Raytheon Co.	5.5
Northrop Grumman Corp.	5.2
Harris Corp.	3.9
Rockwell Collins, Inc.	3.8
Ball Corp.	3.8
Total	56.8

* Excluding money market fund holdings.

4

PowerShares Aerospace & Defense Portfolio (PPA) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
SPADE® Defense Index		25.83	%		13.86	%		47.60	%		20.06	%		149.46	%		10.32	%		166.99	%		11.94	%		266.41	%
S&P Composite 1500® Aerospace & Defense Index		26.90			14.35			49.52			20.22			151.16			11.26			190.78			13.41			326.00
Fund
NAV Return		25.06			13.15			44.87			19.29			141.58			9.59			149.95			11.22			240.18
Market Price Return		25.18			13.19			45.00			19.32			141.88			9.61			150.26			11.24			240.65

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

5

PZD	Manager’s Analysis
	PowerShares CleantechTM Portfolio (PZD)

As an index fund, the PowerShares Cleantech^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of The Cleantech Index^TM (the “Index”). The Fund generally will invest at least 90% of its total assets in stocks of clean technology (or “cleantech”) companies (as described below) that comprise the Index and American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) based on the stocks in the Index. The Fund anticipates that the majority of its investments will be in the stocks that comprise the Index, rather than in ADRs. The Index is a modified equally weighted index currently comprised of stocks of publicly traded cleantech companies and ADRs on such stocks.

Strictly in accordance with its guidelines and mandated procedures, Cleantech Indices LLC (the “Index Provider”) identifies the securities for inclusion in the Index. The Index Provider considers a company to be a cleantech company when it derives at least 50% of its revenues or operating profits from cleantech businesses, which are defined as: businesses that provide knowledge-based products (or services) that add economic value by reducing cost and raising productivity and/or product performance, while reducing the consumption of resources and the negative impact on the environment and public health. The Index focuses on companies that are leaders in the innovation and commercial deployment of cleantech products/services across a broad range of industries, including, but not limited to, clean energy, energy efficiency and transmission, clean water, advanced materials, eco-friendly agriculture, transportation, manufacturing efficiency, recycling and pollution prevention. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 24.13%. On a net asset value (“NAV”) basis, the Fund returned 23.21%. During the same time period, the Index returned 24.31%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, as well as trading costs associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 17.92%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the electrical equipment industry and most underweight in the banks industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to significant overweight in the electrical equipment and electronic equipment instruments & components industries, compared to the Benchmark Index.

For the fiscal year ended April 30, 2017, the electrical equipment industry contributed most significantly to the Fund’s return, followed by the electronic equipment instruments & components and machinery industries, respectively. The semiconductors & semiconductor equipment industry was the only detracting industry.

Positions that contributed most significantly to the Fund’s return included Advanced Energy Industries, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 1.72%), and Raven Industries, Inc., an industrials conglomerates company (portfolio average weight of 1.07%). Positions that detracted most significantly from the Fund’s return included SunPower Corp., a semiconductors & semiconductor equipment company (portfolio average weight of 1.05%), and SMA Solar Technology AG (Germany), a semiconductors & semiconductor equipment company (portfolio average weight of 0.83%).

6

PowerShares Cleantech^TM Portfolio (PZD) (continued)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Electrical Equipment	19.6
Machinery	9.9
Electronic Equipment, Instruments & Components	9.9
Semiconductors & Semiconductor Equipment	8.2
Professional Services	7.5
Industrial Conglomerates	7.4
Software	6.8
Chemicals	6.6
Building Products	5.8
Independent Power & Renewable Electricity Producers	3.8
Life Sciences Tools & Services	3.1
Auto Components	2.9
Aerospace & Defense	2.4
Commercial Services & Supplies	2.2
Communications Equipment	1.6
Mortgage REITs	1.3
Construction & Engineering	0.9
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Trimble, Inc.	3.2
Eurofins Scientific SE	3.1
Schneider Electric SE	3.1
Novozymes A/S, Class B	3.1
Vestas Wind Systems A/S	3.1
Siemens AG	3.1
Roper Technologies, Inc.	3.1
SGS SA	3.0
Autodesk, Inc.	3.0
ABB Ltd.	3.0
Total	30.8

* Excluding money market fund holdings.

7

PowerShares Cleantech^TM Portfolio (PZD) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
The Cleantech Index™		24.31	%		6.75	%		21.64	%		11.82	%		74.81	%		4.57	%		56.41	%		N/A			N/A
S&P 500® Index		17.92	%		10.47	%		34.83	%		13.68	%		89.81	%		7.15	%		99.55	%		7.64	%		116.84	%
Fund
NAV Return		23.21	%		6.04	%		19.24	%		10.98	%		68.36	%		3.79	%		45.11	%		4.51	%		59.09	%
Market Price Return		24.13	%		6.14	%		19.58	%		11.14	%		69.55	%		3.83	%		45.57	%		4.55	%		59.66	%

Fund Inception: October 24, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.73% and the net annual operating expense ratio was indicated as 0.67%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund and Benchmark Index returns are based on the inception date of the Fund.

8

PDP	Manager’s Analysis
	PowerShares DWA Momentum Portfolio (PDP)

As an index fund, the PowerShares DWA Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is composed of approximately 100 common stocks from an eligible universe of approximately 1,000 securities of large capitalization companies that trade on any U.S. exchange and that are included within the NASDAQ Composite Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) includes common stocks pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics. The Index Provider bases these relative strength characteristics on each security’s market performance. The Fund generally invests in all of the securities comprising the Index proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 14.17%. On a net asset value (“NAV”) basis, the Fund returned 14.12%. During the same time period, the Index returned 14.89%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period.

During this same time period, the Russell 3000^® Growth Index (the “Benchmark Index”) returned 19.83%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,940 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broader-based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because of its exposure to growth stocks. The Benchmark Index performance comparison is a useful measure for investors as a broad representation of the U.S. growth equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was overweight in the financials sector and underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the information technology sector.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and financials sectors, respectively. The real estate sector detracted most significantly from the Fund’s return, followed by the energy and consumer staples sectors, respectively.

Positions that contributed most significantly to the Fund’s return included MarketAxess Holdings, Inc., a financials company (portfolio average weight of 2.43%), and Domino’s Pizza, Inc., a consumer discretionary company (portfolio average weight of 2.64%). Positions that detracted most significantly from the Fund’s return included Tractor Supply Co., a consumer discretionary company (no longer held at fiscal year-end), and GGP, Inc. REIT, a real estate company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Industrials	24.8
Information Technology	18.4
Consumer Discretionary	18.1
Financials	14.7
Health Care	12.3
Materials	3.5
Utilities	3.0
Consumer Staples	2.8
Energy	1.4
Telecommunication Services	0.5
Real Estate	0.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Apple, Inc.	3.0
Priceline Group, Inc. (The)	3.0
Macquarie Infrastructure Corp.	2.6
O’Reilly Automotive, Inc.	2.5
Domino’s Pizza, Inc.	2.4
MarketAxess Holdings, Inc.	2.3
J.B. Hunt Transport Services, Inc.	2.3
Rollins, Inc.	2.3
Arch Capital Group Ltd.	2.3
Exelixis, Inc.	2.2
Total	24.9

* Excluding money market fund holdings.

9

PowerShares DWA Momentum Portfolio (PDP) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Technical Leaders Index†		14.89	%		8.66	%		28.28	%		11.36	%		71.22	%		6.55	%		88.60	%		7.13	%		101.47	%
Dorsey Wright® Technical Leaders Index		14.89			8.66			28.28			N/A			N/A			N/A			N/A			N/A			N/A
Russell 3000® Growth Index		19.83			11.88			40.05			13.79			90.77			8.80			132.50			9.23			145.28
Fund
NAV Return		14.12			7.93			25.74			11.04			68.79			6.43			86.49			7.01			99.20
Market Price Return		14.17			7.97			25.87			11.04			68.83			6.40			86.03			7.00			98.83

Fund Inception: March 1, 2007

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The data known as the Blended-Index is comprised of price only returns from Fund inception through the conversion date, December 31, 2013, and total returns starting at the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

10

PSP	Manager’s Analysis
	PowerShares Global Listed Private Equity Portfolio (PSP)

As an index fund, the PowerShares Global Listed Private Equity Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Red Rocks Global Listed Private Equity Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities (including American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”)) that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Red Rocks Capital LLC (the “Index Provider”) includes securities in the Index pursuant to a proprietary selection methodology. The Index is comprised of securities, ADRs and GDRs of 40 to 75 private equity companies, including business development companies, master limited partnerships and other vehicles that are listed on a nationally recognized exchange, all of whose principal businesses are to invest in, lend capital to, or provide services to privately held companies. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 23.32%. On a net asset value (“NAV”) basis, the Fund returned 22.21%. During the same time period, the Index returned 23.33%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that Fund incurred during the period as well as slippage around the reinvestment of dividends received from the underlying portfolio holdings.

During the same time period, the MSCI EAFE^® Index (Net) (the “Benchmark Index”) returned 11.29%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 930 securities. The Benchmark Index performance comparison is a useful measure for investors as a broad representation of the developed equity market excluding the U.S. and Canada. The Benchmark Index was selected for its recognition in the marketplace.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the capital markets industry and most underweight in the banks industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to its allocation to the capital markets industry.

For the fiscal year ended April 30, 2017, the capital markets industry contributed most significantly to the Fund’s return, followed by the diversified financial services and electrical equipment industries, respectively. The construction & engineering industry was the only detracting industry.

Positions that contributed most significantly to the Fund’s return included 3i Group PLC (United Kingdom), a capital markets company (portfolio average weight of 5.61%), and Partners Group Holding AG (Switzerland), a capital markets company (portfolio average weight of 5.69%). Positions that detracted most significantly from the Fund’s return included Brait SE (South Africa), a capital markets company (portfolio average weight of 2.97%), and Allied Minds PLC (United Kingdom), a capital markets company (portfolio average weight of 0.92%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Capital Markets	51.0
Diversified Financial Services	22.0
Internet Software & Services	4.3
Electrical Equipment	3.6
Industrial Conglomerates	3.5
Food Products	1.6
Health Care Providers & Services	1.4
Money Market Funds Plus Other Assets Less Liabilities	12.6
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Partners Group Holding AG	5.9
3i Group PLC	5.6
Onex Corp.	4.6
Melrose Industries PLC	3.6
Leucadia National Corp.	3.5
Fosun International Ltd.	3.5
Ares Capital Corp.	3.4
Wendel SA	3.0
IAC/InterActiveCorp.	3.0
Eurazeo SA	3.0
Total	39.1

* Excluding money market fund holdings.

11

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception†††
Index																						Average Annualized			Cumulative
Blended-Red Rocks Global Listed Private Equity Index†		23.33	%		7.05	%		22.67	%		13.98	%		92.36	%		0.14	%		1.38	%		1.22	%		13.61	%
MSCI EAFE® Index (Net)††		11.29			0.86			2.60			6.78			38.84			0.87			9.02			2.30			27.01
Fund
NAV Return		22.21			6.25			19.95			12.95			83.82			(2.22	)		(20.13	)		(1.04	)		(10.40	)
Market Price Return		23.32			6.19			19.75			12.95			83.84			(2.20	)		(19.95	)		(1.02	)		(10.20	)

Fund Inception: October 24, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2019. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 2.24%, including acquired fund fees and expenses of 1.58% and the net annual operating expense ratio was indicated as 2.22%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The data included as the Blended-Index is comprised of the Red Rocks Capital Listed Private Equity Index from Fund inception until September 30, 2009, followed by the performance of the Red Rocks Global Listed Private Equity Index from September 30, 2009 through April 30, 2017.

^††  Reflects reinvested dividends net of withholding taxes.

^†††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

12

PGJ	Manager’s Analysis
	PowerShares Golden Dragon China Portfolio (PGJ)

As an index fund, the PowerShares Golden Dragon China Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ Golden Dragon China Index (the “Index”). The Fund generally will invest at least 90% of its total assets in equity securities of companies deriving a majority of their revenues from the People’s Republic of China and that comprise the Index. The Index is composed of securities of U.S. exchange-listed companies that are headquartered or incorporated in the People’s Republic of China.

Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes securities in the Index to provide access to the unique economic opportunities taking place in China while still providing investors with the transparency offered with U.S. exchange listed securities. Securities in the Index may include common stocks, ordinary shares, American depository receipts (“ADRs”), shares of beneficial interest, limited partnership interests or tracking stocks. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 19.31%. On a net asset value (“NAV”) basis, the Fund returned 19.23%. During the same time period, the Index returned 19.48%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due fees and operating expenses that the Fund incurred during the period partially offset by income received from the security lending program in which the Fund participates.

During this same time period, the FTSE/Xinhua China 50 Index (the “Benchmark Index”) returned 18.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 50 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another index representative of equity exposure to Chinese companies. The Benchmark Index was selected for its recognition in the marketplace.

The performance of the Fund differed from the Benchmark Index primarily because the Fund tracks an Index that has substantially different individual company components and sector weightings. Additionally, the Fund invests in Chinese companies, as defined by the Index methodology, listed on U.S. exchanges, whereas the Benchmark Index is composed of Chinese stocks listed on the Hong Kong stock exchange. A comparison to the Benchmark Index is still relevant as the Fund and Benchmark Index both represent exposure to Chinese companies.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the financials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to security selection within the consumer discretionary sector.

For the fiscal year ended April 30, 2017, the consumer discretionary sector contributed most significantly to the Fund’s return followed by the information technology and industrials sectors, respectively. The telecommunication services sector detracted most significantly from the Fund’s return, followed by the health care and materials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included NetEase, Inc. ADR (China), an information technology company (portfolio average weight of 8.78%), and New Oriental Education & Technology Group, Inc. ADR (China), a consumer discretionary company (portfolio average weight of 6.43%). Positions that detracted most significantly from the Fund’s return included 58.com, Inc., Class A ADR (China), an information technology company (portfolio average weight of 3.67%), and 21Vianet Group, Inc., Class A ADR (China), an information technology company (portfolio average weight of 0.61%).

13

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	43.0
Consumer Discretionary	39.1
Health Care	4.8
Telecommunication Services	4.2
Industrials	3.1
Energy	3.0
Financials	1.7
Real Estate	0.5
Consumer Staples	0.4
Utilities	0.2
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
New Oriental Education & Technology Group, Inc. ADR	9.0
JD.Com, Inc., Class A ADR	8.4
Ctrip.com International Ltd. ADR	7.8
Baidu, Inc. ADR	7.6
NetEase, Inc. ADR	6.4
TAL Education Group ADR	5.0
SINA Corp.	4.0
58.com, Inc., Class A ADR	3.9
Vipshop Holdings Ltd., Class A ADR	3.9
China Biologic Products, Inc.	3.6
Total	59.6

* Excluding money market fund holdings.

14

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
NASDAQ Golden Dragon China Index		19.48	%		10.36	%		34.41	%		12.26	%		78.31	%		6.88	%		94.60	%		9.24	%		199.08	%
FTSE/Xinhua China 50 Index		18.21			7.22			23.27			4.10			22.28			3.77			44.73			9.24			198.89
Fund
NAV Return		19.23			10.02			33.17			12.05			76.65			6.49			87.46			8.76			183.14
Market Price Return		19.31			10.08			33.41			12.14			77.31			6.48			87.39			8.74			182.37

Fund Inception: December 9, 2004

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively.

The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

15

PBP	Manager’s Analysis
	PowerShares S&P 500 BuyWrite Portfolio (PBP)

As an index fund, the PowerShares S&P 500 BuyWrite Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the CBOE S&P 500 BuyWrite Index^SM (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index and will write (sell) call options thereon. The Index is a total return benchmark index that is designed to track the performance of a hypothetical “buy-write” strategy on the S&P 500^® Index.

Strictly in accordance with its guidelines and mandated procedures, the Chicago Board Options Exchange, Incorporated (the “Index Provider”) calculates the Index. The Index is based on (1) buying an S&P 500 stock index portfolio, and (2) “writing” (or selling) the near-term S&P 500 Index “covered” call option, generally on the third Friday of each month. A “buy-write,” also called a covered call, generally is considered an investment strategy in which an investor buys a stock or basket of stocks, and sells call options that correspond to the stock or basket of stocks. In return for a premium, the Fund gives the right to the purchaser of the option written by the Fund to receive a cash payment equal to the difference between the value of the S&P 500 Index and exercise price, if the value on the expiration date is above the exercise price. In addition, covered call options partially hedge against a decline in the price of the securities on which they are written to the extent of the premium the Fund receives. The Fund will write options that are traded on national securities exchanges. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 12.18%. On a net asset value (“NAV”) basis, the Fund returned 11.86%. During the same time period, the Index returned 12.73%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 17.92%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based market benchmark that does not contain a covered call component. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.

The performance of the Fund differed from the Benchmark Index because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the covered call feature of the Fund. The sale of calls, while providing benefit in the form of cash flow to the Fund, during a period of rising markets, resulted in the options being exercised, which resulted in underperformance versus the Benchmark Index.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and industrials sectors, respectively. There were no detracting sectors.

Positions that contributed most significantly to the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 3.27%), and Microsoft Corp., an information technology company (portfolio average weight of 2.44%). Positions that detracted most significantly from the Fund’s return included Bristol-Myers Squibb Co., a health care company (portfolio average weight of 0.53%), and Gilead Sciences, Inc., a health care company (portfolio average weight of 0.54%).

16

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

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Information Technology	22.9
Financials	14.3
Health Care	14.2
Consumer Discretionary	12.7
Industrials	10.3
Consumer Staples	9.4
Energy	6.4
Utilities	3.2
Real Estate	3.0
Materials	2.9
Telecommunication Services	2.3
Other Assets Less Liabilities	(1.6)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017
Security
Apple, Inc.	3.7
Microsoft Corp.	2.6
Amazon.com, Inc.	1.8
Facebook, Inc., Class A	1.8
Exxon Mobil Corp.	1.7
Johnson & Johnson	1.7
Berkshire Hathaway, Inc., Class B	1.6
JPMorgan Chase & Co.	1.5
Alphabet, Inc., Class A	1.4
Alphabet, Inc., Class C	1.3
Total	19.1

17

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

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

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
CBOE S&P 500 BuyWrite IndexSM		12.73	%		6.48	%		20.74	%		7.12	%		41.06	%		4.45	%		50.27	%
S&P 500® Index		17.92			10.47			34.83			13.68			89.81			7.68			100.02
Fund
NAV Return		11.86			5.65			17.93			6.29			35.67			3.60			39.24
Market Price Return		12.18			5.62			17.81			6.25			35.41			3.61			39.33

Fund Inception: December 20, 2007

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio 0.75% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not

reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

18

SPHQ	Manager’s Analysis
	PowerShares S&P 500® Quality Portfolio (SPHQ)

As an index fund, the PowerShares S&P 500^® Quality Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500^® Quality Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is constructed from the constituents of the S&P 500^® Index that are of the highest quality-that is, stocks of companies that seek to generate higher revenue and cash flow than their counterparts through prudent use of assets and finances. In selecting constituent securities for the Index, the Index Provider first calculates the quality score of each security in the S&P 500^® Index. The quality score of each component stock is derived by the Index Provider from each component stock’s return-on-equity, accruals ratio and financial leverage ratio. Return on equity is calculated as the company’s trailing 12-month earnings per share divided by the company’s latest book value per share. Accruals ratio is computed using the change of the company’s net operating assets over the last year divided by the company’s average net operating assets over the last two years. Financial leverage is calculated as the company’s latest total debt divided by the company’s book value. The Index Provider then selects the 100 stocks with the highest quality score for inclusion in the Index. The Index Provider weights each component stock of the Index by the total quality score multiplied by its market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 13.88%. On a net asset value (“NAV”) basis, the Fund returned 13.84%. During the same time period, the Index returned 14.19%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 17.92%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark because of its recognition in the market place and to help investors better understand how the investment results of the Fund compare to the performance of a broad-based U.S. stock market benchmark.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that selects stocks based upon quality scores as computed by the Index Provider, while the Benchmark Index does not.

Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the financials

sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the consumer discretionary and information technology sectors.

For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and consumer staples sectors, respectively. The telecommunication services sector detracted most significantly from the Fund’s return, followed by the real estate and utilities sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Boeing Co. (The), an industrials company (portfolio average weight of 3.39%), and Home Depot, Inc. (The), a consumer discretionary company (portfolio average weight of 4.99%). Positions that detracted most significantly from the Fund’s return included Verizon Communications, Inc., a telecommunication services company (portfolio average weight of 4.23%), and Gilead Sciences, Inc., a health care company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Industrials	20.9
Information Technology	20.7
Consumer Staples	18.2
Consumer Discretionary	16.9
Materials	9.0
Financials	5.7
Telecommunication Services	4.3
Health Care	3.2
Real Estate	0.8
Utilities	0.2
Energy	0.1
Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017
Security
Home Depot, Inc. (The)	5.6
Procter & Gamble Co. (The)	5.0
Altria Group, Inc.	4.5
General Electric Co.	4.4
PepsiCo, Inc.	4.4
Verizon Communications, Inc.	4.3
Boeing Co. (The)	4.0
International Business Machines Corp.	4.0
Mastercard, Inc., Class A	3.1
United Technologies Corp.	2.4
Total	41.7

19

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-S&P 500® Quality Index†		14.19	%		12.11	%		40.90	%		14.97	%		100.91	%		6.16	%		81.82	%		6.51	%		105.33	%
S&P 500® Index		17.92			10.47			34.83			13.68			89.81			7.15			99.55			7.99			140.18
Fund
NAV Return		13.84			11.77			39.63			14.61			97.74			5.94			78.02			6.35			101.77
Market Price Return		13.88			11.80			39.75			14.62			97.81			5.94			78.07			6.31			100.91

Fund Inception: December 6, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.38% and the net annual operating expense ratio was indicated as 0.29%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-S&P 500^® Quality Index is comprised of the performance of the Value Line Timeliness Select Index, the Fund’s underlying index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the S&P 500^® High Quality Rankings Index, the Fund’s underlying index for the period June 29, 2010 through March 18, 2016, followed by the performance of the Index for the period March 18, 2016 through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

20

PHO	Manager’s Analysis
	PowerShares Water Resources Portfolio (PHO)

As an index fund, the PowerShares Water Resources Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ OMX US Water Index^SM (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks and American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) of companies in the water industry that comprise the Index.

The Index was created by, and is a trademark of, Nasdaq, Inc. (the “Index Provider”). The Index seeks to track the performance of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 16.74%. On a net asset value (“NAV”) basis, the Fund returned 16.73%. During the same time period, the Index returned 17.48%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 17.92%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based benchmark. The Benchmark Index was selected for its recognition in the marketplace.

The performance of the Fund differed from the Benchmark Index because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the machinery industry and most underweight in the banks industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred.

For the fiscal year ended April 30, 2017, the machinery industry contributed most significantly to the Fund’s return, followed by the water utilities and life sciences tools & services industries, respectively. The independent power and renewable electricity producers industry was the only detracting industry.

Positions that contributed most significantly to the Fund’s return included Waters Corp., a life sciences tools & services company (portfolio average weight of 6.06%), and Roper Technologies, Inc., an industrial conglomerates company (portfolio average weight of 7.94%). Positions that detracted most significantly from the Fund’s return included TerraForm Power, Inc., Class A, an independent power and renewable electricity producers company (no longer held at fiscal year-end), and Energy Recovery, Inc., a machinery company (portfolio average weight of 1.18%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Machinery	30.0
Water Utilities	13.3
Chemicals	8.8
Life Sciences Tools & Services	8.5
Industrial Conglomerates	8.1
Health Care Equipment & Supplies	7.6
Trading Companies & Distributors	7.3
Building Products	5.5
Construction & Engineering	4.5
Commercial Services & Supplies	3.3
Electronic Equipment, Instruments & Components	3.0
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Waters Corp.	8.5
Roper Technologies, Inc.	8.2
Ecolab, Inc.	8.1
Danaher Corp.	7.6
HD Supply Holdings, Inc.	7.3
IDEX Corp.	4.4
Pentair PLC	4.3
Rexnord Corp.	4.3
Toro Co. (The)	4.2
A.O. Smith Corp.	4.2
Total	61.1

* Excluding money market fund holdings.

21

PowerShares Water Resources Portfolio (PHO) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-NASDAQ OMX US Water IndexSM†		17.48	%		2.26	%		6.94	%		8.70	%		51.76	%		5.20	%		66.02	%		6.82	%		112.08	%
S&P 500® Index		17.92			10.47			34.83			13.68			89.81			7.15			99.55			7.99			140.18
Fund
NAV Return		16.73			1.60			4.88			7.99			46.83			3.97			47.66			5.66			87.30
Market Price Return		16.74			1.60			4.88			7.99			46.86			3.97			47.61			5.56			85.19

Fund Inception: December 6, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The data known as the Blended-Index is comprised of the performance of the Palisades Water Index, from Fund inception through the conversion date, March 1, 2012, followed by the performance of the NASDAQ OMX US Water Index^SM starting at the conversion date and through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

22

PBW	Manager’s Analysis
	PowerShares WilderHill Clean Energy Portfolio (PBW)

As an index fund, the PowerShares WilderHill Clean Energy Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the WilderHill Clean Energy Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, WilderHill (the “Index Provider”) includes stocks in the Index based on its evaluation that such companies will substantially benefit from a societal transition toward the use of cleaner energy and conservation. At its discretion, the Index Provider reviews the Index’s component stocks quarterly or more often. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 3.60%. On a net asset value (“NAV”) basis, the Fund returned 3.60%. During the same time period, the Index returned 2.14%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to income received from the securities lending program in which the Fund participates partially offset by fees and operating expenses that the Fund incurred during the period.

During this same time period, the NASDAQ Composite Index (Price Only) (the “Benchmark Index”) returned 26.64%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,540 securities. The Benchmark Index performance is price only, and does not reflect dividends paid by the holdings in the Benchmark Index. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the equity market.

The performance of the Fund differed from the Benchmark Index because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the semiconductors & semiconductor equipment industry and most underweight in the internet software & services industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the semiconductors & semiconductor equipment industry.

For the fiscal year ended April 30, 2017, the independent power and renewable electricity producers industry contributed most significantly to the Fund’s return, followed by the electronic equipment, instruments & components and construction & engineering industries, respectively. The semiconductors & semiconductor equipment industry detracted most significantly from the Fund’s return, followed by the electrical equipment and oil, gas & consumable fuels industries, respectively.

Positions that contributed most significantly to the Fund’s return included Advanced Energy Industries, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 3.46%), and TerraForm Global, Inc., Class A, an independent power and renewable electricity producers company (portfolio average weight of 3.26%). Positions that detracted most significantly from the Fund’s return included SunPower Corp., a semiconductors & semiconductor equipment company (portfolio average weight of 2.96%), and First Solar, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 3.00%).

23

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Semiconductors & Semiconductor Equipment	28.3
Electrical Equipment	20.5
Independent Power & Renewable Electricity Producers	14.4
Construction & Engineering	8.4
Electronic Equipment, Instruments & Components	6.1
Chemicals	5.5
Software	3.3
Automobiles	3.1
Aerospace & Defense	2.7
Oil, Gas & Consumable Fuels	2.7
Auto Components	2.5
Commercial Services & Supplies	2.4
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Plug Power, Inc.	4.0
Ballard Power Systems, Inc.	3.7
TPI Composites, Inc.	3.4
JA Solar Holdings Co. Ltd. ADR	3.3
Canadian Solar, Inc.	3.3
SunPower Corp.	3.2
Tesla, Inc.	3.1
Pattern Energy Group, Inc.	2.9
First Solar, Inc.	2.9
Ameresco, Inc., Class A	2.9
Total	32.7

* Excluding money market fund holdings.

24

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
WilderHill Clean Energy Index		2.14	%		(13.79	)%		(35.93	)%		(3.01	)%		(14.15	)%		(13.83	)%		(77.43	)%		(10.04	)%		(72.38	)%
NASDAQ Composite Index (Price Only)†		26.64			13.70			46.98			14.70			98.52			9.13			139.50			9.27			193.81
Fund
NAV Return		3.60			(12.23	)		(32.39	)		(1.45	)		(7.03	)		(12.93	)		(74.95	)		(9.17	)		(68.96	)
Market Price Return		3.60			(12.23	)		(32.39	)		(1.45	)		(7.04	)		(12.94	)		(74.98	)		(9.17	)		(68.94	)

Fund Inception: March 3, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.76% and the net annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Price only, and does not reflect dividends paid by the holdings in the Benchmark Index.

^††  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

25

PUW	Manager’s Analysis
	PowerShares WilderHill Progressive Energy Portfolio (PUW)

As an index fund, the PowerShares WilderHill Progressive Energy Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the WilderHill Progressive Energy Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Progressive Energy Index LLC (the “Index Provider”) includes the companies in the Index pursuant to a proprietary selection methodology. The Index is composed of common stocks of companies that are publicly traded in the United States and are engaged in a business or businesses that the Index Provider believes may substantially benefit from a societal shift toward the transitional energy technologies significant in improving the use of fossil fuels and nuclear power. At its discretion, the Index Provider reviews the Index component stocks quarterly, or more often. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 16.85%. On a net asset value (“NAV”) basis, the Fund returned 16.84%. During the same time period, the Index returned 17.71%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the NASDAQ Composite Index (Price Only) (the “Benchmark Index”) returned 26.64%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,540 securities. The Benchmark Index performance is price only, and does not reflect dividends paid by the holdings in the Benchmark Index. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the equity market.

The performance of the Fund differed from the Benchmark Index because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil, gas & consumable fuels industry and most underweight in the internet software & services industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative

to the Benchmark Index during the period can be attributed to the Fund being underweight the software, internet software & services, and the technology hardware storage & peripherals industries as well as stock selection in the independent power and renewable electricity producers industry.

For the fiscal year ended April 30, 2017, the machinery industry contributed most significantly to the Fund’s return, followed by the building products and electrical equipment industries, respectively. The oil, gas & consumable fuels industry detracted most significantly from the Fund’s return, followed by the independent power and renewable electricity producers and commercial services & supplies industries, respectively.

Positions that contributed most significantly to the Fund’s return included MasTec, Inc., a construction & engineering company (portfolio average weight of 2.62%), and McDermott International, Inc., an energy equipment & services company (portfolio average weight of 2.96%). Positions that detracted most significantly from the Fund’s return included Southwestern Energy Co., an oil, gas & consumable fuels company (portfolio average weight of 2.77%), and Range Resources Corp., an oil, gas & consumable fuels company (portfolio average weight of 2.77%).

26

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Oil, Gas & Consumable Fuels	19.4
Machinery	16.4
Electrical Equipment	12.9
Chemicals	8.2
Building Products	7.7
Construction & Engineering	5.4
Independent Power & Renewable Electricity Producers	5.0
Electric Utilities	4.7
Commercial Services & Supplies	3.9
Auto Components	3.1
Mortgage REITs	2.8
Electronic Equipment, Instruments & Components	2.7
Energy Equipment & Services	2.7
Food & Staples Retailing	2.6
Automobiles	2.5
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
REX American Resources Corp.	3.0
FMC Corp.	2.9
Altra Industrial Motion Corp.	2.9
MasTec, Inc.	2.8
Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT	2.8
Methanex Corp.	2.8
Chesapeake Energy Corp.	2.8
Regal Beloit Corp.	2.7
Green Plains, Inc.	2.7
Chart Industries, Inc.	2.7
Total	28.1

* Excluding money market fund holdings.

27

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
WilderHill Progressive Energy Index		17.71	%		(5.96	)%		(16.83	)%		1.82	%		9.45	%		0.62	%		6.33	%		1.95	%		22.59	%
NASDAQ Composite Index (Price Only)†		26.64			13.70			46.98			14.70			98.52			9.13			139.50			9.43			157.91
Fund
NAV Return		16.84			(6.27	)		(17.67	)		1.23			6.30			(0.10	)		(0.99	)		1.24			13.88
Market Price Return		16.85			(6.27	)		(17.65	)		1.23			6.30			(0.11	)		(1.06	)		1.24			13.88

Fund Inception: October 24, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.99% and the net annual operating expense ratio was indicated as 0.70%.The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Price Only, and does not reflect dividends paid by the holdings in the Benchmark Index.

^††  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

28

Schedule of Investments^(a)

PowerShares Aerospace & Defense Portfolio (PPA)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—71.1%
	55,622	AAR Corp.	$	2,001,836
	106,037	Aerojet Rocketdyne Holdings, Inc.(b)		2,376,289
	37,644	Aerovironment, Inc.(b)		1,075,489
	84,325	Axon Enterprise, Inc.(b)		2,072,709
	213,698	Boeing Co. (The)		39,497,801
	160,013	BWX Technologies, Inc.		7,867,839
	43,497	Cubic Corp.		2,257,494
	71,198	Curtiss-Wright Corp.		6,654,165
	98,952	DigitalGlobe, Inc.(b)		3,186,255
	18,039	Ducommun, Inc.(b)		530,166
	68,886	Elbit Systems Ltd. (Israel)		8,182,968
	59,264	Engility Holdings, Inc.(b)		1,680,134
	47,427	Esterline Technologies Corp.(b)		4,337,199
	202,884	General Dynamics Corp.		39,316,890
	135,549	HEICO Corp.		9,633,468
	147,297	Hexcel Corp.		7,622,620
	74,453	Huntington Ingalls Industries, Inc.		14,956,863
	66,037	KEYW Holding Corp. (The)(b)		626,691
	119,166	Kratos Defense & Security Solutions, Inc.(b)		908,045
	124,464	L3 Technologies, Inc.		21,379,181
	140,865	Lockheed Martin Corp.		37,956,074
	62,325	Mercury Systems, Inc.(b)		2,329,709
	57,802	Moog, Inc., Class A(b)		3,968,107
	120,594	Northrop Grumman Corp.		29,661,300
	94,649	Orbital ATK, Inc.		9,370,251
	201,830	Raytheon Co.		31,326,034
	209,824	Rockwell Collins, Inc.		21,840,580
	15,863	Sparton Corp.(b)		353,269
	56,585	Teledyne Technologies, Inc.(b)		7,629,356
	435,603	Textron, Inc.		20,325,236
	85,949	TransDigm Group, Inc.		21,206,197
	79,495	Triumph Group, Inc.		2,082,769
	336,518	United Technologies Corp.		40,042,277
	17,557	Vectrus, Inc.(b)		446,650
				404,701,911
		Communications Equipment—4.9%
	37,605	Comtech Telecommunications Corp.		526,846
	198,263	Harris Corp.		22,183,647
	78,845	ViaSat, Inc.(b)		5,048,445
				27,758,938
		Construction & Engineering—0.6%
	230,136	KBR, Inc.		3,233,411
		Containers & Packaging—3.8%
	281,801	Ball Corp.		21,667,679
		Electronic Equipment, Instruments & Components—1.8%
	219,710	FLIR Systems, Inc.		8,069,948
	30,478	OSI Systems, Inc.(b)		2,358,997
				10,428,945
		Industrial Conglomerates—7.0%
	302,270	Honeywell International, Inc.		39,639,688
		IT Services—7.2%
	238,498	Booz Allen Hamilton Holding Corp.		8,569,233
	39,196	CACI International, Inc., Class A(b)		4,625,128
	262,566	CSRA, Inc.		7,635,419

Number of Shares			Value
		Common Stocks (continued)
		IT Services (continued)
	241,735	Leidos Holdings, Inc.	$	12,729,765
	62,437	ManTech International Corp., Class A		2,216,514
	72,523	Science Applications International Corp.		5,293,454
				41,069,513
		Machinery—2.6%
	119,135	Oshkosh Corp.		8,266,778
	99,251	Woodward, Inc.		6,716,315
				14,983,093
		Software—0.6%
	281,372	FireEye, Inc.(b)		3,519,964
		Trading Companies & Distributors—0.4%
	43,686	Kaman Corp.		2,097,365
		Total Common Stocks (Cost $492,657,774)		569,100,507
		Money Market Fund—0.0%
	128,000	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $128,000)		128,000
		Total Investments (Cost $492,785,774)—100.0%		569,228,507
		Other assets less liabilities—(0.0)%		(79,017	)
		Net Assets—100.0%	$	569,149,490

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

29

Schedule of Investments^(a)

PowerShares Cleantech^TM Portfolio (PZD)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Aerospace & Defense—2.4%
	43,141	Hexcel Corp.	$	2,232,547
		Auto Components—2.9%
	64,498	BorgWarner, Inc.		2,726,975
		Building Products—5.8%
	64,249	Johnson Controls International PLC		2,670,831
	77,965	Kingspan Group PLC (Ireland)		2,711,280
				5,382,111
		Chemicals—6.6%
	635	Gurit Holding AG (Switzerland)		553,061
	66,828	Novozymes A/S, Class B (Denmark)		2,886,506
	45,059	Umicore SA (Belgium)		2,637,351
				6,076,918
		Commercial Services & Supplies—2.2%
	54,044	CECO Environmental Corp.		610,157
	125,152	Tomra Systems ASA (Norway)		1,457,294
				2,067,451
		Communications Equipment—1.6%
	40,595	CalAmp Corp.(b)		728,274
	156,256	Telit Communications PLC (United Kingdom)		751,516
				1,479,790
		Construction & Engineering—0.9%
	35,752	Aegion Corp.(b)		815,861
		Electrical Equipment—19.6%
	113,948	ABB Ltd. (Switzerland)		2,788,461
	28,136	EnerSys		2,338,383
	125,083	Gamesa Corp. Tecnologica SA (Spain)		2,701,708
	51,980	Lumenpulse, Inc. (Canada)(b)		801,389
	36,799	Schneider Electric SE (France)		2,905,239
	58,620	Sensata Technologies Holding NV(b)		2,413,972
	68,813	SGL Carbon SE (Germany)(b)(c)		695,611
	35,065	TPI Composites, Inc.(b)		689,027
	33,146	Vestas Wind Systems A/S (Denmark)		2,853,648
				18,187,438
		Electronic Equipment, Instruments & Components—9.9%
	30,147	Badger Meter, Inc.		1,198,343
	26,907	Horiba Ltd. (Japan)		1,585,888
	26,835	Itron, Inc.(b)		1,740,250
	606,333	Opus Group AB (Sweden)		482,749
	118,027	Pure Technologies Ltd. (Canada)		389,309
	82,799	Trimble, Inc.(b)		2,933,569
	16,960	Vaisala Oyj, Class A (Finland)		812,433
				9,142,541
		Independent Power & Renewable Electricity Producers—3.8%
	12,489,643	Energy Development Corp. (Philippines)		1,507,306
	34,831	Ormat Technologies, Inc.		2,057,119
				3,564,425
		Industrial Conglomerates—7.4%
	36,379	Raven Industries, Inc.		1,127,749
	12,963	Roper Technologies, Inc.		2,835,008
	19,896	Siemens AG (Germany)		2,851,212
				6,813,969

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Life Sciences Tools & Services—3.1%
	5,918	Eurofins Scientific SE (Luxembourg)	$	2,913,515
		Machinery—9.9%
	51,021	Donaldson Co., Inc.		2,361,252
	12,418	Kadant, Inc.		771,779
	11,007	Lindsay Corp.(c)		956,068
	34,074	Woodward, Inc.		2,305,787
	54,121	Xylem, Inc.		2,782,361
				9,177,247
		Mortgage REITs—1.3%
	53,274	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		1,167,766
		Professional Services—7.5%
	52,610	Intertek Group PLC (United Kingdom)		2,767,489
	31,562	Mistras Group, Inc.(b)		710,145
	62,527	Ricardo PLC (United Kingdom)		709,847
	1,246	SGS SA (Switzerland)		2,802,546
				6,990,027
		Semiconductors & Semiconductor Equipment—8.2%
	27,335	Advanced Energy Industries, Inc.(b)		2,017,323
	66,911	Cree, Inc.(b)		1,464,013
	765,733	Meyer Burger Technology AG (Switzerland)(b)(c)		630,771
	21,090	Power Integrations, Inc.		1,390,886
	24,698	SMA Solar Technology AG (Germany)(c)		638,888
	43,409	SolarEdge Technologies, Inc.(b)(c)		701,055
	106,048	SunPower Corp.(b)(c)		735,973
				7,578,909
		Software—6.8%
	25,152	ANSYS, Inc.(b)		2,770,744
	31,102	Autodesk, Inc.(b)		2,801,357
	60,179	Silver Spring Networks, Inc.(b)		686,643
				6,258,744
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $66,005,659)—99.9%		92,576,234
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.7%
	3,423,677	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $3,423,677)		3,423,677
		Total Investments (Cost $69,429,336)—103.6%		95,999,911
		Other assets less liabilities—(3.6)%		(3,360,840	)
		Net Assets—100.0%	$	92,639,071

Investment Abbreviations:

REIT—Real Estate Investment Trust

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

30

PowerShares Cleantech^TM Portfolio (PZD) (continued)

April 30, 2017

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2K.

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

31

Schedule of Investments^(a)

PowerShares DWA Momentum Portfolio (PDP)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—18.1%
	22,824	Amazon.com, Inc.(b)	$	21,111,972
	209,782	CBS Corp., Class B		13,963,090
	28,174	Charter Communications, Inc., Class A(b)		9,724,538
	59,883	Cracker Barrel Old Country Store, Inc.		9,592,658
	190,394	Domino’s Pizza, Inc.		34,535,568
	52,223	Home Depot, Inc. (The)		8,152,010
	296,806	Interpublic Group of Cos., Inc. (The)		6,995,717
	167,365	Liberty Ventures, Series A(b)		9,012,605
	3,553	NVR, Inc.(b)		7,501,271
	140,505	O’Reilly Automotive, Inc.(b)		34,866,316
	39,562	Panera Bread Co., Class A(b)		12,370,246
	65,372	Pool Corp.		7,819,799
	22,753	Priceline Group, Inc. (The)(b)		42,020,696
	2,801,077	Sirius XM Holdings, Inc.		13,865,331
	105,177	TJX Cos., Inc. (The)		8,271,119
	42,150	Vail Resorts, Inc.		8,331,369
	77,837	Visteon Corp.(b)		8,013,319
				256,147,624
		Consumer Staples—2.8%
	333,582	Altria Group, Inc.		23,944,516
	43,810	Costco Wholesale Corp.		7,777,151
	52,359	Spectrum Brands Holdings, Inc.		7,525,559
				39,247,226
		Energy—1.4%
	255,914	Cheniere Energy, Inc.(b)		11,605,700
	76,152	Diamondback Energy, Inc.(b)		7,603,016
				19,208,716
		Financials—14.7%
	92,286	American Financial Group, Inc.		8,980,351
	59,639	Ameriprise Financial, Inc.		7,624,846
	331,852	Arch Capital Group Ltd.(b)		32,179,689
	353,168	Bank of the Ozarks, Inc.		16,764,885
	81,745	Chubb Ltd.		11,219,501
	120,477	Discover Financial Services		7,540,655
	10,711	Markel Corp.(b)		10,385,386
	173,020	MarketAxess Holdings, Inc.		33,309,810
	118,472	Pinnacle Financial Partners, Inc.		7,582,208
	136,438	RenaissanceRe Holdings Ltd. (Bermuda)		19,397,391
	93,623	Torchmark Corp.		7,181,820
	375,080	W.R. Berkley Corp.		25,497,938
	219,541	Western Alliance Bancorp(b)		10,516,014
	11,978	White Mountains Insurance Group Ltd.		10,288,383
				208,468,877
		Health Care—12.3%
	67,107	Align Technology, Inc.(b)		9,033,944
	53,882	Becton, Dickinson and Co.		10,074,318
	161,093	Cantel Medical Corp.		11,986,930
	66,658	Cooper Cos., Inc. (The)		13,353,597
	186,080	Danaher Corp.		15,506,046
	1,361,042	Exelixis, Inc.(b)		30,487,341
	53,529	IDEXX Laboratories, Inc.(b)		8,978,419
	84,528	Masimo Corp.(b)		8,684,407
	31,721	Mettler-Toledo International, Inc.(b)		16,286,196
	100,163	NuVasive, Inc.(b)		7,262,819

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	44,026	UnitedHealth Group, Inc.	$	7,699,267
	48,950	Waters Corp.(b)		8,316,116
	288,542	West Pharmaceutical Services, Inc.		26,554,520
				174,223,920
		Industrials—24.8%
	37,424	3M Co.		7,328,742
	247,543	A.O. Smith Corp.		13,337,617
	235,638	Alaska Air Group, Inc.		20,050,437
	444,435	Copart, Inc.(b)		13,733,042
	103,652	Deluxe Corp.		7,453,615
	106,570	EnerSys		8,857,033
	43,329	Huntington Ingalls Industries, Inc.		8,704,363
	119,626	IDEX Corp.		12,532,020
	54,080	Illinois Tool Works, Inc.		7,467,907
	371,014	J.B. Hunt Transport Services, Inc.		33,265,115
	43,087	Lennox International, Inc.		7,126,159
	88,329	Lockheed Martin Corp.		23,800,249
	460,712	Macquarie Infrastructure Corp.		37,488,135
	108,744	Middleby Corp. (The)(b)		14,803,321
	69,051	Northrop Grumman Corp.		16,983,784
	152,363	Old Dominion Freight Line, Inc.		13,487,173
	829,484	Rollins, Inc.		32,208,864
	123,519	Roper Technologies, Inc.		27,013,605
	61,058	Stanley Black & Decker, Inc.		8,313,047
	85,811	Teledyne Technologies, Inc.(b)		11,569,897
	135,836	Toro Co. (The)		8,818,473
	150,221	Union Pacific Corp.		16,818,743
				351,161,341
		Information Technology—18.4%
	1,235,859	Advanced Micro Devices, Inc.(b)		16,436,925
	301,852	Amphenol Corp., Class A		21,826,918
	294,557	Apple, Inc.		42,313,113
	134,204	Aspen Technology, Inc.(b)		8,252,204
	290,955	Cadence Design Systems, Inc.(b)		9,476,404
	37,701	Coherent, Inc.(b)		8,128,336
	106,967	Electronic Arts, Inc.(b)		10,142,611
	68,884	Facebook, Inc., Class A(b)		10,349,821
	61,525	Fair Isaac Corp.		8,335,407
	161,598	Fiserv, Inc.(b)		19,252,786
	60,510	Intuit, Inc.		7,576,457
	84,805	IPG Photonics Corp.(b)		10,712,568
	84,577	Jack Henry & Associates, Inc.		8,197,203
	74,062	Littelfuse, Inc.		11,416,657
	257,451	Mastercard, Inc., Class A		29,946,700
	202,228	MAXIMUS, Inc.		12,333,886
	97,749	Monolithic Power Systems, Inc.		8,944,033
	145,342	Take-Two Interactive Software, Inc.(b)		9,134,745
	86,125	Visa, Inc., Class A		7,856,322
				260,633,096
		Materials—3.5%
	599,209	Chemours Co. (The)		24,142,131
	95,611	Ecolab, Inc.		12,342,424
	155,572	RPM International, Inc.		8,176,864
	253,620	United States Steel Corp.		5,660,798
				50,322,217

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

32

PowerShares DWA Momentum Portfolio (PDP) (continued)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate—0.5%
	160,567	Apartment Investment & Management Co., Class A REIT	$	7,023,200
		Telecommunication Services—0.5%
	114,554	T-Mobile US, Inc.(b)		7,706,048
		Utilities—3.0%
	93,167	Atmos Energy Corp.		7,548,390
	195,325	CMS Energy Corp.		8,867,755
	64,685	NextEra Energy, Inc.		8,639,329
	362,797	UGI Corp.		18,197,897
				43,253,371
		Total Common Stocks and Other Equity Interests (Cost $1,198,209,220)		1,417,395,636
		Money Market Fund—0.1%
	740,212	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $740,212)		740,212
		Total Investments (Cost $1,198,949,432)—100.1%		1,418,135,848
		Other assets less liabilities—(0.1)%		(1,066,016	)
		Net Assets—100.0%	$	1,417,069,832

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

33

Schedule of Investments^(a)

PowerShares Global Listed Private Equity Portfolio (PSP)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—87.4%
		Capital Markets—51.0%
	1,546,030	3i Group PLC (United Kingdom)	$	15,871,396
	125,393	Alaris Royalty Corp. (Canada)(b)		1,996,494
	791,363	Allied Minds PLC (United Kingdom)(c)		1,604,335
	136,606	Altamir (France)		2,292,346
	289,988	Apollo Global Management LLC, Class A		7,762,979
	556,915	Apollo Investment Corp.		3,781,453
	555,891	Ares Capital Corp.		9,783,682
	77,393	AURELIUS Equity Opportunities SE & Co. KGaA (Germany)(b)		3,817,752
	189,273	BlackRock Capital Investment Corp.		1,387,371
	1,004,011	Brait SE (South Africa)(c)		6,400,465
	193,728	Bure Equity AB (Sweden)		2,395,674
	303,979	Carlyle Group LP (The)		5,380,428
	59,005	Deutsche Beteiligungs AG (Germany)		2,245,017
	355,662	Fifth Street Finance Corp.		1,632,489
	502,918	FS Investment Corp.(b)		4,878,305
	74,541	Gimv NV (Belgium)		4,545,599
	77,029	Goldman Sachs BDC, Inc.		1,925,725
	122,330	Golub Capital BDC, Inc.(b)		2,484,522
	234,492	Hercules Capital, Inc.		3,639,316
	625,892	Intermediate Capital Group PLC (United Kingdom)		6,324,129
	1,705,545	IP Group PLC (United Kingdom)(c)		3,078,135
	135,366	JAFCO Co. Ltd. (Japan)		4,821,055
	111,626	Main Street Capital Corp.(b)		4,469,505
	184,692	Medley Capital Corp.		1,425,822
	141,467	New Mountain Finance Corp.		2,107,858
	27,848	Partners Group Holding AG (Switzerland)(b)		16,827,135
	213,028	PennantPark Investment Corp.		1,706,354
	267,318	Princess Private Equity Holding Ltd. (Guernsey)		2,918,236
	608,530	Prospect Capital Corp.(b)		5,659,329
	864,200	Ratos AB, Class B (Sweden)(b)		4,054,170
	112,944	Safeguard Scientifics, Inc.(c)		1,434,389
	94,723	Solar Capital Ltd.		2,160,632
	111,322	Triangle Capital Corp.(b)		2,106,212
	5,419,959	Zeder Investments Ltd. (South Africa)		2,903,604
				145,821,913
		Diversified Financial Services—22.0%
	48,320	Ackermans & van Haaren NV (Belgium)		7,903,232
	1,119,595	Apax Global Alpha Ltd. (Guernsey)(d)		2,031,487
	531,396	Better Capital PCC Ltd. (United Kingdom)		735,618
	838,812	China Merchants China Direct Investments Ltd. (China)		1,235,966
	168,890	Compass Diversified Holdings(b)		2,845,796
	76,696	Electra Private Equity PLC (United Kingdom)		2,640,389
	127,104	Eurazeo SA (France)		8,614,630
	171,531	FNFV Group(c)		2,349,975
	139,238	HgCapital Trust PLC (United Kingdom)		2,666,059
	399,376	Leucadia National Corp.		10,140,157
	181,456	Onex Corp. (Canada)		13,070,724
	61,919	Wendel SA (France)		8,674,443
				62,908,476
		Electrical Equipment—3.6%
	3,337,225	Melrose Industries PLC (United Kingdom)		10,210,968

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Food Products—1.6%
	46,091	Schouw & Co. (Denmark)	$	4,747,579
		Health Care Providers & Services—1.4%
	130,232	Lifco AB, Class B (Sweden)		3,963,672
		Industrial Conglomerates—3.5%
	6,552,789	Fosun International Ltd. (China)		9,924,958
		Internet Software & Services—4.3%
	104,232	IAC/InterActiveCorp.(c)		8,652,298
	204,907	Rocket Internet SE (Germany)(c)(d)		3,737,485
				12,389,783
		Total Common Stocks and Other Equity Interests (Cost $231,537,726)		249,967,349
		Money Market Fund—8.6%
	24,590,156	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $24,590,156)		24,590,156
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $256,127,882)—96.0%		274,557,505
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—11.9%
	34,133,098	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $34,133,098)		34,133,098
		Total Investments (Cost $290,260,980)—107.9%		308,690,603
		Other assets less liabilities—(7.9)%		(22,547,277	)
		Net Assets—100.0%	$	286,143,326

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 April 30, 2017.

^(c)  Non-income producing security.

^(d)  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 April 30, 2017 was $5,768,972, which represented 2.02% of the Fund’s Net Assets.

^(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2K.

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

34

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

April 30, 2017

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

United Kingdom 15.1 % 

Open Over-The-Counter Total Return Swap Agreements
Counterparty	Pay/Receive	Reference Entity	Rate	Termination Date	Notional Value(a)			Unrealized Appreciation (Depreciation)
Citibank, N.A.	Receive	The Blackstone Group LP	1-Month LIBOR plus 65 basis points	October-2017		$	11,144,503	$	293,230
Citibank, N.A.	Receive	Brookfield Business Partners LP	1-Month LIBOR plus 65 basis points	October-2017		CAD	3,591,205		59,915
Citibank, N.A.	Receive	KKR & Co. LP	1-Month LIBOR plus 65 basis points	October-2017			9,863,672		837,860
Morgan Stanley Capital Services LLC	Receive	Riverstone Energy Ltd.	1-Month LIBOR plus 85 basis points	August-2018		GBP	2,332,892		(2,554	)
Total Open Over-The-Counter Total Return Swap Agreements—Equity Risk								$	1,188,451

Investment Abbreviations:

CAD—Canadian Dollar

GBP—Pound Sterling

LIBOR—London Interbank Offered Rate

^(a)  Notional Value is denominated in U.S. Dollars unless otherwise noted.

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

35

Schedule of Investments^(a)

PowerShares Golden Dragon China Portfolio (PGJ)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—39.1%
	49,723	500.com Ltd., Class A ADR (China)(b)	$	646,896
	76,176	AirMedia Group, Inc. ADR (China)(b)		202,628
	55,054	China Automotive Systems, Inc. (China)(b)		262,608
	35,237	China Distance Education Holdings Ltd. ADR (China)		358,360
	56,247	China Lodging Group Ltd. ADR (China)(b)(c)		3,992,412
	236,582	Ctrip.com International Ltd. ADR (China)(b)		11,949,757
	367,147	JD.Com, Inc., Class A ADR (China)(b)		12,875,845
	158,669	Jumei International Holding Ltd., Class A ADR (China)(b)		525,194
	82,827	Kandi Technologies Group, Inc. (China)(b)(c)		339,591
	213,273	New Oriental Education & Technology Group, Inc. ADR (China)(b)		13,764,640
	64,894	TAL Education Group ADR (China)(b)		7,729,524
	52,570	Tarena International, Inc., Class A ADR (China)(b)(c)		978,328
	55,411	Tuniu Corp., Class A ADR (China)(b)(c)		453,262
	431,365	Vipshop Holdings Ltd., Class A ADR (China)(b)		5,983,033
				60,062,078
		Consumer Staples—0.4%
	137,511	Pingtan Marine Enterprise Ltd.(c)		655,927
		Energy—3.0%
	19,002	China Petroleum & Chemical Corp., H-Shares ADR (China)		1,546,193
	17,491	CNOOC Ltd. ADR (China)		2,031,579
	13,671	PetroChina Co. Ltd., H-Shares ADR (China)		960,388
	26,179	Sino Clean Energy, Inc. (China)(b)		0
				4,538,160
		Financials—1.7%
	44,481	China Life Insurance Co. Ltd., H-Shares ADR (China)		675,666
	63,575	Fanhua, Inc. ADR (China)(b)		537,844
	43,075	Noah Holdings Ltd. ADR (China)(b)(c)		1,086,352
	15,992	Yintech Investment Holdings Ltd. ADR (China)		252,034
				2,551,896
		Health Care—4.8%
	47,254	China Biologic Products, Inc. (China)(b)		5,575,972
	80,435	iKang Healthcare Group, Inc., Class A ADR (China)(b)(c)		1,179,981
	99,086	Sinovac Biotech Ltd. (China)(b)		553,891
				7,309,844
		Industrials—3.1%
	46,579	51job, Inc. ADR (China)(b)		1,909,273
	51,368	eHi Car Services Ltd., Class A ADR (China)(b)(c)		519,844
	34,748	Zhaopin Ltd., Class A ADR (Australia)(b)		623,727
	125,356	ZTO Express Cayman, Inc. ADR (China)(b)(c)		1,746,209
				4,799,053
		Information Technology—43.0%
	100,833	21Vianet Group, Inc., Class A ADR (China)(b)(c)		545,507

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	153,338	58.com, Inc., Class A ADR (China)(b)	$	6,069,118
	87,501	Autohome, Inc., Class A ADR (China)(b)(c)		3,027,535
	64,456	Baidu, Inc. ADR (China)(b)		11,616,905
	48,744	Baozun, Inc. ADR (China)(b)		744,321
	47,542	Bitauto Holdings Ltd. ADR (China)(b)(c)		1,393,931
	100,425	Canadian Solar, Inc. (Canada)(b)(c)		1,335,652
	32,387	Changyou.com Ltd., Class A ADR (China)(b)		1,057,436
	64,762	Cheetah Mobile, Inc., Class A ADR (China)(b)(c)		682,591
	31,828	China Customer Relations Center, Inc. (China)(b)(c)		475,510
	12,448	Daqo New Energy Corp. ADR (China)(b)		231,657
	517,377	Fang Holdings Ltd. ADR (China)(b)		1,733,213
	104,753	Hollysys Automation Technologies Ltd. (China)		1,680,238
	69,954	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		490,378
	39,637	JinkoSolar Holding Co. Ltd. ADR (China)(b)(c)		687,306
	136,899	Momo, Inc., Class A ADR (China)(b)		5,199,424
	36,794	NetEase, Inc. ADR (China)		9,764,760
	148,150	NQ Mobile, Inc., Class A ADR (China)(b)(c)		558,525
	53,989	Phoenix New Media Ltd., Class A ADR (China)(b)		188,422
	27,213	Renren, Inc., Class A ADR (China)(b)(c)		200,832
	33,125	Semiconductor Manufacturing International Corp. ADR (China)(b)		208,356
	80,717	SINA Corp. (China)(b)		6,199,873
	67,469	Sohu.com, Inc. (China)(b)		2,617,797
	98,994	Weibo Corp., Class A ADR (China)(b)(c)		5,529,805
	17,421	Yirendai Ltd. ADR (China)(b)(c)		434,828
	66,623	YY, Inc., Class A ADR (China)(b)		3,262,528
				65,936,448
		Real Estate—0.5%
	63,726	Nam Tai Property, Inc. (China)		500,249
	73,359	Xinyuan Real Estate Co. Ltd. ADR (China)		341,853
				842,102
		Telecommunication Services—4.2%
	101,557	China Mobile Ltd. ADR (China)		5,415,019
	6,693	China Telecom Corp. Ltd., H-Shares ADR (China)		328,091
	51,354	China Unicom (Hong Kong) Ltd. ADR (China)		666,575
				6,409,685
		Utilities—0.2%
	12,921	Huaneng Power International, Inc., H-Shares ADR (China)		353,519
		Total Common Stocks and Other Equity Interests (Cost $135,331,134)		153,458,712

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

36

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

April 30, 2017

Number of Shares			Value
		Money Market Fund—0.1%
	164,476	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $164,476)	$	164,476
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $135,495,610)—100.1%		153,623,188
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.7%
	11,762,737	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $11,762,737)		11,762,737
		Total Investments (Cost $147,258,347)—107.8%		165,385,925
		Other assets less liabilities—(7.8)%		(11,926,364	)
		Net Assets—100.0%	$	153,459,561

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2K.

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

China 98.3%

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

37

Schedule of Investments^(a)

PowerShares S&P 500 BuyWrite Portfolio (PBP)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—101.6%(b)
		Consumer Discretionary—12.7%
	1,199	Advance Auto Parts, Inc.	$	170,426
	6,438	Amazon.com, Inc.(c)		5,955,086
	1,066	AutoNation, Inc.(c)		44,772
	463	AutoZone, Inc.(c)		320,484
	2,444	Bed Bath & Beyond, Inc.		94,705
	4,402	Best Buy Co., Inc.		228,068
	3,250	BorgWarner, Inc.		137,410
	3,042	CarMax, Inc.(c)		177,957
	6,794	Carnival Corp.		419,665
	6,046	CBS Corp., Class B		402,422
	3,497	Charter Communications, Inc., Class A(c)		1,207,025
	467	Chipotle Mexican Grill, Inc.(c)		221,577
	4,562	Coach, Inc.		179,697
	76,935	Comcast Corp., Class A		3,015,083
	5,524	D.R. Horton, Inc.		181,684
	2,019	Darden Restaurants, Inc.		171,999
	4,382	Delphi Automotive PLC		352,313
	2,481	Discovery Communications, Inc., Class A(c)		71,403
	3,507	Discovery Communications, Inc., Class C(c)		98,126
	3,689	DISH Network Corp., Class A(c)		237,719
	4,131	Dollar General Corp.		300,365
	3,837	Dollar Tree, Inc.(c)		317,588
	1,960	Expedia, Inc.		262,091
	2,152	Foot Locker, Inc.		166,436
	63,454	Ford Motor Co.		727,817
	3,567	Gap, Inc. (The)		93,455
	1,870	Garmin Ltd.		95,071
	22,159	General Motors Co.		767,588
	2,412	Genuine Parts Co.		221,952
	4,090	Goodyear Tire & Rubber Co. (The)		148,181
	3,367	H&R Block, Inc.		83,468
	6,156	Hanesbrands, Inc.		134,262
	2,866	Harley-Davidson, Inc.		162,817
	1,819	Hasbro, Inc.		180,281
	19,802	Home Depot, Inc. (The)		3,091,092
	6,384	Interpublic Group of Cos., Inc. (The)		150,471
	2,868	Kohl’s Corp.		111,938
	3,905	L Brands, Inc.		206,223
	2,174	Leggett & Platt, Inc.		114,222
	3,303	Lennar Corp., Class A		166,801
	5,007	LKQ Corp.(c)		156,419
	14,077	Lowe’s Cos., Inc.		1,194,856
	4,943	Macy’s, Inc.		144,434
	5,112	Marriott International, Inc., Class A		482,675
	5,567	Mattel, Inc.		124,812
	13,314	McDonald’s Corp.		1,863,028
	2,641	Michael Kors Holdings Ltd.(c)		98,589
	1,025	Mohawk Industries, Inc.(c)		240,660
	6,997	Netflix, Inc.(c)		1,064,943
	7,841	Newell Brands, Inc.		374,329
	6,205	News Corp., Class A		78,928
	1,947	News Corp., Class B		25,311
	21,543	NIKE, Inc., Class B		1,193,698
	1,851	Nordstrom, Inc.		89,348
	3,813	Omnicom Group, Inc.		313,124
	1,490	O’Reilly Automotive, Inc.(c)		369,743

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	800	Priceline Group, Inc. (The)(c)	$	1,477,456
	4,650	PulteGroup, Inc.		105,416
	1,289	PVH Corp.		130,228
	915	Ralph Lauren Corp., Class A		73,859
	6,407	Ross Stores, Inc.		416,455
	2,724	Royal Caribbean Cruises Ltd.		290,378
	1,553	Scripps Networks Interactive, Inc., Class A		116,040
	1,132	Signet Jewelers Ltd.		74,531
	10,576	Staples, Inc.		103,328
	23,691	Starbucks Corp.		1,422,881
	9,041	Target Corp.		504,940
	3,491	TEGNA, Inc.		88,951
	1,740	Tiffany & Co.		159,471
	12,588	Time Warner, Inc.		1,249,611
	10,597	TJX Cos., Inc. (The)		833,348
	2,125	Tractor Supply Co.		131,559
	1,836	TripAdvisor, Inc.(c)		82,638
	17,107	Twenty-First Century Fox, Inc., Class A		522,448
	7,918	Twenty-First Century Fox, Inc., Class B		236,431
	951	Ulta Beauty, Inc.(c)		267,649
	2,987	Under Armour, Inc., Class A(c)		64,191
	2,997	Under Armour, Inc., Class C(c)		58,172
	5,385	VF Corp.		294,183
	5,649	Viacom, Inc., Class B		240,421
	23,648	Walt Disney Co. (The)		2,733,709
	1,211	Whirlpool Corp.		224,858
	1,707	Wyndham Worldwide Corp.		162,694
	1,293	Wynn Resorts Ltd.		159,052
	5,464	Yum! Brands, Inc.		359,258
				41,588,793
		Consumer Staples—9.4%
	31,527	Altria Group, Inc.		2,263,008
	9,284	Archer-Daniels-Midland Co.		424,743
	2,876	Brown-Forman Corp., Class B		136,092
	3,144	Campbell Soup Co.		180,906
	4,140	Church & Dwight Co., Inc.		205,054
	2,085	Clorox Co. (The)		278,744
	62,814	Coca-Cola Co. (The)		2,710,424
	14,351	Colgate-Palmolive Co.		1,033,846
	6,721	Conagra Brands, Inc.		260,640
	2,808	Constellation Brands, Inc., Class A		484,492
	7,135	Costco Wholesale Corp.		1,266,605
	7,652	Coty, Inc., Class A		136,588
	16,674	CVS Health Corp.		1,374,605
	2,976	Dr Pepper Snapple Group, Inc.		272,750
	3,614	Estee Lauder Cos., Inc. (The), Class A		314,924
	9,428	General Mills, Inc.		542,204
	2,270	Hershey Co. (The)		245,614
	4,384	Hormel Foods Corp.		153,791
	1,892	JM Smucker Co. (The)		239,754
	4,110	Kellogg Co.		291,810
	5,783	Kimberly-Clark Corp.		750,344
	9,695	Kraft Heinz Co. (The)		876,331
	15,021	Kroger Co. (The)		445,373
	1,847	McCormick & Co., Inc.		184,515
	2,982	Mead Johnson Nutrition Co.		264,563

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

38

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	2,998	Molson Coors Brewing Co., Class B	$	287,478
	24,817	Mondelez International, Inc., Class A		1,117,510
	6,539	Monster Beverage Corp.(c)		296,740
	23,200	PepsiCo, Inc.		2,628,096
	25,219	Philip Morris International, Inc.		2,795,274
	41,558	Procter & Gamble Co. (The)		3,629,260
	13,444	Reynolds American, Inc.		867,138
	8,079	Sysco Corp.		427,137
	4,664	Tyson Foods, Inc., Class A		299,709
	13,862	Walgreens Boots Alliance, Inc.		1,199,618
	24,480	Wal-Mart Stores, Inc.		1,840,406
	5,178	Whole Foods Market, Inc.		188,324
				30,914,410
		Energy—6.4%
	9,087	Anadarko Petroleum Corp.		518,141
	6,172	Apache Corp.		300,206
	6,914	Baker Hughes, Inc.		410,484
	7,724	Cabot Oil & Gas Corp.		179,506
	12,383	Chesapeake Energy Corp.(c)		65,135
	30,774	Chevron Corp.		3,283,586
	1,546	Cimarex Energy Co.		180,387
	2,408	Concho Resources, Inc.(c)		304,997
	20,090	ConocoPhillips		962,512
	8,528	Devon Energy Corp.		336,771
	9,377	EOG Resources, Inc.		867,373
	2,818	EQT Corp.		163,839
	67,405	Exxon Mobil Corp.		5,503,618
	14,093	Halliburton Co.		646,587
	1,764	Helmerich & Payne, Inc.		106,969
	4,373	Hess Corp.		213,534
	31,210	Kinder Morgan, Inc.		643,862
	13,772	Marathon Oil Corp.		204,790
	8,580	Marathon Petroleum Corp.		437,065
	2,635	Murphy Oil Corp.		68,984
	6,156	National Oilwell Varco, Inc.		215,275
	3,233	Newfield Exploration Co.(c)		111,926
	7,400	Noble Energy, Inc.		239,242
	12,424	Occidental Petroleum Corp.		764,573
	3,426	ONEOK, Inc.		180,242
	7,171	Phillips 66		570,525
	2,760	Pioneer Natural Resources Co.		477,452
	3,058	Range Resources Corp.		81,006
	22,663	Schlumberger Ltd.		1,645,107
	7,585	TechnipFMC PLC (United Kingdom)(c)		228,536
	1,902	Tesoro Corp.		151,608
	6,328	Transocean Ltd.(c)		69,798
	7,332	Valero Energy Corp.		473,721
	13,424	Williams Cos., Inc. (The)		411,177
				21,018,534
		Financials—14.3%
	922	Affiliated Managers Group, Inc.		152,674
	6,525	Aflac, Inc.		488,592
	5,936	Allstate Corp. (The)		482,537
	12,307	American Express Co.		975,330
	15,127	American International Group, Inc.		921,386

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,504	Ameriprise Financial, Inc.	$	320,136
	4,269	Aon PLC		511,597
	2,903	Arthur J. Gallagher & Co.		162,016
	904	Assurant, Inc.		87,001
	162,968	Bank of America Corp.		3,803,673
	16,865	Bank of New York Mellon Corp. (The)		793,667
	13,141	BB&T Corp.		567,428
	30,875	Berkshire Hathaway, Inc., Class B(c)		5,100,859
	1,979	BlackRock, Inc.		761,064
	7,814	Capital One Financial Corp.		628,089
	1,492	CBOE Holdings, Inc.		122,956
	19,748	Charles Schwab Corp. (The)		767,210
	7,572	Chubb Ltd.		1,039,257
	2,437	Cincinnati Financial Corp.		175,683
	45,040	Citigroup, Inc.		2,662,765
	8,276	Citizens Financial Group, Inc.		303,812
	5,521	CME Group, Inc.		641,485
	2,859	Comerica, Inc.		202,131
	6,267	Discover Financial Services		392,252
	4,466	E*TRADE Financial Corp.(c)		154,300
	12,199	Fifth Third Bancorp		298,022
	5,606	Franklin Resources, Inc.		241,675
	6,023	Goldman Sachs Group, Inc. (The)		1,347,947
	6,078	Hartford Financial Services Group, Inc. (The)		293,932
	17,652	Huntington Bancshares, Inc.		227,005
	9,684	Intercontinental Exchange, Inc.		582,977
	6,564	Invesco Ltd.(d)		216,218
	58,066	JPMorgan Chase & Co.		5,051,742
	17,434	KeyCorp		317,996
	5,264	Leucadia National Corp.		133,653
	3,661	Lincoln National Corp.		241,370
	4,487	Loews Corp.		209,184
	2,507	M&T Bank Corp.		389,613
	8,371	Marsh & McLennan Cos., Inc.		620,542
	17,675	MetLife, Inc.		915,742
	2,698	Moody’s Corp.		319,227
	23,359	Morgan Stanley		1,013,080
	1,870	Nasdaq, Inc.		128,787
	4,731	Navient Corp.		71,911
	3,496	Northern Trust Corp.		314,640
	5,584	People’s United Financial, Inc.		97,552
	7,903	PNC Financial Services Group, Inc. (The)		946,384
	4,346	Principal Financial Group, Inc.		283,055
	9,442	Progressive Corp. (The)		375,036
	6,991	Prudential Financial, Inc.		748,247
	2,079	Raymond James Financial, Inc.		154,927
	19,593	Regions Financial Corp.		269,404
	4,200	S&P Global, Inc.		563,598
	5,836	State Street Corp.		489,640
	7,988	SunTrust Banks, Inc.		453,798
	12,521	Synchrony Financial		348,084
	3,957	T. Rowe Price Group, Inc.		280,512
	1,781	Torchmark Corp.		136,620
	4,547	Travelers Cos., Inc. (The)		553,188
	25,886	U.S. Bancorp		1,327,434
	3,726	Unum Group		172,626

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

39

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	73,201	Wells Fargo & Co.	$	3,941,142
	2,071	Willis Towers Watson PLC		274,656
	4,308	XL Group Ltd. (Bermuda)		180,290
	3,291	Zions Bancorporation		131,739
				46,881,095
		Health Care—14.2%
	28,090	Abbott Laboratories		1,225,848
	25,911	AbbVie, Inc.		1,708,571
	5,392	Aetna, Inc.		728,297
	5,235	Agilent Technologies, Inc.		288,187
	3,652	Alexion Pharmaceuticals, Inc.(c)		466,653
	5,450	Allergan PLC		1,329,037
	2,685	AmerisourceBergen Corp.		220,304
	11,972	Amgen, Inc.		1,955,267
	4,297	Anthem, Inc.		764,393
	7,902	Baxter International, Inc.		439,983
	3,460	Becton, Dickinson and Co.		646,916
	3,510	Biogen, Inc.(c)		951,947
	22,165	Boston Scientific Corp.(c)		584,713
	27,191	Bristol-Myers Squibb Co.		1,524,056
	1,171	C.R. Bard, Inc.		360,059
	5,128	Cardinal Health, Inc.		372,242
	12,646	Celgene Corp.(c)		1,568,736
	2,797	Centene Corp.(c)		208,097
	4,770	Cerner Corp.(c)		308,857
	4,179	Cigna Corp.		653,470
	796	Cooper Cos., Inc. (The)		159,463
	9,917	Danaher Corp.		826,384
	2,531	DaVita, Inc.(c)		174,664
	3,734	DENTSPLY Sirona, Inc.		236,138
	3,455	Edwards Lifesciences Corp.(c)		378,910
	15,783	Eli Lilly & Co.		1,295,153
	1,910	Envision Healthcare Corp.(c)		107,017
	9,847	Express Scripts Holding Co.(c)		604,015
	21,247	Gilead Sciences, Inc.		1,456,482
	4,693	HCA Holdings, Inc.(c)		395,198
	1,288	Henry Schein, Inc.(c)		223,854
	4,540	Hologic, Inc.(c)		204,981
	2,428	Humana, Inc.		538,967
	1,430	IDEXX Laboratories, Inc.(c)		239,854
	2,378	Illumina, Inc.(c)		439,597
	2,750	Incyte Corp.(c)		341,770
	597	Intuitive Surgical, Inc.(c)		499,014
	44,108	Johnson & Johnson		5,446,015
	1,663	Laboratory Corp. of America Holdings(c)		233,069
	1,703	Mallinckrodt PLC(c)		79,905
	3,448	McKesson Corp.		476,824
	22,252	Medtronic PLC		1,848,919
	44,632	Merck & Co., Inc.		2,781,913
	421	Mettler-Toledo International, Inc.(c)		216,150
	7,487	Mylan NV(c)		279,639
	1,337	Patterson Cos., Inc.		59,483
	1,785	PerkinElmer, Inc.		106,047
	2,330	Perrigo Co. PLC		172,280
	96,753	Pfizer, Inc.		3,281,862
	2,235	Quest Diagnostics, Inc.		235,815

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	1,236	Regeneron Pharmaceuticals, Inc.(c)	$	480,174
	5,031	Stryker Corp.		686,077
	6,346	Thermo Fisher Scientific, Inc.		1,049,184
	15,640	UnitedHealth Group, Inc.		2,735,123
	1,452	Universal Health Services, Inc., Class B		175,344
	1,519	Varian Medical Systems, Inc.(c)		137,834
	4,038	Vertex Pharmaceuticals, Inc.(c)		477,695
	1,302	Waters Corp.(c)		221,197
	3,269	Zimmer Biomet Holdings, Inc.		391,136
	7,997	Zoetis, Inc.		448,712
				46,447,491
		Industrials—10.3%
	9,692	3M Co.		1,897,984
	717	Acuity Brands, Inc.		126,264
	2,007	Alaska Air Group, Inc.		170,776
	1,552	Allegion PLC		122,049
	8,195	American Airlines Group, Inc.		349,271
	3,731	AMETEK, Inc.		213,413
	7,162	Arconic, Inc.		195,738
	9,259	Boeing Co. (The)		1,711,341
	2,298	C.H. Robinson Worldwide, Inc.		167,065
	9,534	Caterpillar, Inc.		974,947
	1,400	Cintas Corp.		171,458
	15,061	CSX Corp.		765,701
	2,515	Cummins, Inc.		379,614
	4,764	Deere & Co.		531,710
	11,880	Delta Air Lines, Inc.		539,827
	2,528	Dover Corp.		199,409
	7,310	Eaton Corp. PLC		552,928
	10,486	Emerson Electric Co.		632,096
	1,949	Equifax, Inc.		263,719
	2,928	Expeditors International of Washington, Inc.		164,232
	4,702	Fastenal Co.		210,085
	3,986	FedEx Corp.		756,144
	2,122	Flowserve Corp.		107,946
	2,266	Fluor Corp.		116,291
	4,893	Fortive Corp.		309,531
	2,488	Fortune Brands Home & Security, Inc.		158,585
	4,627	General Dynamics Corp.		896,666
	141,830	General Electric Co.		4,111,652
	12,374	Honeywell International, Inc.		1,622,726
	5,070	Illinois Tool Works, Inc.		700,116
	4,219	Ingersoll-Rand PLC		374,436
	1,412	J.B. Hunt Transport Services, Inc.		126,600
	1,968	Jacobs Engineering Group, Inc.		108,083
	15,259	Johnson Controls International PLC		634,317
	1,733	Kansas City Southern		156,091
	1,265	L3 Technologies, Inc.		217,289
	4,059	Lockheed Martin Corp.		1,093,698
	5,207	Masco Corp.		192,763
	5,463	Nielsen Holdings PLC		224,693
	4,723	Norfolk Southern Corp.		554,905
	2,839	Northrop Grumman Corp.		698,281
	5,704	PACCAR, Inc.		380,628
	2,167	Parker-Hannifin Corp.		348,454
	2,718	Pentair PLC (United Kingdom)		175,338

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

40

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	2,458	Quanta Services, Inc.(c)	$	87,112
	4,761	Raytheon Co.		738,955
	3,749	Republic Services, Inc.		236,150
	2,077	Robert Half International, Inc.		95,646
	2,090	Rockwell Automation, Inc.		328,862
	2,639	Rockwell Collins, Inc.		274,694
	1,656	Roper Technologies, Inc.		362,167
	869	Ryder System, Inc.		59,014
	942	Snap-on, Inc.		157,813
	10,001	Southwest Airlines Co.		562,256
	2,481	Stanley Black & Decker, Inc.		337,788
	1,383	Stericycle, Inc.(c)		118,025
	4,391	Textron, Inc.		204,884
	808	TransDigm Group, Inc.		199,358
	13,229	Union Pacific Corp.		1,481,119
	4,654	United Continental Holdings, Inc.(c)		326,757
	11,204	United Parcel Service, Inc., Class B		1,203,982
	1,370	United Rentals, Inc.(c)		150,234
	12,183	United Technologies Corp.		1,449,655
	2,515	Verisk Analytics, Inc.(c)		208,267
	880	W.W. Grainger, Inc.		169,576
	6,576	Waste Management, Inc.		478,601
	2,918	Xylem, Inc.		150,014
				33,785,789
		Information Technology—22.9%
	10,121	Accenture PLC, Class A		1,227,677
	11,244	Activision Blizzard, Inc.		587,499
	8,058	Adobe Systems, Inc.(c)		1,077,677
	12,540	Advanced Micro Devices, Inc.(c)		166,782
	2,815	Akamai Technologies, Inc.(c)		171,546
	909	Alliance Data Systems Corp.		226,914
	4,830	Alphabet, Inc., Class A(c)		4,465,432
	4,804	Alphabet, Inc., Class C(c)		4,352,232
	5,002	Amphenol Corp., Class A		361,695
	5,916	Analog Devices, Inc.		450,799
	85,287	Apple, Inc.		12,251,478
	17,554	Applied Materials, Inc.		712,868
	3,184	Autodesk, Inc.(c)		286,783
	7,297	Automatic Data Processing, Inc.		762,464
	6,519	Broadcom Ltd.		1,439,460
	5,096	CA, Inc.		167,302
	81,408	Cisco Systems, Inc.		2,773,571
	2,541	Citrix Systems, Inc.(c)		205,669
	9,894	Cognizant Technology Solutions Corp., Class A(c)		595,916
	15,087	Corning, Inc.		435,260
	2,360	CSRA, Inc.		68,629
	4,615	Dxc Technology Co.(c)		347,694
	16,434	eBay, Inc.(c)		549,060
	5,011	Electronic Arts, Inc.(c)		475,143
	1,053	F5 Networks, Inc.(c)		135,974
	38,286	Facebook, Inc., Class A(c)		5,752,471
	5,344	Fidelity National Information Services, Inc.		449,911
	3,488	Fiserv, Inc.(c)		415,560
	2,216	FLIR Systems, Inc.		81,394
	1,464	Gartner, Inc.(c)		167,028

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	2,475	Global Payments, Inc.	$	202,356
	2,024	Harris Corp.		226,465
	27,063	Hewlett Packard Enterprise Co.		504,184
	27,528	HP, Inc.		518,077
	76,858	Intel Corp.		2,778,417
	13,952	International Business Machines Corp.		2,236,366
	3,950	Intuit, Inc.		494,579
	6,209	Juniper Networks, Inc.		186,705
	2,548	KLA-Tencor Corp.		250,265
	2,647	Lam Research Corp.		383,418
	15,316	Mastercard, Inc., Class A		1,781,557
	3,518	Microchip Technology, Inc.		265,890
	16,851	Micron Technology, Inc.(c)		466,267
	125,618	Microsoft Corp.		8,599,808
	2,678	Motorola Solutions, Inc.		230,228
	4,404	NetApp, Inc.		175,499
	9,575	NVIDIA Corp.		998,672
	48,721	Oracle Corp.		2,190,496
	5,191	Paychex, Inc.		307,722
	18,256	PayPal Holdings, Inc.(c)		871,176
	2,055	Qorvo, Inc.(c)		139,802
	24,010	QUALCOMM, Inc.		1,290,297
	2,898	Red Hat, Inc.(c)		255,256
	10,646	salesforce.com, inc.(c)		916,833
	4,799	Seagate Technology PLC		202,182
	3,006	Skyworks Solutions, Inc.		299,818
	10,060	Symantec Corp.		318,198
	2,446	Synopsys, Inc.(c)		180,270
	5,776	TE Connectivity Ltd.		446,889
	2,127	Teradata Corp.(c)		62,066
	16,250	Texas Instruments, Inc.		1,286,675
	2,683	Total System Services, Inc.		153,763
	1,447	VeriSign, Inc.(c)		128,667
	30,204	Visa, Inc., Class A		2,755,209
	4,683	Western Digital Corp.		417,115
	7,818	Western Union Co. (The)		155,265
	13,882	Xerox Corp.		99,812
	4,046	Xilinx, Inc.		255,343
	14,269	Yahoo!, Inc.(c)		687,908
				74,881,403
		Materials—2.9%
	3,537	Air Products & Chemicals, Inc.		496,949
	1,830	Albemarle Corp.		199,305
	1,454	Avery Dennison Corp.		120,987
	2,846	Ball Corp.		218,829
	3,790	CF Industries Holdings, Inc.		101,345
	18,145	Dow Chemical Co. (The)		1,139,506
	14,055	E.I. du Pont de Nemours & Co.		1,120,886
	2,381	Eastman Chemical Co.		189,885
	4,268	Ecolab, Inc.		550,956
	2,173	FMC Corp.		159,129
	21,616	Freeport-McMoRan, Inc.(c)		275,604
	1,285	International Flavors & Fragrances, Inc.		178,088
	6,685	International Paper Co.		360,789
	5,366	LyondellBasell Industries NV, Class A		454,822
	1,025	Martin Marietta Materials, Inc.		225,695

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

41

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	7,128	Monsanto Co.	$	831,196
	5,693	Mosaic Co. (The)		153,313
	8,640	Newmont Mining Corp.		292,118
	5,183	Nucor Corp.		317,873
	4,180	PPG Industries, Inc.		459,131
	4,634	Praxair, Inc.		579,157
	3,145	Sealed Air Corp.		138,443
	1,319	Sherwin-Williams Co. (The)		441,443
	2,152	Vulcan Materials Co.		260,134
	4,071	WestRock Co.		218,043
				9,483,626
		Real Estate—3.0%
	1,444	Alexandria Real Estate Equities, Inc. REIT		162,464
	6,944	American Tower Corp. REIT		874,527
	2,553	Apartment Investment & Management Co., Class A REIT		111,668
	2,233	AvalonBay Communities, Inc. REIT		423,913
	2,500	Boston Properties, Inc. REIT		316,500
	4,888	CBRE Group, Inc., Class A(c)		175,039
	5,861	Crown Castle International Corp. REIT		554,451
	2,590	Digital Realty Trust, Inc. REIT		297,436
	1,263	Equinix, Inc. REIT		527,555
	5,967	Equity Residential REIT		385,349
	1,065	Essex Property Trust, Inc. REIT		260,361
	2,047	Extra Space Storage, Inc. REIT		154,610
	1,172	Federal Realty Investment Trust REIT		153,403
	9,495	GGP, Inc. REIT		205,187
	7,611	HCP, Inc. REIT		238,605
	12,017	Host Hotels & Resorts, Inc. REIT		215,705
	3,987	Iron Mountain, Inc. REIT		138,588
	6,919	Kimco Realty Corp. REIT		140,387
	1,965	Macerich Co. (The) REIT		122,675
	1,845	Mid-America Apartment Communities, Inc. REIT		183,042
	8,605	Prologis, Inc. REIT		468,198
	2,428	Public Storage REIT		508,375
	4,407	Realty Income Corp. REIT		257,148
	2,374	Regency Centers Corp. REIT		149,989
	5,199	Simon Property Group, Inc. REIT		859,187
	1,635	SL Green Realty Corp. REIT		171,561
	4,345	UDR, Inc. REIT		162,242
	5,764	Ventas, Inc. REIT		368,954
	2,799	Vornado Realty Trust REIT		269,376
	5,894	Welltower, Inc. REIT		421,067
	12,176	Weyerhaeuser Co. REIT		412,401
				9,689,963
		Telecommunication Services—2.3%
	99,837	AT&T, Inc.		3,956,541
	8,885	CenturyLink, Inc.		228,078
	4,750	Level 3 Communications, Inc.(c)		288,610
	66,264	Verizon Communications, Inc.		3,042,180
				7,515,409

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities—3.2%
	10,716	AES Corp. (The)	$	121,198
	3,701	Alliant Energy Corp.		145,523
	3,944	Ameren Corp.		215,697
	7,993	American Electric Power Co., Inc.		542,165
	2,897	American Water Works Co., Inc.		231,065
	7,001	CenterPoint Energy, Inc.		199,739
	4,551	CMS Energy Corp.		206,615
	4,959	Consolidated Edison, Inc.		393,150
	10,211	Dominion Resources, Inc.		790,638
	2,917	DTE Energy Co.		305,089
	11,373	Duke Energy Corp.		938,273
	5,296	Edison International		423,521
	2,917	Entergy Corp.		222,450
	5,151	Eversource Energy		305,969
	15,063	Exelon Corp.		521,632
	7,193	FirstEnergy Corp.		215,358
	7,601	NextEra Energy, Inc.		1,015,190
	5,258	NiSource, Inc.		127,507
	5,136	NRG Energy, Inc.		86,798
	8,240	PG&E Corp.		552,492
	1,810	Pinnacle West Capital Corp.		154,013
	11,050	PPL Corp.		421,116
	8,229	Public Service Enterprise Group, Inc.		362,487
	2,323	SCANA Corp.		154,038
	4,073	Sempra Energy		460,330
	16,110	Southern Co. (The)		802,278
	5,130	WEC Energy Group, Inc.		310,468
	8,245	Xcel Energy, Inc.		371,437
				10,596,236
		Total Investments (Cost $287,983,588)—101.6%		332,802,749
		Other assets less liabilities—(1.6)%		(5,206,528	)
		Net Assets—100.0%	$	327,596,221

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 Fund are subject to covered call options written. See Note 2I 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.

42

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

April 30, 2017

Open Exchange-Traded Index Options Written—Equity Risk
	Contract Month		Strike Price		Number of Contracts		Premiums Received			Unrealized Appreciation (Depreciation)			Notional Value*		Value
Call Option S&P 500 Index		May - 2017	$	2,355		1,395	$	(3,586,203	)	$	(1,582,272	)	$	328,522,500	$	(5,168,475	)

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

Options Written Transactions During the Year
	Call Option Contracts
	Number of Contracts			Premiums Received
Beginning of year		1,452		$	3,729,398
Written		16,013			39,167,881
Closed		(10,683	)		(26,210,914	)
Expired		(5,387	)		(13,100,162	)
End of year		1,395		$	3,586,203

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

43

Schedule of Investments^(a)

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—16.9%
	83,331	Best Buy Co., Inc.	$	4,317,379
	105,949	CBS Corp., Class B		7,051,965
	46,088	Darden Restaurants, Inc.		3,926,237
	42,588	Genuine Parts Co.		3,918,948
	34,323	Hasbro, Inc.		3,401,753
	440,093	Home Depot, Inc. (The)		68,698,517
	36,933	Leggett & Platt, Inc.		1,940,460
	237,595	Lowe’s Cos., Inc.		20,167,064
	140,180	Marriott International, Inc., Class A		13,235,796
	48,446	Michael Kors Holdings Ltd.(b)		1,808,489
	64,266	Nordstrom, Inc.		3,102,120
	81,071	Omnicom Group, Inc.		6,657,550
	28,583	O’Reilly Automotive, Inc.(b)		7,092,871
	112,956	Ross Stores, Inc.		7,342,140
	409,459	Starbucks Corp.		24,592,108
	179,644	Target Corp.		10,033,117
	63,571	TEGNA, Inc.		1,619,789
	190,168	TJX Cos., Inc. (The)		14,954,811
	32,422	Wyndham Worldwide Corp.		3,090,141
				206,951,255
		Consumer Staples—18.2%
	773,763	Altria Group, Inc.		55,540,708
	75,119	Brown-Forman Corp., Class B		3,554,631
	93,750	Campbell Soup Co.		5,394,375
	40,922	Clorox Co. (The)		5,470,862
	153,367	Conagra Brands, Inc.		5,947,572
	53,239	Dr Pepper Snapple Group, Inc.		4,879,355
	175,326	General Mills, Inc.		10,082,998
	57,814	Hershey Co. (The)		6,255,475
	31,669	McCormick & Co., Inc.		3,163,733
	470,622	PepsiCo, Inc.		53,312,060
	692,501	Procter & Gamble Co. (The)		60,476,113
	156,624	Sysco Corp.		8,280,711
				222,358,593
		Energy—0.1%
	58,477	TechnipFMC PLC (United Kingdom)(b)		1,761,912
		Financials—5.7%
	117,429	Aflac, Inc.		8,793,084
	275,636	American Express Co.		21,844,153
	73,530	Aon PLC		8,811,835
	16,127	Assurant, Inc.		1,552,062
	99,382	E*TRADE Financial Corp.(b)		3,433,648
	115,108	State Street Corp.		9,657,561
	137,979	SunTrust Banks, Inc.		7,838,587
	70,613	T. Rowe Price Group, Inc.		5,005,756
	32,277	Torchmark Corp.		2,475,969
				69,412,655
		Health Care—3.2%
	194,972	Baxter International, Inc.		10,856,041
	24,384	C.R. Bard, Inc.		7,497,592
	9,222	Mettler-Toledo International, Inc.(b)		4,734,759
	114,273	Stryker Corp.		15,583,409
				38,671,801

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials—20.9%
	146,710	American Airlines Group, Inc.	$	6,252,780
	266,789	Boeing Co. (The)		49,310,611
	43,523	C.H. Robinson Worldwide, Inc.		3,164,122
	26,993	Cintas Corp.		3,305,833
	202,813	Delta Air Lines, Inc.		9,215,823
	178,021	Emerson Electric Co.		10,731,106
	50,585	Expeditors International of Washington, Inc.		2,837,313
	100,540	Fortive Corp.		6,360,161
	82,671	General Dynamics Corp.		16,020,813
	1,844,770	General Electric Co.		53,479,882
	109,043	Illinois Tool Works, Inc.		15,057,748
	49,996	Northrop Grumman Corp.		12,297,016
	35,844	Parker-Hannifin Corp.		5,763,715
	45,298	Quanta Services, Inc.(b)		1,605,361
	34,769	Rockwell Automation, Inc.		5,470,902
	35,404	Rockwell Collins, Inc.		3,685,202
	202,055	United Parcel Service, Inc., Class B		21,712,830
	248,940	United Technologies Corp.		29,621,371
				255,892,589
		Information Technology—20.7%
	87,126	Amphenol Corp., Class A		6,300,081
	299,029	Applied Materials, Inc.		12,143,568
	127,513	Automatic Data Processing, Inc.		13,323,833
	43,987	Citrix Systems, Inc.(b)		3,560,308
	431,042	eBay, Inc.(b)		14,401,113
	25,007	F5 Networks, Inc.(b)		3,229,154
	62,597	Fiserv, Inc.(b)		7,457,807
	33,611	Harris Corp.		3,760,735
	458,514	Hewlett Packard Enterprise Co.		8,542,116
	305,723	International Business Machines Corp.		49,004,340
	124,431	Intuit, Inc.		15,580,005
	62,918	KLA-Tencor Corp.		6,179,806
	46,347	Lam Research Corp.		6,713,363
	327,958	Mastercard, Inc., Class A		38,148,074
	65,908	Microchip Technology, Inc.		4,981,327
	88,100	NetApp, Inc.		3,510,785
	97,238	Paychex, Inc.		5,764,269
	275,954	Symantec Corp.		8,728,425
	45,017	Teradata Corp.(b)		1,313,596
	309,946	Texas Instruments, Inc.		24,541,524
	145,704	Western Union Co. (The)		2,893,681
	270,238	Yahoo!, Inc.(b)		13,028,174
				253,106,084
		Materials—9.0%
	25,739	Avery Dennison Corp.		2,141,742
	331,886	Dow Chemical Co. (The)		20,842,441
	282,729	E.I. du Pont de Nemours & Co.		22,547,638
	104,064	International Paper Co.		5,616,334
	145,410	LyondellBasell Industries NV, Class A		12,324,952
	118,838	Monsanto Co.		13,857,699
	71,092	PPG Industries, Inc.		7,808,745
	82,986	Praxair, Inc.		10,371,590
	64,038	Sealed Air Corp.		2,818,953
	33,474	Sherwin-Williams Co. (The)		11,203,078
				109,533,172

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

44

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate—0.8%
	105,338	Equity Residential REIT	$	6,802,728
	42,916	Macerich Co. (The) REIT		2,679,246
				9,481,974
		Telecommunication Services—4.3%
	1,134,580	Verizon Communications, Inc.		52,088,568
		Utilities—0.2%
	112,924	NiSource, Inc.		2,738,407
		Total Investments (Cost $1,102,356,867)—100.0%		1,221,997,010
		Other assets less liabilities—0.0%		226,281
		Net Assets—100.0%	$	1,222,223,291

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.

45

Schedule of Investments^(a)

PowerShares Water Resources Portfolio (PHO)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Building Products—5.5%
	616,172	A.O. Smith Corp.	$	33,199,347
	451,292	Advanced Drainage Systems, Inc.		10,402,281
				43,601,628
		Chemicals—8.8%
	362,085	Calgon Carbon Corp.		5,268,337
	500,610	Ecolab, Inc.		64,623,745
				69,892,082
		Commercial Services & Supplies—3.3%
	604,115	Tetra Tech, Inc.		26,550,854
		Construction & Engineering—4.5%
	275,218	Aegion Corp.(b)		6,280,475
	167,022	Layne Christensen Co.(b)		1,331,165
	183,803	Valmont Industries, Inc.		28,002,387
				35,614,027
		Electronic Equipment, Instruments & Components—3.0%
	200,516	Badger Meter, Inc.		7,970,511
	249,673	Itron, Inc.(b)		16,191,294
				24,161,805
		Health Care Equipment & Supplies—7.6%
	725,433	Danaher Corp.		60,450,332
		Industrial Conglomerates—8.1%
	296,657	Roper Technologies, Inc.		64,878,886
		Life Sciences Tools & Services—8.5%
	400,417	Waters Corp.(b)		68,026,844
		Machinery—30.0%
	631,658	Energy Recovery, Inc.(b)		5,331,194
	211,041	Franklin Electric Co., Inc.		8,673,785
	56,162	Gorman-Rupp Co. (The)		1,607,356
	336,591	IDEX Corp.		35,261,273
	145,085	Lindsay Corp.		12,602,083
	232,238	Mueller Industries, Inc.		7,440,906
	1,748,217	Mueller Water Products, Inc., Class A		19,667,441
	534,455	Pentair PLC (United Kingdom)		34,477,692
	1,399,658	Rexnord Corp.(b)		34,151,655
	515,370	Toro Co. (The)		33,457,820
	213,578	Watts Water Technologies, Inc., Class A		13,284,552
	644,855	Xylem, Inc.		33,151,996
				239,107,753
		Trading Companies & Distributors—7.3%
	1,443,272	HD Supply Holdings, Inc.(b)		58,163,861
		Water Utilities—13.3%
	170,279	American States Water Co.		7,580,821
	397,827	American Water Works Co., Inc.		31,730,682
	780,693	Aqua America, Inc.		25,833,131
	25,376	Artesian Resources Corp., Class A		974,692
	282,166	California Water Service Group		10,073,326
	1,993,051	Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)		18,336,069
	35,087	Connecticut Water Service, Inc.		1,883,119
	108,087	Consolidated Water Co. Ltd. (Cayman Islands)		1,275,427

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Water Utilities (continued)
	29,834	Global Water Resources, Inc.	$	272,683
	67,145	Middlesex Water Co.		2,559,567
	112,384	SJW Corp.		5,488,835
				106,008,352
		Total Common Stocks and Other Equity Interests (Cost $609,178,906)		796,456,424
		Money Market Fund—0.1%
	488,990	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $488,990)		488,990
		Total Investments (Cost $609,667,896)—100.0%		796,945,414
		Other assets less liabilities—0.0%		201,357
		Net Assets—100.0%	$	797,146,771

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

46

Schedule of Investments^(a)

PowerShares WilderHill Clean Energy Portfolio (PBW)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Aerospace & Defense—2.7%
	54,404	Hexcel Corp.	$	2,815,407
		Auto Components—2.5%
	70,137	Gentherm, Inc.(b)		2,605,590
		Automobiles—3.1%
	10,084	Tesla, Inc.(b)(c)		3,167,082
		Chemicals—5.5%
	19,458	Air Products & Chemicals, Inc.		2,733,849
	82,670	Sociedad Quimica y Minera de Chile SA ADR (Chile)		2,938,918
				5,672,767
		Commercial Services & Supplies—2.4%
	153,424	Aqua Metals, Inc.(b)(c)		2,531,496
		Construction & Engineering—8.4%
	465,713	Ameresco, Inc., Class A(b)		3,003,849
	69,282	MYR Group, Inc.(b)		2,927,857
	76,368	Quanta Services, Inc.(b)		2,706,482
				8,638,188
		Electrical Equipment—20.5%
	76,567	American Superconductor Corp.(b)(c)		398,914
	1,164,216	Ballard Power Systems, Inc. (Canada)(b)(c)		3,806,986
	343,463	FuelCell Energy, Inc.(b)(c)		394,982
	164,534	General Cable Corp.		2,961,612
	70,713	Hydrogenics Corp. (Canada)(b)(c)		530,348
	263,730	LSI Industries, Inc.		2,392,031
	1,846,113	Plug Power, Inc.(b)(c)		4,135,293
	564,558	Sunrun, Inc.(b)(c)		2,986,512
	179,644	TPI Composites, Inc.(b)		3,530,005
				21,136,683
		Electronic Equipment, Instruments & Components—6.1%
	44,104	Itron, Inc.(b)		2,860,144
	85,408	Maxwell Technologies, Inc.(b)(c)		520,989
	32,809	Universal Display Corp.		2,931,484
				6,312,617
		Independent Power & Renewable Electricity Producers—14.4%
	131,553	Atlantica Yield PLC (Spain)		2,741,565
	50,590	Ormat Technologies, Inc.		2,987,845
	137,384	Pattern Energy Group, Inc.		3,025,196
	254,417	Sky Solar Holdings Ltd. ADR (Hong Kong)(b)(c)		516,467
	575,035	TerraForm Global, Inc., Class A		2,731,416
	228,414	TerraForm Power, Inc., Class A(b)		2,875,732
				14,878,221
		Oil, Gas & Consumable Fuels—2.7%
	267,137	Renewable Energy Group, Inc.(b)		2,791,582
		Semiconductors & Semiconductor Equipment—28.3%
	38,977	Advanced Energy Industries, Inc.(b)		2,876,503
	254,642	Canadian Solar, Inc. (Canada)(b)(c)		3,386,739
	95,406	Cree, Inc.(b)		2,087,483
	139,715	Daqo New Energy Corp. ADR (China)(b)		2,600,096
	102,201	First Solar, Inc.(b)(c)		3,020,039

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Semiconductors & Semiconductor Equipment (continued)
	411,568	Hanwha Q CELLS Co. Ltd. ADR (South Korea)(b)(c)	$	2,854,224
	486,524	JA Solar Holdings Co. Ltd. ADR (China)(b)		3,410,533
	172,304	SolarEdge Technologies, Inc.(b)(c)		2,782,710
	469,885	SunPower Corp.(b)(c)		3,261,002
	87,464	Veeco Instruments, Inc.(b)		2,886,312
				29,165,641
		Software—3.3%
	87,426	EnerNOC, Inc.(b)		493,957
	253,947	Silver Spring Networks, Inc.(b)		2,897,535
				3,391,492
		Total Common Stocks and Other Equity Interests (Cost $98,436,773)		103,106,766
		Money Market Fund—0.1%
	58,817	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $58,817)		58,817
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $98,495,590)-100.0%		103,165,583
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—25.7%
	26,512,018	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $26,512,018)		26,512,018
		Total Investments (Cost $125,007,608)—125.7%		129,677,601
		Other assets less liabilities—(25.7)%		(26,500,723	)
		Net Assets—100.0%	$	103,176,878

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2K.

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

47

Schedule of Investments^(a)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Components—3.1%
	32,138	Kandi Technologies Group, Inc. (China)(b)(c)	$	131,766
	10,104	Tenneco, Inc.		636,855
				768,621
		Automobiles—2.5%
	17,551	Tata Motors Ltd. ADR (India)		626,044
		Building Products—7.7%
	12,061	A.O. Smith Corp.		649,847
	10,914	Apogee Enterprises, Inc.		594,813
	10,563	Owens Corning		642,758
				1,887,418
		Chemicals—8.2%
	5,761	Albemarle Corp.		627,431
	9,806	FMC Corp.		718,093
	14,812	Methanex Corp. (Canada)		679,871
				2,025,395
		Commercial Services & Supplies—3.9%
	11,566	CECO Environmental Corp.		130,580
	39,514	Covanta Holding Corp.		574,929
	9,062	Heritage-Crystal Clean, Inc.(c)		136,383
	18,656	Hudson Technologies, Inc.(c)		132,458
				974,350
		Construction & Engineering—5.4%
	20,880	Chicago Bridge & Iron Co. NV		628,071
	15,775	MasTec, Inc.(c)		696,466
				1,324,537
		Electric Utilities—4.7%
	14,585	Avangrid, Inc.		634,448
	188,765	Cia Energetica de Minas Gerais ADR (Brazil)(b)		515,328
				1,149,776
		Electrical Equipment—12.9%
	3,121	Acuity Brands, Inc.		549,608
	8,844	Eaton Corp. PLC		668,960
	10,608	Emerson Electric Co.		639,450
	7,865	EnerSys		653,660
	8,555	Regal Beloit Corp.		674,562
				3,186,240
		Electronic Equipment, Instruments & Components—2.7%
	23,084	Corning, Inc.		665,973
		Energy Equipment & Services—2.7%
	100,592	McDermott International, Inc.(c)		657,872
		Food & Staples Retailing—2.6%
	17,330	Andersons, Inc. (The)		647,275
		Independent Power & Renewable Electricity Producers—5.0%
	58,189	Calpine Corp.(c)		593,528
	36,542	NRG Yield, Inc., Class C		646,793
				1,240,321
		Machinery—16.4%
	16,155	Altra Industrial Motion Corp.		713,243
	18,361	Chart Industries, Inc.(c)		670,360

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Machinery (continued)
	10,903	ESCO Technologies, Inc.	$	641,642
	10,026	Luxfer Holdings PLC ADR (United Kingdom)		117,204
	12,566	Lydall, Inc.(c)		658,458
	5,183	WABCO Holdings, Inc.(c)		616,103
	9,232	Woodward, Inc.		624,730
				4,041,740
		Mortgage REITs—2.8%
	31,620	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		693,110
		Oil, Gas & Consumable Fuels—19.4%
	128,460	Chesapeake Energy Corp.(b)(c)		675,700
	48,208	Clean Energy Fuels Corp.(c)		117,628
	79,958	Cosan Ltd., Class A (Brazil)		614,877
	22,460	Golar LNG Ltd. (Bermuda)(b)		572,955
	29,201	Green Plains, Inc.		671,623
	17,723	Pacific Ethanol, Inc.(c)		120,516
	23,827	Range Resources Corp.		631,177
	7,721	REX American Resources Corp.(c)		731,024
	86,085	Southwestern Energy Co.(c)		646,498
				4,781,998
		Total Common Stocks and Other Equity Interests (Cost $19,568,387)		24,670,670
		Money Market Fund—0.1%
	31,358	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $31,358)		31,358
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $19,599,745)—100.1%		24,702,028
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—6.7%
	1,655,718	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,655,718)		1,655,718
		Total Investments (Cost $21,255,463)—106.8%		26,357,746
		Other assets less liabilities—(6.8)%		(1,685,238	)
		Net Assets—100.0%	$	24,672,508

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)  All or a portion of this security was out on loan at April 30, 2017.

^(c)  Non-income producing security.

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

48

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

April 30, 2017

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2K.

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

49

Statements of Assets and Liabilities

April 30, 2017

	PowerShares Aerospace & Defense Portfolio (PPA)			PowerShares CleantechTM Portfolio (PZD)			PowerShares DWA Momentum Portfolio (PDP)			PowerShares Global Listed Private Equity Portfolio (PSP)
Assets:
Unaffiliated investments, at value(a)	$	569,100,507		$	92,576,234		$	1,417,395,636		$	249,967,349
Affiliated investments, at value		128,000			3,423,677			740,212			58,723,254
Total investments, at value		569,228,507			95,999,911			1,418,135,848			308,690,603
Cash segregated as collateral		—			—			—			205,540
Foreign currencies, at value		—			—			—			5,669
Receivables:
Dividends		343,806			83,887			198,932			2,905,506
Foreign tax reclaims		—			158,545			—			935,464
Securities lending		—			11,859			—			32,662
Investments sold		—			—			—			6,314,533
Shares sold		—			—			—			3,257,637
Receivable for swaps		—			—			—			178,154
Unrealized appreciation on swap agreements		—			—			—			1,191,005
Other assets		1,036			704			2,671			1,068
Total Assets		569,573,349			96,254,906			1,418,337,451			323,717,841
Liabilities:
Due to custodian		50			76,720			483			—
Payables:
Collateral upon return of securities loaned		—			3,423,677			—			34,133,098
Investments purchased		—			—			—			2,857,309
Collateral upon receipt of securities in-kind		—			—			—			205,540
Payable for swaps		—			—			—			5,223
Unrealized depreciation on swap agreements		—			—			—			2,554
Open written options, at value		—			—			—			—
Accrued advisory fees		223,208			29,155			576,634			107,661
Accrued trustees’ and officer’s fees		24,756			21,261			58,380			34,104
Accrued expenses		175,845			65,022			632,122			229,026
Total Liabilities		423,859			3,615,835			1,267,619			37,574,515
Net Assets	$	569,149,490		$	92,639,071		$	1,417,069,832		$	286,143,326
Net Assets Consist of:
Shares of beneficial interest	$	518,747,260		$	133,501,195		$	1,541,299,030		$	377,734,271
Undistributed net investment income		168,740			770,616			(57,012	)		(270,688	)
Undistributed net realized gain (loss)		(26,209,243	)		(68,200,284	)		(343,358,602	)		(110,952,241	)
Net unrealized appreciation		76,442,733			26,567,544			219,186,416			19,631,984
Net Assets	$	569,149,490		$	92,639,071		$	1,417,069,832		$	286,143,326
Shares outstanding (unlimited amount authorized, $0.01 par value)		12,700,000			2,500,000			30,900,000			23,350,000
Net asset value	$	44.81		$	37.06		$	45.86		$	12.25
Market price	$	44.84		$	37.19		$	45.87		$	12.29
Unaffiliated investments, at cost	$	492,657,774		$	66,005,659		$	1,198,209,220		$	231,537,726
Affiliated investments, at cost	$	128,000		$	3,423,677		$	740,212		$	58,723,254
Total investments, at cost	$	492,785,774		$	69,429,336		$	1,198,949,432		$	290,260,980
Foreign currencies, at cost	$	—		$	—		$	—		$	5,680
Premium received on written options	$	—		$	—		$	—		$	—
(a) Includes securities on loan with an aggregate value of	$	—		$	3,261,447		$	—		$	32,909,942

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

50

PowerShares Golden Dragon China Portfolio (PGJ)			PowerShares S&P 500 BuyWrite Portfolio (PBP)			PowerShares S&P 500® Quality Portfolio (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	153,458,712		$	332,586,531		$	1,221,997,010		$	796,456,424		$	103,106,766		$	24,670,670
	11,927,213			216,218			—			488,990			26,570,835			1,687,076
	165,385,925			332,802,749			1,221,997,010			796,945,414			129,677,601			26,357,746
	—			—			—			—			—			—
	—			—			—			—			—			—
	1,477			313,086			1,881,869			890,516			24,909			26,007
	—			—			—			—			2,161			13,049
	60,968			—			—			—			209,643			2,769
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	873			—			1,896			1,563			743			636
	165,449,243			333,115,835			1,223,880,775			797,837,493			129,915,057			26,400,207
	—			151,487			1,009,902			—			—			—
	11,762,737			—			—			—			26,512,018			1,655,718
	—			3,077			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			5,168,475			—			—			—			—
	60,524			196,575			175,469			321,068			79,478			4,802
	36,179			—			30,617			92,470			47,846			17,914
	130,242			—			441,496			277,184			98,837			49,265
	11,989,682			5,519,614			1,657,484			690,722			26,738,179			1,727,699
$	153,459,561		$	327,596,221		$	1,222,223,291		$	797,146,771		$	103,176,878		$	24,672,508
$	428,924,521		$	309,059,641		$	1,181,990,226		$	1,201,110,314		$	1,237,172,282		$	55,786,866
	(1,760,763	)		352,899			3,336,890			1,241,766			(126,771	)		48,676
	(291,831,775	)		(25,053,208	)		(82,743,968	)		(592,482,827	)		(1,138,538,626	)		(36,265,317	)
	18,127,578			43,236,889			119,640,143			187,277,518			4,669,993			5,102,283
$	153,459,561		$	327,596,221		$	1,222,223,291		$	797,146,771		$	103,176,878		$	24,672,508
	4,300,000			14,750,000			44,250,000			29,850,000			24,750,000			950,000
$	35.69		$	22.21		$	27.62		$	26.71		$	4.17		$	25.97
$	35.69		$	22.23		$	27.63		$	26.70		$	4.17		$	25.96
$	135,331,134		$	287,749,195		$	1,102,356,867		$	609,178,906		$	98,436,773		$	19,568,387
$	11,927,213		$	234,393		$	—		$	488,990		$	26,570,835		$	1,687,076
$	147,258,347		$	287,983,588		$	1,102,356,867		$	609,667,896		$	125,007,608		$	21,255,463
$	—		$	—		$	—		$	—		$	—		$	—
$	—		$	3,586,203		$	—		$	—		$	—		$	—
$	11,416,985		$	—		$	—		$	—		$	24,767,863		$	1,615,003

51

Statements of Operations

For the year ended April 30, 2017

	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	$	8,120,583		$	1,939,769		$	18,171,243		$	11,875,957
Affiliated dividend income		1,189			271			4,569			110,047
Securities lending income		—			146,459			—			578,460
Foreign withholding tax		—			(146,080	)		(10,433	)		(427,186	)
Total Income		8,121,772			1,940,419			18,165,379			12,137,278
Expenses:
Advisory fees		1,949,134			390,028			7,061,302			1,371,701
Sub-licensing fees		233,894			58,505			1,412,262			274,341
Accounting & administration fees		72,098			36,827			258,270			50,557
Professional fees		29,472			31,197			46,045			59,220
Custodian & transfer agent fees		15,582			11,655			17,732			18,230
Trustees’ and officer’s fees		12,750			8,191			30,255			11,970
Other expenses		60,330			30,952			116,132			65,208
Total Expenses		2,373,260			567,355			8,941,998			1,851,227
Less: Waivers		(568	)		(40,189	)		(2,158	)		(49,771	)
Net Expenses		2,372,692			527,166			8,939,840			1,801,456
Net Investment Income		5,749,080			1,413,253			9,225,539			10,335,822
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(2,787,310	)		(86,938	)		(52,779,892	)		(16,035,964	)
In-kind redemptions		21,196,017			2,849,865			127,156,029			9,098,736
Swap agreements		—			—			—			4,824,587
Written options		—			—			—			—
Foreign currencies		—			(4,003	)		—			(151,316	)
Net realized gain (loss)		18,408,707			2,758,924			74,376,137			(2,263,957	)
Change in net unrealized appreciation (depreciation) on:
Investment securities		57,669,292			12,798,619			101,474,027			43,515,015
Swap agreements		—			—			—			2,414,847
Written options		—			—			—			—
Foreign currencies		—			(2,976	)		—			37,159
Net change in unrealized appreciation		57,669,292			12,795,643			101,474,027			45,967,021
Net realized and unrealized gain		76,077,999			15,554,567			175,850,164			43,703,064
Net increase in net assets resulting from operations	$	81,827,079		$	16,967,820		$	185,075,703		$	54,038,886

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

52

PowerShares Golden Dragon China Portfolio (PGJ)			PowerShares S&P 500 BuyWrite Portfolio (PBP)			PowerShares S&P 500® Quality Portfolio  (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	1,348,345		$	6,118,241		$	25,716,886		$	9,147,891		$	172,703		$	315,717
	952			7,399			1,844			2,280			598			83
	649,955			—			—			—			1,931,633			20,531
	(46,644	)		—			—			—			(38,975	)		(16,511	)
	1,952,608			6,125,640			25,718,730			9,150,171			2,065,959			319,820
	747,103			2,164,525			3,123,268			3,636,591			451,191			119,586
	149,421			—			500,741			545,495			90,238			23,939
	36,827			—			204,176			135,807			36,827			36,827
	31,879			—			56,838			32,847			26,380			25,558
	81,279			—			34,929			61,665			27,462			5,589
	9,707			—			23,200			18,472			8,770			7,665
	30,402			—			99,467			89,380			47,460			18,118
	1,086,618			2,164,525			4,042,619			4,520,257			688,328			237,282
	(41,123	)		(145	)		(920,354	)		(1,072	)		(56,926	)		(69,875	)
	1,045,495			2,164,380			3,122,265			4,519,185			631,402			167,407
	907,113			3,961,260			22,596,465			4,630,986			1,434,557			152,413
	(8,964,818	)		(1,735,671	)		(24,227,489	)		(13,015,932	)		(15,554,997	)		(3,007,030	)
	16,381,464			6,634,486			47,511,742			63,633,039			6,292,845			2,770,110
	—			—			—			—			—			—
	—			(11,157,158	)		—			—			—			—
	—			—			—			—			—			—
	7,416,646			(6,258,343	)		23,284,253			50,617,107			(9,262,152	)		(236,920	)
	15,838,871			38,078,379			92,945,130			58,560,808			10,171,102			3,812,896
	—			—			—			—			—			—
	—			(3,213,530	)		—			—			—			—
	—			—			—			—			—			—
	15,838,871			34,864,849			92,945,130			58,560,808			10,171,102			3,812,896
	23,255,517			28,606,506			116,229,383			109,177,915			908,950			3,575,976
$	24,162,630		$	32,567,766		$	138,825,848		$	113,808,901		$	2,343,507		$	3,728,389

53

Statements of Changes in Net Assets

For the years ended April 30, 2017 and 2016

	PowerShares Aerospace & Defense Portfolio (PPA)						PowerShares CleantechTM Portfolio (PZD)
	2017			2016			2017			2016
Operations:
Net investment income	$	5,749,080		$	4,037,803		$	1,413,253		$	544,679
Net realized gain (loss)		18,408,707			14,051,317			2,758,924			1,899,628
Net change in unrealized appreciation (depreciation)		57,669,292			(10,888,996	)		12,795,643			(2,560,492	)
Net increase (decrease) in net assets resulting from operations		81,827,079			7,200,124			16,967,820			(116,185	)
Distributions to Shareholders from:
Net investment income		(5,934,618	)		(3,934,869	)		(820,687	)		(576,797	)
Return of capital		—			—			—			—
Total distributions to shareholders		(5,934,618	)		(3,934,869	)		(820,687	)		(576,797	)
Shareholder Transactions:
Proceeds from shares sold		277,012,088			110,857,357			10,079,801			—
Value of shares repurchased		(82,489,845	)		(78,000,522	)		(5,053,738	)		(4,353,113	)
Net increase (decrease) in net assets resulting from shares transactions		194,522,243			32,856,835			5,026,063			(4,353,113	)
Increase (Decrease) in Net Assets		270,414,704			36,122,090			21,173,196			(5,046,095	)
Net Assets:
Beginning of year		298,734,786			262,612,696			71,465,875			76,511,970
End of year	$	569,149,490		$	298,734,786		$	92,639,071		$	71,465,875
Undistributed net investment income at end of year	$	168,740		$	354,278		$	770,616		$	182,053
Changes in Shares Outstanding:
Shares sold		6,600,000			3,150,000			300,000			—
Shares repurchased		(2,100,000	)		(2,300,000	)		(150,000	)		(150,000	)
Shares outstanding, beginning of year		8,200,000			7,350,000			2,350,000			2,500,000
Shares outstanding, end of year		12,700,000			8,200,000			2,500,000			2,350,000

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

54

PowerShares DWA Momentum Portfolio (PDP)						PowerShares Global Listed Private Equity Portfolio (PSP)						PowerShares Golden Dragon China Portfolio (PGJ)
2017			2016			2017			2016			2017			2016
$	9,225,539		$	5,251,402		$	10,335,822		$	22,814,219		$	907,113		$	326,329
	74,376,137			11,667,965			(2,263,957	)		(5,143,054	)		7,416,646			5,207,596
	101,474,027			(151,181,845	)		45,967,021			(60,132,281	)		15,838,871			(28,892,998	)
	185,075,703			(134,262,478	)		54,038,886			(42,461,116	)		24,162,630			(23,359,073	)
	(11,481,353	)		(5,095,535	)		(11,056,794	)		(22,461,093	)		(2,659,581	)		(604,271	)
	—			—			—			—			—			(172,929	)
	(11,481,353	)		(5,095,535	)		(11,056,794	)		(22,461,093	)		(2,659,581	)		(777,200	)
	671,193,039			825,218,576			28,301,549			27,886,163			16,535,584			31,179,637
	(865,740,010	)		(1,119,618,364	)		(111,064,844	)		(113,645,852	)		(47,827,306	)		(74,425,765	)
	(194,546,971	)		(294,399,788	)		(82,763,295	)		(85,759,689	)		(31,291,722	)		(43,246,128	)
	(20,952,621	)		(433,757,801	)		(39,781,203	)		(150,681,898	)		(9,788,673	)		(67,382,401	)
	1,438,022,453			1,871,780,254			325,924,529			476,606,427			163,248,234			230,630,635
$	1,417,069,832		$	1,438,022,453		$	286,143,326		$	325,924,529		$	153,459,561		$	163,248,234
$	(57,012	)	$	1,885,622		$	(270,688	)	$	(11,297,899	)	$	(1,760,763	)	$	(204,010	)
	15,600,000			19,600,000			2,500,000			2,400,000			500,000			950,000
	(20,200,000	)		(28,200,000	)		(10,350,000	)		(11,100,000	)		(1,550,000	)		(2,450,000	)
	35,500,000			44,100,000			31,200,000			39,900,000			5,350,000			6,850,000
	30,900,000			35,500,000			23,350,000			31,200,000			4,300,000			5,350,000

55

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2017 and 2016

	PowerShares S&P 500 BuyWrite Portfolio (PBP)						PowerShares S&P 500® Quality Portfolio (SPHQ)
	2017			2016			2017			2016
Operations:
Net investment income	$	3,961,260		$	4,832,789		$	22,596,465		$	11,619,554
Net realized gain (loss)		(6,258,343	)		48,746,477			23,284,253			95,897,301
Net change in unrealized appreciation (depreciation)		34,864,849			(52,833,355	)		92,945,130			(44,054,301	)
Net increase (decrease) in net assets resulting from operations		32,567,766			745,911			138,825,848			63,462,554
Distributions to Shareholders from:
Net investment income		(4,415,671	)		(5,351,930	)		(21,152,308	)		(10,888,763	)
Net realized gains		(2,349,199	)		(12,062,642	)		—			—
Total distributions to shareholders		(6,764,870	)		(17,414,572	)		(21,152,308	)		(10,888,763	)
Shareholder Transactions:
Proceeds from shares sold		44,370,524			113,491,101			761,004,994			927,220,372
Value of shares repurchased		(40,472,367	)		(203,197,290	)		(555,533,133	)		(614,252,831	)
Net increase (decrease) in net assets resulting from shares transactions		3,898,157			(89,706,189	)		205,471,861			312,967,541
Increase (Decrease) in Net Assets		29,701,053			(106,374,850	)		323,145,401			365,541,332
Net Assets:
Beginning of year		297,895,168			404,270,018			899,077,890			533,536,558
End of year	$	327,596,221		$	297,895,168		$	1,222,223,291		$	899,077,890
Undistributed net investment income at end of year	$	352,899		$	807,310		$	3,336,890		$	1,892,733
Changes in Shares Outstanding:
Shares sold		2,050,000			5,400,000			30,000,000			39,250,000
Shares repurchased		(1,950,000	)		(9,800,000	)		(22,150,000	)		(25,800,000	)
Shares outstanding, beginning of year		14,650,000			19,050,000			36,400,000			22,950,000
Shares outstanding, end of year		14,750,000			14,650,000			44,250,000			36,400,000

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

56

PowerShares Water Resources Portfolio (PHO)						PowerShares WilderHill Clean Energy Portfolio (PBW)						PowerShares WilderHill Progressive Energy Portfolio (PUW)
2017			2016			2017			2016			2017			2016
$	4,630,986		$	4,118,173		$	1,434,557		$	2,660,810		$	152,413		$	330,986
	50,617,107			(42,964,308	)		(9,262,152	)		(38,371,622	)		(236,920	)		(5,276,031	)
	58,560,808			(35,442,735	)		10,171,102			(2,472,953	)		3,812,896			(1,905,394	)
	113,808,901			(74,288,870	)		2,343,507			(38,183,765	)		3,728,389			(6,850,439	)
	(3,714,832	)		(5,414,109	)		(1,849,749	)		(2,346,665	)		(151,173	)		(367,721	)
	—			—			—			—			—			—
	(3,714,832	)		(5,414,109	)		(1,849,749	)		(2,346,665	)		(151,173	)		(367,721	)
	168,314,105			149,177,885			20,828,567			5,301,285			4,954,622			—
	(161,724,111	)		(244,171,049	)		(19,400,534	)		(7,305,808	)		(7,346,386	)		(3,464,537	)
	6,589,994			(94,993,164	)		1,428,033			(2,004,523	)		(2,391,764	)		(3,464,537	)
	116,684,063			(174,696,143	)		1,921,791			(42,534,953	)		1,185,452			(10,682,697	)
	680,462,708			855,158,851			101,255,087			143,790,040			23,487,056			34,169,753
$	797,146,771		$	680,462,708		$	103,176,878		$	101,255,087		$	24,672,508		$	23,487,056
$	1,241,766		$	325,612		$	(126,771	)	$	246,275		$	48,676		$	47,436
	6,750,000			6,650,000			5,200,000			1,250,000			200,000			—
	(6,500,000	)		(11,000,000	)		(5,100,000	)		(1,550,000	)		(300,000	)		(150,000	)
	29,600,000			33,950,000			24,650,000			24,950,000			1,050,000			1,200,000
	29,850,000			29,600,000			24,750,000			24,650,000			950,000			1,050,000

57

Financial Highlights

PowerShares Aerospace & Defense Portfolio (PPA)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	36.43		$	35.73		$	32.16		$	23.22		$	19.99
Net investment income(a)		0.60			0.53	(b)		0.32			0.33			0.44
Net realized and unrealized gain on investments		8.43			0.67			3.52			9.00			3.22
Total from investment operations		9.03			1.20			3.84			9.33			3.66
Distributions to shareholders from:
Net investment income		(0.65	)		(0.50	)		(0.27	)		(0.39	)		(0.43	)
Net asset value at end of year	$	44.81		$	36.43		$	35.73		$	32.16		$	23.22
Market price at end of year(c)	$	44.84		$	36.42		$	35.71		$	32.15		$	23.20
Net Asset Value Total Return(d)		25.06	%		3.43	%		11.99	%		40.52	%		18.69	%
Market Price Total Return(d)		25.18	%		3.46	%		11.96	%		40.59	%		18.65	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	569,149		$	298,735		$	262,613		$	98,086		$	47,607
Ratio to average net assets of:
Expenses, after Waivers		0.61	%		0.64	%		0.66	%		0.66	%		0.66	%
Expenses, prior to Waivers		0.61	%		0.64	%		0.66	%		0.69	%		0.74	%
Net investment income, after Waivers		1.47	%		1.50	%(b)		0.94	%		1.13	%		2.18	%
Portfolio turnover rate(e)		10	%		16	%		13	%		8	%		17	%

^(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 $0.33 and 0.93%, 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Cleantech^TM Portfolio (PZD)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	30.41		$	30.60		$	31.90		$	25.47		$	23.06
Net investment income(a)		0.59	(b)		0.22			0.27			0.17			0.26
Net realized and unrealized gain (loss) on investments		6.41			(0.18	)		(1.33	)		6.53			2.37
Total from investment operations		7.00			0.04			(1.06	)		6.70			2.63
Distributions to shareholders from:
Net investment income		(0.35	)		(0.23	)		(0.24	)		(0.27	)		(0.22	)
Net asset value at end of year	$	37.06		$	30.41		$	30.60		$	31.90		$	25.47
Market price at end of year(c)	$	37.19		$	30.29		$	30.54		$	31.92		$	25.36
Net Asset Value Total Return(d)		23.21	%		0.15	%		(3.36	)%		26.52	%		11.59	%
Market Price Total Return(d)		24.13	%		(0.05	)%		(3.61	)%		27.15	%		11.50	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	92,639		$	71,466		$	76,512		$	84,535		$	71,314
Ratio to average net assets of:
Expenses, after Waivers		0.68	%		0.67	%		0.67	%		0.67	%		0.67	%
Expenses, prior to Waivers		0.73	%		0.73	%		0.72	%		0.72	%		0.76	%
Net investment income, after Waivers		1.81	%(b)		0.76	%		0.89	%		0.58	%		1.16	%
Portfolio turnover rate(e)		24	%		25	%		22	%		24	%		22	%

^(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 $0.39 and 1.20%, 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 DWA Momentum Portfolio (PDP)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	40.51		$	42.44		$	36.96		$	31.77		$	27.86
Net investment income(a)		0.28			0.12			0.16			0.06			0.23
Net realized and unrealized gain (loss) on investments		5.41			(1.94	)		5.43			5.23			3.92
Total from investment operations		5.69			(1.82	)		5.59			5.29			4.15
Distributions to shareholders from:
Net investment income		(0.34	)		(0.11	)		(0.11	)		(0.10	)		(0.24	)
Net asset value at end of year	$	45.86		$	40.51		$	42.44		$	36.96		$	31.77
Market price at end of year(b)	$	45.87		$	40.50		$	42.43		$	36.93		$	31.76
Net Asset Value Total Return(c)		14.12	%		(4.29	)%		15.13	%		16.71	%		15.02	%
Market Price Total Return(c)		14.17	%		(4.29	)%		15.19	%		16.65	%		14.98	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,417,070		$	1,438,022		$	1,871,780		$	1,260,444		$	876,929
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.64	%		0.63	%(d)		0.64	%(d)		0.67	%(d)
Expenses, prior to Waivers		0.63	%		0.64	%		0.63	%(d)		0.64	%(d)		0.67	%(d)
Net investment income, after Waivers		0.65	%		0.29	%		0.39	%		0.17	%		0.82	%
Portfolio turnover rate(e)		68	%		100	%		73	%		75	%		66	%

^(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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 Global Listed Private Equity Portfolio (PSP)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	10.45		$	11.95		$	11.79		$	11.70		$	9.22
Net investment income(a)		0.41			0.60	(b)		0.35			0.38	(c)		0.24
Net realized and unrealized gain (loss) on investments		1.85			(1.53	)		0.41			1.38			2.64
Total from investment operations		2.26			(0.93	)		0.76			1.76			2.88
Distributions to shareholders from:
Net investment income		(0.46	)		(0.57	)		(0.60	)		(1.67	)		(0.40	)
Net asset value at end of year	$	12.25		$	10.45		$	11.95		$	11.79		$	11.70
Market price at end of year(d)	$	12.29		$	10.39		$	11.93		$	11.85		$	11.75
Net Asset Value Total Return(e)		22.21	%		(8.09	)%		6.79	%		16.20	%		31.87	%
Market Price Total Return(e)		23.32	%		(8.47	)%		6.09	%		16.31	%		32.00	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	286,143		$	325,925		$	476,606		$	583,601		$	408,492
Ratio to average net assets of:
Expenses, after Waivers(f)		0.66	%		0.64	%		0.64	%		0.69	%		0.70	%
Expenses, prior to Waivers(f)		0.67	%		0.66	%		0.66	%		0.70	%		0.70	%
Net investment income, after Waivers		3.77	%		5.51	%(b)		3.04	%		3.20	%(c)		2.47	%
Portfolio turnover rate(g)		39	%		35	%		30	%		53	%		53	%

^(a)  Based on average shares outstanding.

^(b)  Net Investment income per share and the ratio of net investment income to average net assets include a 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 $0.34 and 3.12%, respectively.

^(c)  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.

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

^(g)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 Golden Dragon China Portfolio (PGJ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	30.51		$	33.67		$	27.65		$	19.65		$	21.56
Net investment income(a)		0.19			0.06			0.21			0.21			0.34
Net realized and unrealized gain (loss) on investments		5.54			(3.10	)		6.06			8.08			(1.81	)
Total from investment operations		5.73			(3.04	)		6.27			8.29			(1.47	)
Distributions to shareholders from:
Net investment income		(0.55	)		(0.09	)		(0.25	)		(0.29	)		(0.44	)
Return of capital		—			(0.03	)		—			—			—
Total distributions		(0.55	)		(0.12	)		(0.25	)		(0.29	)		(0.44	)
Net asset value at end of year	$	35.69		$	30.51		$	33.67		$	27.65		$	19.65
Market price at end of year(b)	$	35.69		$	30.49		$	33.62		$	27.60		$	19.59
Net Asset Value Total Return(c)		19.23	%		(9.04	)%		22.79	%		42.28	%		(6.73	)%(d)
Market Price Total Return(c)		19.31	%		(8.97	)%		22.83	%		42.46	%		(6.70	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	153,460		$	163,248		$	230,631		$	258,569		$	181,744
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.73	%		0.70	%		0.70	%		0.70	%		0.75	%
Net investment income, after Waivers		0.61	%		0.18	%		0.68	%		0.75	%		1.78	%
Portfolio turnover rate(e)		30	%		47	%		25	%		37	%		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)  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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares S&P 500 BuyWrite Portfolio (PBP)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	20.33		$	21.22		$	21.32		$	20.83		$	20.60
Net investment income(a)		0.29			0.30			0.28			0.28			0.33
Net realized and unrealized gain (loss) on investments		2.10			(0.11	)		0.65			1.57			0.70
Total from investment operations		2.39			0.19			0.93			1.85			1.03
Distributions to shareholders from:
Net investment income		(0.33	)		(0.34	)		(0.86	)		(1.35	)		(0.65	)
Net realized gains		(0.18	)		(0.74	)		(0.17	)		(0.01	)		(0.15	)
Total distributions		(0.51	)		(1.08	)		(1.03	)		(1.36	)		(0.80	)
Net asset value at end of year	$	22.21		$	20.33		$	21.22		$	21.32		$	20.83
Market price at end of year(b)	$	22.23		$	20.29		$	21.22		$	21.35		$	20.83
Net Asset Value Total Return(c)		11.86	%		0.90	%		4.48	%		9.34	%		5.22	%
Market Price Total Return(c)		12.18	%		0.67	%		4.32	%		9.50	%		4.97	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	327,596		$	297,895		$	404,270		$	249,458		$	205,222
Ratio to average net assets of:
Expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		1.37	%		1.47	%		1.33	%		1.37	%		1.61	%
Portfolio turnover rate(d)		24	%		43	%		50	%		32	%		22	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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

Financial Highlights (continued)

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

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	24.70		$	23.25		$	20.90		$	17.87		$	15.33
Net investment income(a)		0.54			0.45			0.41			0.36			0.33
Net realized and unrealized gain on investments		2.84			1.46			2.33			3.03			2.52
Total from investment operations		3.38			1.91			2.74			3.39			2.85
Distributions to shareholders from:
Net investment income		(0.46	)		(0.46	)		(0.39	)		(0.36	)		(0.31	)
Net asset value at end of year	$	27.62		$	24.70		$	23.25		$	20.90		$	17.87
Market price at end of year(b)	$	27.63		$	24.70		$	23.24		$	20.89		$	17.87
Net Asset Value Total Return(c)		13.84	%		8.39	%		13.17	%		19.15	%		18.86	%
Market Price Total Return(c)		13.88	%		8.43	%		13.18	%		19.09	%		18.86	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,222,223		$	899,078		$	533,537		$	365,686		$	228,736
Ratio to average net assets of:
Expenses, after Waivers		0.29	%		0.29	%		0.29	%		0.29	%		0.39	%
Expenses, prior to Waivers		0.38	%		0.38	%		0.38	%		0.39	%		0.55	%
Net investment income, after Waivers		2.10	%		1.92	%		1.83	%		1.87	%		2.06	%
Portfolio turnover rate(d)		49	%		102	%		18	%		13	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Water Resources Portfolio (PHO)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	22.99		$	25.19		$	25.92		$	22.06		$	18.78
Net investment income(a)		0.16			0.13			0.14			0.16			0.16
Net realized and unrealized gain (loss) on investments		3.68			(2.17	)		(0.72	)		3.83			3.28
Total from investment operations		3.84			(2.04	)		(0.58	)		3.99			3.44
Distributions to shareholders from:
Net investment income		(0.12	)		(0.16	)		(0.15	)		(0.13	)		(0.16	)
Net asset value at end of year	$	26.71		$	22.99		$	25.19		$	25.92		$	22.06
Market price at end of year(b)	$	26.70		$	22.98		$	25.17		$	25.91		$	22.05
Net Asset Value Total Return(c)		16.73	%		(8.09	)%		(2.25	)%		18.16	%		18.48	%
Market Price Total Return(c)		16.74	%		(8.06	)%		(2.29	)%		18.17	%		18.49	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	797,147		$	680,463		$	855,159		$	990,247		$	877,064
Ratio to average net assets of:
Expenses, after Waivers		0.62	%		0.61	%		0.61	%		0.61	%		0.62	%
Expenses, prior to Waivers		0.62	%		0.61	%		0.61	%		0.61	%		0.62	%
Net investment income, after Waivers		0.64	%		0.58	%		0.56	%		0.66	%		0.81	%
Portfolio turnover rate(d)		44	%		89	%		25	%		34	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

62

Financial Highlights (continued)

PowerShares WilderHill Clean Energy Portfolio (PBW)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	4.11		$	5.76		$	6.59		$	4.79		$	5.08
Net investment income(a)		0.06			0.11			0.14			0.10			0.11
Net realized and unrealized gain (loss) on investments		0.08			(1.66	)		(0.82	)		1.85			(0.26	)
Total from investment operations		0.14			(1.55	)		(0.68	)		1.95			(0.15	)
Distributions to shareholders from:
Net investment income		(0.08	)		(0.10	)		(0.15	)		(0.15	)		(0.14	)
Net asset value at end of year	$	4.17		$	4.11		$	5.76		$	6.59		$	4.79
Market price at end of year(b)	$	4.17		$	4.11		$	5.76		$	6.59		$	4.79
Net Asset Value Total Return(c)		3.60	%		(27.19	)%		(10.36	)%		41.23	%		(2.64	)%
Market Price Total Return(c)		3.60	%		(27.19	)%		(10.36	)%		41.23	%		(2.65	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	103,177		$	101,255		$	143,790		$	218,101		$	142,494
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.76	%		0.76	%		0.72	%		0.70	%		0.70	%
Net investment income, after Waivers		1.59	%		2.37	%		2.39	%		1.55	%		2.48	%
Portfolio turnover rate(d)		59	%		60	%		48	%		57	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares WilderHill Progressive Energy Portfolio (PUW)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	22.37		$	28.47		$	32.73		$	27.56		$	25.87
Net investment income(a)		0.15			0.30			0.50			0.24			0.35
Net realized and unrealized gain (loss) on investments		3.60			(6.07	)		(4.27	)		5.27			1.54
Total from investment operations		3.75			(5.77	)		(3.77	)		5.51			1.89
Distributions to shareholders from:
Net investment income		(0.15	)		(0.33	)		(0.49	)		(0.34	)		(0.20	)
Net asset value at end of year	$	25.97		$	22.37		$	28.47		$	32.73		$	27.56
Market price at end of year(b)	$	25.96		$	22.36		$	28.47		$	32.71		$	27.55
Net Asset Value Total Return(c)		16.84	%		(20.29	)%		(11.59	)%		20.24	%		7.38	%
Market Price Total Return(c)		16.85	%		(20.32	)%		(11.54	)%		20.21	%		7.38	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	24,673		$	23,487		$	34,170		$	45,819		$	38,584
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.99	%		0.99	%		0.86	%		0.84	%		0.87	%
Net investment income, after Waivers		0.64	%		1.34	%		1.69	%		0.78	%		1.40	%
Portfolio turnover rate(d)		39	%		40	%		41	%		37	%		32	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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

April 30, 2017

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2017, 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® Quality Portfolio (SPHQ)	“S&P 500® 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., except for Shares of DWA Momentum Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio, which are listed and traded on The NASDAQ Stock Market LLC. Prior to December 7, 2016, Shares of DWA Momentum Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio were listed and traded on NYSE Arca, Inc.

The market price of each Share 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
Aerospace & Defense Portfolio	SPADETM Defense Index
CleantechTM Portfolio	The Cleantech IndexTM
DWA Momentum Portfolio	Dorsey Wright® Technical Leaders 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 BuyWriteSM Index
S&P 500® Quality Portfolio	S&P 500® Quality 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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.

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A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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 (“OTC”) 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 asked 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 asked 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. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

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

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

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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 Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in 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 will 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.

Momentum Investing Risk. DWA 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.

Non-Diversified Fund Risk. Aerospace & Defense Portfolio, Golden Dragon China Portfolio and Water Resources 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.

Small- and Mid-Capitalization Company Risk. For each Fund (except S&P 500 BuyWrite Portfolio, S&P 500^® Quality Portfolio and WilderHill Progressive Energy Portfolio), investing in securities of small- and mid-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 mid-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 Securities Risk. For Cleantech^TM Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio, since their Underlying Indexes may include ADRs and/or 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

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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 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 accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

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F. 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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, acquired fund fees and expenses, if any, and extraordinary expenses.

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, acquired fund fees and expenses, if any, litigation expenses and other 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.

G. 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.

H. Accounting Estimates

The preparation of the financial statements in accordance with 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.

I. Option Contracts Written

S&P 500 BuyWrite Portfolio engaged 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.

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J. Swap Agreements

Global Listed Private Equity Portfolio may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“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 cash or liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statements of Assets and Liabilities. 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.

K. Securities Lending

During the fiscal year ended April 30, 2017, 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% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is generally invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each Fund (except for S&P 500 BuyWrite Portfolio and S&P 500^® 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^® Quality Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.

69

As compensation for its services, S&P 500 BuyWrite Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.75% 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 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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except S&P 500 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^® 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, 2018. The Expense Cap (including sub-licensing fees) for S&P 500^® Quality Portfolio is 0.29% of the Fund’s average daily net assets per year through at least August 31, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Aerospace & Defense Portfolio, DWA Momentum Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio.

Further, through August 31, 2019, 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. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Aerospace & Defense Portfolio	$	568
CleantechTM Portfolio		40,189
DWA Momentum Portfolio		2,158
Global Listed Private Equity Portfolio		49,771
Golden Dragon China Portfolio		41,123
S&P 500 BuyWrite Portfolio		145
S&P 500® Quality Portfolio		920,354
Water Resources Portfolio		1,072
WilderHill Clean Energy Portfolio		56,926
WilderHill Progressive Energy Portfolio		69,875

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.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2017 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/18		04/30/19		04/30/20
CleantechTM Portfolio	$	117,852	$	35,420	$	42,340	$	40,092
Golden Dragon China Portfolio		49,476		—		8,803		40,673
S&P 500® Quality Portfolio		1,835,067		392,147		523,569		919,351
WilderHill Clean Energy Portfolio		153,896		34,402		62,834		56,660
WilderHill Progressive Energy Portfolio		202,213		60,563		71,809		69,841

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

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

Fund	Licensor
Aerospace & Defense Portfolio	SPADE Indexes
CleantechTM Portfolio	Cleantech Indices LLC
DWA Momentum Portfolio	Dorsey Wright & Associates, LLC
Global Listed Private Equity Portfolio	Red Rocks Capital, LLC
Golden Dragon China Portfolio	Nasdaq, Inc.
S&P 500 BuyWrite Portfolio	S&P Dow Jones Indices LLC
S&P 500® Quality Portfolio	S&P Dow Jones Indices LLC
Water Resources Portfolio	Nasdaq, Inc.
WilderHill Clean Energy Portfolio	WilderHill
WilderHill Progressive Energy Portfolio	Progressive Energy Index 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 (except for 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

The 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 S&P 500 BuyWrite Portfolio’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2017.

S&P 500 BuyWrite Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Invesco Ltd.	$	214,744	$	40,571	$	(49,477	)	$	20,725	$	(10,345	)	$	216,218	$	7,134

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 April 30, 2017, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The value 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.

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	Investments in Securities
	Level 1		Level 2		Level 3		Total
Global Listed Private Equity Portfolio
Equity Securities	$	308,690,603	$	—	$	—	$	308,690,603
Swap Agreements*		—		1,188,451		—		1,188,451
Total Investments	$	308,690,603	$	1,188,451	$	—	$	309,879,054
Golden Dragon China Portfolio
Equity Securities	$	165,385,925	$	—	$	0	$	165,385,925

* Unrealized appreciation.

Note 6. Derivative Investments

The Funds may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Funds do not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statements of Assets and Liabilities.

Value of Derivative Investments at Fiscal Year-End

The table below summarizes the value of each Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2017:

	Value
	Global Listed Private Equity Portfolio			S&P 500 BuyWrite Portfolio
Derivative Assets	Equity Risk
Unrealized appreciation on swap agreements—OTC	$	1,191,005		$	—
Derivatives not subject to master netting agreements		—			—
Total Derivative Assets subject to master netting agreements	$	1,191,005		$	—
Derivative Liabilities	Equity Risk
Options written, at value—Exchange-Traded	$	—		$	(5,168,475	)
Unrealized depreciation on swap agreements—OTC		(2,554	)		—
Total Derivative Liabilities		(2,554	)		(5,168,475	)
Derivatives not subject to master netting agreements		—			5,168,475
Total Derivative Liabilities subject to master netting agreements	$	(2,554	)	$	—

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2017:

Global Listed Private Equity Portfolio

	Financial Derivative Assets		Financial Derivative Liabilities			Net value of derivatives		Collateral (Received)/Pledged					Net amount
Counterparty	Swap agreements		Swap agreements					Non-Cash		Cash
Citibank, N.A.	$	1,335,465	$	(2,601	)	$	1,332,864	$	—	$	(1,080,000	)	$	252,864
Morgan Stanley Capital Services LLC		33,694		(5,176	)		28,518		—		—			28,518
Total	$	1,369,159	$	(7,777	)	$	1,361,382	$	—	$	(1,080,000	)	$	281,382

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Effect of Derivative Investments for the Fiscal Year Ended April 30, 2017

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

	Location of Gain (Loss) on Statements of Operations
	Global Listed Private Equity Portfolio		S&P 500 BuyWrite Portfolio
	Equity Risk
Realized Gain (Loss):
Options written	$	—	$	(11,157,158	)
Swap agreements		4,824,587		—
Change in Net Unrealized Appreciation (Depreciation):
Options written		—		(3,213,530	)
Swap agreements		2,414,847		—
Total	$	7,239,434	$	(14,370,688	)

The table below summarizes the average notional value of options written outstanding and swap agreements during the year.

	Average Notional Value
	Global Listed Private Equity Portfolio		S&P 500 BuyWrite Portfolio
Options written	$	—	$	292,151,250
Swap agreements		27,176,811		—

Note 7. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2017 and 2016:

	2017						2016
	Ordinary Income		Long-Term Capital Gains		Return of Capital		Ordinary Income		Long-Term Capital Gains		Return of Capital
Aerospace & Defense Portfolio	$	5,934,618	$	—	$	—	$	3,934,869	$	—	$	—
CleantechTM Portfolio		820,687		—		—		576,797		—		—
DWA Momentum Portfolio		11,481,353		—		—		5,095,535		—		—
Global Listed Private Equity Portfolio		11,056,794		—		—		22,461,093		—		—
Golden Dragon China Portfolio		2,659,581		—		—		604,271		—		172,929
S&P 500 BuyWrite Portfolio		6,764,870		—		—		16,484,756		929,816		—
S&P 500® Quality Portfolio		21,152,308		—		—		10,888,763		—		—
Water Resources Portfolio		3,714,832		—		—		5,414,109		—		—
WilderHill Clean Energy Portfolio		1,849,749		—		—		2,346,665		—		—
WilderHill Progressive Energy Portfolio		151,173		—		—		367,721		—		—

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Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)— Investment Securities			Net Unrealized Appreciation (Depreciation)— Other Investments			Capital Loss Carryforwards			Late-Year Ordinary/ Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Aerospace & Defense Portfolio	$	192,476	$	(23,736	)	$	72,949,316		$	—		$	(22,708,088	)	$	(7,738	)	$	518,747,260	$	569,149,490
CleantechTM Portfolio		791,024		(20,408	)		24,926,270			(3,031	)		(66,008,424	)		(547,555	)		133,501,195		92,639,071
DWA Momentum Portfolio		—		(57,012	)		215,564,662			—			(305,862,382	)		(33,874,466	)		1,541,299,030		1,417,069,832
Global Listed Private Equity Portfolio		12,138,710		(32,265	)		(3,185,693	)		13,910			(100,107,819	)		(417,788	)		377,734,271		286,143,326
Golden Dragon China Portfolio		51,961		(35,023	)		12,983,615			—			(284,080,835	)		(4,384,678	)		428,924,521		153,459,561
S&P 500 BuyWrite Portfolio		18,536,580		—			—			—			—			—			309,059,641		327,596,221
S&P 500® Quality Portfolio		3,365,784		(28,894	)		114,225,803			—			(67,201,871	)		(10,127,757	)		1,181,990,226		1,222,223,291
Water Resources Portfolio		1,331,846		(90,080	)		180,108,929			—			(582,463,437	)		(2,850,801	)		1,201,110,314		797,146,771
WilderHill Clean Energy Portfolio		444,139		(46,988	)		(3,707,456	)		—			(1,127,624,136	)		(3,060,963	)		1,237,172,282		103,176,878
WilderHill Progressive Energy Portfolio		65,799		(17,123	)		4,364,198			—			(34,924,460	)		(602,772	)		55,786,866		24,672,508

* Includes net capital losses incurred after October 31 (“Post-October Capital losses”) and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year (“Late-Year Ordinary Losses”), that are deemed to arise on the first business day of each Fund’s next taxable year.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards 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 table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2017.

					Post-effective/no expiration
	2018		2019		Short-Term		Long-Term		Total*		Expired
Aerospace & Defense Portfolio	$	6,428,813	$	9,464,875	$	710,644	$	6,103,756	$	22,708,088	$	7,470,897
CleantechTM Portfolio		25,186,026		12,098,616		1,605,720		27,118,062		66,008,424		14,341,075
DWA Momentum Portfolio		60,219,842		10,496,532		235,146,008		—		305,862,382		92,771,702
Global Listed Private Equity Portfolio		47,149,399		—		17,689,457		35,268,963		100,107,819		7,687,052
Golden Dragon China Portfolio		74,072,167		35,483,714		19,677,953		154,847,001		284,080,835		22,836,421
S&P 500 BuyWrite Portfolio		—		—		—		—		—		—
S&P 500® Quality Portfolio		42,466,537		9,869,908		7,893,621		6,971,805		67,201,871		37,241,965
Water Resources Portfolio		265,948,030		33,978,301		159,822,794		122,714,312		582,463,437		93,208,162
WilderHill Clean Energy Portfolio		460,657,845		241,008,862		82,963,825		342,993,604		1,127,624,136		261,712,498
WilderHill Progressive Energy Portfolio		12,433,887		2,282,887		6,043,369		14,164,317		34,924,460		8,319,827

* 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.

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Note 8. Investment Transactions

For the fiscal year ended April 30, 2017, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
Aerospace & Defense Portfolio	$	40,765,171	$	41,166,282
CleantechTM Portfolio		19,422,859		18,604,788
DWA Momentum Portfolio		988,430,779		990,321,874
Global Listed Private Equity Portfolio		96,278,823		100,525,915
Golden Dragon China Portfolio		45,129,761		45,958,856
S&P 500 BuyWrite Portfolio		70,355,800		83,599,547
S&P 500® Quality Portfolio		532,489,792		526,529,110
Water Resources Portfolio		323,949,295		321,076,743
WilderHill Clean Energy Portfolio		54,676,240		54,018,514
WilderHill Progressive Energy Portfolio		10,428,975		9,344,675

For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Aerospace & Defense Portfolio	$	276,950,935	$	82,041,648
CleantechTM Portfolio		10,079,558		5,080,103
DWA Momentum Portfolio		670,959,703		864,526,897
Global Listed Private Equity Portfolio		24,488,291		95,895,451
Golden Dragon China Portfolio		16,537,334		48,657,673
S&P 500 BuyWrite Portfolio		44,588,153		41,378,674
S&P 500® Quality Portfolio		760,507,924		558,926,611
Water Resources Portfolio		168,295,074		163,200,200
WilderHill Clean Energy Portfolio		20,411,893		19,374,469
WilderHill Progressive Energy Portfolio		4,952,100		8,330,807

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

At April 30, 2017, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)			Cost
Aerospace & Defense Portfolio	$	79,770,546	$	(6,821,230	)	$	72,949,316		$	496,279,191
CleantechTM Portfolio		28,989,889		(4,063,619	)		24,926,270			71,073,641
DWA Momentum Portfolio		228,259,643		(12,694,981	)		215,564,662			1,202,571,186
Global Listed Private Equity Portfolio		27,419,345		(30,605,038	)		(3,185,693	)		311,876,296
Golden Dragon China Portfolio		33,281,054		(20,297,439	)		12,983,615			152,402,310
S&P 500 BuyWrite Portfolio		—		—			—			332,802,749
S&P 500® Quality Portfolio		135,873,198		(21,647,395	)		114,225,803			1,107,771,207
Water Resources Portfolio		182,390,544		(2,281,615	)		180,108,929			616,836,485
WilderHill Clean Energy Portfolio		12,602,129		(16,309,585	)		(3,707,456	)		133,385,057
WilderHill Progressive Energy Portfolio		5,674,211		(1,310,013	)		4,364,198			21,993,548

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Note 9. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, amounts were reclassified between undistributed net investment income, undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2017, the reclassifications were as follows:

	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Aerospace & Defense Portfolio	$	—		$	(12,808,530	)	$	12,808,530
CleantechTM Portfolio		(4,003	)		11,524,578			(11,520,575	)
DWA Momentum Portfolio		313,180			(25,108,126	)		24,794,946
Global Listed Private Equity Portfolio		11,748,183			(1,356,907	)		(10,391,276	)
Golden Dragon China Portfolio		195,715			8,253,942			(8,449,657	)
S&P 500 BuyWrite Portfolio		—			—			—
S&P 500® Quality Portfolio		—			(4,989,642	)		4,989,642
Water Resources Portfolio		—			32,447,748			(32,447,748	)
WilderHill Clean Energy Portfolio		42,146			257,824,129			(257,866,275	)
WilderHill Progressive Energy Portfolio		—			5,770,372			(5,770,372	)

Note 10. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, and an Officer of the Trust. 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” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated 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 11. 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 principally 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.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

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

Note 12. 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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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.

76

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech^™ Portfolio, PowerShares DWA Momentum Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Golden Dragon China Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500^® Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech^™ Portfolio, PowerShares DWA Momentum Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Golden Dragon China Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500^® Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 23, 2017

77

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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2017.

In addition to the fees and expenses which the PowerShares Global Listed Private Equity 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 the Portfolio bears indirectly is included in the Portfolio’s total return.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		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	$	1,174.40		0.61	%	$	3.29
Hypothetical (5% return before expenses)		1,000.00		1,021.77		0.61			3.06
PowerShares CleantechTM Portfolio (PZD)
Actual		1,000.00		1,180.20		0.68			3.68
Hypothetical (5% return before expenses)		1,000.00		1,021.42		0.68			3.41
PowerShares DWA Momentum Portfolio (PDP)
Actual		1,000.00		1,119.00		0.63			3.31
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Global Listed Private Equity Portfolio (PSP)
Actual		1,000.00		1,175.90		0.65			3.51
Hypothetical (5% return before expenses)		1,000.00		1,021.57		0.65			3.26

78

Fees and Expenses (continued)

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		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	$	1,123.70		0.70	%	$	3.69
Hypothetical (5% return before expenses)		1,000.00		1,021.32		0.70			3.51
PowerShares S&P 500 BuyWrite Portfolio (PBP)
Actual		1,000.00		1,070.90		0.75			3.85
Hypothetical (5% return before expenses)		1,000.00		1,021.08		0.75			3.76
PowerShares S&P 500® High Quality Portfolio (SPHQ)
Actual		1,000.00		1,125.40		0.29			1.53
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares Water Resources Portfolio (PHO)
Actual		1,000.00		1,133.80		0.63			3.33
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares WilderHill Clean Energy Portfolio (PBW)
Actual		1,000.00		1,145.60		0.70			3.72
Hypothetical (5% return before expenses)		1,000.00		1,021.32		0.70			3.51
PowerShares WilderHill Progressive Energy Portfolio (PUW)
Actual		1,000.00		1,115.10		0.70			3.67
Hypothetical (5% return before expenses)		1,000.00		1,021.32		0.70			3.51

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

79

Tax Information

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

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2017:

	Qualified Dividend Income*			Corporate Dividends Received Deduction*
PowerShares Aerospace & Defense Portfolio		100	%		100	%
PowerShares CleantechTM Portfolio		100	%		29	%
PowerShares DWA Momentum Portfolio		100	%		100	%
PowerShares Global Listed Private Equity Portfolio		54	%		18	%
PowerShares Golden Dragon China Portfolio		50	%		0	%
PowerShares S&P 500 BuyWrite Portfolio		0	%		0	%
PowerShares S&P 500® Quality Portfolio		100	%		100	%
PowerShares Water Resources Portfolio		100	%		100	%
PowerShares WilderHill Clean Energy Portfolio		14	%		8	%
PowerShares WilderHill Progressive Energy Portfolio		91	%		72	%

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

80

Trustees and Officers

The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and Trustee since 2003	Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).	135	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2010	Assistant Professor of Business, Trinity Christian College (2010-2016); formerly Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank.	135	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	135	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

81

Trustees and Officers (continued)

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	135	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

82

Trustees and Officers (continued)

The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Unaffiliated Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex*** Overseen by Unaffiliated Trustee	Other Directorships Held by Unaffiliated Trustee During the Past 5 Years
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee**	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	135	None

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

** Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee.

*** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

83

Trustees and Officers (continued)

The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Interested Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Interested Trustee	Other Directorships Held by Interested Trustee During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP.	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

84

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer and Principal Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chief Compliance Officer	Since 2017	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2012	Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005).

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

85

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), Invesco PowerShares Capital Management LLC (2010-Present); Manager and Assistant Secretary, Invesco Indexing LLC (2017-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2011-Present); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.

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

86

Board Considerations Regarding Continuation of Investment

Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2016, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable

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Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

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

● 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth Portfolio); and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, were -0.06%, -0.19% and -0.62%, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio).

The Trustees also noted that the Adviser has agreed to waive a portion of its contractual advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2018, as set forth below:

● 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

● 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio;

● 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® Quality Portfolio;

88

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

● 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio			X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X

89

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X		X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio			X
PowerShares International Dividend AchieversTM Portfolio	X	N/A	X
PowerShares S&P 500® Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the contractual advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X

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Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X	X	X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio		X	X
PowerShares International Dividend AchieversTM Portfolio		N/A	X
PowerShares S&P 500® Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X

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Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted those Funds for which license fees are included in the Funds’ Expense Caps.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund’s Expense Cap) were reasonable and appropriate in light of the services provided.

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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

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

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

92

Board Considerations Regarding Continuation of Investment

Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for PowerShares NASDAQ Internet Portfolio and PowerShares S&P 500 BuyWrite Portfolio (each, a “Fund” and together, the “Funds”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds.

The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year and since-inception (June 12, 2008 for PowerShares NASDAQ Internet Portfolio and December 20, 2007 for PowerShares S&P 500 BuyWrite Portfolio) periods ended December 31, 2016, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between the Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual unitary advisory fee is 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other operating expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

The Trustees noted that the Adviser represented that it does not serve as an investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio’s net expense ratio was higher than the median net expense ratios of its ETF peer funds and open-end index peer funds, but was lower than the median net expense ratio of its open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio’s net expense ratio was lower than the median net expense ratios of its ETF peer funds, open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund’s advisory fee was reasonable because of the nature of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

93

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

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

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

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

94

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.powershares.com.

P-PS-AR-4
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515
powershares.com    800 983 0903		@PowerShares

April 30, 2017

2017 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

The Market Environment	3
Manager’s Analysis	4
Dividend Income Portfolios
Schedules of Investments
PowerShares BuyBack AchieversTM Portfolio (PKW)	16
PowerShares Dividend AchieversTM Portfolio (PFM)	19
PowerShares Financial Preferred Portfolio (PGF)	22
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)	24
PowerShares International Dividend AchieversTM Portfolio (PID)	26
Statements of Assets and Liabilities	28
Statements of Operations	29
Statements of Changes in Net Assets	30
Financial Highlights	32
Notes to Financial Statements	35
Report of Independent Registered Public Accounting Firm	45
Fees and Expenses	46
Tax Information	47
Trustees & Officers	48
Board Considerations Regarding Continuation of Investment Advisory Agreement	54

2

The Market Environment

US Equity

During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.

While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.

Global Equity

The fiscal year ended April 30, 2017, began on a negative note, with global equity investors concerned about economic weakness in China, falling oil prices and uncertainty over the US Federal Reserve’s (the “Fed”) monetary policy. Central banks, including the Fed, the European Central Bank and the Bank of Japan, soothed investors’ nerves throughout the reporting period with accommodative monetary policies and dovish rhetoric. Other factors contributing to investor sentiment included rebounding oil prices and, in the US, generally positive economic data.

In June 2016, the decision by UK voters to leave the European Union caused global markets to decline sharply, but only briefly. The outcome of the November US presidential election caused US stocks, particularly in the health care and financials sector, to rally. However, non-US equities, particularly emerging market equities, traded lower due to currency weakness and the potential for a less favorable trade environment. Also in November, OPEC agreed to cut production for the first time in eight years; the agreement helped support higher oil prices and energy stocks.

Global equity markets began calendar 2017 with a broad rally that marked the best first quarter for equities since 2013. Volatility was largely absent, and emerging market equities posted double-digit gains in the quarter. Improved consumer confidence and eurozone employment data fueled positive market sentiment, while investors generally shrugged off Fed interest rate hikes in

December 2016 and March 2017. For the reporting period as a whole, US equities outperformed non-US equites, and emerging markets outperformed their developed-market counterparts (excluding the US)—a reversal from previous years.

3

PKW	Manager’s Analysis
	PowerShares BuyBack AchieversTM Portfolio (PKW)

As an index fund, the PowerShares BuyBack Achievers^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US BuyBack Achievers^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes common stocks in the Index pursuant to a proprietary selection methodology that identifies a universe of “BuyBack Achievers^TM”. To qualify for the universe of “BuyBack Achievers^TM,” an issuer must have effected a net reduction in shares outstanding of 5% or more in the past 12 months. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 15.96%. On a net asset value (“NAV”) basis, the Fund returned 15.92%. During the same time period, the Index returned 16.68%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 17.92%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad U.S. equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. stock market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified market capitalization weighting methodology and stock selection methodology based on stock buybacks, whereas the Benchmark Index selects and weights stocks based on market capitalization and does not have a buyback methodology.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the consumer discretionary sector.

For the fiscal year ended April 30, 2017, the industrials sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the utilities and real estate sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Boeing Co. (The), an industrials company (portfolio average weight of 4.63%), and Applied Materials, Inc., an information technology company (portfolio average weight of 1.64%). Positions that detracted most significantly from the Fund’s return included Express Scripts Holding Co., a health care company (portfolio average weight of 2.25%), and Target Corp., a consumer discretionary company (portfolio average weight of 0.37%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Industrials	25.3
Financials	24.5
Consumer Discretionary	24.2
Information Technology	12.7
Health Care	8.5
Consumer Staples	2.6
Energy	1.4
Real Estate	0.5
Materials	0.2
Telecommunication Services	0.1
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
McDonald’s Corp.	5.3
Boeing Co. (The)	5.2
General Electric Co.	4.8
United Technologies Corp.	4.4
Gilead Sciences, Inc.	4.1
Goldman Sachs Group, Inc. (The)	4.1
American Express Co.	3.3
American International Group, Inc.	2.7
Applied Materials, Inc.	2.0
Capital One Financial Corp.	1.8
Total	37.7

* Excluding money market fund holdings.

4

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
NASDAQ US BuyBack Achievers™ Index		16.68	%		8.38	%		27.30	%		14.22	%		94.40	%		9.06	%		138.14	%		9.19	%		148.74	%
S&P 500® Index		17.92			10.47			34.83			13.68			89.81			7.15			99.55			7.38			109.09
Fund
NAV Return		15.92			7.69			24.90			13.45			87.95			8.30			121.91			8.42			131.08
Market Price Return		15.96			7.69			24.88			13.45			87.92			8.26			121.12			8.40			130.68

Fund Inception: December 20, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The

returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

5

PFM	Manager’s Analysis
	PowerShares Dividend AchieversTM Portfolio (PFM)

As an index fund, the PowerShares Dividend Achievers^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US Broad Dividend Achievers^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes common stock in the Index pursuant to a proprietary selection methodology that identifies a universe of “Dividend Achievers^TM.” To qualify for the universe of “Dividend Achievers,^TM” an issuer must have increased its annual regular cash dividend payments for at least each of its last ten or more calendar or fiscal years. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 12.94%. On a net asset value (“NAV”) basis, the Fund returned 12.80%. During the same time period, the Index returned 13.45%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period

During this same time period, the Russell 3000^® Value Index (the “Benchmark Index”) returned 17.33%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,050 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the value segment of the U.S. equity universe.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified market capitalization weighting methodology and stock selection methodology based on dividend-paying stocks, whereas the Benchmark Index selects and weights stocks based on market capitalization and focuses on stocks of companies with lower price-to-book and lower forecasted growth values.

Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the financials sector.

For the fiscal year ended April 30, 2017, the industrials sector contributed most significantly to the Fund’s return, followed by the information technology and consumer staples sectors, respectively. There were no detracting sectors.

Positions that contributed most significantly to the Fund’s return included Microsoft Corp., an information technology company (portfolio average weight of 4.05%), and Johnson & Johnson, a health care company (portfolio average weight of 4.06%). Positions that detracted most significantly from the Fund’s return included CVS Health Corp., a consumer staples company (portfolio average weight of 1.35%), and Target Corp., a consumer discretionary company (portfolio average weight of 0.57%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Consumer Staples	22.5
Industrials	15.5
Information Technology	11.9
Energy	9.7
Health Care	9.3
Consumer Discretionary	7.4
Utilities	6.8
Telecommunication Services	6.2
Financials	5.6
Materials	3.2
Real Estate	1.9
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Microsoft Corp.	4.3
Johnson & Johnson	4.0
Exxon Mobil Corp.	4.0
AT&T, Inc.	3.5
Wal-Mart Stores, Inc.	3.3
Procter & Gamble Co. (The)	3.2
Chevron Corp.	2.9
Verizon Communications, Inc.	2.7
Coca-Cola Co. (The)	2.7
PepsiCo, Inc.	2.3
Total	32.9

* Excluding money market fund holdings.

6

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
NASDAQ US Broad Dividend Achievers™ Index		13.45	%		8.31	%		27.05	%		11.71	%		73.94	%		6.12	%		81.16	%		7.15	%		123.08	%
Russell 3000® Value Index		17.33			8.29			26.98			13.28			86.56			5.57			71.88			7.16			123.53
Fund
NAV Return		12.80			7.71			24.96			11.09			69.21			5.51			71.04			6.51			108.02
Market Price Return		12.94			7.75			25.12			11.13			69.53			5.51			71.05			6.52			108.26

Fund Inception: September 15, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.55%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The

returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

7

PGF	Manager’s Analysis
	PowerShares Financial Preferred Portfolio (PGF)

As an index fund, the PowerShares Financial Preferred Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Wells Fargo^® Hybrid and Preferred Securities Financial Index (the “Index”). The Fund generally will invest at least 90% of its total assets in preferred securities of financial institutions that comprise the Index. The Index is a market capitalization weighted index designed to track the performance of preferred securities and securities that Wells Fargo Securities, LLC (the “Index Provider”) believes are functionally equivalent to preferred securities, including, but not limited to, depositary preferred securities, perpetual subordinated debt and certain capital securities. All securities in the Index are traded in the U.S. market and issued by financial institutions. The Index is composed of preferred and equivalent securities with either fixed or floating rate dividends or coupons, issued by financial institutions that have received an industrial sector classification of “financial” from the Bloomberg Professional Service. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes securities in the Index pursuant to a proprietary selection methodology.

In general, preferred stock is a class of equity security that pays distributions to preferred stockholders. Preferred stockholders have priority over common stockholders in the payment of specified dividends, such that preferred stockholders receive dividends before any dividends are paid to common stockholders. In addition, preferred stock takes precedence over common stock in receiving proceeds from an issuer in the event of the issuer’s liquidation, but is generally junior to debt, including senior and subordinated debt.

The Index may include fixed or variable rate securities, meaning that dividends and coupons (as applicable) may be paid either on a fixed rate or a variable rate percentage of the fixed par value at which the preferred stock or other securities are issued. Variable rate preferred securities are securities that pay interest at rates that adjust whenever a specified benchmark interest rate (e.g., the LIBOR or a T-Bill rate) changes, float at a fixed margin above a generally recognized base lending rate, or are reset or re-determined on specified dates (such as the last day of a month or calendar quarter). Preferred stocks often have a liquidation value that equals the original purchase price of the stock at the time of issuance. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 5.89%. On a net asset value (“NAV”) basis, the Fund returned 6.06%. During the same time period, the Index returned 5.99%. The Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the Fund’s

sampling methodology, partially offset by fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P U.S. Preferred Stock Index (the “Benchmark Index”) returned 6.26%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 300 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broader preferred stock benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. preferred stock market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a methodology that focuses on financial sector preferred securities, whereas the Benchmark Index includes preferred stocks from across the U.S. preferred stock market, including convertible preferred stocks.

Relative to the Benchmark Index, the majority of the Fund’s underperformance during that period can be primarily attributed to non-financial sector convertible preferred securities that were included in the Benchmark Index but not held by the Fund, as well as fees and operating expenses that the Fund incurred.

For the fiscal year ended April 30, 2017, the banks industry contributed most significantly to the Fund’s return, followed by the capital markets and insurance industries, respectively. There were no detracting industries.

Positions that contributed most significantly to the Fund’s return included HSBC Holdings PLC, 8.00%, Series 2, a banks company (portfolio average weight of 6.95%), and Citigroup, Inc., 6.88%, Series K, a banks company (portfolio average weight of 2.01%). Positions that detracted most significantly from the Fund’s return included Arch Capital Group Ltd., 5.25%, Series E, an insurance company (portfolio average weight of 0.29%), and Barclays Bank PLC, 7.75%, a preferred shares company (no longer held at fiscal year-end).

8

PowerShares Financial Preferred Portfolio (PGF) (continued)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Banks	69.2
Capital Markets	16.5
Insurance	8.2
Consumer Finance	5.2
Thrifts & Mortgage Finance	0.7
Money Market Funds Plus Other Assets Less Liabilities	0.2
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
HSBC Holdings PLC, 8.00%, Series 2	7.1
Barclays Bank PLC, 8.13%, Series 5	3.2
Wells Fargo & Co., 8.00%, Series J	3.0
PNC Financial Services Group, Inc. (The), 6.13%, Series P	2.8
BB&T Corp., 5.63%, Series E	2.8
Wells Fargo & Co., 5.85%	2.4
HSBC Holdings PLC, 8.13%	2.3
ING Groep NV, 6.38%	2.2
Citigroup, Inc., 6.88%, Series K	2.1
JPMorgan Chase & Co., 6.15%, Series BB	2.1
Total	30.0

* Excluding money market fund holdings.

9

PowerShares Financial Preferred Portfolio (PGF) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Wells Fargo® Hybrid and Preferred Securities Financial Index		5.99	%		7.87	%		25.51	%		7.70	%		44.89	%		5.31	%		67.82	%		5.24	%		70.29	%
S&P U.S. Preferred Stock Index		6.26			6.24			19.92			6.96			39.97			4.91			61.43			5.07			67.38
Fund
NAV Return		6.06			7.59			24.55			7.40			42.88			4.44			54.40			4.38			56.22
Market Price Return		5.89			7.61			24.62			7.35			42.57			4.40			53.78			4.30			55.04

Fund Inception: December 1, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

10

PEY	Manager’s Analysis
	PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)

As an index fund, the PowerShares High Yield Equity Dividend Achievers^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US Dividend Achievers^TM 50 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes common stocks in the Index that have a consistent record of dividend increases, principally on the basis of dividend yield and consistent growth in dividends. To qualify for inclusion in the Index, an issuer must have increased its annual regular cash dividend payments for each of its last ten or more calendar or fiscal years, and must have a minimum market capitalization of $1 billion. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 17.94%. On a net asset value (“NAV”) basis, the Fund returned 17.95%. During the same time period, the Index returned 18.52%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Dow Jones U.S. Select Dividend Index (the “Benchmark Index”) returned 15.60%. The Benchmark Index is an unmanaged index weighted by indicated dividend yield based on the average performance of approximately 100 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar dividend-weighted index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. dividend-paying equity securities market.

The performance of the Fund differed from the Benchmark Index in part because the selection methodology of the Benchmark Index differs from the selection methodology of the Index that the Fund tracks.

Relative to the Benchmark Index, the Fund was most overweight in the semiconductors & semiconductor equipment industry and most underweight in the electric utilities industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the multi-utilities industry and allocation to the banks industry.

For the fiscal year ended April 30, 2017, the banks industry contributed most significantly to the Fund’s return, followed by the multi-utilities and tobacco industries, respectively. The diversified telecommunication services industry detracted most significantly from the Fund’s return, followed by the health care providers & services industry.

Positions that contributed most significantly to the Fund’s return included ONEOK, Inc., an oil, gas & consumable fuels company (portfolio average weight of 3.26%), and Nu Skin Enterprises, Inc., Class A, a personal products company (portfolio average weight of 1.87%). Positions that detracted most significantly from the Fund’s return included Murphy Oil Corp., an oil, gas & consumable fuels company (no longer held at fiscal year-end), and Occidental Petroleum Corp., an oil, gas & consumable fuels company (portfolio average weight of 2.13%).

11

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

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Multi-Utilities	15.6
Oil, Gas & Consumable Fuels	9.3
Electric Utilities	8.9
Tobacco	7.5
Insurance	5.8
Diversified Telecommunication Services	5.0
Specialty Retail	4.2
Capital Markets	3.8
Semiconductors & Semiconductor Equipment	3.7
Food Products	3.6
Hotels, Restaurants & Leisure	3.4
Banks	3.4
Multi-line Retail	2.2
Energy Equipment & Services	2.1
Beverages	2.0
Machinery	2.0
Metals & Mining	1.9
Personal Products	1.9
Electrical Equipment	1.8
Textiles, Apparel & Luxury Goods	1.8
Gas Utilities	1.8
Food & Staples Retailing	1.7
Media	1.7
Household Products	1.6
IT Services	1.6
Health Care Providers & Services	1.6
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Vector Group Ltd.	3.7
Mercury General Corp.	2.6
AT&T, Inc.	2.5
ONEOK, Inc.	2.5
Occidental Petroleum Corp.	2.5
Verizon Communications, Inc.	2.5
Southern Co. (The)	2.5
PPL Corp.	2.4
Duke Energy Corp.	2.3
Gap, Inc. (The)	2.3
Total	25.8

* Excluding money market fund holdings.

12

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
NASDAQ US Dividend Achievers™ 50 Index		18.52	%		15.83	%		55.40	%		17.49	%		123.84	%		5.44	%		69.80	%		5.76	%		100.27	%
Dow Jones U.S. Select Dividend Index		15.60			10.91			36.42			14.19			94.17			6.63			89.96			7.89			156.26
Fund
NAV Return		17.95			15.24			53.02			16.88			118.09			5.01			63.04			5.29			89.49
Market Price Return		17.94			15.26			53.11			16.89			118.21			5.04			63.54			5.30			89.72

Fund Inception: December 9, 2004

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.54%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The

returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

13

PID	Manager’s Analysis
	PowerShares International Dividend AchieversTM Portfolio (PID)

As an index fund, the PowerShares International Dividend Achievers^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ International Dividend Achievers^TM Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in dividend-paying common stocks and other securities that comprise the Index. The Index is composed of Global Depositary Receipts (“GDRs”) and American Depository Receipts (“ADRs”) that are listed on the London Stock Exchange or the London International Exchange, in addition to ADRs and non-U.S. common or ordinary stocks traded on the New York Stock Exchange, the NASDAQ Stock Market LLC or NYSE Arca, Inc.

Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes stock in the Index pursuant to a proprietary selection methodology that identifies companies that have increased their aggregate annual regular cash dividend payments consistently for at least each of the last five consecutive years. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 7.19%. On a net asset value (“NAV”) basis, the Fund returned 7.12%. During the same time period, the Index returned 7.27%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the MSCI EAFE^® Index (Net) (the “Benchmark Index”) returned 11.29%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 930 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based international equity market benchmark. The Benchmark Index also was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the overall international developed equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a dividend yield weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the consumer staples sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock

selection in the consumer discretionary, industrials and information technology sectors.

For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the energy and materials sectors, respectively. The industrials sector detracted most significantly from the Fund’s return, followed by the telecommunication services and health care sectors, respectively.

Positions that contributed most significantly to the Fund’s return included HSBC Holdings PLC ADR, a financials company (portfolio average weight of 2.75%), and Brookfield Infrastructure Partners LP, a utilities company (portfolio average weight of 1.94%). Positions that detracted most significantly from the Fund’s return included Seaspan Corp., an industrials company (portfolio average weight of 3.21%), and Teekay Offshore Partners LP, an energy company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Financials	22.2
Energy	21.0
Telecommunication Services	13.2
Industrials	12.0
Health Care	9.0
Utilities	5.9
Information Technology	5.7
Consumer Discretionary	5.4
Consumer Staples	4.1
Materials	1.5
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Golar LNG Partners LP	4.0
HSBC Holdings PLC ADR	3.9
Seaspan Corp.	3.6
Mobile TeleSystems PJSC ADR	3.4
BP PLC ADR	3.1
Telefonaktiebolaget LM Ericsson, Class B ADR	3.0
Vodafone Group PLC ADR	2.7
Westpac Banking Corp. ADR	2.3
National Grid PLC ADR	2.2
LUKOIL PJSC ADR	2.2
Total	30.4

* Excluding money market fund holdings.

14

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†††
Index	1 Year																					Average Annualized			Cumulative
Blended-NASDAQ International Dividend Achievers™ Index (Net)†,††		7.27	%		(3.21	)%		(9.33	)%		3.37	%		18.05	%		1.01	%		10.60	%		3.93	%		56.59	%
NASDAQ International Dividend AchieversTM Index (Net)††		7.27			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
MSCI EAFE® Index (Net)††		11.29			0.86			2.60			6.78			38.84			0.87			9.02			4.03			58.30
Fund
NAV Return		7.12			(3.47	)		(10.05	)		3.01			15.97			0.42			4.27			3.33			46.34
Market Price Return		7.19			(3.50	)		(10.15	)		2.98			15.81			0.42			4.27			3.33			46.32

Fund Inception: September 15, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The data known as the Blended-Index is comprised of gross total returns of the Index from Fund inception through the conversion date, March 9, 2015, and net returns of the Index starting at the conversion date through April 30, 2017.

^††  Reflects reinvested dividends net of withholding taxes.

^†††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

15

Schedule of Investments^(a)

PowerShares BuyBack Achievers^TM Portfolio (PKW)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—24.2%
	114,171	American Eagle Outfitters, Inc.	$	1,608,669
	4,904	America’s Car-Mart, Inc.(b)(c)		182,919
	13,251	Asbury Automotive Group, Inc.(c)		810,961
	63,231	AutoNation, Inc.(c)		2,655,702
	17,798	AutoZone, Inc.(c)		12,319,598
	94,180	Bed Bath & Beyond, Inc.		3,649,475
	193,671	Best Buy Co., Inc.		10,034,095
	28,062	Big Lots, Inc.(b)		1,416,850
	13,696	BJ’s Restaurants, Inc.(c)		617,690
	64,551	Bloomin’ Brands, Inc.		1,400,111
	12,394	Bob Evans Farms, Inc.		827,176
	30,625	Brinker International, Inc.(b)		1,353,319
	43,996	Burlington Stores, Inc.(c)		4,352,084
	117,238	CarMax, Inc.(c)		6,858,423
	30,420	Carter’s, Inc.		2,799,857
	233,036	CBS Corp., Class B		15,510,876
	80,219	Chico’s FAS, Inc.		1,108,627
	11,023	Children’s Place, Inc. (The)		1,265,440
	17,973	Chipotle Mexican Grill, Inc.(c)		8,527,649
	10,297	Churchill Downs, Inc.		1,717,540
	90,285	Dana, Inc.		1,753,335
	44,164	Denny’s Corp.(c)		560,883
	17,219	Dillard’s, Inc., Class A(b)		953,416
	95,632	Discovery Communications, Inc., Class A(c)		2,752,289
	172,359	Dollar General Corp.		12,532,223
	30,098	Domino’s Pizza, Inc.		5,459,476
	45,402	DSW, Inc., Class A		936,189
	49,135	Express, Inc.(c)		424,035
	25,414	Finish Line, Inc. (The), Class A		401,795
	23,521	Francesca’s Holdings Corp.(c)		371,161
	17,190	FTD Cos., Inc.(c)		343,800
	6,112	Gaia, Inc.(c)		66,926
	12,289	Genesco, Inc.(c)		655,004
	42,858	GNC Holdings, Inc., Class A(b)		333,435
	13,399	Group 1 Automotive, Inc.		923,861
	352,165	Groupon, Inc., Class A(c)		1,380,487
	129,800	H&R Block, Inc.		3,217,742
	110,040	Harley-Davidson, Inc.		6,251,372
	77,169	Houghton Mifflin Harcourt Co.(c)		887,444
	24,880	Hyatt Hotels Corp., Class A(c)		1,380,840
	24,923	Intrawest Resorts Holdings, Inc.(c)		587,684
	17,072	iRobot Corp.(c)		1,361,321
	19,827	Jack in the Box, Inc.		2,021,759
	14,543	JAKKS Pacific, Inc.(b)(c)		71,261
	9,973	Kirkland’s, Inc.(c)		117,282
	107,990	Kohl’s Corp.		4,214,850
	73,331	La Quinta Holdings, Inc.(c)		1,034,700
	43,503	Lear Corp.		6,206,138
	17,002	Marriott Vacations Worldwide Corp.		1,873,280
	513,137	McDonald’s Corp.		71,803,260
	101,781	Michael Kors Holdings Ltd.(c)		3,799,485
	23,091	Murphy USA, Inc.(c)		1,606,441
	104,542	Nordstrom, Inc.(b)		5,046,242
	13,374	Panera Bread Co., Class A(c)		4,181,782
	23,080	Papa John’s International, Inc.		1,824,705
	53,554	Penske Automotive Group, Inc.		2,555,061

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	15,704	Potbelly Corp.(c)	$	219,071
	198,637	PulteGroup, Inc.		4,503,101
	8,061	Red Robin Gourmet Burgers, Inc.(c)		473,584
	19,925	Ruth’s Hospitality Group, Inc.		396,508
	26,912	Select Comfort Corp.(c)		831,581
	11,088	Shoe Carnival, Inc.		281,303
	42,795	Signet Jewelers Ltd.(b)		2,817,623
	2,954,250	Sirius XM Holdings, Inc.(b)		14,623,538
	20,586	Sonic Automotive, Inc., Class A		403,486
	27,528	Sonic Corp.(b)		739,953
	33,465	Sotheby’s(b)(c)		1,584,902
	17,021	Stage Stores, Inc.(b)		49,020
	346,275	Target Corp.		19,339,459
	33,765	Tempur Sealy International, Inc.(b)(c)		1,585,267
	62,150	Time, Inc.		944,680
	101,878	Toll Brothers, Inc.		3,666,589
	54,427	Tribune Media Co., Class A		1,989,851
	659,319	Twenty-First Century Fox, Inc., Class A		20,135,602
	35,748	Vista Outdoor, Inc.(c)		699,231
	20,559	Visteon Corp.(c)		2,116,549
	14,677	Vitamin Shoppe, Inc.(c)		283,266
	154,711	Wendy’s Co. (The)		2,280,440
	65,627	Wyndham Worldwide Corp.		6,254,909
	221,701	Yum! Brands, Inc.		14,576,841
	15,630	Zumiez, Inc.(c)		280,559
				329,984,938
		Consumer Staples—2.6%
	115,012	Mead Johnson Nutrition Co.		10,203,865
	355,011	Monster Beverage Corp.(c)		16,110,399
	7,107	Natural Health Trends Corp.		203,829
	85,550	Sprouts Farmers Market, Inc.(c)		1,908,620
	199,595	Whole Foods Market, Inc.		7,259,270
				35,685,983
		Energy—1.4%
	26	Harvest Natural Resources, Inc.(c)		180
	24,163	Renewable Energy Group, Inc.(c)		252,503
	281,150	Valero Energy Corp.		18,165,101
				18,417,784
		Financials—24.5%
	563,839	American Express Co.		44,684,241
	613,737	American International Group, Inc.		37,382,721
	96,405	Ameriprise Financial, Inc.		12,325,379
	137,649	Apollo Investment Corp.		934,637
	23,009	ARMOUR Residential REIT, Inc. REIT		553,827
	34,695	Assurant, Inc.		3,339,047
	77,775	Assured Guaranty Ltd.		2,965,561
	53,941	Axis Capital Holdings Ltd.		3,554,712
	47,741	Beneficial Bancorp, Inc.		763,856
	302,437	Capital One Financial Corp.		24,309,886
	14,427	Clifton Bancorp, Inc.		240,931
	108,803	CNO Financial Group, Inc.		2,292,479
	240,531	Discover Financial Services		15,054,835
	172,113	E*TRADE Financial Corp.(c)		5,946,504
	25,630	Everest Re Group Ltd.		6,451,327
	10,649	First Community Bancshares, Inc.		281,772

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

16

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	6,915	First Financial Northwest, Inc.	$	108,427
	137,115	Fortress Investment Group LLC, Class A		1,102,405
	354,199	Franklin Resources, Inc.		15,269,519
	249,234	Goldman Sachs Group, Inc. (The)		55,778,569
	231,940	Hartford Financial Services Group, Inc. (The)		11,216,618
	6,443	HCI Group, Inc.(b)		307,267
	69,927	Invesco Mortgage Capital, Inc. REIT(d)		1,140,509
	194,154	Investors Bancorp, Inc.		2,689,033
	55,288	Kearny Financial Corp.		807,205
	61,058	Legg Mason, Inc.		2,282,348
	141,299	Lincoln National Corp.		9,315,843
	56,433	LPL Financial Holdings, Inc.		2,372,443
	84,473	MBIA, Inc.(c)		709,573
	56,674	MSCI, Inc.		5,685,536
	28,696	Mtge Investment Corp. REIT		516,528
	16,739	National Bank Holdings Corp., Class A		528,450
	61,279	Nationstar Mortgage Holdings, Inc.(c)		987,205
	182,332	Navient Corp.		2,771,446
	19,190	Nelnet, Inc., Class A		863,742
	41,791	PennyMac Mortgage Investment Trust REIT		747,223
	33,583	PHH Corp.(c)		433,221
	28,635	Primerica, Inc.		2,399,613
	48,265	Redwood Trust, Inc. REIT		823,884
	7,285	Regional Management Corp.(c)		144,462
	755,147	Regions Financial Corp.		10,383,271
	25,602	RenaissanceRe Holdings Ltd. (Bermuda)		3,639,836
	26,268	State National Cos., Inc.		385,352
	76,659	Synovus Financial Corp.		3,204,346
	32,256	TICC Capital Corp.		236,436
	175,109	Travelers Cos., Inc. (The)		21,303,761
	4,273	Virtus Investment Partners, Inc.		454,647
	118,694	Voya Financial, Inc.		4,436,782
	2,859	White Mountains Insurance Group Ltd.		2,455,709
	166,016	XL Group Ltd. (Bermuda)		6,947,770
				333,530,694
		Health Care—8.5%
	121,928	DaVita, Inc.(c)		8,414,251
	376,123	Express Scripts Holding Co.(c)		23,071,385
	819,041	Gilead Sciences, Inc.		56,145,260
	232,098	HCA Holdings, Inc.(c)		19,544,973
	33,836	INC Research Holdings, Inc., Class A(c)		1,522,620
	68,419	Innoviva, Inc.(c)		806,318
	25,028	LifePoint Health, Inc.(c)		1,555,490
	14,787	Magellan Health, Inc.(c)		1,017,346
	11,245	Orthofix International NV(c)		444,740
	8,459	Providence Service Corp. (The)(c)		372,196
	28,172	United Therapeutics Corp.(c)		3,541,220
				116,435,799
		Industrials—25.3%
	21,167	Aegion Corp.(c)		483,031
	49,794	AGCO Corp.		3,186,318
	37,335	Air Transport Services Group, Inc.(c)		686,591
	315,874	American Airlines Group, Inc.		13,462,550

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	53,540	Avis Budget Group, Inc.(c)	$	1,632,970
	30,596	Babcock & Wilcox Enterprises, Inc.(c)		286,684
	383,605	Boeing Co. (The)		70,901,712
	62,509	BWX Technologies, Inc.		3,073,568
	24,974	Continental Building Products, Inc.(c)		608,117
	5,353	CRA International, Inc.		203,093
	105,242	Cummins, Inc.		15,885,227
	457,859	Delta Air Lines, Inc.		20,805,113
	38,691	DigitalGlobe, Inc.(c)		1,245,850
	18,219	Echo Global Logistics, Inc.(c)		341,606
	8,648	Franklin Covey Co.(c)		183,770
	24,644	GATX Corp.(b)		1,476,176
	2,276,650	General Electric Co.		66,000,083
	29,616	Griffon Corp.		710,784
	52,026	Hertz Global Holdings, Inc.(c)		857,909
	20,978	Hub Group, Inc., Class A(c)		821,289
	13,841	Huron Consulting Group, Inc.(c)		615,924
	13,159	Insperity, Inc.		1,202,075
	16,798	Kforce, Inc.		381,315
	41,205	Lincoln Electric Holdings, Inc.		3,668,481
	42,381	ManpowerGroup, Inc.		4,279,633
	59,759	MRC Global, Inc.(c)		1,089,407
	28,101	MSC Industrial Direct Co., Inc., Class A		2,515,883
	10,242	MYR Group, Inc.(c)		432,827
	116,714	Pitney Bowes, Inc.		1,551,129
	91,439	Quanta Services, Inc.(c)		3,240,598
	30,406	RPX Corp.(c)		390,413
	385,484	Southwest Airlines Co.		21,671,910
	74,640	Spirit AeroSystems Holdings, Inc., Class A		4,266,422
	52,205	Swift Transportation Co., Class A(c)		1,283,199
	48,920	Timken Co. (The)		2,360,390
	197,126	United Continental Holdings, Inc.(c)		13,840,216
	52,916	United Rentals, Inc.(c)		5,802,769
	502,293	United Technologies Corp.		59,767,844
	36,791	W.W. Grainger, Inc.		7,089,626
	37,570	Wabash National Corp.		855,845
	60,016	Wabtec Corp.(b)		5,034,742
	4,011	Willis Lease Finance Corp.(c)		91,090
				344,284,179
		Information Technology—12.7%
	35,042	Alliance Data Systems Corp.		8,747,534
	676,560	Applied Materials, Inc.		27,475,102
	47,665	Aspen Technology, Inc.(c)		2,930,921
	56,338	Bankrate, Inc.(c)		597,183
	18,269	Care.com, Inc.(c)		216,488
	90,853	CDK Global, Inc.		5,906,353
	99,851	CDW Corp.		5,900,196
	580,835	Corning, Inc.		16,757,090
	31,581	DHI Group, Inc.(c)		121,587
	19,639	DST Systems, Inc.		2,417,757
	676,220	eBay, Inc.(c)		22,592,510
	8,874	ePlus, Inc.(c)		632,272
	40,594	F5 Networks, Inc.(c)		5,241,903
	134,435	Fiserv, Inc.(c)		16,016,586
	124,665	Genpact Ltd.		3,044,319
	12,772	GSI Technology, Inc.(c)		102,559

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

17

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	49,983	Harmonic, Inc.(c)	$	289,901
	83,593	Integrated Device Technology, Inc.(c)		2,005,396
	17,125	Kimball Electronics, Inc.(c)		295,406
	102,688	Motorola Solutions, Inc.		8,828,087
	77,107	NCR Corp.(c)		3,180,664
	169,763	NetApp, Inc.		6,765,056
	57,509	NetScout Systems, Inc.(c)		2,165,214
	182,679	Nuance Communications, Inc.(c)		3,268,127
	31,051	Planet Payment, Inc.(c)		129,483
	79,230	Qorvo, Inc.(c)		5,390,017
	69,936	Rambus, Inc.(c)		875,599
	30,234	RetailMeNot, Inc.(c)		350,714
	46,548	Sanmina Corp.(c)		1,733,913
	15,822	ScanSource, Inc.(c)		624,969
	387,728	Symantec Corp.		12,263,837
	64,117	VeriSign, Inc.(b)(c)		5,701,284
				172,568,027
		Materials—0.2%
	29,273	Carpenter Technology Corp.		1,188,484
	10,313	Clearwater Paper Corp.(c)		501,212
	66,648	Summit Materials, Inc., Class A(c)		1,710,187
				3,399,883
		Real Estate—0.5%
	19,910	Ashford Hospitality Prime, Inc. REIT		210,847
	26,172	Hersha Hospitality Trust REIT		482,612
	45,139	iStar, Inc. REIT(c)		552,050
	90,164	Macerich Co. (The) REIT		5,628,938
	51,466	New Senior Investment Group, Inc. REIT		536,276
				7,410,723
		Telecommunication Services—0.1%
	20,483	General Communication, Inc., Class A(c)		766,884
		Total Common Stocks and Other Equity Interests (Cost $1,243,917,989)		1,362,484,894
		Money Market Fund—0.1%
	953,002	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $953,002)		953,002
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,244,870,991)—100.1%		1,363,437,896

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.5%
	33,704,628	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $33,704,628)	$	33,704,628
		Total Investments (Cost $1,278,575,619)—102.6%		1,397,142,524
		Other assets less liabilities—(2.6)%		(34,761,870	)
		Net Assets—100.0%	$	1,362,380,654

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at April 30, 2017.

^(c)  Non-income producing security.

^(d)  Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, 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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

^(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 2I.

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

18

Schedule of Investments^(a)

PowerShares Dividend Achievers^TM Portfolio (PFM)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—7.4%
	3,213	Aaron’s, Inc.	$	115,475
	14,097	Best Buy Co., Inc.		730,366
	889	Bob Evans Farms, Inc.		59,332
	3,121	Columbia Sportswear Co.		176,711
	1,080	Cracker Barrel Old Country Store, Inc.		173,005
	17,919	Gap, Inc. (The)		469,478
	6,666	Genuine Parts Co.		613,406
	5,584	Hasbro, Inc.		553,430
	1,138	International Speedway Corp., Class A		42,220
	2,172	John Wiley & Sons, Inc., Class A		114,465
	6,008	Leggett & Platt, Inc.		315,660
	39,075	Lowe’s Cos., Inc.		3,316,686
	37,339	McDonald’s Corp.		5,224,846
	1,766	Meredith Corp.		103,399
	1,462	Monro Muffler Brake, Inc.		75,805
	234	NACCO Industries, Inc., Class A		19,808
	59,532	NIKE, Inc., Class B		3,298,668
	2,827	Polaris Industries, Inc.(b)		241,030
	17,704	Ross Stores, Inc.		1,150,760
	25,233	Target Corp.		1,409,263
	5,591	Tiffany & Co.		512,415
	29,284	TJX Cos., Inc. (The)		2,302,894
	18,584	VF Corp.		1,015,244
	3,946	Williams-Sonoma, Inc.		213,281
	15,895	Yum! Brands, Inc.		1,045,096
				23,292,743
		Consumer Staples—22.5%
	87,396	Altria Group, Inc.		6,273,285
	1,266	Andersons, Inc. (The)		47,285
	25,654	Archer-Daniels-Midland Co.		1,173,671
	9,690	Brown-Forman Corp., Class B		458,531
	6,267	Bunge Ltd.		495,281
	1,760	Casey’s General Stores, Inc.		197,243
	11,438	Church & Dwight Co., Inc.		566,524
	5,762	Clorox Co. (The)		770,322
	193,370	Coca-Cola Co. (The)		8,343,916
	39,660	Colgate-Palmolive Co.		2,857,106
	19,732	Costco Wholesale Corp.		3,502,825
	46,076	CVS Health Corp.		3,798,506
	9,384	Flowers Foods, Inc.		184,020
	26,056	General Mills, Inc.		1,498,481
	23,754	Hormel Foods Corp.		833,290
	841	J & J Snack Foods Corp.		113,182
	5,231	JM Smucker Co. (The)		662,872
	15,774	Kellogg Co.		1,119,954
	15,981	Kimberly-Clark Corp.		2,073,535
	42,142	Kroger Co. (The)		1,249,510
	1,232	Lancaster Colony Corp.		155,109
	5,107	McCormick & Co., Inc.		510,189
	2,362	Nu Skin Enterprises, Inc., Class A		130,453
	64,287	PepsiCo, Inc.		7,282,431
	115,102	Procter & Gamble Co. (The)		10,051,858
	24,266	Sysco Corp.		1,282,943
	1,695	Tootsie Roll Industries, Inc.		63,308
	1,136	Universal Corp.		83,439
	5,743	Vector Group Ltd.		124,738

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	48,489	Walgreens Boots Alliance, Inc.	$	4,196,238
	138,374	Wal-Mart Stores, Inc.		10,402,957
				70,503,002
		Energy—9.7%
	6,310	Buckeye Partners LP		436,526
	85,258	Chevron Corp.		9,097,029
	11,779	Enbridge Energy Partners LP		227,806
	48,479	Energy Transfer Equity LP		904,618
	14,483	Energy Transfer Partners LP		346,723
	95,216	Enterprise Products Partners LP		2,601,301
	154,210	Exxon Mobil Corp.		12,591,246
	5,298	Genesis Energy LP		166,039
	4,876	Helmerich & Payne, Inc.		295,681
	2,820	Holly Energy Partners LP		104,819
	10,243	Magellan Midstream Partners LP		761,055
	34,333	Occidental Petroleum Corp.		2,112,853
	9,468	ONEOK, Inc.		498,111
	3,073	TC PipeLines LP		186,009
	724	TransMontaigne Partners LP		31,856
				30,361,672
		Financials—5.6%
	1,165	1st Source Corp.		56,281
	18,032	Aflac, Inc.		1,350,236
	3,966	American Equity Investment Life Holding Co.		94,073
	3,909	American Financial Group, Inc.		380,385
	6,921	Ameriprise Financial, Inc.		884,850
	7,657	AmTrust Financial Services, Inc.(b)		122,895
	2,498	Assurant, Inc.		240,408
	3,868	Axis Capital Holdings Ltd.		254,901
	710	BancFirst Corp.		68,195
	5,442	Bank of the Ozarks, Inc.		258,332
	2,942	BOK Financial Corp.		247,981
	6,288	Brown & Brown, Inc.		269,755
	20,923	Chubb Ltd.		2,871,682
	7,400	Cincinnati Financial Corp.		533,466
	4,566	Commerce Bancshares, Inc.		250,902
	2,000	Community Bank System, Inc.		111,900
	792	Community Trust Bancorp, Inc.		35,600
	2,864	Cullen/Frost Bankers, Inc.		270,333
	5,102	Eaton Vance Corp.		219,029
	2,075	Erie Indemnity Co., Class A		256,926
	1,777	FactSet Research Systems, Inc.		290,113
	25,395	Franklin Resources, Inc.		1,094,778
	1,910	Hanover Insurance Group, Inc. (The)		168,596
	496	Infinity Property & Casualty Corp.		49,228
	18,141	Invesco Ltd.(c)		597,565
	2,485	Mercury General Corp.		152,803
	11,806	Old Republic International Corp.		244,148
	14,203	People’s United Financial, Inc.		248,126
	3,121	Prosperity Bancshares, Inc.		209,731
	1,839	RenaissanceRe Holdings Ltd. (Bermuda)		261,451
	1,974	RLI Corp.		112,952
	11,608	S&P Global, Inc.		1,557,678
	7,151	SEI Investments Co.		362,627

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

19

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,283	Southside Bancshares, Inc.	$	44,546
	10,934	T. Rowe Price Group, Inc.		775,111
	680	Tompkins Financial Corp.		56,216
	5,290	Torchmark Corp.		405,796
	12,564	Travelers Cos., Inc. (The)		1,528,536
	2,237	UMB Financial Corp.		162,160
	3,640	United Bankshares, Inc.		145,236
	5,445	W.R. Berkley Corp.		370,151
	1,179	Westamerica Bancorporation(b)		64,869
	394	Westwood Holdings Group, Inc.		21,985
				17,702,532
		Health Care—9.3%
	77,625	Abbott Laboratories		3,387,555
	9,761	AmerisourceBergen Corp.		800,890
	83	Atrion Corp.		42,919
	9,561	Becton, Dickinson and Co.		1,787,620
	3,236	C.R. Bard, Inc.		995,005
	14,171	Cardinal Health, Inc.		1,028,673
	102,622	Johnson & Johnson		12,670,738
	61,901	Medtronic PLC		5,143,354
	681	National Healthcare Corp.		50,680
	2,743	Owens & Minor, Inc.		95,045
	6,440	Perrigo Co. PLC		476,174
	16,750	Stryker Corp.		2,284,198
	3,290	West Pharmaceutical Services, Inc.		302,779
				29,065,630
		Industrials—15.5%
	26,875	3M Co.		5,262,931
	6,607	A.O. Smith Corp.		355,985
	2,496	ABM Industries, Inc.		107,802
	2,139	Brady Corp., Class A		83,314
	6,362	C.H. Robinson Worldwide, Inc.		462,517
	2,901	Carlisle Cos., Inc.		294,132
	26,345	Caterpillar, Inc.		2,694,040
	4,719	Cintas Corp.		577,936
	41,617	CSX Corp.		2,115,808
	7,553	Cummins, Inc.		1,140,050
	5,931	Donaldson Co., Inc.		274,487
	6,985	Dover Corp.		550,977
	28,976	Emerson Electric Co.		1,746,673
	8,091	Expeditors International of Washington, Inc.		453,824
	12,993	Fastenal Co.		580,527
	11,971	FedEx Corp.		2,270,899
	2,080	Franklin Electric Co., Inc.		85,488
	13,599	General Dynamics Corp.		2,635,350
	1,173	Gorman-Rupp Co. (The)		33,571
	2,515	Graco, Inc.		271,243
	3,272	Healthcare Services Group, Inc.		150,218
	15,568	Illinois Tool Works, Inc.		2,149,785
	3,971	ITT, Inc.		167,298
	5,000	J.B. Hunt Transport Services, Inc.		448,300
	3,496	L3 Technologies, Inc.		600,508
	2,952	Lincoln Electric Holdings, Inc.		262,817
	478	Lindsay Corp.		41,519

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	13,041	Lockheed Martin Corp.	$	3,513,898
	1,448	Matthews International Corp., Class A		99,260
	1,076	McGrath RentCorp		37,456
	1,697	MSA Safety, Inc.		132,112
	2,014	MSC Industrial Direct Co., Inc., Class A		180,313
	2,580	Nordson Corp.		323,016
	7,843	Northrop Grumman Corp.		1,929,064
	13,157	Raytheon Co.		2,042,098
	2,010	Regal Beloit Corp.		158,489
	15,234	Republic Services, Inc.		959,590
	5,741	Robert Half International, Inc.		264,373
	9,795	Rollins, Inc.		380,340
	4,577	Roper Technologies, Inc.		1,000,990
	2,402	Ryder System, Inc.		163,120
	6,855	Stanley Black & Decker, Inc.		933,308
	792	Tennant Co.		58,014
	4,860	Toro Co. (The)		315,511
	36,556	Union Pacific Corp.		4,092,810
	36,201	United Technologies Corp.		4,307,557
	2,643	W.W. Grainger, Inc.		509,306
	19,753	Waste Management, Inc.		1,437,623
				48,656,247
		Information Technology—11.9%
	29,608	Accenture PLC, Class A		3,591,451
	16,551	Analog Devices, Inc.		1,261,186
	20,165	Automatic Data Processing, Inc.		2,107,041
	1,308	Badger Meter, Inc.		51,993
	502	Cass Information Systems, Inc.		33,368
	5,592	Harris Corp.		625,689
	42,494	International Business Machines Corp.		6,811,363
	3,488	Jack Henry & Associates, Inc.		338,057
	12,700	Maxim Integrated Products, Inc.		560,705
	9,723	Microchip Technology, Inc.		734,864
	196,026	Microsoft Corp.		13,419,940
	66,351	QUALCOMM, Inc.		3,565,703
	44,906	Texas Instruments, Inc.		3,555,657
	11,182	Xilinx, Inc.		705,696
				37,362,713
		Materials—3.2%
	9,775	Air Products & Chemicals, Inc.		1,373,387
	5,057	Albemarle Corp.		550,758
	2,799	AptarGroup, Inc.		224,760
	4,153	Bemis Co., Inc.		186,594
	1,517	Compass Minerals International, Inc.(b)		100,122
	13,104	Ecolab, Inc.		1,691,595
	2,261	H.B. Fuller Co.		119,449
	477	Hawkins, Inc.		24,375
	3,550	International Flavors & Fragrances, Inc.		491,994
	533	NewMarket Corp.		250,883
	14,322	Nucor Corp.		878,368
	11,549	PPG Industries, Inc.		1,268,542
	2,935	Royal Gold, Inc.		207,446
	6,000	RPM International, Inc.		315,360
	1,992	Sensient Technologies Corp.		162,945
	4,191	Sherwin-Williams Co. (The)		1,402,644

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

20

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	2,711	Silgan Holdings, Inc.	$	164,341
	4,464	Sonoco Products Co.		233,512
	1,007	Stepan Co.		85,394
	5,792	Westlake Chemical Corp.		360,552
				10,093,021
		Real Estate—1.9%
	7,140	Digital Realty Trust, Inc. REIT		819,958
	3,897	Equity LifeStyle Properties, Inc. REIT		315,306
	2,945	Essex Property Trust, Inc. REIT		719,964
	3,240	Federal Realty Investment Trust REIT		424,084
	21,032	HCP, Inc. REIT		659,353
	1,804	National Health Investors, Inc. REIT		131,999
	6,615	National Retail Properties, Inc. REIT		279,285
	8,837	OMEGA Healthcare Investors, Inc. REIT		291,621
	11,690	Realty Income Corp. REIT		682,112
	4,323	Tanger Factory Outlet Centers, Inc. REIT		134,834
	612	Universal Health Realty Income Trust REIT		42,687
	1,336	Urstadt Biddle Properties, Inc., Class A REIT		26,266
	16,287	Welltower, Inc. REIT		1,163,543
	4,777	WP Carey, Inc. REIT		299,040
				5,990,052
		Telecommunication Services—6.2%
	276,481	AT&T, Inc.		10,956,942
	725	ATN International, Inc.		50,163
	4,623	Telephone & Data Systems, Inc.		126,948
	183,597	Verizon Communications, Inc.		8,428,938
				19,562,991
		Utilities—6.8%
	10,228	Alliant Energy Corp.		402,165
	1,644	American States Water Co.		73,191
	4,176	AmeriGas Partners LP		188,004
	7,972	Aqua America, Inc.		263,793
	4,725	Atmos Energy Corp.		382,819
	2,889	Avista Corp.		116,542
	2,398	Black Hills Corp.		163,112
	2,155	California Water Service Group		76,933
	19,347	CenterPoint Energy, Inc.		551,970
	732	Chesapeake Utilities Corp.		53,656
	495	Connecticut Water Service, Inc.		26,567
	13,704	Consolidated Edison, Inc.		1,086,453
	28,215	Dominion Resources, Inc.		2,184,687
	31,427	Duke Energy Corp.		2,592,727
	14,636	Edison International		1,170,441
	14,236	Eversource Energy		845,618
	8,774	MDU Resources Group, Inc.		236,021
	1,557	MGE Energy, Inc.		100,115
	731	Middlesex Water Co.		27,866
	3,832	National Fuel Gas Co.		212,216
	3,877	New Jersey Resources Corp.		156,437
	21,005	NextEra Energy, Inc.		2,805,428
	1,286	Northwest Natural Gas Co.		76,646
	2,173	NorthWestern Corp.		129,902
	8,971	OGE Energy Corp.		312,011

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	3,996	Portland General Electric Co.	$	181,179
	30,573	PPL Corp.		1,165,137
	6,419	SCANA Corp.		425,644
	919	SJW Corp.		44,884
	3,571	South Jersey Industries, Inc.		133,984
	44,519	Southern Co. (The)		2,217,046
	2,133	Southwest Gas Holdings, Inc.		178,660
	2,054	Spire, Inc.		140,802
	7,768	UGI Corp.		389,643
	3,725	Vectren Corp.		221,339
	14,177	WEC Energy Group, Inc.		857,992
	22,785	Xcel Energy, Inc.		1,026,464
	577	York Water Co. (The)		21,638
				21,239,732
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $241,169,429)—100.0%		313,830,335
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.1%
	457,845	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $457,845)		457,845
		Total Investments (Cost $241,627,274)—100.1%		314,288,180
		Other assets less liabilities—(0.1)%		(393,095	)
		Net Assets—100.0%	$	313,895,085

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

21

Schedule of Investments^(a)

PowerShares Financial Preferred Portfolio (PGF)

April 30, 2017

Number of Shares			Value
		Preferred Stocks and Other Equity Interests—99.8%
		Banks—69.2%
	648,879	Bank of America Corp., 6.00%, Series EE	$	16,786,500
	1,033,073	Bank of America Corp., 6.20%, Series CC		26,859,898
	560,928	Bank of America Corp., 6.20%, Series D		14,410,240
	75,639	Bank of America Corp., 6.38%, Series 3		1,955,268
	1,058,980	Bank of America Corp., 6.50%, Series Y(b)		28,486,562
	1,161,679	Bank of America Corp., 6.63%, Series W(b)		31,342,099
	2,038,606	Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)(b)		53,268,775
	61,882	BB&T Corp., 5.20%, Series G		1,552,000
	368,223	BB&T Corp., 5.63%		9,507,518
	1,849,463	BB&T Corp., 5.63%, Series E(b)		47,346,253
	448,006	BB&T Corp., 5.85%(b)		11,451,033
	335,449	Citigroup, Inc., 5.80%, Series C		8,624,394
	808,972	Citigroup, Inc., 6.30%, Series S(b)		21,631,911
	1,187,898	Citigroup, Inc., 6.88%, Series K		34,983,596
	925,610	Citigroup, Inc., 7.13%, Series J		27,129,629
	411,415	Fifth Third Bancorp, 6.63%, Series I		11,758,241
	4,409,601	HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)(b)		118,485,979
	1,394,724	HSBC Holdings PLC, 8.13% (United Kingdom)(b)		37,894,651
	416,272	Huntington Bancshares, Inc., 6.25%, Series D		11,280,971
	808,082	ING Groep NV, 6.13% (Netherlands)		20,775,788
	175,658	ING Groep NV, 6.20% (Netherlands)		4,498,601
	1,438,183	ING Groep NV, 6.38% (Netherlands)		37,320,849
	761,237	JPMorgan Chase & Co., 5.45%, Series P(b)		19,289,746
	1,080,532	JPMorgan Chase & Co., 5.50%, Series O		27,423,902
	1,177,012	JPMorgan Chase & Co., 6.10%, Series AA(b)		31,602,772
	1,268,880	JPMorgan Chase & Co., 6.13%, Series Y(b)		34,031,362
	1,279,911	JPMorgan Chase & Co., 6.15%, Series BB(b)		34,429,606
	125,837	JPMorgan Chase & Co., 6.30%, Series W		3,411,441
	620,709	JPMorgan Chase & Co., 6.70%, Series T		16,926,734
	405,534	KeyCorp, 6.13%, Series E		11,403,616
	315,302	KKR Financial Holdings LLC, 7.38%, Series A		8,150,557
	207,075	People’s United Financial, Inc., 5.63%, Series A		5,706,987
	1,619,306	PNC Financial Services Group, Inc. (The), 6.13%, Series P(b)		47,397,087
	417,040	Regions Financial Corp., 6.38%, Series A		10,813,847
	464,960	Regions Financial Corp., 6.38%, Series B(b)		13,088,624

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Banks (continued)
	513,830	Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom)	$	12,907,410
	467,808	Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)		11,905,714
	415,784	SunTrust Banks, Inc., 5.88%, Series E		10,731,385
	735,567	U.S. Bancorp, 5.15%, Series H(b)		19,176,232
	1,040,861	U.S. Bancorp, 6.50%, Series F		30,538,862
	943,398	Wells Fargo & Co., 5.20%		23,358,534
	447,999	Wells Fargo & Co., 5.25%, Series P(b)		11,253,735
	1,123,806	Wells Fargo & Co., 5.50%, Series X		28,038,960
	532,500	Wells Fargo & Co., 5.63%, Series Y		13,307,175
	921,671	Wells Fargo & Co., 5.70%, Series W		23,447,310
	1,483,110	Wells Fargo & Co., 5.85%		40,192,281
	534,082	Wells Fargo & Co., 6.00%, Series T		14,153,173
	699,755	Wells Fargo & Co., 6.00%, Series V		18,501,522
	274,311	Wells Fargo & Co., 6.63%(b)		8,199,156
	1,919,928	Wells Fargo & Co., 8.00%, Series J		50,417,309
				1,157,155,795
		Capital Markets—16.5%
	536,109	Bank of New York Mellon Corp. (The), 5.20%		13,515,308
	548,809	Charles Schwab Corp. (The), 5.95%, Series D(b)		14,795,891
	439,565	Charles Schwab Corp. (The), 6.00%, Series B		11,353,964
	543,390	Charles Schwab Corp. (The), 6.00%, Series C(b)		14,888,886
	918,026	Goldman Sachs Group, Inc. (The), 5.50%, Series J(b)		24,749,981
	860,997	Goldman Sachs Group, Inc. (The), 5.95%(b)		22,136,233
	355,846	Goldman Sachs Group, Inc. (The), 6.20%, Series B(b)		9,529,556
	266,219	Goldman Sachs Group, Inc. (The), 6.30%, Series N		7,179,926
	404,243	Goldman Sachs Group, Inc. (The), 6.38%, Series K(b)		11,553,265
	634,456	Morgan Stanley, 5.85%, Series K		16,736,949
	542,570	Morgan Stanley, 6.38%, Series I		15,067,169
	327,489	Morgan Stanley, 6.63%, Series G		8,812,729
	669,219	Morgan Stanley, 6.88%, Series F		19,407,351
	651,683	Morgan Stanley, 7.13%, Series E		19,126,896
	340,344	Northern Trust Corp., 5.85%, Series C(b)		9,165,464
	593,080	State Street Corp., 5.25%, Series C		14,886,308
	314,638	State Street Corp., 5.35%, Series G		8,407,127
	768,433	State Street Corp., 5.90%, Series D(b)		21,623,704
	519,856	State Street Corp., 6.00%, Series E		13,932,141
				276,868,848
		Consumer Finance—5.2%
	456,397	Capital One Financial Corp., 5.20%, Series G		10,720,765
	863,419	Capital One Financial Corp., 6.00%, Series B		22,068,990
	434,247	Capital One Financial Corp., 6.00%, Series H		11,203,573

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

22

PowerShares Financial Preferred Portfolio (PGF) (continued)

April 30, 2017

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Consumer Finance (continued)
	478,533	Capital One Financial Corp., 6.20%, Series F(b)	$	12,805,543
	397,377	Capital One Financial Corp., 6.25%, Series C		10,514,595
	281,958	Capital One Financial Corp., 6.70%, Series D		7,753,845
	488,449	Discover Financial Services, 6.50%, Series B		12,636,176
				87,703,487
		Insurance—8.2%
	794,832	Aegon NV, 6.38% (Netherlands)		20,490,769
	274,114	Aegon NV, 6.50% (Netherlands)		7,135,187
	323,034	Allstate Corp. (The), 5.63%(b)		8,389,193
	129,975	Allstate Corp. (The), 6.25%, Series F(b)		3,569,114
	708,976	Allstate Corp. (The), 6.63%, Series E		19,525,199
	315,330	Allstate Corp. (The), 6.75%, Series C		8,608,509
	372,367	Arch Capital Group Ltd., 5.25%, Series E		8,601,678
	301,396	Arch Capital Group Ltd., 6.75%, Series C		7,634,361
	227,920	Aspen Insurance Holdings Ltd., 5.63% (Bermuda)		5,561,248
	241,850	Aspen Insurance Holdings Ltd., 5.95% (Bermuda)		6,675,060
	444,119	Axis Capital Holdings Ltd., 5.50%, Series E(b)		10,756,562
	293,548	PartnerRe Ltd., 7.25%, Series H (Bermuda)		8,492,344
	339,733	Prudential PLC, 6.50% (United Kingdom)		8,948,567
	205,609	Prudential PLC, 6.75% (United Kingdom)(b)		5,417,797
	277,637	RenaissanceRe Holdings Ltd., 5.38%, Series E (Bermuda)(b)		7,063,085
				136,868,673
		Thrifts & Mortgage Finance—0.7%
	414,327	New York Community Bancorp, Inc., 6.38%, Series A.(b)		11,352,560
		Total Preferred Stocks and Other Equity Interests (Cost $1,601,242,026)		1,669,949,363
		Money Market Fund—0.4%
	6,798,245	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $6,798,245)		6,798,245
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,608,040,271)—100.2%		1,676,747,608

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.6%
	26,528,490	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(c)(d) (Cost $26,528,490)	$	26,528,490
		Total Investments (Cost $1,634,568,761)—101.8%		1,703,276,098
		Other assets less liabilities—(1.8)%		(30,364,707	)
		Net Assets—100.0%	$	1,672,911,391

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 April 30, 2017.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

United Kingdom 14.9 % 

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

23

Schedule of Investments^(a)

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

April 30, 2017

Number of Shares			Value
		Common Stocks—99.9%
		Banks—3.4%
	1,051,891	People’s United Financial, Inc.	$	18,376,536
	375,850	United Bankshares, Inc.(b)		14,996,415
				33,372,951
		Beverages—2.0%
	453,403	Coca-Cola Co. (The)		19,564,340
		Capital Markets—3.8%
	616,371	Invesco Ltd.(c)		20,303,261
	242,886	T. Rowe Price Group, Inc.		17,218,188
				37,521,449
		Diversified Telecommunication Services—5.0%
	630,196	AT&T, Inc.		24,974,668
	528,985	Verizon Communications, Inc.		24,285,701
				49,260,369
		Electric Utilities—8.9%
	278,128	Duke Energy Corp.		22,945,560
	485,571	OGE Energy Corp.		16,888,159
	624,746	PPL Corp.		23,809,070
	484,870	Southern Co. (The)		24,146,526
				87,789,315
		Electrical Equipment—1.8%
	301,562	Emerson Electric Co.		18,178,157
		Energy Equipment & Services—2.1%
	340,026	Helmerich & Payne, Inc.		20,619,177
		Food & Staples Retailing—1.7%
	226,672	Wal-Mart Stores, Inc.		17,041,201
		Food Products—3.6%
	960,757	Flowers Foods, Inc.		18,840,445
	297,264	General Mills, Inc.		17,095,652
				35,936,097
		Gas Utilities—1.8%
	290,188	Northwest Natural Gas Co.		17,295,205
		Health Care Providers & Services—1.6%
	446,799	Owens & Minor, Inc.		15,481,585
		Hotels, Restaurants & Leisure—3.4%
	100,135	Cracker Barrel Old Country Store, Inc.(b)		16,040,626
	128,058	McDonald’s Corp.		17,919,156
				33,959,782
		Household Products—1.6%
	184,128	Procter & Gamble Co. (The)		16,079,898
		Insurance—5.8%
	689,876	AmTrust Financial Services, Inc.(b)		11,072,510
	411,792	Mercury General Corp.		25,321,090
	997,148	Old Republic International Corp.		20,621,021
				57,014,621
		IT Services—1.6%
	98,773	International Business Machines Corp.		15,832,324

Number of Shares			Value
		Common Stocks (continued)
		Machinery—2.0%
	188,001	Caterpillar, Inc.	$	19,224,982
		Media—1.7%
	290,836	Meredith Corp.		17,028,448
		Metals & Mining—1.9%
	278,414	Compass Minerals International, Inc.(b)		18,375,324
		Multi-line Retail—2.2%
	389,665	Target Corp.		21,762,790
		Multi-Utilities—15.6%
	487,078	Avista Corp.		19,648,726
	778,978	CenterPoint Energy, Inc.		22,224,242
	254,305	Consolidated Edison, Inc.		20,161,300
	259,702	Dominion Resources, Inc.		20,108,726
	585,784	MDU Resources Group, Inc.		15,757,590
	326,733	NorthWestern Corp.		19,532,099
	267,355	SCANA Corp.		17,728,310
	308,607	WEC Energy Group, Inc.		18,676,896
				153,837,889
		Oil, Gas & Consumable Fuels—9.3%
	193,758	Chevron Corp.		20,673,979
	258,717	Exxon Mobil Corp.		21,124,243
	400,797	Occidental Petroleum Corp.		24,665,047
	470,736	ONEOK, Inc.(b)		24,765,421
				91,228,690
		Personal Products—1.9%
	331,093	Nu Skin Enterprises, Inc., Class A		18,286,266
		Semiconductors & Semiconductor Equipment—3.7%
	374,811	Maxim Integrated Products, Inc.		16,547,906
	378,985	QUALCOMM, Inc.		20,366,654
				36,914,560
		Specialty Retail—4.2%
	851,636	Gap, Inc. (The)		22,312,863
	357,438	Williams-Sonoma, Inc.		19,319,524
				41,632,387
		Textiles, Apparel & Luxury Goods—1.8%
	317,134	VF Corp.		17,325,030
		Tobacco—7.5%
	238,751	Altria Group, Inc.		17,137,547
	264,999	Universal Corp.		19,464,177
	1,695,409	Vector Group Ltd.(b)		36,824,283
				73,426,007
		Total Common Stocks (Cost $937,432,489)		983,988,844
		Money Market Fund—0.2%
	2,391,801	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $2,391,801)		2,391,801
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $939,824,290)—100.1%		986,380,645

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

24

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

April 30, 2017

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.0%
	28,944,378	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $28,944,378)	$	28,944,378
		Total Investments (Cost $968,768,668)—103.1%		1,015,325,023
		Other assets less liabilities—(3.1)%		(30,599,819	)
		Net Assets—100.0%	$	984,725,204

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 April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

25

Schedule of Investments

PowerShares International Dividend Achievers^TM Portfolio (PID)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—2.3%
	710,861	Westpac Banking Corp. ADR(a)	$	18,731,187
		Brazil—0.6%
	200,238	Ultrapar Participacoes SA ADR(a)		4,441,279
		Canada—30.8%
	159,568	Bank of Montreal(a)		11,305,393
	226,515	Bank of Nova Scotia (The)(a)		12,601,029
	379,644	BCE, Inc.		17,300,377
	140,830	Brookfield Asset Management, Inc., Class A		5,203,669
	424,937	Brookfield Infrastructure Partners LP(a)		16,729,770
	359,532	Cae, Inc.		5,490,054
	163,896	Canadian Imperial Bank of Commerce(a)		13,247,714
	81,510	Canadian National Railway Co.		5,892,358
	299,575	Canadian Natural Resources Ltd.		9,547,455
	327,794	Enbridge, Inc.		13,587,061
	406,276	Fortis, Inc.		13,212,096
	72,129	Franco-Nevada Corp.		4,913,427
	167,635	Gildan Activewear, Inc., Class A		4,700,485
	157,247	Imperial Oil Ltd.		4,571,170
	188,402	Magna International, Inc.		7,869,552
	146,367	Methanex Corp.		6,718,245
	482,735	Pembina Pipeline Corp.(a)		15,389,592
	204,298	Ritchie Bros. Auctioneers, Inc.		6,692,802
	164,151	Royal Bank of Canada		11,241,060
	722,511	Shaw Communications, Inc., Class B		15,324,458
	308,295	Suncor Energy, Inc.		9,668,131
	461,893	TELUS Corp.		15,371,799
	217,550	Toronto-Dominion Bank (The)		10,244,430
	278,747	TransCanada Corp.		12,945,011
				249,767,138
		Chile—1.7%
	192,698	Banco de Chile ADR(a)		14,118,982
		Colombia—1.4%
	291,797	Bancolombia SA (Preference Shares) ADR		11,523,064
		Denmark—1.9%
	391,395	Novo Nordisk A/S, Class B ADR		15,139,159
		France—1.8%
	309,456	Sanofi ADR		14,637,269
		Germany—1.1%
	90,206	Fresenius Medical Care AG & Co. KGaA ADR(a)		4,008,755
	52,024	SAP SE ADR(a)		5,211,764
				9,220,519
		Hong Kong—3.6%
	4,122,550	Seaspan Corp.(a)		29,022,752
		India—2.2%
	88,845	Axis Bank Ltd. GDR(b)		3,487,166
	28,498	HDFC Bank Ltd. ADR		2,268,726
	567,061	Infosys Ltd. ADR		8,256,408
	79,844	Reliance Industries Ltd. GDR(b)(c)		3,453,253
				17,465,553

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Israel—1.5%
	383,794	Teva Pharmaceutical Industries Ltd. ADR	$	12,120,214
		Mexico—2.4%
	611,267	America Movil SAB de CV, Series L ADR		9,407,399
	97,292	Grupo Aeroportuario del Pacifico SAB de CV ADR(a)		10,010,374
				19,417,773
		Netherlands—0.5%
	28,247	ASML Holding NV		3,724,367
		Norway—2.0%
	983,663	Statoil ASA ADR(a)		16,161,583
		Russia—6.2%
	363,109	LUKOIL PJSC ADR		18,033,809
	2,638,898	Mobile TeleSystems PJSC ADR		27,233,427
	43,814	Novatek PJSC GDR(b)		5,310,257
				50,577,493
		South Korea—0.0%
	218	Samsung Electronics Co. Ltd. GDR(b)		213,858
		Sweden—3.0%
	3,800,977	Telefonaktiebolaget LM Ericsson, Class B ADR		24,668,341
		Switzerland—3.0%
	510,854	ABB Ltd. ADR(a)		12,567,008
	155,555	Novartis AG ADR		11,982,402
				24,549,410
		United Kingdom—29.9%
	721,925	BP PLC ADR		24,776,466
	185,194	British American Tobacco PLC ADR(a)		12,600,600
	794,945	BT Group PLC ADR(a)		15,827,355
	80,462	Diageo PLC ADR		9,448,652
	1,433,929	Golar LNG Partners LP(a)		32,736,599
	767,158	HSBC Holdings PLC ADR(a)		31,583,895
	136,855	Intercontinental Hotels Group PLC ADR(a)		7,224,575
	279,214	National Grid PLC ADR(a)		18,112,612
	139,114	Pentair PLC		8,974,244
	300,250	Prudential PLC ADR(a)		13,328,097
	510,437	Relx NV ADR(a)		9,836,121
	438,628	Relx PLC ADR		8,987,488
	232,137	Smith & Nephew PLC ADR		7,716,234
	218,828	Unilever NV(a)		11,431,575
	821,305	Vodafone Group PLC ADR		21,509,978
	83,097	WPP PLC ADR(a)		8,899,689
				242,994,180
		United States—4.1%
	34,158	Aon PLC		4,093,495
	19,602	Broadcom Ltd.		4,328,318
	8,519	Shire PLC ADR		1,507,522
	76,701	STERIS PLC		5,660,534
	264,026	Thomson Reuters Corp.		11,994,701

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

26

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

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United States (continued)
	40,284	Willis Towers Watson PLC	$	5,342,464
				32,927,034
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $786,147,181)—100.0%		811,421,155
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—14.6%
	118,684,850	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $118,684,850)		118,684,850
		Total Investments (Cost $904,832,031)—114.6%		930,106,005
		Other assets less liabilities—(14.6)%		(118,326,025	)
		Net Assets—100.0%	$	811,779,980

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 April 30, 2017.

^(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 April 30, 2017 was $12,464,534, which represented 1.54% of the Fund’s Net Assets.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

27

Statements of Assets and Liabilities

April 30, 2017

	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)	$	1,361,344,385		$	313,232,770		$	1,669,949,363		$	963,685,583		$	811,421,155
Affiliated investments, at value		35,798,139			1,055,410			33,326,735			51,639,440			118,684,850
Total investments, at value		1,397,142,524			314,288,180			1,703,276,098			1,015,325,023			930,106,005
Cash segregated as collateral		—			—			—			—			682,907
Receivables:
Investments sold		23,188,952			52,791			—			4,256,494			—
Shares sold		7,876,876			—			—			—			3,017,800
Dividends		337,194			591,532			4,744,810			2,133,915			2,066,939
Securities lending		38,848			329			59,563			25,740			133,332
Foreign tax reclaims		—			—			—			—			1,028,835
Other assets		3,825			1,014			2,929			1,661			1,614
Total Assets		1,428,588,219			314,933,846			1,708,083,400			1,021,742,833			937,037,432
Liabilities:
Due to custodian		1,758			289,776			7,140,833			2,692,670			1,914,128
Payables:
Collateral upon return of securities loaned.		33,704,628			457,845			26,528,490			28,944,378			118,684,850
Shares repurchased		15,675,288			—			—			4,259,982			—
Investments purchased		15,227,407			—			—			—			3,017,913
Collateral upon receipt of securities in-kind		—			—			—			—			682,907
Accrued advisory fees		560,160			103,097			684,467			343,306			263,301
Accrued trustees’ and officer’s fees		64,501			28,096			96,912			32,980			60,824
Accrued expenses		973,823			159,947			721,307			744,313			633,529
Total Liabilities		66,207,565			1,038,761			35,172,009			37,017,629			125,257,452
Net Assets	$	1,362,380,654		$	313,895,085		$	1,672,911,391		$	984,725,204		$	811,779,980
Net Assets Consist of:
Shares of beneficial interest	$	1,506,274,906		$	262,378,179		$	1,619,932,696		$	1,003,463,165		$	1,245,412,417
Undistributed net investment income		(60,301	)		632,531			(93,986	)		(32,008	)		3,658,780
Undistributed net realized gain (loss)		(262,400,856	)		(21,776,531	)		(15,634,656	)		(65,262,308	)		(462,564,598	)
Net unrealized appreciation		118,566,905			72,660,906			68,707,337			46,556,355			25,273,381
Net Assets	$	1,362,380,654		$	313,895,085		$	1,672,911,391		$	984,725,204		$	811,779,980
Shares outstanding (unlimited amount authorized, $0.01 par value)		26,100,000			13,100,000			88,650,000			57,900,000			53,800,000
Net asset value	$	52.20		$	23.96		$	18.87		$	17.01		$	15.09
Market price	$	52.19		$	23.99		$	18.87		$	17.02		$	15.09
Unaffiliated investments, at cost	$	1,242,896,882		$	240,426,214		$	1,601,242,026		$	918,336,514		$	786,147,181
Affiliated investments, at cost	$	35,678,737		$	1,201,060		$	33,326,735		$	50,432,154		$	118,684,850
Total investments, at cost	$	1,278,575,619		$	241,627,274		$	1,634,568,761		$	968,768,668		$	904,832,031
(a) Includes securities on loan with an aggregate value of	$	32,368,453		$	440,496		$	25,868,963		$	27,829,795		$	115,655,114

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

28

Statements of Operations

For the year ended April 30, 2017

	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	$	23,663,783		$	8,098,547		$	104,001,676		$	37,040,627		$	25,585,226
Affiliated dividend income		32,485			20,680			27,386			674,228			2,149
Securities lending income		228,597			564			811,818			377,726			2,115,917
Foreign withholding tax		—			—			—			—			(2,165,001	)
Total Income		23,924,865			8,119,791			104,840,880			38,092,581			25,538,291
Expenses:
Advisory fees		7,115,156			1,191,038			8,580,653			4,043,807			2,861,414
Sub-licensing fees		1,423,033			297,760			1,621,739			1,010,952			715,354
Accounting & administration fees		257,095			55,406			318,476			192,056			130,538
Custodian & transfer agent fees		59,489			20,007			50,177			27,517			151,147
Trustees’ and officer’s fees		31,560			11,546			34,549			20,887			18,463
Other expenses		136,666			68,674			178,913			121,313			140,881
Total Expenses		9,022,999			1,644,431			10,784,507			5,416,532			4,017,797
Less: Waivers		(2,244	)		(430	)		(10,870	)		(1,256	)		(1,089	)
Net Expenses		9,020,755			1,644,001			10,773,637			5,415,276			4,016,708
Net Investment Income		14,904,110			6,475,790			94,067,243			32,677,305			21,521,583
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(42,037,115	)		(338,474	)		(2,171,626	)		(952,070	)		(108,859,704	)
In-kind redemptions		178,034,517			9,315,233			32,361,833			143,428,330			19,762,304
Foreign currencies		—			—			—			—			(7,390	)
Net realized gain (loss)		135,997,402			8,976,759			30,190,207			142,476,260			(89,104,790	)
Change in net unrealized appreciation (depreciation) on:
Investment securities		50,609,710			20,314,745			(28,372,096	)		(12,049,124	)		117,088,063
Foreign currencies		—			—			—			—			(1,236	)
Net change in unrealized appreciation (depreciation)		50,609,710			20,314,745			(28,372,096	)		(12,049,124	)		117,086,827
Net realized and unrealized gain		186,607,112			29,291,504			1,818,111			130,427,136			27,982,037
Net increase in net assets resulting from operations	$	201,511,222		$	35,767,294		$	95,885,354		$	163,104,441		$	49,503,620

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

29

Statements of Changes in Net Assets

For the years ended April 30, 2017 and 2016

	PowerShares BuyBack AchieversTM Portfolio (PKW)						PowerShares Dividend AchieversTM Portfolio (PFM)
	2017			2016			2017			2016
Operations:
Net investment income	$	14,904,110		$	28,501,250		$	6,475,790		$	7,046,193
Net realized gain (loss)		135,997,402			(5,228,193	)		8,976,759			14,356,466
Net change in unrealized appreciation (depreciation)		50,609,710			(194,908,268	)		20,314,745			(13,429,976	)
Net increase (decrease) in net assets resulting from operations		201,511,222			(171,635,211	)		35,767,294			7,972,683
Distributions to Shareholders from:
Net investment income		(20,170,488	)		(29,971,633	)		(6,990,329	)		(7,191,272	)
Shareholder Transactions:
Proceeds from shares sold		688,393,424			552,688,479			29,541,769			13,765,872
Value of shares repurchased		(1,146,787,729	)		(1,682,571,530	)		(31,476,117	)		(71,313,646	)
Net increase (decrease) in net assets resulting from shares transactions		(458,394,305	)		(1,129,883,051	)		(1,934,348	)		(57,547,774	)
Increase (Decrease) in Net Assets		(277,053,571	)		(1,331,489,895	)		26,842,617			(56,766,363	)
Net Assets:
Beginning of year		1,639,434,225			2,970,924,120			287,052,468			343,818,831
End of year	$	1,362,380,654		$	1,639,434,225		$	313,895,085		$	287,052,468
Undistributed net investment income at end of year	$	(60,301	)	$	3,331,080		$	632,531		$	1,149,675
Changes in Shares Outstanding:
Shares sold		13,550,000			12,800,000			1,250,000			650,000
Shares repurchased		(23,350,000	)		(37,800,000	)		(1,350,000	)		(3,500,000	)
Shares outstanding, beginning of year		35,900,000			60,900,000			13,200,000			16,050,000
Shares outstanding, end of year		26,100,000			35,900,000			13,100,000			13,200,000

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

30

PowerShares Financial Preferred Portfolio (PGF)						PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)						PowerShares International Dividend AchieversTM Portfolio (PID)
2017			2016			2017			2016			2017			2016
$	94,067,243		$	87,221,748		$	32,677,305		$	20,186,708		$	21,521,583		$	38,185,806
	30,190,207			30,926,030			142,476,260			37,918,749			(89,104,790	)		(123,252,756	)
	(28,372,096	)		(9,113,684	)		(12,049,124	)		25,751,399			117,086,827			(202,703,610	)
	95,885,354			109,034,094			163,104,441			83,856,856			49,503,620			(287,770,560	)
	(94,148,860	)		(87,907,150	)		(32,938,791	)		(20,340,136	)		(28,035,512	)		(39,292,920	)
	333,269,773			404,047,155			799,352,925			505,920,545			199,878,965			12,037,214
	(298,473,329	)		(260,512,094	)		(682,576,819	)		(368,978,245	)		(111,250,849	)		(555,136,253	)
	34,796,444			143,535,061			116,776,106			136,942,300			88,628,116			(543,099,039	)
	36,532,938			164,662,005			246,941,756			200,459,020			110,096,224			(870,162,519	)
	1,636,378,453			1,471,716,448			737,783,448			537,324,428			701,683,756			1,571,846,275
$	1,672,911,391		$	1,636,378,453		$	984,725,204		$	737,783,448		$	811,779,980		$	701,683,756
$	(93,986	)	$	(88,742	)	$	(32,008	)	$	60,731		$	3,658,780		$	8,062,597
	17,650,000			21,700,000			49,500,000			36,700,000			13,650,000			700,000
	(16,050,000	)		(14,400,000	)		(41,100,000	)		(27,150,000	)		(7,700,000	)		(38,200,000	)
	87,050,000			79,750,000			49,500,000			39,950,000			47,850,000			85,350,000
	88,650,000			87,050,000			57,900,000			49,500,000			53,800,000			47,850,000

31

Financial Highlights

PowerShares BuyBack Achievers^TM Portfolio (PKW)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	45.67		$	48.78		$	43.42		$	34.60		$	29.40
Net investment income(a)		0.51			0.56			0.51			0.39			0.37
Net realized and unrealized gain (loss) on investments		6.70			(3.08	)		5.38			8.70			5.18
Total from investment operations		7.21			(2.52	)		5.89			9.09			5.55
Distributions to shareholders from:
Net investment income		(0.68	)		(0.59	)		(0.53	)		(0.27	)		(0.35	)
Net asset value at end of year	$	52.20		$	45.67		$	48.78		$	43.42		$	34.60
Market price at end of year(b)	$	52.19		$	45.65		$	48.77		$	43.42		$	34.61
Net Asset Value Total Return(c)		15.92	%		(5.18	)%		13.63	%		26.36	%		19.08	%
Market Price Total Return(c)		15.96	%		(5.20	)%		13.61	%		26.32	%		19.11	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,362,381		$	1,639,434		$	2,970,924		$	2,905,121		$	418,621
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%(d)		0.63	%(d)		0.66	%(d)		0.70	%
Expenses, prior to Waivers		0.63	%		0.63	%(d)		0.63	%(d)		0.66	%(d)		0.70	%
Net investment income, after Waivers		1.05	%		1.21	%		1.09	%		0.95	%		1.21	%
Portfolio turnover rate(e)		57	%		53	%		68	%		92	%		80	%

^(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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dividend Achievers^TM Portfolio (PFM)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	21.75		$	21.42		$	20.50		$	18.33		$	15.81
Net investment income(a)		0.50			0.49			0.44			0.39			0.38
Net realized and unrealized gain on investments		2.25			0.33			0.90			2.16			2.52
Total from investment operations		2.75			0.82			1.34			2.55			2.90
Distributions to shareholders from:
Net investment income		(0.54	)		(0.49	)		(0.42	)		(0.38	)		(0.38	)
Net asset value at end of year	$	23.96		$	21.75		$	21.42		$	20.50		$	18.33
Market price at end of year(b)	$	23.99		$	21.75		$	21.40		$	20.50		$	18.32
Net Asset Value Total Return(c)		12.80	%		3.98	%		6.54	%		14.11	%		18.67	%
Market Price Total Return(c)		12.94	%		4.08	%		6.44	%		14.17	%		18.68	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	313,895		$	287,052		$	343,819		$	351,557		$	296,928
Ratio to average net assets of:
Expenses, after Waivers		0.55	%		0.55	%		0.55	%		0.55	%		0.58	%
Expenses, prior to Waivers		0.55	%		0.55	%		0.55	%		0.55	%		0.58	%
Net investment income, after Waivers		2.17	%		2.35	%		2.07	%		2.05	%		2.28	%
Portfolio turnover rate(d)		6	%		7	%		20	%		21	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 Financial Preferred Portfolio (PGF)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	18.80		$	18.45		$	17.99		$	18.67		$	17.79
Net investment income(a)		1.03			1.06			1.07			1.10			1.18
Net realized and unrealized gain (loss) on investments		0.07			0.36			0.45			(0.68	)		0.85
Total from investment operations		1.10			1.42			1.52			0.42			2.03
Distributions to shareholders from:
Net investment income		(1.03	)		(1.07	)		(1.06	)		(1.10	)		(1.15	)
Net asset value at end of year	$	18.87		$	18.80		$	18.45		$	17.99		$	18.67
Market price at end of year(b)	$	18.87		$	18.83		$	18.46		$	17.98		$	18.70
Net Asset Value Total Return(c)		6.06	%		8.01	%		8.73	%		2.63	%		11.78	%
Market Price Total Return(c)		5.89	%		8.12	%		8.85	%		2.41	%		11.71	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,672,911		$	1,636,378		$	1,471,716		$	1,435,558		$	1,891,452
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.64	%
Expenses, prior to Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.64	%
Net investment income, after Waivers		5.48	%		5.76	%		5.87	%		6.28	%		6.47	%
Portfolio turnover rate(d)		8	%		13	%		9	%		30	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

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

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	14.90		$	13.45		$	12.32		$	10.77		$	9.36
Net investment income(a)		0.52			0.48			0.43			0.42			0.42
Net realized and unrealized gain on investments		2.12			1.46			1.13			1.54			1.41
Total from investment operations		2.64			1.94			1.56			1.96			1.83
Distributions to shareholders from:
Net investment income		(0.53	)		(0.49	)		(0.43	)		(0.41	)		(0.42	)
Net asset value at end of year	$	17.01		$	14.90		$	13.45		$	12.32		$	10.77
Market price at end of year(b)	$	17.02		$	14.91		$	13.45		$	12.32		$	10.76
Net Asset Value Total Return(c)		17.95	%		14.92	%		12.89	%		18.61	%		20.16	%
Market Price Total Return(c)		17.94	%		14.99	%		12.89	%		18.72	%		20.05	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	984,725		$	737,783		$	537,324		$	393,103		$	322,476
Ratio to average net assets of:
Expenses, after Waivers		0.54	%		0.54	%		0.54	%		0.55	%		0.57	%
Expenses, prior to Waivers		0.54	%		0.54	%		0.54	%		0.55	%		0.57	%
Net investment income, after Waivers		3.23	%		3.62	%		3.29	%		3.70	%		4.31	%
Portfolio turnover rate(d)		49	%		59	%		45	%		51	%		32	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 International Dividend Achievers^TM Portfolio (PID)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	14.66		$	18.42		$	18.56		$	17.27		$	15.35
Net investment income(a)		0.44			0.56			0.51			0.67	(b)		0.40
Net realized and unrealized gain (loss) on investments		0.56			(3.78	)		(0.17	)		1.26			1.93
Total from investment operations		1.00			(3.22	)		0.34			1.93			2.33
Distributions to shareholders from:
Net investment income		(0.57	)		(0.54	)		(0.48	)		(0.64	)		(0.41	)
Net asset value at end of year	$	15.09		$	14.66		$	18.42		$	18.56		$	17.27
Market price at end of year(c)	$	15.09		$	14.65		$	18.43		$	18.58		$	17.31
Net Asset Value Total Return(d)		7.12	%		(17.53	)%		1.83	%		11.50	%		15.63	%
Market Price Total Return(d)		7.19	%		(17.63	)%		1.77	%		11.35	%		15.75	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	811,780		$	701,684		$	1,571,846		$	1,160,654		$	877,341
Ratio to average net assets of:
Expenses, after Waivers		0.56	%		0.58	%		0.55	%		0.54	%		0.56	%
Expenses, prior to Waivers		0.56	%		0.58	%		0.55	%		0.54	%		0.56	%
Net investment income, after Waivers		3.01	%		3.62	%		2.77	%		3.82	%(b)		2.57	%
Portfolio turnover rate(e)		61	%		61	%		66	%		49	%		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 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2017

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2017, 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 The NASDAQ Stock Market LLC, except for Shares of Financial Preferred Portfolio, which is listed and traded on NYSE Arca, Inc. Prior to December 7, 2016, Shares of BuyBack Achievers^TM Portfolio, Dividend Achievers^TM Portfolio, High Yield Equity Dividend Achievers^TM Portfolio and International Dividend Achievers^TM Portfolio were listed and traded on NYSE Arca, Inc.

The market price of each Share 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
BuyBack AchieversTM Portfolio	NASDAQ US BuyBack AchieversTM Index
Dividend AchieversTM Portfolio	NASDAQ US Broad Dividend AchieversTM Index
Financial Preferred Portfolio	Wells Fargo® Hybrid and 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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.

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 asked 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 asked 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 asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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 Fund 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 Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in 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.

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Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will 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 Mid-Capitalization Company Risk. Investing in securities of small- and mid-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 mid-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.

Consumer Discretionary Sector Risk. At times, BuyBack Achievers^TM Portfolio has concentrated its investments in the consumer discretionary sector. Companies engaged in the consumer discretionary sector are affected by fluctuations in supply and demand and changes in consumer preferences. Changes in consumer spending as a result of world events, political and economic conditions, commodity price volatility, changes in exchange rates, imposition of import controls, increased competition, depletion of resources and labor relations also may adversely affect these companies.

Financial Sector Risk. For Financial Preferred Portfolio and International Dividend Achievers^TM Portfolio, the market value of securities of issuers in the financial sector can be affected by factors such as adverse regulatory or economic occurrences affecting the financial sector, availability of credit, fluctuations in asset values, unstable interest rates, increased competition, continuing consolidations and development of new products and structures. Furthermore, increased government involvement in financial institutions, including measures such as taking ownership positions in such institutions, could result in a dilution in the value of the shares held by shareholders in such institutions.

Variable- and Floating-Rate Securities Risk. Financial Preferred Portfolio’s investments in variable- and floating-rate instruments are subject to credit risk and default risk, which could impair their value. Variable- and floating-rate securities also may be subject to liquidity risk, meaning that there may be limitations on the Fund’s ability to sell the securities at any given time. Securities with floating or variable interest rates may decline in value if their coupon rates do not reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed notes of the same maturity. Due to these securities’ variable- or floating-rate features, there can be no guarantee that they will pay a certain level of a dividend, and such securities generally will pay lower levels of income in a falling interest rate environment.

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.

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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.

ADR and GDR Risk. International Dividend Achievers^TM Portfolio may invest in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). ADRs are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing directly underlying foreign securities in their national markets and currencies. GDRs are certificates issued by an international bank that generally are traded and denominated in the currencies of countries other than the home country of the issuer of the underlying shares. ADRs and GDRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks. Moreover, ADRs and GDRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.

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 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 accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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.

G. 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.

H. Accounting Estimates

The preparation of the financial statements in accordance with 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.

I. Securities Lending

During the fiscal year ended April 30, 2017, each Fund 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% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is generally invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or

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interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, 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 Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser 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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. 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, 2019, 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. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

BuyBack AchieversTM Portfolio	$	2,244
Dividend AchieversTM Portfolio		430
Financial Preferred Portfolio		10,870
High Yield Equity Dividend AchieversTM Portfolio		1,256
International Dividend AchieversTM Portfolio		1,089

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 fiscal year ended April 30, 2017, 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.

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

Fund	Licensor
BuyBack AchieversTM Portfolio	Nasdaq, Inc.
Dividend AchieversTM Portfolio	Nasdaq, Inc.
Financial Preferred Portfolio	Wells Fargo & Company
High Yield Equity Dividend AchieversTM Portfolio	Nasdaq, Inc.
International Dividend AchieversTM Portfolio	Nasdaq, 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 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

The 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 tables below show certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2017.

BuyBack Achievers^TM Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value April 30, 2017		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	—	$	1,060,094	$	(41,099	)	$	119,402	$	2,112	$	1,140,509	$	28,083

Dividend Achievers^TM Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Invesco Ltd.	$	558,707	$	65,269	$	(58,971	)	$	46,340	$	(13,780	)	$	597,565	$	19,853

High Yield Equity Dividend Achievers^TM Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value April 30, 2017		Dividend Income
Invesco Ltd.	$	14,243,668	$	17,106,196	$	(12,311,055	)	$	1,221,583	$	42,869	$	20,303,261	$	671,513

The 1940 Act defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows International Dividend Achievers™ Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2017.

International Dividend Achievers^TM Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Teekay Offshore Partners LP*	$	47,785,546	$	11,240,245	$	(52,664,729	)	$	40,956,179	$	(47,317,241	)		$—	$	417,034

* At April 30, 2017, this security was no longer held.

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

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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 April 30, 2017, 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. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2017 and 2016:

	2017		2016
	Ordinary Income		Ordinary Income
BuyBack AchieversTM Portfolio	$	20,170,488	$	29,971,633
Dividend AchieversTM Portfolio		6,990,329		7,191,272
Financial Preferred Portfolio		94,148,860		87,907,150
High Yield Equity Dividend AchieversTM Portfolio		32,938,791		20,340,136
International Dividend AchieversTM Portfolio		28,035,512		39,292,920

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Net Unrealized Appreciation (Depreciation)— Other Investments			Capital Loss Carryforwards			Post-October Capital Loss Deferrals*			Shares of Beneficial Interest		Total Net Assets
BuyBack AchieversTM Portfolio	$	—	$	(60,301	)	$	108,182,605	$	—		$	(221,349,322	)	$	(30,667,234	)	$	1,506,274,906	$	1,362,380,654
Dividend AchieversTM Portfolio		659,615		(27,084	)		69,355,047		—			(18,406,925	)		(63,747	)		262,378,179		313,895,085
Financial Preferred Portfolio		—		(93,986	)		65,560,675		—			(11,280,982	)		(1,207,012	)		1,619,932,696		1,672,911,391
High Yield Equity Dividend AchieversTM Portfolio		—		(32,008	)		37,339,844		—			(56,045,797	)		—			1,003,463,165		984,725,204
International Dividend AchieversTM Portfolio		4,879,705		(58,090	)		8,508,476		(593	)		(424,511,766	)		(22,450,169	)		1,245,412,417		811,779,980

* The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital Losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards 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.

42

The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2017:

					Post-effective/no expiration
	2018		2019		Short-Term		Long-Term		Total*		Expired
BuyBack AchieversTM Portfolio	$	12,142,749	$	2,107,645	$	171,205,751	$	35,893,177	$	221,349,322	$	800,254
Dividend AchieversTM Portfolio		14,632,363		2,339,194		59,254		1,376,114		18,406,925		1,008,304
Financial Preferred Portfolio		7,354,935		—		1,178,343		2,747,704		11,280,982		9,034,558
High Yield Equity Dividend AchieversTM Portfolio		44,815,128		2,187,574		334,066		8,709,029		56,045,797		81,487,358
International Dividend AchieversTM Portfolio		145,514,837		11,745,409		148,412,554		118,838,966		424,511,766		59,472,841

* 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 fiscal year ended April 30, 2017, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
BuyBack AchieversTM Portfolio	$	815,229,079	$	821,890,698
Dividend AchieversTM Portfolio		18,361,972		18,592,660
Financial Preferred Portfolio		160,984,285		137,002,771
High Yield Equity Dividend AchieversTM Portfolio		491,308,827		488,191,427
International Dividend AchieversTM Portfolio		440,251,574		443,581,070

For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
BuyBack AchieversTM Portfolio	$	688,604,297	$	1,142,814,683
Dividend AchieversTM Portfolio		29,474,597		31,225,485
Financial Preferred Portfolio		305,770,453		295,328,256
High Yield Equity Dividend AchieversTM Portfolio		794,712,560		681,864,581
International Dividend AchieversTM Portfolio		199,808,377		111,623,323

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

At April 30, 2017, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation		Cost
BuyBack AchieversTM Portfolio	$	147,783,798	$	(39,601,193	)	$	108,182,605	$	1,288,959,919
Dividend AchieversTM Portfolio		74,839,992		(5,484,945	)		69,355,047		244,933,133
Financial Preferred Portfolio		72,959,781		(7,399,106	)		65,560,675		1,637,715,423
High Yield Equity Dividend AchieversTM Portfolio		55,939,943		(18,600,099	)		37,339,844		977,985,179
International Dividend AchieversTM Portfolio		51,764,466		(43,255,990	)		8,508,476		921,597,529

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, amounts were reclassified between undistributed net investment income, undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2017, the reclassifications were as follows:

	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
BuyBack AchieversTM Portfolio	$	1,874,997		$	(133,998,971	)	$	132,123,974
Dividend AchieversTM Portfolio		(2,605	)		(7,792,860	)		7,795,465
Financial Preferred Portfolio		76,373			(19,907,823	)		19,831,450
High Yield Equity Dividend AchieversTM Portfolio		168,747			(50,207,085	)		50,038,338
International Dividend AchieversTM Portfolio		2,110,112			41,476,784			(43,586,896	)

43

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, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated 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 principally 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.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in 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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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.

44

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares BuyBack Achievers^™ Portfolio, PowerShares Dividend Achievers^™ Portfolio, PowerShares Financial Preferred Portfolio, PowerShares High Yield Equity Dividend Achievers^™ Portfolio and PowerShares International Dividend Achievers^™ Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PowerShares BuyBack Achievers^™ Portfolio, PowerShares Dividend Achievers^™ Portfolio, PowerShares Financial Preferred Portfolio, PowerShares High Yield Equity Dividend Achievers^™ Portfolio and PowerShares International Dividend Achievers^™ Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 23, 2017

45

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2017.

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 November 1, 2016		Ending Account Value April 30, 2017		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares BuyBack AchieversTM Portfolio (PKW)
Actual	$	1,000.00	$	1,121.10		0.63	%	$	3.31
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dividend AchieversTM Portfolio (PFM)
Actual		1,000.00		1,094.30		0.55			2.86
Hypothetical (5% return before expenses)		1,000.00		1,022.07		0.55			2.76
PowerShares Financial Preferred Portfolio (PGF)
Actual		1,000.00		1,030.40		0.63			3.17
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
Actual		1,000.00		1,113.80		0.54			2.83
Hypothetical (5% return before expenses)		1,000.00		1,022.12		0.54			2.71
PowerShares International Dividend AchieversTM Portfolio (PID)
Actual		1,000.00		1,071.00		0.54			2.77
Hypothetical (5% return before expenses)		1,000.00		1,022.12		0.54			2.71

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

46

Tax Information

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

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2017:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares BuyBack AchieversTM Portfolio		100	%		100	%
PowerShares Dividend AchieversTM Portfolio		100	%		100	%
PowerShares Financial Preferred Portfolio		100	%		76	%
PowerShares High Yield Equity Dividend AchieversTM Portfolio		100	%		100	%
PowerShares International Dividend AchieversTM Portfolio		82	%		0	%

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

The Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:

	Gross Foreign Income			Foreign Taxes Paid
PowerShares International Dividend AchieversTM Portfolio		$	21,364,957		$	1,712,193

47

Trustees and Officers

The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and Trustee since 2003	Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).	135	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2010	Assistant Professor of Business, Trinity Christian College (2010-2016); formerly Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank.	135	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

48

Trustees and Officers (continued)

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	135	None
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	135	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

49

Trustees and Officers (continued)

The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Unaffiliated Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex*** Overseen by Unaffiliated Trustee	Other Directorships Held by Unaffiliated Trustee During the Past 5 Years
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee**	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	135	None

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

** Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee.

*** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

50

Trustees and Officers (continued)

The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Interested Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Interested Trustee	Other Directorships Held by Interested Trustee During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP.	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

51

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer and Principal Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chief Compliance Officer	Since 2017	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2012	Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer – Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005).

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

52

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), Invesco PowerShares Capital Management LLC (2010-Present); Manager and Assistant Secretary, Invesco Indexing LLC (2017-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2011-Present); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.

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

53

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2016, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable

54

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

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

● 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth Portfolio); and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, were -0.06%, -0.19% and -0.62%, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio).

The Trustees also noted that the Adviser has agreed to waive a portion of its contractual advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2018, as set forth below:

● 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

● 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio;

● 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® Quality Portfolio;

55

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

● 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio				X
PowerShares Buyback AchieversTM Portfolio				X
PowerShares CleantechTM Portfolio				X
PowerShares Dividend AchieversTM Portfolio				X
PowerShares DWA Basic Materials Momentum Portfolio				X
PowerShares DWA Consumer Cyclicals Momentum Portfolio				X
PowerShares DWA Consumer Staples Momentum Portfolio				X
PowerShares DWA Energy Momentum Portfolio				X
PowerShares DWA Financial Momentum Portfolio				X
PowerShares DWA Healthcare Momentum Portfolio				X
PowerShares DWA Industrials Momentum Portfolio				X
PowerShares DWA Momentum Portfolio				X
PowerShares DWA NASDAQ Momentum Portfolio				X
PowerShares DWA Technology Momentum Portfolio				X
PowerShares DWA Utilities Momentum Portfolio				X
PowerShares Dynamic Biotechnology & Genome Portfolio				X
PowerShares Dynamic Building & Construction Portfolio				X
PowerShares Dynamic Energy Exploration & Production Portfolio				X
PowerShares Dynamic Food & Beverage Portfolio				X
PowerShares Dynamic Large Cap Growth Portfolio				X
PowerShares Dynamic Large Cap Value Portfolio				X
PowerShares Dynamic Leisure and Entertainment Portfolio				X
PowerShares Dynamic Market Portfolio				X
PowerShares Dynamic Media Portfolio				X
PowerShares Dynamic Networking Portfolio				X
PowerShares Dynamic Oil & Gas Services Portfolio				X

56

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median		Equal to/Lower than Open-End Index Fund Median*		Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Pharmaceuticals Portfolio						X
PowerShares Dynamic Retail Portfolio						X
PowerShares Dynamic Semiconductors Portfolio						X
PowerShares Dynamic Software Portfolio						X
PowerShares Financial Preferred Portfolio				N/A		X
PowerShares FTSE RAFI US 1000 Portfolio						X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X				X
PowerShares Russell Top 200 Equal Weight Portfolio				X		X
PowerShares Russell Top 200 Pure Growth Portfolio				X		X
PowerShares Russell Top 200 Pure Value Portfolio						X
PowerShares Russell Midcap Equal Weight Portfolio		X				X
PowerShares Russell Midcap Pure Growth Portfolio				X		X
PowerShares Russell Midcap Pure Value Portfolio		X				X
PowerShares Russell 2000 Equal Weight Portfolio		X				X
PowerShares Russell 2000 Pure Growth Portfolio				X		X
PowerShares Russell 2000 Pure Value Portfolio				X		X
PowerShares Global Listed Private Equity Portfolio				N/A		X
PowerShares Golden Dragon China Portfolio		X		N/A		X
PowerShares High Yield Equity Dividend AchieversTM Portfolio						X
PowerShares International Dividend AchieversTM Portfolio		X		N/A		X
PowerShares S&P 500® Quality Portfolio						X
PowerShares Water Resources Portfolio						X
PowerShares WilderHill Clean Energy Portfolio						X
PowerShares WilderHill Progressive Energy Portfolio						X
PowerShares Zacks Micro Cap Portfolio						X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the contractual advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*		Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio					X
PowerShares Buyback AchieversTM Portfolio					X
PowerShares CleantechTM Portfolio					X
PowerShares Dividend AchieversTM Portfolio			X		X
PowerShares DWA Basic Materials Momentum Portfolio					X
PowerShares DWA Consumer Cyclicals Momentum Portfolio					X
PowerShares DWA Consumer Staples Momentum Portfolio					X
PowerShares DWA Energy Momentum Portfolio					X

57

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median		Equal to/Lower than Open-End Index Fund Median*		Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Financial Momentum Portfolio						X
PowerShares DWA Healthcare Momentum Portfolio						X
PowerShares DWA Industrials Momentum Portfolio						X
PowerShares DWA Momentum Portfolio						X
PowerShares DWA NASDAQ Momentum Portfolio				X		X
PowerShares DWA Technology Momentum Portfolio						X
PowerShares DWA Utilities Momentum Portfolio						X
PowerShares Dynamic Biotechnology & Genome Portfolio						X
PowerShares Dynamic Building & Construction Portfolio						X
PowerShares Dynamic Energy Exploration & Production Portfolio						X
PowerShares Dynamic Food & Beverage Portfolio						X
PowerShares Dynamic Large Cap Growth Portfolio						X
PowerShares Dynamic Large Cap Value Portfolio						X
PowerShares Dynamic Leisure and Entertainment Portfolio						X
PowerShares Dynamic Market Portfolio						X
PowerShares Dynamic Media Portfolio						X
PowerShares Dynamic Networking Portfolio						X
PowerShares Dynamic Oil & Gas Services Portfolio						X
PowerShares Dynamic Pharmaceuticals Portfolio						X
PowerShares Dynamic Retail Portfolio						X
PowerShares Dynamic Semiconductors Portfolio						X
PowerShares Dynamic Software Portfolio						X
PowerShares Financial Preferred Portfolio				N/A		X
PowerShares FTSE RAFI US 1000 Portfolio						X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio						X
PowerShares Russell Top 200 Equal Weight Portfolio				X		X
PowerShares Russell Top 200 Pure Growth Portfolio				X		X
PowerShares Russell Top 200 Pure Value Portfolio						X
PowerShares Russell Midcap Equal Weight Portfolio		X		X		X
PowerShares Russell Midcap Pure Growth Portfolio				X		X
PowerShares Russell Midcap Pure Value Portfolio		X				X
PowerShares Russell 2000 Equal Weight Portfolio		X		X		X
PowerShares Russell 2000 Pure Growth Portfolio				X		X
PowerShares Russell 2000 Pure Value Portfolio				X		X
PowerShares Global Listed Private Equity Portfolio				N/A		X
PowerShares Golden Dragon China Portfolio		X		N/A		X
PowerShares High Yield Equity Dividend AchieversTM Portfolio				X		X
PowerShares International Dividend AchieversTM Portfolio				N/A		X
PowerShares S&P 500® Quality Portfolio		X		X		X
PowerShares Water Resources Portfolio						X
PowerShares WilderHill Clean Energy Portfolio						X
PowerShares WilderHill Progressive Energy Portfolio						X
PowerShares Zacks Micro Cap Portfolio						X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

58

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted those Funds for which license fees are included in the Funds’ Expense Caps.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund’s Expense Cap) were reasonable and appropriate in light of the services provided.

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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

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

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

59

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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.powershares.com.

P-PS-AR-1
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515
powershares.com    800 983 0903		@PowerShares

April 30, 2017

2017 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

The Market Environment	3
Manager’s Analysis	4
Industry Portfolios
Schedules of Investments
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)	33
PowerShares Dynamic Building & Construction Portfolio (PKB)	34
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)	35
PowerShares Dynamic Food & Beverage Portfolio (PBJ)	36
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)	37
PowerShares Dynamic Media Portfolio (PBS)	38
PowerShares Dynamic Networking Portfolio (PXQ)	39
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)	40
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)	41
PowerShares Dynamic Retail Portfolio (PMR)	42
PowerShares Dynamic Semiconductors Portfolio (PSI)	43
PowerShares Dynamic Software Portfolio (PSJ)	44
Statements of Assets and Liabilities	46
Statements of Operations	48
Statements of Changes in Net Assets	50
Financial Highlights	54
Notes to Financial Statements	61
Report of Independent Registered Public Accounting Firm	72
Fees and Expenses	73
Tax Information	75
Trustees and Officers	76
Board Considerations Regarding Continuation of Investment Advisory Agreement	82

2

The Market Environment

US Equity

During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.

While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.

3

PBE	Manager’s Analysis
	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

As an index fund, the PowerShares Dynamic Biotechnology & Genome Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Biotech & Genome Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of biotechnology companies and genome companies that comprise the Index. These companies are engaged principally in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes, and are companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research. These companies may include, for example, companies involved in the research, development or production of pharmaceuticals, including veterinary drugs.

Strictly in accordance with its existing guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of biotechnology and genome companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 10.15%. On a net asset value (“NAV”) basis, the Fund returned 10.09%. During the same time period, the Index returned 9.64%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to revenue generated through the Fund’s securities lending program partially offset by fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500^® Biotech Index (the “Benchmark Index”) returned 4.47%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 25 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another biotechnology and genome industry benchmark.

The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the biotech industry. It is important to note, however, that the Index includes stocks from its proprietary “Biotechnology & Genome Group Universe” of which approximately 90% are considered pharmaceuticals, biotechnology and life sciences, while the remaining 10% of the Index contains stocks in other industry groups including materials, health care equipment & services, and technology hardware & equipment. The Benchmark Index contains 100% biotechnology

companies. This Benchmark Index is relevant as a comparison, but the disparity compared to pure biotechnology exposure may produce potentially significant differences in performance when compared to the Fund.

Relative to the Benchmark Index, the Fund was most overweight in the pharmaceuticals sub-industry and most underweight in the biotechnology sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection in the biotechnology sub-industry.

For the fiscal year ended April 30, 2017, the biotechnology sub-industry contributed most significantly to the Fund’s return, followed by the health care equipment sub-industry. The pharmaceuticals sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included Exelixis, Inc., a biotechnology company (portfolio average weight of 3.29%), and Incyte Corp., a biotechnology company (portfolio average weight of 5.33%). Positions that detracted most significantly from the Fund’s return included Acorda Therapeutics, Inc., a biotechnology company (portfolio average weight of 1.83%), and Achillion Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Biotechnology	88.9
Pharmaceuticals	8.2
Health Care Equipment	2.9
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Vertex Pharmaceuticals, Inc.	6.7
Regeneron Pharmaceuticals, Inc.	5.3
BioMarin Pharmaceutical, Inc.	5.2
Incyte Corp.	5.0
Gilead Sciences, Inc.	4.8
Alexion Pharmaceuticals, Inc.	4.8
Biogen, Inc.	4.6
Amgen, Inc.	4.6
Insmed, Inc.	3.5
Neurocrine Biosciences, Inc.	3.3
Total	47.8

* Excluding money market fund holdings.

4

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Biotech & Genome IntellidexSM Index		9.64	%		3.27	%		10.14	%		14.73	%		98.82	%		9.09	%		138.66	%		10.08	%		212.20	%
S&P Composite 1500® Biotech Index		4.47			9.54			31.45			22.33			173.95			14.55			288.87			14.73			409.70
Fund
NAV Return		10.09			3.53			10.96			14.63			97.95			8.66			129.37			9.74			200.94
Market Price Return		10.15			3.57			11.09			14.69			98.48			8.66			129.47			9.74			200.87

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively.

The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

5

PKB	Manager’s Analysis
	PowerShares Dynamic Building & Construction Portfolio (PKB)

As an index fund, the PowerShares Dynamic Building & Construction Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Building & Construction Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of building and construction companies that comprise the Index. These companies are engaged primarily in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines and airports. These companies also may include manufacturers of building materials from home improvement and general construction projects and specialized machinery used for building and construction; companies that provide installation, maintenance or repair work; and land developers.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of building and construction companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 18.41%. On a net asset value (“NAV”) basis, the Fund returned 18.33%. During the same time period, the Index returned 19.15%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500^® Construction & Engineering Index (the “Benchmark Index”) returned 17.35%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 15 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another building & construction industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the building & construction industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the building products sub-industry and most underweight in the construction & engineering sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the building products and construction materials sub-industries.

For the fiscal year ended April 30, 2017, the building products sub-industry contributed most significantly to the Fund’s return, followed by the construction & engineering and construction materials sub-industries, respectively. The specialty stores sub-industry detracted most significantly from the Fund’s return, followed by the heavy electrical equipment and industrial conglomerates sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included MasTec, Inc., a construction & engineering company (portfolio average weight of 2.89%), and Martin Marietta Materials, Inc., a construction materials company (portfolio average weight of 5.05%). Positions that detracted most significantly from the Fund’s return included Fortune Brands Home & Security, Inc., a building products company (no longer held at fiscal year-end), and Tractor Supply Co., a specialty stores company (no longer held at fiscal year-end).

6

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Construction Materials	20.9
Building Products	20.7
Homebuilding	18.5
Construction & Engineering	13.4
Forest Products	5.7
Home Improvement Retail	5.1
Home Furnishings	5.0
Construction Machinery & Heavy Trucks	2.8
Distributors	2.7
Multi-Utilities	2.6
Industrial Machinery	2.6
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
NVR, Inc.	5.3
Home Depot, Inc. (The)	5.1
A.O. Smith Corp.	5.1
Martin Marietta Materials, Inc.	5.0
PulteGroup, Inc.	5.0
Mohawk Industries, Inc.	5.0
Vulcan Materials Co.	4.9
Lennox International, Inc.	4.8
MasTec, Inc.	3.1
Boise Cascade Co.	2.9
Total	46.2

* Excluding money market fund holdings.

7

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Building & Construction IntellidexSM Index		19.15	%		11.18	%		37.44	%		16.92	%		118.54	%		6.24	%		83.13	%		7.49	%		129.82	%
S&P Composite 1500® Construction & Engineering Index		17.35			0.81			2.46			6.39			36.33			3.25			37.75			7.00			117.87
Fund
NAV Return		18.33			10.42			34.62			16.01			110.14			5.48			70.43			6.61			109.00
Market Price Return		18.41			10.43			34.66			16.08			110.73			5.48			70.54			6.61			109.00

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

8

PXE	Manager’s Analysis
	PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

As an index fund, the PowerShares Dynamic Energy Exploration & Production Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Energy Exploration & Production Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies engaged in energy exploration and production that comprise the Index. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells. These companies include petroleum refineries that process the crude oil into finished products, such as gasoline and automotive lubricants, and companies involved in gathering and processing natural gas, and manufacturing natural gas liquid.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of energy exploration and production companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned (3.96)%. On a net asset value (“NAV”) basis, the Fund returned (3.96)%. During the same time period, the Index returned (3.36)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500^® Oil & Gas Exploration & Production Index (the “Benchmark Index”) returned (1.60)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another energy exploration & production industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace and because its exposure to the oil & gas exploration & production sub-industry, and its performance comparison is a useful measure for investors as a representation of that sub-industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas refining & marketing sub-industry and most underweight in the oil & gas exploration & production sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the oil & gas exploration & production sub-industry, as well as fees and operating expenses that the Fund incurred.

For the fiscal year ended April 30, 2017, there were no contributing sub-industries. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas refining & marketing and integrated oil & gas sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Marathon Petroleum Corp., an oil & gas refining & marketing company (portfolio average weight of 5.11%), and Delek US Holdings, Inc., an oil & gas refining & marketing company (portfolio average weight of 2.65%). Positions that detracted most significantly from the Fund’s return included CVR Refining LP, an oil & gas refining & marketing company (portfolio average weight of 1.96%), and Tellurian, Inc., an oil & gas refining & marketing company (portfolio average weight of 0.32%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Oil & Gas Exploration & Production	60.3
Oil & Gas Refining & Marketing	37.0
Gas Utilities	2.7
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
ConocoPhillips	5.4
Phillips 66	5.4
Marathon Petroleum Corp.	5.4
Valero Energy Corp.	5.1
EOG Resources, Inc.	5.1
Pioneer Natural Resources Co.	5.0
Continental Resources, Inc.	4.9
Anadarko Petroleum Corp.	4.6
Rice Energy, Inc.	3.2
Cabot Oil & Gas Corp.	3.0
Total	47.1

* Excluding money market fund holdings.

9

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Energy Exploration & Production IntellidexSM Index		(3.36	)%		(15.32	)%		(39.28	)%		(0.24	)%		(1.21	)%		2.00	%		21.88	%		4.37	%		63.57	%
S&P Composite 1500® Oil & Gas Exploration & Production Index		(1.60	)		(15.66	)		(40.01	)		(3.52	)		(16.40	)		0.54			5.58			2.37			30.90
Fund
NAV Return		(3.96	)		(15.66	)		(40.01	)		(0.80	)		(3.95	)		1.37			14.62			3.76			52.91
Market Price Return		(3.96	)		(15.66	)		(40.00	)		(0.79	)		(3.90	)		1.38			14.74			3.75			52.73

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.77% and the net annual operating expense ratio was indicated as 0.75%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

10

PBJ	Manager’s Analysis
	PowerShares Dynamic Food & Beverage Portfolio (PBJ)

As an index fund, the PowerShares Dynamic Food & Beverage Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Food & Beverage Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of food and beverage companies that comprise the Index. These companies are engaged principally in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. These companies may include consumer manufacturing of agricultural inputs like livestock and crops, as well as processed food and beverage products; food and beverage stores such as grocery stores, supermarkets, wholesale distributors of grocery items; and food and beverage services like restaurants, bars, snack bars, coffeehouses and other establishments providing food and refreshment. Companies with focused operations as tobacco growers and manufactures, or pet supplies stores are specifically excluded from this universe.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of food and beverage companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 6.03%. On a net asset value (“NAV”) basis, the Fund returned 6.03%. During the same time period, the Index returned 6.76%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500^® Food Beverage & Tobacco Index (the “Benchmark Index”) returned 10.43%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 securities. The Fund provided this comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another food & beverage industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the food & beverage industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the packaged foods & meats sub-industry and most underweight in the tobacco sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation to the tobacco sub-industry.

For the fiscal year ended April 30, 2017, the packaged foods & meats sub-industry contributed most significantly to the Fund’s return, followed by the agricultural products and food distributors sub-industries, respectively. There were no detracting sub-industries.

Positions that contributed most significantly to the Fund’s return included Fresh Del Monte Produce, Inc., an agricultural products company (portfolio average weight of 2.80%), and Sysco Corp., a food distributors company (portfolio average weight of 5.04%). Positions that detracted most significantly from the Fund’s return included Monster Beverage Corp., a soft drinks company (no longer held at fiscal year-end), and Tyson Foods, Inc., Class A, a packaged foods & meats company (portfolio average weight of 3.51%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Packaged Foods & Meats	46.5
Agricultural Products	13.7
Food Distributors	13.1
Restaurants	8.5
Food Retail	7.1
Distillers & Vintners	5.7
Soft Drinks	5.3
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Constellation Brands, Inc., Class A	5.7
PepsiCo, Inc.	5.3
Archer-Daniels-Midland Co.	5.2
Sysco Corp.	5.1
Hershey Co. (The)	5.1
Kellogg Co.	4.8
General Mills, Inc.	4.8
Kroger Co. (The)	4.6
Pilgrim’s Pride Corp.	3.5
John B. Sanfilippo & Son, Inc.	3.3
Total	47.4

* Excluding money market fund holdings.

11

PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Food & Beverage IntellidexSM Index		6.76	%		9.98	%		33.03	%		13.53	%		88.61	%		9.14	%		139.89	%		9.44	%		191.15	%
S&P Composite 1500® Food Beverage & Tobacco Index		10.43			14.08			48.47			14.24			94.54			12.59			227.23			13.06			328.21
Fund
NAV Return		6.03			9.27			30.48			12.78			82.48			8.40			124.10			8.71			169.02
Market Price Return		6.03			9.25			30.39			12.78			82.43			8.39			123.91			8.71			168.93

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively.

The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

12

PEJ	Manager’s Analysis
	PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

As an index fund, the PowerShares Dynamic Leisure and Entertainment Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Leisure & Entertainment Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of leisure companies and entertainment companies that comprise the Index. These companies are engaged principally in the design, production or distribution of goods or services in the leisure and entertainment industries. These companies may include, hospitality industry companies such as hotels, restaurants and bars, cruise lines, casinos, and all other recreation and amusement businesses; as well as entertainment programming companies engaged in the production of motion pictures, music by recording artists, programming for radio and television, related post-production and movie theaters.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of leisure companies and entertainment companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 18.55%. On a net asset value (“NAV”) basis, the Fund returned 18.52%. During the same time period, the Index returned 19.44%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500^® Hotels, Restaurants & Leisure Index (the “Benchmark Index”) returned 21.20%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another in the leisure & entertainment industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the leisure & entertainment industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the airlines sub-industry and most underweight in the restaurants sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the restaurants sub-industry, as well as fees and operating expenses that the Fund incurred.

For the fiscal year ended April 30, 2017, the airlines sub-industry contributed most significantly to the Fund’s return, followed by the restaurants and leisure facilities sub-industries, respectively. The food distributors sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included United Continental Holdings, Inc., an airlines company (portfolio average weight of 5.16%), and American Airlines Group, Inc., an airlines company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Las Vegas Sands Corp., a casinos & gaming company (no longer held at fiscal year-end), and Sonic Corp., a restaurants company (no longer held at fiscal year-end).

13

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Restaurants	20.7
Airlines	20.0
Hotels, Resorts & Cruise Lines	16.8
Movies & Entertainment	12.6
Leisure Facilities	10.6
Broadcasting	7.5
Internet & Direct Marketing Retail	5.7
Casinos & Gaming	3.2
Cable & Satellite	3.0
Money Market Fund Plus Other Assets Less Liabilities	(0.1)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Priceline Group, Inc. (The)	5.6
Royal Caribbean Cruises Ltd.	5.6
Time Warner, Inc.	5.1
CBS Corp., Class B	5.0
Southwest Airlines Co.	4.9
Viacom, Inc., Class B	4.9
United Continental Holdings, Inc.	4.7
Delta Air Lines, Inc.	4.5
Bob Evans Farms, Inc.	3.3
Scientific Games Corp., Class A	3.2
Total	46.8

* Excluding money market fund holdings.

14

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Leisure & Entertainment IntellidexSM Index		19.44	%		10.56	%		35.14	%		15.16	%		102.54	%		10.34	%		167.50	%		10.82	%		237.87	%
S&P Composite 1500® Hotels, Restaurants & Leisure Index		21.20			15.08			52.41			13.57			88.91			11.96			209.43			12.32			296.18
Fund
NAV Return		18.52			9.74			32.15			14.29			94.97			9.66			151.45			10.13			213.77
Market Price Return		18.55			9.75			32.19			14.26			94.79			9.66			151.37			10.13			213.86

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively.

The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

15

PBS	Manager’s Analysis
	PowerShares Dynamic Media Portfolio (PBS)

As an index fund, the PowerShares Dynamic Media Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Media Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of media companies that comprise the Index. These companies are engaged principally in the development, production, sale and distribution of goods or services used in the media industry. These companies produce and distribute information and entertainment content and may include television and radio stations, broadcast and cable networks, motion picture companies, music producers, print publishers, and providers of content delivered via the internet; as well as direct to home satellite services; traditional cable services; and advertising and related services.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of media companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 11.57%. On a net asset value (“NAV”) basis, the Fund returned 11.49%. During the same time period, the Index returned 12.29%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500^® Media Index (the “Benchmark Index”) returned 19.93%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a media industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a general representation of the media industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the internet software & services sub-industry and most underweight in the movies & entertainment sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the movies & entertainment sub-industry.

For the fiscal year ended April 30, 2017, the cable & satellite sub-industry contributed most significantly to the Fund’s return, followed by the internet software & services and diversified support services sub-industries, respectively. The publishing sub-industry detracted most significantly from the Fund’s return, followed by the advertising and internet & direct marketing retail sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Time Warner, Inc., a movies and entertainment company (portfolio average weight of 5.07%), and Charter Communications, Inc., Class A, a cable & satellite company (portfolio average weight of 3.46%). Positions that detracted most significantly from the Fund’s return included Gannett Co., Inc., a publishing company (no longer held at fiscal year-end), and Twenty-First Century Fox, Inc., Class A, a movies & entertainment company (no longer held at fiscal year-end).

16

PowerShares Dynamic Media Portfolio (PBS) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Internet Software & Services	21.8
Broadcasting	21.0
Cable & Satellite	18.2
Movies & Entertainment	15.7
Publishing	12.9
Advertising	5.2
IT Consulting & Other Services	2.6
Diversified Support Services	2.6
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Facebook, Inc., Class A	5.5
Charter Communications, Inc., Class A	5.3
Yahoo!, Inc.	5.2
Walt Disney Co. (The)	5.2
DISH Network Corp., Class A	5.1
Time Warner, Inc.	5.1
CBS Corp., Class B	5.0
Sirius XM Holdings, Inc.	4.8
IAC/InterActiveCorp.	3.0
Match Group, Inc.	3.0
Total	47.2

* Excluding money market fund holdings.

17

PowerShares Dynamic Media Portfolio (PBS) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Media IntellidexSM Index		12.29	%		6.85	%		21.99	%		15.01	%		101.24	%		6.79	%		92.84	%		6.73	%		116.49	%
S&P Composite 1500® Media Index		19.93			11.76			39.57			19.67			145.45			10.71			176.70			10.73			234.65
Fund
NAV Return		11.49			6.12			19.49			14.18			94.05			6.16			81.82			6.09			101.48
Market Price Return		11.57			6.16			19.64			14.19			94.12			6.17			81.98			6.09			101.55

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively.

The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

18

PXQ	Manager’s Analysis
	PowerShares Dynamic Networking Portfolio (PXQ)

As an index fund, the PowerShares Dynamic Networking Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Networking Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of networking companies that comprise the Index. These companies are engaged principally in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions. These companies may include communications equipment companies that offer a broad range of access, transport, and connectivity equipment and devices which span across a diverse set of markets including enterprise networking, home networking, satellite, wireless (terrestrial), wireline wide area networking, and cable (CATV). Such companies also may provide integrated circuits specialized to facilitate communications within a network; software that enables, manages, supports, and secures enterprise networks; and equipment used to build storage networks, which are specialized, high speed networks dedicated to accessing storage data.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of networking companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 30.22%. On a net asset value (“NAV”) basis, the Fund returned 30.19%. During the same time period, the Index returned 30.76%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500^® Communications Equipment Index (the “Benchmark Index”) returned 28.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 20 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another networking industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace and because its exposure to the communications equipment industry, and its performance comparison is a useful measure for investors as a representation of that industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the systems software sub-industry and most underweight in the communications equipment sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight the systems software and internet software & services sub-industries.

For the fiscal year ended April 30, 2017, the communications equipment sub-industry contributed most significantly to the Fund’s return, followed by the systems software and technology hardware, storage & peripherals sub-industries, respectively. The electronic equipment & instruments sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included VMware, Inc., Class A, a systems software company (portfolio average weight of 4.66%), and Arista Networks, Inc., a communications equipment company (portfolio average weight of 2.77%). Positions that detracted most significantly from the Fund’s return included Acacia Communications, Inc., a communications equipment company (portfolio average weight of 1.54%), and Fitbit, Inc., Class A, an electronic equipment & instruments company (no longer held at fiscal year-end).

19

PowerShares Dynamic Networking Portfolio (PXQ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Communications Equipment	54.4
Systems Software	21.0
Internet Software & Services	6.6
Technology Hardware, Storage & Peripherals	5.2
Electronic Components	5.1
Application Software	5.0
Consumer Electronics	2.6
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Symantec Corp.	5.5
Motorola Solutions, Inc.	5.4
Apple, Inc.	5.2
Check Point Software Technologies Ltd.	5.1
VMware, Inc., Class A	5.1
Amphenol Corp., Class A	5.1
Citrix Systems, Inc.	5.0
Cisco Systems, Inc.	4.9
Extreme Networks, Inc.	3.4
LogMeIn, Inc.	3.3
Total	48.0

* Excluding money market fund holdings.

20

PowerShares Dynamic Networking Portfolio (PXQ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Networking IntellidexSM Index		30.76	%		12.53	%		42.48	%		10.45	%		64.39	%		9.77	%		153.90	%		10.29	%		219.31	%
S&P Composite 1500® Communications Equipment Index		28.40			8.13			26.42			9.23			55.46			4.13			49.90			5.49			88.33
Fund
NAV Return		30.19			11.98			40.41			9.80			59.59			9.04			137.71			9.61			196.82
Market Price Return		30.22			12.00			40.49			9.83			59.81			9.05			137.77			9.62			196.89

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.88% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

21

PXJ	Manager’s Analysis
	PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

As an index fund, the PowerShares Dynamic Oil & Gas Services Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Oil Services Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that assist in the production, processing and distribution of oil and gas that comprise the Index. The Index may include companies engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of oil and gas services companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned (17.92)%. On a net asset value (“NAV”) basis, the Fund returned (17.99)%. During the same time period, the Index returned (17.42)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500^® Energy Equipment & Services Index (the “Benchmark Index”) returned (2.20)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another oil & gas services industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the oil & gas services industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas drilling sub-industry and most underweight in the oil & gas equipment & services sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the oil & gas drilling sub-industry, as well as stock selection in the oil & gas storage transportation sub-industry.

For the fiscal year ended April 30, 2017, there were no contributing sub-industries. The oil & gas drilling sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas storage & transportation and oil & gas equipment & services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Exterran Corp., an oil & gas equipment & services company (portfolio average weight of 1.37%), and McDermott International, Inc., an oil & gas equipment & services company (portfolio average weight of 2.85%). Positions that detracted most significantly from the Fund’s return included Seadrill Ltd., an oil & gas drilling company (portfolio average weight of 2.56%), and Diamond Offshore Drilling, Inc., an oil & gas drilling company (portfolio average weight of 3.09%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Oil & Gas Equipment & Services	65.3
Oil & Gas Drilling	25.6
Oil & Gas Storage & Transportation	9.1
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Baker Hughes, Inc.	5.8
Core Laboratories NV	5.8
Schlumberger Ltd.	5.4
Helmerich & Payne, Inc.	5.3
National Oilwell Varco, Inc.	5.2
Halliburton Co.	5.1
Transocean Ltd.	4.6
Key Energy Services, Inc.	4.4
Scorpio Tankers, Inc.	3.3
USA Compression Partners LP	3.1
Total	48.0

* Excluding money market fund holdings.

22

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Oil Services IntellidexSM Index		(17.42	)%		(25.97	)%		(59.43	)%		(10.79	)%		(43.50	)%		(6.09	)%		(46.65	)%		(2.58	)%		(25.99	)%
S&P Composite 1500® Energy Equipment & Services Index		(2.20	)		(13.51	)		(35.31	)		(2.38	)		(11.37	)		(0.55	)		(5.40	)		2.57			34.00
Fund
NAV Return		(17.99	)		(26.47	)		(60.25	)		(11.39	)		(45.37	)		(6.71	)		(50.09	)		(3.18	)		(31.04	)
Market Price Return		(17.92	)		(26.46	)		(60.24	)		(11.39	)		(45.37	)		(6.71	)		(50.09	)		(3.18	)		(31.04	)

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.72% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

23

PJP	Manager’s Analysis
	PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

As an index fund, the PowerShares Dynamic Pharmaceuticals Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Pharmaceutical Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of pharmaceutical companies that comprise the Index. These companies are engaged principally in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. These companies may include, for example, pharmaceutical companies and other companies involved in the research, development, manufacture, sale or distribution of drugs, including companies that facilitate the testing or regulatory approval of drugs.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of pharmaceutical companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned (1.44)%. On a net asset value (“NAV”) basis, the Fund returned (1.47)%. During the same time period, the Index returned (1.04)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500^® Pharmaceuticals Index (the “Benchmark Index”) returned 6.98%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another pharmaceuticals industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad-based representation of the pharmaceuticals industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended

April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the biotechnology sub-industry.

For the fiscal year ended April 30, 2017, the health care equipment sub-industry was the only contributing sub-industry. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the pharmaceuticals sub-industry.

Positions that contributed most significantly to the Fund’s return included Medicines Co. (The), a pharmaceuticals company (portfolio average weight of 4.20%), and Akorn, Inc., a pharmaceuticals company (portfolio average weight of 4.24%). Positions that detracted most significantly from the Fund’s return included Impax Laboratories, Inc., a pharmaceuticals company (portfolio average weight of 3.72%), and Novavax, Inc., a biotechnology company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Pharmaceuticals	63.9
Biotechnology	27.7
Health Care Equipment	8.4
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Akorn, Inc.	6.3
Celgene Corp.	5.3
Johnson & Johnson	5.1
Bristol-Myers Squibb Co.	5.1
Pfizer, Inc.	5.0
Gilead Sciences, Inc.	5.0
Allergan PLC	5.0
Merck & Co., Inc.	4.8
Amgen, Inc.	4.7
Heron Therapeutics, Inc.	4.5
Total	50.8

* Excluding money market fund holdings.

24

PowerShares Dynamic Pharmaceuticals Portfolio (PJP) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Pharmaceutical IntellidexSM Index		(1.04	)%		5.45	%		17.27	%		16.91	%		118.44	%		14.41	%		284.27	%		14.84	%		415.40	%
S&P Composite 1500® Pharmaceuticals Index		6.98			7.26			23.39			15.06			101.70			9.11			139.18			9.06			179.61
Fund
NAV Return		(1.47	)		4.91			15.48			16.26			112.36			13.68			260.48			14.15			380.15
Market Price Return		(1.44	)		4.94			15.57			16.26			112.41			13.69			260.63			14.16			380.42

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively.

The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

25

PMR	Manager’s Analysis
	PowerShares Dynamic Retail Portfolio (PMR)

As an index fund, the PowerShares Dynamic Retail Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Retail Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of retail companies that comprise the Index. These companies are engaged principally in operating general merchandise stores such as department stores, discount stores, warehouse clubs and superstores; specialty stores, including apparel, electronics, accessories and footwear stores; and home improvement and home furnishings stores. Dealers of motor vehicles and parts, auction houses or rental companies also may be included.

Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of retail companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 1.92%. On a net asset value (“NAV”) basis, the Fund returned 1.98%. During the same time period, the Index returned 2.66%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500^® Retailing Index (the “Benchmark Index”) returned 16.71%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 95 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another retail industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the retail industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the apparel retail sub-industry and most underweight in the internet & direct marketing retail sub-industry during the fiscal

year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the internet & direct marketing retail sub-industry.

For the fiscal year ended April 30, 2017, the computer & electronics retail sub-industry contributed most significantly to the Fund’s return, followed by the homefurnishing retail and trucking sub-industries, respectively. The specialty stores sub-industry detracted most significantly from the Fund’s return, followed by the automotive retail and drug retail sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Best Buy Co., Inc., a computer & electronics retail company (portfolio average weight of 3.48%), and Burlington Stores, Inc., an apparel retail company (portfolio average weight of 2.63%). Positions that detracted most significantly from the Fund’s return included Target Corp., a general merchandise stores company (no longer held at fiscal year-end), and Francesca’s Holdings Corp., an apparel retail company (portfolio average weight of 1.34%).

26

PowerShares Dynamic Retail Portfolio (PMR) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Apparel Retail	16.0
Food Retail	14.7
Hypermarkets & Super Centers	12.7
Automotive Retail	12.0
Specialty Stores	7.7
General Merchandise Stores	5.9
Computer & Electronics Retail	5.7
Home Improvement Retail	5.3
Drug Retail	4.9
Homefurnishing Retail	3.6
Forest Products	3.0
Trading Companies & Distributors	2.9
Distributors	2.8
Diversified Support Services	2.8
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Best Buy Co., Inc.	5.7
Home Depot, Inc. (The)	5.3
Wal-Mart Stores, Inc.	5.2
Ulta Beauty, Inc.	5.0
Costco Wholesale Corp.	4.9
Walgreens Boots Alliance, Inc.	4.9
Ross Stores, Inc.	4.7
Kroger Co. (The)	4.4
Aaron’s, Inc.	3.6
Ollie’s Bargain Outlet Holdings, Inc.	3.3
Total	47.0

* Excluding money market fund holdings.

27

PowerShares Dynamic Retail Portfolio (PMR) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Retail IntellidexSM Index		2.66	%		4.42	%		13.86	%		8.85	%		52.81	%		7.86	%		113.11	%		9.52	%		185.05	%
S&P Composite 1500® Retailing Index		16.71			19.47			70.53			18.22			130.95			12.36			220.65			12.61			292.41
Fund
NAV Return		1.98			3.74			11.64			8.04			47.23			7.13			99.04			8.81			164.22
Market Price Return		1.92			3.73			11.61			8.03			47.16			7.11			98.83			8.80			163.90

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.88% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

28

PSI	Manager’s Analysis
	PowerShares Dynamic Semiconductors Portfolio (PSI)

As an index fund, the PowerShares Dynamic Semiconductors Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Semiconductor Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of semiconductor companies that comprise the Index. These companies are principally engaged in the manufacture of semiconductors. These companies manufacture semiconductors that serve as the core electronic components of virtually all electronic equipment; make or test chips for third parties; and provide equipment or services used in the production of semiconductors and other thin film products like flat panel displays and thin film heads.

Strictly in accordance with its guidelines and mandated procedures, NSYE Group, Inc. (the “Index Provider”) includes common stocks of semiconductor companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 74.96%. On a net asset value (“NAV”) basis, the Fund returned 74.65%. During the same time period, the Index returned 75.86%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500^® Semiconductor Index (the “Benchmark Index”) returned 42.80%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another semiconductors industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad-based representation of the semiconductors industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the semiconductor equipment sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocations to the semiconductors and semiconductor equipment sub-industries.

For the fiscal year ended April 30, 2017, the semiconductors sub-industry contributed most significantly to the Fund’s return, followed by the semiconductor equipment and electronic components sub-industries, respectively. There were no detracting sub-industries.

Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., a semiconductors company (portfolio average weight of 5.39%), and Applied Materials, Inc., a semiconductor equipment company (portfolio average weight of 5.00%). Positions that detracted most significantly from the Fund’s return included Photronics, Inc., a semiconductor equipment company (no longer held at fiscal year-end), and M/A.Com Technology Solutions Holdings, Inc., a semiconductors company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Semiconductors	57.2
Semiconductor Equipment	40.4
Electronic Components	2.4
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Lam Research Corp.	5.8
Micron Technology, Inc.	5.5
Applied Materials, Inc.	5.2
Broadcom Ltd.	4.9
NVIDIA Corp.	4.9
Texas Instruments, Inc.	4.8
Intel Corp.	4.7
Analog Devices, Inc.	4.4
Teradyne, Inc.	3.1
Advanced Energy Industries, Inc.	3.0
Total	46.3

* Excluding money market fund holdings.

29

PowerShares Dynamic Semiconductors Portfolio (PSI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Semiconductor IntellidexSM Index		75.86	%		29.41	%		116.70	%		23.96	%		192.64	%		9.80	%		154.66	%		10.55	%		228.36	%
S&P Composite 1500® Semiconductor Index		42.80			20.87			76.61			16.59			115.41			9.63			150.73			8.13			152.42
Fund
NAV Return		74.65			28.40			111.70			22.98			181.35			8.96			135.95			9.74			201.04
Market Price Return		74.96			28.44			111.90			23.07			182.33			8.97			136.04			9.75			201.14

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

30

PSJ	Manager’s Analysis
	PowerShares Dynamic Software Portfolio (PSJ)

As an index fund, the PowerShares Dynamic Software Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Software Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of software companies that comprise the Index. These are companies that are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services. These companies may include companies that design and market computer applications targeted toward various end user markets, including home/office, design/engineering, and IT infrastructure; as well as distributors of third-part software applications, primarily to resellers, retailers, and corporations.

Strictly in accordance with its existing guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of software companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 26.52%. On a net asset value (“NAV”) basis, the Fund returned 26.67%. During the same time period, the Index returned 27.61%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500^® Software & Services Index (the “Benchmark Index”) returned 27.25%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 100 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another software industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the software industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the internet software & services sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance

relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred during the period.

For the fiscal year ended April 30, 2017, the application software sub-industry contributed most significantly to the Fund’s return, followed by the home entertainment software and systems software sub-industries, respectively. The semiconductor equipment sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included Activision Blizzard, Inc., a home entertainment software company (no longer held at fiscal year-end), and Electronic Arts, Inc., a home entertainment software company (portfolio average weight of 2.54%). Positions that detracted most significantly from the Fund’s return included Inovalon Holdings, Inc., Class A, a health care technology company (portfolio average weight of 0.96%), and Allscripts Healthcare Solutions, Inc., a health care technology company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Application Software	38.2
Health Care Technology	19.8
Systems Software	14.7
Home Entertainment Software	8.0
Internet Software & Services	6.0
Data Processing & Outsourced Services	5.5
Communications Equipment	5.2
Education Services	2.7
Money Market Fund Plus Other Assets Less Liabilities	(0.1)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Cerner Corp.	5.5
Adobe Systems, Inc.	5.3
Electronic Arts, Inc.	5.2
Intuit, Inc.	4.9
VMware, Inc., Class A	4.9
Synopsys, Inc.	4.9
Autodesk, Inc.	4.9
CDK Global, Inc.	4.6
Veeva Systems, Inc., Class A	3.2
LogMeIn, Inc.	3.2
Total	46.6

* Excluding money market fund holdings.

31

PowerShares Dynamic Software Portfolio (PSJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
Dynamic Software IntellidexSM Index		27.61	%		17.25	%		61.21	%		15.61	%		106.51	%		10.88	%		180.97	%		12.06	%		285.73	%
S&P Composite 1500® Software & Services Index		27.25			18.16			64.98			17.54			124.30			11.40			194.34			11.36			257.90
Fund
NAV Return		26.67			16.42			57.78			14.80			99.42			10.14			162.80			11.35			257.71
Market Price Return		26.52			16.42			57.77			14.78			99.24			10.13			162.42			11.34			257.13

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.66% and the net annual operating expense ratio was 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and

Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

32

Schedule of Investments^(a)

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—88.9%
	245,132	Acorda Therapeutics, Inc.(b)	$	3,958,882
	86,133	Alexion Pharmaceuticals, Inc.(b)		11,006,075
	132,504	Alnylam Pharmaceuticals, Inc.(b)		7,102,214
	64,566	Amgen, Inc.		10,544,919
	591,536	Array BioPharma, Inc.(b)(c)		5,128,617
	39,456	Biogen, Inc.(b)		10,700,862
	125,829	BioMarin Pharmaceutical, Inc.(b)		12,059,451
	205,786	Emergent Biosolutions, Inc.(b)		6,155,059
	281,891	Exelixis, Inc.(b)		6,314,358
	161,961	Gilead Sciences, Inc.		11,102,427
	92,130	Incyte Corp.(b)		11,449,916
	442,158	Insmed, Inc.(b)		8,157,815
	478,774	Insys Therapeutics, Inc.(b)(c)		5,386,207
	138,181	Ionis Pharmaceuticals, Inc.(b)		6,658,942
	398,719	Lexicon Pharmaceuticals, Inc.(b)(c)		6,224,004
	405,848	Momenta Pharmaceuticals, Inc.(b)		5,823,919
	321,696	Myriad Genetics, Inc.(b)(c)		5,915,989
	142,254	Neurocrine Biosciences, Inc.(b)		7,596,364
	719,285	OPKO Health, Inc.(b)(c)		5,588,844
	598,468	Progenics Pharmaceuticals, Inc.(b)		4,739,867
	31,126	Regeneron Pharmaceuticals, Inc.(b)		12,092,140
	189,145	Repligen Corp.(b)		6,958,645
	97,167	Seattle Genetics, Inc.(b)		6,636,506
	41,565	United Therapeutics Corp.(b)		5,224,721
	131,054	Vertex Pharmaceuticals, Inc.(b)		15,503,688
	986,845	ZIOPHARM Oncology, Inc.(b)(c)		6,947,389
				204,977,820
		Health Care Equipment—2.9%
	221,719	Cardiovascular Systems, Inc.(b)		6,622,746
		Pharmaceuticals—8.2%
	102,945	ANI Pharmaceuticals, Inc.(b)		5,571,383
	708,475	Corcept Therapeutics, Inc.(b)		6,758,852
	304,514	Dyax Corp.(b)		338,011
	531,971	Innoviva, Inc.(b)		6,269,278
				18,937,524
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $219,566,083)—100.0%		230,538,090
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—13.5%
	31,201,422	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $31,201,422)		31,201,422
		Total Investments (Cost $250,767,505)—113.5%		261,739,512
		Other assets less liabilities—(13.5)%		(31,108,684	)
		Net Assets—100.0%	$	230,630,828

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

33

Schedule of Investments^(a)

PowerShares Dynamic Building & Construction Portfolio (PKB)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Building Products—20.7%
	299,805	A.O. Smith Corp.	$	16,153,493
	202,741	Gibraltar Industries, Inc.(b)		7,957,584
	268,323	Jeld-Wen Holding, Inc.(b)		8,862,709
	92,057	Lennox International, Inc.		15,225,307
	142,414	Owens Corning		8,665,892
	124,220	Trex Co., Inc.(b)		9,091,662
				65,956,647
		Construction & Engineering—13.4%
	120,525	Argan, Inc.		8,057,096
	134,058	EMCOR Group, Inc.		8,812,973
	147,267	Jacobs Engineering Group, Inc.		8,087,904
	222,985	MasTec, Inc.(b)		9,844,788
	222,451	Quanta Services, Inc.(b)		7,883,663
				42,686,424
		Construction Machinery & Heavy Trucks—2.8%
	126,349	Oshkosh Corp.		8,767,357
		Construction Materials—20.9%
	440,618	Forterra, Inc.(b)		8,477,490
	357,496	Headwaters, Inc.(b)		8,494,105
	72,587	Martin Marietta Materials, Inc.		15,982,932
	354,735	Summit Materials, Inc., Class A(b)		9,102,500
	141,101	US Concrete, Inc.(b)(c)		8,748,262
	130,174	Vulcan Materials Co.		15,735,433
				66,540,722
		Distributors—2.7%
	71,869	Pool Corp.		8,596,970
		Forest Products—5.7%
	305,427	Boise Cascade Co.(b)		9,315,523
	344,382	Louisiana-Pacific Corp.(b)		8,864,393
				18,179,916
		Home Furnishings—5.0%
	67,228	Mohawk Industries, Inc.(b)		15,784,462
		Home Improvement Retail—5.1%
	104,669	Home Depot, Inc. (The)		16,338,831
		Homebuilding—18.5%
	72,380	Cavco Industries, Inc.(b)		8,595,125
	281,009	MDC Holdings, Inc.		8,714,089
	7,911	NVR, Inc.(b)		16,702,099
	701,228	PulteGroup, Inc.		15,896,839
	243,282	Toll Brothers, Inc.		8,755,719
				58,663,871
		Industrial Machinery—2.6%
	339,983	SPX Corp.(b)		8,179,991
		Multi-Utilities—2.6%
	305,427	MDU Resources Group, Inc.		8,215,987
		Total Common Stocks (Cost $299,657,162)		317,911,178

Number of Shares			Value
		Money Market Fund—0.1%
	253,639	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $253,639)	$	253,639
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $299,910,801)—100.1%		318,164,817
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.4%
	4,653,236	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $4,653,236)		4,653,236
		Total Investments (Cost $304,564,037)—101.5%		322,818,053
		Other assets less liabilities—(1.5)%		(4,822,990	)
		Net Assets—100.0%	$	317,995,063

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

34

Schedule of Investments^(a)

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Gas Utilities—2.7%
	27,189	National Fuel Gas Co.	$	1,505,727
		Oil & Gas Exploration & Production—60.3%
	45,154	Anadarko Petroleum Corp.		2,574,681
	72,129	Cabot Oil & Gas Corp.		1,676,278
	62,987	ConocoPhillips		3,017,707
	64,458	Continental Resources, Inc.(b)		2,733,664
	16,095	Diamondback Energy, Inc.(b)		1,606,925
	30,807	Energen Corp.(b)		1,601,656
	30,535	EOG Resources, Inc.		2,824,487
	26,732	EQT Corp.		1,554,198
	101,693	Marathon Oil Corp.		1,512,175
	42,945	Newfield Exploration Co.(b)		1,486,756
	43,427	Noble Energy, Inc.		1,403,995
	22,624	PDC Energy, Inc.(b)		1,249,523
	16,109	Pioneer Natural Resources Co.		2,786,696
	82,826	Rice Energy, Inc.(b)		1,763,366
	40,264	RSP Permian, Inc.(b)		1,532,045
	194,617	Southwestern Energy Co.(b)		1,461,574
	122,554	Wildhorse Resource Development Corp.(b)		1,337,064
	121,635	WPX Energy, Inc.(b)		1,451,106
				33,573,896
		Oil & Gas Refining & Marketing—37.0%
	138,538	Alon USA Energy, Inc.		1,674,924
	71,431	CVR Energy, Inc.(c)		1,563,625
	144,450	CVR Refining LP(b)(c)		1,451,722
	69,446	Delek US Holdings, Inc.		1,671,565
	55,274	HollyFrontier Corp.		1,555,410
	59,171	Marathon Petroleum Corp.		3,014,171
	66,221	PBF Energy, Inc., Class A		1,478,053
	37,899	Phillips 66		3,015,244
	90,887	Tellurian, Inc.(b)(c)		911,597
	18,287	Tesoro Corp.		1,457,657
	44,447	Valero Energy Corp.		2,871,721
				20,665,689
		Total Common Stocks and Other Equity Interests (Cost $55,648,867)		55,745,312
		Money Market Fund—0.1%
	84,512	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $84,512)		84,512
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $55,733,379)—100.1%		55,829,824

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.2%
	1,222,175	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,222,175)	$	1,222,175
		Total Investments (Cost $56,955,554)—102.3%		57,051,999
		Other assets less liabilities—(2.3)%		(1,291,504	)
		Net Assets—100.0%	$	55,760,495

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

35

Schedule of Investments^(a)

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

April 30, 2017

Number of Shares			Value
		Common Stocks—99.9%
		Agricultural Products—13.7%
	166,073	Archer-Daniels-Midland Co.	$	7,597,840
	51,025	Bunge Ltd.		4,032,506
	72,075	Fresh Del Monte Produce, Inc.		4,418,197
	33,403	Ingredion, Inc.		4,135,959
				20,184,502
		Distillers & Vintners—5.7%
	48,752	Constellation Brands, Inc., Class A		8,411,670
		Food Distributors—13.1%
	101,478	Andersons, Inc. (The)		3,790,203
	108,659	SpartanNash Co.		3,998,651
	141,581	Sysco Corp.		7,485,388
	93,702	United Natural Foods, Inc.(b)		3,891,444
				19,165,686
		Food Retail—7.1%
	226,985	Kroger Co. (The)		6,730,105
	63,622	Weis Markets, Inc.		3,677,988
				10,408,093
		Packaged Foods & Meats—46.5%
	162,083	Blue Buffalo Pet Products, Inc.(b)		3,995,346
	69,158	Campbell Soup Co.		3,979,351
	100,852	Conagra Brands, Inc.		3,911,041
	221,622	Dean Foods Co.		4,374,818
	212,734	Flowers Foods, Inc.		4,171,714
	123,202	General Mills, Inc.		7,085,347
	68,921	Hershey Co. (The)		7,457,252
	30,673	J & J Snack Foods Corp.		4,127,972
	65,331	John B. Sanfilippo & Son, Inc.		4,801,829
	100,109	Kellogg Co.		7,107,739
	30,395	Lancaster Colony Corp.		3,826,730
	197,796	Pilgrim’s Pride Corp.		5,134,784
	49,187	Post Holdings, Inc.(b)		4,141,054
	65,019	Tyson Foods, Inc., Class A		4,178,121
				68,293,098
		Restaurants—8.5%
	21,924	Domino’s Pizza, Inc.		3,976,794
	51,853	Papa John’s International, Inc.		4,099,498
	303,906	Wendy’s Co. (The)		4,479,575
				12,555,867
		Soft Drinks—5.3%
	68,360	PepsiCo, Inc.		7,743,821
		Total Common Stocks (Cost $136,072,020)		146,762,737
		Money Market Fund—0.1%
	81,688	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $81,688)		81,688
		Total Investments (Cost $136,153,708)—100.0%		146,844,425
		Other assets less liabilities—(0.0)%		(23,483	)
		Net Assets—100.0%	$	146,820,942

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

36

Schedule of Investments^(a)

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Airlines—20.0%
	143,725	Delta Air Lines, Inc.	$	6,530,864
	79,872	Hawaiian Holdings, Inc.(b)		4,337,049
	112,109	SkyWest, Inc.		4,170,455
	126,704	Southwest Airlines Co.		7,123,299
	97,305	United Continental Holdings, Inc.(b)		6,831,784
				28,993,451
		Broadcasting—7.5%
	109,416	CBS Corp., Class B		7,282,729
	48,438	Scripps Networks Interactive, Inc., Class A		3,619,287
				10,902,016
		Cable & Satellite—3.0%
	175,491	MSG Networks, Inc., Class A(b)		4,378,500
		Casinos & Gaming—3.2%
	193,519	Scientific Games Corp., Class A(b)		4,596,076
		Hotels, Resorts & Cruise Lines—16.8%
	281,664	Belmond Ltd., Class A (United Kingdom)(b)		3,492,634
	281,463	La Quinta Holdings, Inc.(b)		3,971,443
	126,035	Marcus Corp. (The)		4,259,983
	40,680	Marriott Vacations Worldwide Corp.		4,482,122
	75,950	Royal Caribbean Cruises Ltd.		8,096,270
				24,302,452
		Internet & Direct Marketing Retail—5.7%
	4,430	Priceline Group, Inc. (The)(b)		8,181,413
		Leisure Facilities—10.6%
	57,951	Cedar Fair LP		4,153,348
	234,168	ClubCorp Holdings, Inc.		3,149,560
	172,816	Intrawest Resorts Holdings, Inc.(b)		4,075,001
	188,988	Planet Fitness, Inc., Class A		3,930,951
				15,308,860
		Movies & Entertainment—12.6%
	126,229	AMC Entertainment Holdings, Inc., Class A		3,824,739
	74,747	Time Warner, Inc.		7,420,135
	165,415	Viacom, Inc., Class B		7,040,062
				18,284,936
		Restaurants—20.7%
	70,506	Bob Evans Farms, Inc.		4,705,571
	187,113	Bojangles’, Inc.(b)		4,107,130
	52,443	Darden Restaurants, Inc.		4,467,619
	71,096	Dave & Buster’s Entertainment, Inc.(b)		4,550,855
	21,243	Domino’s Pizza, Inc.		3,853,268
	50,239	Papa John’s International, Inc.		3,971,895
	294,446	Wendy’s Co. (The)		4,340,134
				29,996,472
		Total Common Stocks and Other Equity Interests (Cost $136,240,155)		144,944,176

Number of Shares			Value
		Money Market Fund—0.0%
	50,978	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $50,978)	$	50,978
		Total Investments (Cost $136,291,133)—100.1%		144,995,154
		Other assets less liabilities—(0.1)%		(93,611	)
		Net Assets—100.0%	$	144,901,543

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

37

Schedule of Investments^(a)

PowerShares Dynamic Media Portfolio (PBS)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Advertising—5.2%
	163,114	Interpublic Group of Cos., Inc. (The)	$	3,844,597
	46,887	Omnicom Group, Inc.		3,850,360
				7,694,957
		Broadcasting—21.0%
	66,864	AMC Networks, Inc., Class A(b)		3,990,443
	110,624	CBS Corp., Class B		7,363,133
	135,633	Discovery Communications, Inc., Class A(b)		3,903,518
	189,363	E.W. Scripps Co. (The), Class A(b)		4,219,008
	57,572	Nexstar Media Group, Inc., Class A		3,972,468
	48,975	Scripps Networks Interactive, Inc., Class A		3,659,412
	100,535	Sinclair Broadcast Group, Inc., Class A		3,966,106
				31,074,088
		Cable & Satellite—18.2%
	22,612	Charter Communications, Inc., Class A(b)		7,804,758
	118,487	DISH Network Corp., Class A(b)		7,635,303
	177,438	MSG Networks, Inc., Class A(b)		4,427,078
	1,446,856	Sirius XM Holdings, Inc.		7,161,937
				27,029,076
		Diversified Support Services—2.6%
	83,533	Viad Corp.		3,775,692
		Internet Software & Services—21.8%
	54,194	Facebook, Inc., Class A(b)		8,142,648
	53,808	IAC/InterActiveCorp.(b)		4,466,602
	238,310	Match Group, Inc.(b)		4,439,715
	76,652	Shutterstock, Inc.(b)		3,313,666
	161,541	Yahoo!, Inc.(b)		7,787,892
	119,546	Yelp, Inc., Class A(b)		4,233,124
				32,383,647
		IT Consulting & Other Services—2.6%
	135,086	Acxiom Corp.(b)		3,903,985
		Movies & Entertainment—15.7%
	121,654	Liberty Media Corp.-Liberty Formula One, Class A(b)		4,125,287
	75,578	Time Warner, Inc.		7,502,628
	91,226	Viacom, Inc., Class B		3,882,579
	66,850	Walt Disney Co. (The)		7,727,860
				23,238,354
		Publishing—12.9%
	75,422	John Wiley & Sons, Inc., Class A		3,974,739
	63,060	Meredith Corp.		3,692,163
	271,270	New York Times Co. (The), Class A		3,919,852
	302,207	News Corp., Class A		3,844,073
	85,699	Scholastic Corp.		3,704,768
				19,135,595
		Total Common Stocks (Cost $137,371,023)		148,235,394

Number of Shares			Value
		Money Market Fund—0.1%
	113,996	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $113,996)	$	113,996
		Total Investments (Cost $137,485,019)—100.1%		148,349,390
		Other assets less liabilities—(0.1)%		(119,034	)
		Net Assets—100.0%	$	148,230,356

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

38

Schedule of Investments^(a)

PowerShares Dynamic Networking Portfolio (PXQ)

April 30, 2017

Number of Shares			Value
		Common Stocks—99.9%
		Application Software—5.0%
	16,142	Citrix Systems, Inc.(b)	$	1,306,533
		Communications Equipment—54.4%
	11,095	Acacia Communications, Inc.(b)(c)		508,595
	32,810	ADTRAN, Inc.		656,200
	5,971	Arista Networks, Inc.(b)		833,791
	26,800	ARRIS International PLC(b)		696,532
	27,395	Ciena Corp.(b)		627,620
	37,903	Cisco Systems, Inc.		1,291,355
	18,658	CommScope Holding Co., Inc.(b)		784,382
	113,146	Extreme Networks, Inc.(b)		884,236
	4,880	F5 Networks, Inc.(b)		630,154
	20,609	Finisar Corp.(b)		470,710
	8,016	InterDigital, Inc.		720,638
	24,754	Juniper Networks, Inc.		744,353
	14,451	Lumentum Holdings, Inc.(b)		617,780
	16,258	Motorola Solutions, Inc.		1,397,700
	12,785	NETGEAR, Inc.(b)		602,813
	18,742	NetScout Systems, Inc.(b)		705,636
	73,848	Oclaro, Inc.(b)(c)		591,523
	13,064	Plantronics, Inc.		713,294
	14,386	Ubiquiti Networks, Inc.(b)		741,167
				14,218,479
		Consumer Electronics—2.6%
	13,454	Garmin Ltd.		684,001
		Electronic Components—5.1%
	18,440	Amphenol Corp., Class A		1,333,396
		Internet Software & Services—6.6%
	7,625	LogMeIn, Inc.		861,625
	35,634	Mimecast Ltd.(b)		861,274
				1,722,899
		Systems Software—21.0%
	12,927	Check Point Software Technologies Ltd. (Israel)(b)		1,344,537
	18,904	Fortinet, Inc.(b)		737,256
	8,655	Proofpoint, Inc.(b)		652,328
	45,145	Symantec Corp.		1,427,936
	14,219	VMware, Inc., Class A(b)(c)		1,338,292
				5,500,349
		Technology Hardware, Storage & Peripherals—5.2%
	9,450	Apple, Inc.		1,357,493
		Total Common Stocks (Cost $22,930,088)		26,123,150
		Money Market Fund—0.3%
	69,451	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $69,451)		69,451
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $22,999,539)—100.2%		26,192,601

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.0%
	1,830,776	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,830,776)	$	1,830,776
		Total Investments (Cost $24,830,315)—107.2%		28,023,377
		Other assets less liabilities—(7.2)%		(1,878,293	)
		Net Assets—100.0%	$	26,145,084

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

39

Schedule of Investments^(a)

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Oil & Gas Drilling—25.6%
	98,926	Atwood Oceanics, Inc.(b)	$	774,591
	61,480	Diamond Offshore Drilling, Inc.(b)		886,542
	102,023	Ensco PLC, Class A		804,962
	28,675	Helmerich & Payne, Inc.		1,738,852
	71,212	Nabors Industries Ltd.		736,332
	39,008	Patterson-UTI Energy, Inc.		844,328
	57,748	Rowan Cos. PLC, Class A(b)		812,514
	522,034	Seadrill Ltd. (United Kingdom)(b)		360,099
	137,778	Transocean Ltd.(b)		1,519,691
				8,477,911
		Oil & Gas Equipment & Services—65.3%
	61,381	Archrock Partners LP		1,003,579
	77,363	Archrock, Inc.		912,883
	32,881	Baker Hughes, Inc.		1,952,145
	26,913	Basic Energy Services, Inc.(b)		731,226
	17,407	Core Laboratories NV		1,929,044
	16,720	Dril-Quip, Inc.(b)		861,916
	34,375	Exterran Corp.(b)		940,844
	50,611	Forum Energy Technologies, Inc.(b)		855,326
	37,063	Halliburton Co.		1,700,451
	61,606	Key Energy Services, Inc.(b)(c)		1,458,830
	49,941	Mammoth Energy Services, Inc.(b)		963,861
	140,022	McDermott International, Inc.(b)		915,744
	49,645	National Oilwell Varco, Inc.		1,736,086
	37,998	Oceaneering International, Inc.		1,002,767
	30,472	Oil States International, Inc.(b)		906,542
	54,224	RPC, Inc.(c)		985,250
	24,504	Schlumberger Ltd.		1,778,745
	61,210	USA Compression Partners LP(c)		1,025,268
				21,660,507
		Oil & Gas Storage & Transportation—9.1%
	249,518	Scorpio Tankers, Inc. (Monaco)		1,097,879
	103,013	Teekay Corp. (Bermuda)(c)		894,153
	192,729	Teekay Offshore Partners LP(c)		1,023,391
				3,015,423
		Total Common Stocks and Other Equity Interests (Cost $38,221,551)		33,153,841
		Money Market Fund—0.1%
	49,691	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $49,691)		49,691
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $38,271,242)—100.1%		33,203,532

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—12.0%
	3,984,750	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $3,984,750)	$	3,984,750
		Total Investments (Cost $42,255,992)—112.1%		37,188,282
		Other assets less liabilities—(12.1)%		(4,014,708	)
		Net Assets—100.0%	$	33,173,574

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

40

Schedule of Investments^(a)

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—27.7%
	222,259	Amgen, Inc.	$	36,299,340
	108,661	Biogen, Inc.(b)		29,469,950
	323,746	Celgene Corp.(b)		40,160,691
	557,528	Gilead Sciences, Inc.		38,218,544
	2,250,200	Heron Therapeutics, Inc.(b)(c)		34,540,570
	300,856	Ligand Pharmaceuticals, Inc.(b)		33,446,162
				212,135,257
		Health Care Equipment—8.4%
	681,509	Abbott Laboratories		29,741,053
	614,005	Baxter International, Inc.		34,187,798
				63,928,851
		Pharmaceuticals—63.9%
	1,433,751	Akorn, Inc.(b)		47,958,971
	156,565	Allergan PLC		38,179,941
	693,476	Bristol-Myers Squibb Co.		38,869,330
	1,838,396	Depomed, Inc.(b)		22,042,368
	374,810	Eli Lilly & Co.		30,756,909
	2,148,626	Impax Laboratories, Inc.(b)		30,188,195
	317,792	Johnson & Johnson		39,237,778
	1,313,802	Lannett Co., Inc.(b)(c)		34,158,852
	596,847	Medicines Co. (The)(b)(c)		29,436,494
	587,317	Merck & Co., Inc.		36,607,469
	730,926	Mylan NV(b)		27,300,086
	368,036	Perrigo Co. PLC		27,212,582
	1,135,500	Pfizer, Inc.		38,516,160
	538,461	Prestige Brands Holdings, Inc.(b)		30,913,046
	1,866,116	Valeant Pharmaceuticals International, Inc.(b)		17,261,573
				488,639,754
		Total Common Stocks (Cost $820,510,384)		764,703,862
		Money Market Fund—0.0%
	48,140	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $48,140)		48,140
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $820,558,524)—100.0%		764,752,002
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—8.6%
	65,681,100	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $65,681,100)		65,681,100
		Total Investments (Cost $886,239,624)—108.6%		830,433,102
		Other assets less liabilities—(8.6)%		(65,524,631	)
		Net Assets—100.0%	$	764,908,471

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

41

Schedule of Investments^(a)

PowerShares Dynamic Retail Portfolio (PMR)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Apparel Retail—16.0%
	4,512	Burlington Stores, Inc.(b)	$	446,327
	26,661	Chico’s FAS, Inc.		368,455
	3,924	Children’s Place, Inc. (The)		450,475
	23,002	Francesca’s Holdings Corp.(b)		362,972
	10,444	Ross Stores, Inc.		678,860
				2,307,089
		Automotive Retail—12.0%
	5,852	Asbury Automotive Group, Inc.(b)		358,143
	11,415	Camping World Holdings, Inc., Class A		352,952
	4,857	Group 1 Automotive, Inc.		334,890
	7,537	Penske Automotive Group, Inc.		359,590
	17,047	Sonic Automotive, Inc., Class A		334,121
				1,739,696
		Computer & Electronics Retail—5.7%
	15,939	Best Buy Co., Inc.		825,800
		Distributors—2.8%
	3,351	Pool Corp.		400,847
		Diversified Support Services—2.8%
	12,970	Copart, Inc.(b)		400,773
		Drug Retail—4.9%
	8,119	Walgreens Boots Alliance, Inc.		702,618
		Food Retail—14.7%
	8,084	Ingles Markets, Inc., Class A		377,523
	21,412	Kroger Co. (The)		634,866
	26,209	Smart & Final Stores, Inc.(b)		309,266
	6,002	Weis Markets, Inc.		346,975
	12,368	Whole Foods Market, Inc.		449,824
				2,118,454
		Forest Products—3.0%
	14,244	Boise Cascade Co.(b)		434,442
		General Merchandise Stores—5.9%
	7,502	Big Lots, Inc.		378,776
	12,448	Ollie’s Bargain Outlet Holdings, Inc.(b)		476,758
				855,534
		Home Improvement Retail—5.3%
	4,881	Home Depot, Inc. (The)		761,924
		Homefurnishing Retail—3.6%
	14,311	Aaron’s, Inc.		514,337
		Hypermarkets & Super Centers—12.7%
	4,017	Costco Wholesale Corp.		713,098
	4,305	PriceSmart, Inc.		374,320
	9,906	Wal-Mart Stores, Inc.		744,733
				1,832,151
		Specialty Stores—7.7%
	4,269	Tiffany & Co.		391,254
	2,573	Ulta Beauty, Inc.(b)		724,145
				1,115,399

Number of Shares			Value
		Common Stocks (continued)
		Trading Companies & Distributors—2.9%
	10,921	Rush Enterprises, Inc., Class A(b)	$	412,268
		Total Common Stocks (Cost $13,543,180)		14,421,332
		Money Market Fund—0.4%
	58,040	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $58,040)		58,040
		Total Investments (Cost $13,601,220)—100.4%		14,479,372
		Other assets less liabilities—(0.4)%		(50,736	)
		Net Assets—100.0%	$	14,428,636

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

42

Schedule of Investments^(a)

PowerShares Dynamic Semiconductors Portfolio (PSI)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Electronic Components—2.4%
	316,872	Knowles Corp.(b)	$	5,618,140
		Semiconductor Equipment—40.4%
	97,646	Advanced Energy Industries, Inc.(b)		7,206,275
	593,153	Amkor Technology, Inc.(b)		6,987,342
	305,242	Applied Materials, Inc.		12,395,878
	280,025	Brooks Automation, Inc.		7,073,431
	276,807	Entegris, Inc.(b)		6,864,814
	66,963	KLA-Tencor Corp.		6,577,106
	292,393	Kulicke & Soffa Industries, Inc. (Singapore)(b)		6,526,212
	93,759	Lam Research Corp.		13,580,991
	89,458	MKS Instruments, Inc.		7,000,088
	217,745	Nanometrics, Inc.(b)		6,870,943
	275,530	Rudolph Technologies, Inc.(b)		6,750,485
	207,106	Teradyne, Inc.		7,304,629
				95,138,194
		Semiconductors—57.2%
	420,429	Advanced Micro Devices, Inc.(b)		5,591,706
	135,239	Analog Devices, Inc.		10,305,212
	52,411	Broadcom Ltd.		11,572,873
	108,472	Cirrus Logic, Inc.(b)		6,980,173
	305,065	Intel Corp.		11,028,100
	376,047	Marvell Technology Group Ltd. (Bermuda)		5,648,226
	134,204	Maxim Integrated Products, Inc.		5,925,107
	82,801	Microchip Technology, Inc.		6,258,100
	470,081	Micron Technology, Inc.(b)		13,007,141
	68,273	Monolithic Power Systems, Inc.		6,246,979
	109,845	NVIDIA Corp.		11,456,833
	385,426	ON Semiconductor Corp.(b)		5,465,341
	91,281	Power Integrations, Inc.		6,019,982
	173,254	Semtech Corp.(b)		5,916,624
	82,877	Silicon Laboratories, Inc.(b)		5,896,698
	63,166	Skyworks Solutions, Inc.		6,300,177
	143,083	Texas Instruments, Inc.		11,329,312
				134,948,584
		Total Common Stocks (Cost $191,229,166)		235,704,918
		Money Market Fund—0.0%
	95,816	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $95,816)		95,816
		Total Investments (Cost $191,324,982)—100.0%		235,800,734
		Other assets less liabilities—(0.0)%		(101,946	)
		Net Assets—100.0%	$	235,698,788

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

43

Schedule of Investments^(a)

PowerShares Dynamic Software Portfolio (PSJ)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.1%
		Application Software—38.2%
	40,439	Adobe Systems, Inc.(b)	$	5,408,312
	45,114	Aspen Technology, Inc.(b)		2,774,060
	55,171	Autodesk, Inc.(b)		4,969,252
	85,157	Cadence Design Systems, Inc.(b)		2,773,563
	72,414	CDK Global, Inc.		4,707,634
	20,016	Fair Isaac Corp.		2,711,768
	39,813	Intuit, Inc.		4,984,986
	47,945	PTC, Inc.(b)		2,591,427
	77,778	RealPage, Inc.(b)		2,881,675
	67,473	Synopsys, Inc.(b)		4,972,760
				38,775,437
		Communications Equipment—5.2%
	29,853	InterDigital, Inc.		2,683,785
	69,804	NetScout Systems, Inc.(b)		2,628,120
				5,311,905
		Data Processing & Outsourced Services—5.5%
	68,347	Black Knight Financial Services, Inc., Class A(b)		2,829,566
	27,929	Jack Henry & Associates, Inc.		2,706,879
				5,536,445
		Education Services—2.7%
	146,105	K12, Inc.(b)		2,754,079
		Health Care Technology—19.8%
	86,756	Cerner Corp.(b)		5,617,451
	107,999	HealthStream, Inc.(b)		3,001,292
	225,959	Inovalon Holdings, Inc., Class A(b)		2,767,998
	46,507	Medidata Solutions, Inc.(b)		3,042,953
	169,214	Quality Systems, Inc.(b)		2,412,992
	60,145	Veeva Systems, Inc., Class A(b)		3,224,975
				20,067,661
		Home Entertainment Software—8.0%
	55,457	Electronic Arts, Inc.(b)		5,258,433
	45,309	Take-Two Interactive Software, Inc.(b)		2,847,670
				8,106,103
		Internet Software & Services—6.0%
	28,398	LogMeIn, Inc.		3,208,974
	102,588	MINDBODY, Inc., Class A(b)		2,908,370
				6,117,344
		Systems Software—14.7%
	111,632	Barracuda Networks, Inc.(b)		2,269,478
	51,244	CommVault Systems, Inc.(b)		2,585,260
	90,446	Progress Software Corp.		2,688,055
	32,232	Proofpoint, Inc.(b)		2,429,326
	52,958	VMware, Inc., Class A(b)		4,984,407
				14,956,526
		Total Common Stocks (Cost $89,402,442)		101,625,500

Number of Shares			Value
		Money Market Fund—0.0%
	24,343	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $24,343)	$	24,343
		Total Investments (Cost $89,426,785)—100.1%		101,649,843
		Other assets less liabilities—(0.1)%		(104,473	)
		Net Assets—100.0%	$	101,545,370

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

44

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45

Statements of Assets and Liabilities

April 30, 2017

	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)	$	230,538,090		$	317,911,178		$	55,745,312		$	146,762,737		$	144,944,176
Affiliated investments, at value		31,201,422			4,906,875			1,306,687			81,688			50,978
Total investments, at value		261,739,512			322,818,053			57,051,999			146,844,425			144,995,154
Receivables:
Securities lending		361,716			2,849			7,848			—			—
Dividends		25			42,123			42			104,475			28,945
Investments sold		—			—			—			—			—
Expenses absorbed		—			—			—			—			—
Shares sold		—			—			—			—			243
Other assets		988			690			710			1,029			808
Total Assets		262,102,241			322,863,715			57,060,599			146,949,929			145,025,150
Liabilities:
Due to custodian		91,804			744			—			—			—
Payables:
Collateral upon return of securities loaned		31,201,422			4,653,236			1,222,175			—			—
Shares repurchased		—			—			—			—			—
Expenses recaptured		—			1,712			—			—			—
Accrued advisory fees		94,362			125,411			17,283			60,280			56,802
Accrued trustees’ and officer’s fees		29,644			18,913			21,046			25,324			19,745
Accrued expenses		54,181			68,636			39,600			43,383			47,060
Total Liabilities		31,471,413			4,868,652			1,300,104			128,987			123,607
Net Assets	$	230,630,828		$	317,995,063		$	55,760,495		$	146,820,942		$	144,901,543
Net Assets Consist of:
Shares of beneficial interest	$	425,491,366		$	328,224,359		$	167,480,483		$	210,444,679		$	181,331,374
Undistributed net investment income (loss)		839,252			(17,802	)		308,344			(24,151	)		85,767
Undistributed net realized gain (loss)		(206,671,797	)		(28,465,510	)		(112,124,777	)		(74,290,303	)		(45,219,619	)
Net unrealized appreciation (depreciation)		10,972,007			18,254,016			96,445			10,690,717			8,704,021
Net Assets	$	230,630,828		$	317,995,063		$	55,760,495		$	146,820,942		$	144,901,543
Shares outstanding (unlimited amount authorized, $0.01 par value)		5,350,000			10,750,000			2,750,000			4,350,000			3,450,000
Net asset value	$	43.11		$	29.58		$	20.28		$	33.75		$	42.00
Market price	$	43.13		$	29.60		$	20.28		$	33.74		$	42.00
Unaffiliated investments, at cost	$	219,566,083		$	299,657,162		$	55,648,867		$	136,072,020		$	136,240,155
Affiliated investments, at cost	$	31,201,422		$	4,906,875		$	1,306,687		$	81,688		$	50,978
Total investments, at cost	$	250,767,505		$	304,564,037		$	56,955,554		$	136,153,708		$	136,291,133
(a) Includes securities on loan with an aggregate value of	$	29,847,925		$	4,451,290		$	1,186,669		$	—		$	—

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

46

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)
$	148,235,394		$	26,123,150		$	33,153,841		$	764,703,862		$	14,421,332		$	235,704,918		$	101,625,500
	113,996			1,900,227			4,034,441			65,729,240			58,040			95,816			24,343
	148,349,390			28,023,377			37,188,282			830,433,102			14,479,372			235,800,734			101,649,843
	—			11,942			6,070			199,182			—			—			—
	12,915			29			8,165			458,672			1,599			72,191			22
	—			—			32,135			3,031,804			—			—			—
	—			—			—			—			525			—			—
	—			—			—			—			—			—			—
	730			633			668			2,290			634			674			709
	148,363,035			28,035,981			37,235,320			834,125,050			14,482,130			235,873,599			101,650,574
	—			—			—			—			—			—			—
	—			1,830,776			3,984,750			65,681,100			—			—			—
	—			—			—			3,032,745			—			—			—
	—			—			—			—			—			7,634			—
	65,734			4,488			11,671			312,311			—			92,165			40,477
	21,435			17,546			26,345			45,246			16,750			17,625			18,313
	45,510			38,087			38,980			145,177			36,744			57,387			46,414
	132,679			1,890,897			4,061,746			69,216,579			53,494			174,811			105,204
$	148,230,356		$	26,145,084		$	33,173,574		$	764,908,471		$	14,428,636		$	235,698,788		$	101,545,370
$	214,735,022		$	57,418,605		$	240,896,057		$	1,038,456,782		$	36,551,185		$	223,089,006		$	113,591,531
	60,240			121,195			(25,435	)		747,015			(9,481	)		31,204			(103,946	)
	(77,429,277	)		(34,587,778	)		(202,629,338	)		(218,488,804	)		(22,991,220	)		(31,897,174	)		(24,165,273	)
	10,864,371			3,193,062			(5,067,710	)		(55,806,522	)		878,152			44,475,752			12,223,058
$	148,230,356		$	26,145,084		$	33,173,574		$	764,908,471		$	14,428,636		$	235,698,788		$	101,545,370
	5,300,000			600,000			3,100,000			12,600,000			400,000			5,550,000			1,900,000
$	27.97		$	43.58		$	10.70		$	60.71		$	36.07		$	42.47		$	53.44
$	27.98		$	43.59		$	10.70		$	60.71		$	36.05		$	42.51		$	53.39
$	137,371,023		$	22,930,088		$	38,221,551		$	820,510,384		$	13,543,180		$	191,229,166		$	89,402,442
$	113,996		$	1,900,227		$	4,034,441		$	65,729,240		$	58,040		$	95,816		$	24,343
$	137,485,019		$	24,830,315		$	42,255,992		$	886,239,624		$	13,601,220		$	191,324,982		$	89,426,785
$	—		$	1,776,697		$	3,810,878		$	64,196,201		$	—		$	—		$	—

47

Statements of Operations

For the year ended April 30, 2017

	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	$	647,546		$	1,354,079		$	1,079,854		$	2,885,742		$	1,818,452
Affiliated dividend income		422			423			682			539			401
Securities lending income		2,797,911			7,208			166,703			—			—
Foreign withholding tax		—			—			—			—			—
Total Income		3,445,879			1,361,710			1,247,239			2,886,281			1,818,853
Expenses:
Advisory fees		1,237,849			791,410			322,598			913,291			633,102
Sub-licensing fees		74,270			47,484			19,372			54,797			37,986
Accounting & administration fees		44,620			42,054			36,827			41,084			36,631
Professional fees		27,922			26,250			39,740			28,269			28,214
Trustees’ and officer’s fees		11,225			9,163			8,337			10,900			9,582
Custodian & transfer agent fees		7,286			4,543			5,565			3,367			3,835
Recapture (Note 3)		—			44,936			—			—			—
Taxes		—			—			109,764			—			—
Other expenses		39,787			23,983			22,778			33,011			24,732
Total Expenses		1,442,959			989,823			564,981			1,084,719			774,082
Less: Waivers		(206	)		(170	)		(49,045	)		(268	)		(200	)
Net Expenses		1,442,753			989,653			515,936			1,084,451			773,882
Net Investment Income (Loss)		2,003,126			372,057			731,303			1,801,830			1,044,971
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(39,672,361	)		(8,211,696	)		(13,533,257	)		(11,797,763	)		(11,169,266	)
In-kind redemptions		27,922,361			21,627,657			16,358,892			27,666,452			21,705,393
Net realized gain (loss)		(11,750,000	)		13,415,961			2,825,635			15,868,689			10,536,127
Net change in unrealized appreciation (depreciation) on investment securities		31,645,703			10,573,563			(6,397,391	)		(2,278,113	)		7,527,722
Net realized and unrealized gain (loss)		19,895,703			23,989,524			(3,571,756	)		13,590,576			18,063,849
Net increase (decrease) in net assets resulting from operations	$	21,898,829		$	24,361,581		$	(2,840,453	)	$	15,392,406		$	19,108,820

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

48

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)
$	838,441		$	233,121		$	444,713		$	11,818,736		$	259,231		$	1,346,050		$	442,930
	304			224			225			1,850			192			330			221
	—			60,786			50,513			1,356,769			10,544			—			—
	—			—			(11,020	)		—			—			—			—
	838,745			294,131			484,431			13,177,355			269,967			1,346,380			443,151
	497,658			124,912			220,364			4,861,245			96,830			568,318			428,966
	29,859			7,502			13,235			291,673			5,815			34,099			25,738
	36,827			36,827			36,827			174,697			36,827			36,853			36,827
	26,272			25,588			27,925			37,186			25,541			26,116			26,533
	8,700			7,674			7,993			23,894			7,625			8,629			8,568
	3,658			3,803			4,448			9,787			3,525			3,994			3,327
	—			—			—			—			—			15,074			—
	—			—			—			—			—			—			—
	24,219			17,021			21,074			91,952			16,460			22,999			21,680
	627,193			223,327			331,866			5,490,434			192,623			716,082			551,639
	(278	)		(66,031	)		(54,300	)		(860	)		(70,700	)		(148	)		(11,243	)
	626,915			157,296			277,566			5,489,574			121,923			715,934			540,396
	211,830			136,835			206,865			7,687,781			148,044			630,446			(97,245	)
	(8,813,551	)		(723,228	)		(12,986,255	)		(133,394,162	)		(3,995,603	)		(2,086,530	)		(4,253,281	)
	10,349,071			4,737,381			2,778,246			76,415,974			2,380,008			12,594,121			13,562,971
	1,535,520			4,014,153			(10,208,009	)		(56,978,188	)		(1,615,595	)		10,507,591			9,309,690
	8,137,501			1,941,605			1,097,948			27,322,624			1,210,879			45,382,539			10,743,771
	9,673,021			5,955,758			(9,110,061	)		(29,655,564	)		(404,716	)		55,890,130			20,053,461
$	9,884,851		$	6,092,593		$	(8,903,196	)	$	(21,967,783	)	$	(256,672	)	$	56,520,576		$	19,956,216

49

Statements of Changes in Net Assets

For the years ended April 30, 2017 and 2016

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)						PowerShares Dynamic Building & Construction Portfolio (PKB)
	2017			2016			2017			2016
Operations:
Net investment income	$	2,003,126		$	4,270,915		$	372,057		$	103,450
Net realized gain (loss)		(11,750,000	)		(38,017,218	)		13,415,961			554,277
Net change in unrealized appreciation (depreciation)		31,645,703			(78,486,936	)		10,573,563			3,421,640
Net increase (decrease) in net assets resulting from operations		21,898,829			(112,233,239	)		24,361,581			4,079,367
Distributions to Shareholders from:
Net investment income		(1,200,757	)		(4,955,367	)		(485,721	)		(67,537	)
Shareholder Transactions:
Proceeds from shares sold		73,446,820			93,026,648			417,784,463			34,203,109
Value of shares repurchased		(131,098,196	)		(219,516,036	)		(183,866,342	)		(33,191,270	)
Net increase (decrease) in net assets resulting from shares transactions		(57,651,376	)		(126,489,388	)		233,918,121			1,011,839
Increase (Decrease) in Net Assets		(36,953,304	)		(243,677,994	)		257,793,981			5,023,669
Net Assets:
Beginning of year		267,584,132			511,262,126			60,201,082			55,177,413
End of year	$	230,630,828		$	267,584,132		$	317,995,063		$	60,201,082
Undistributed net investment income at end of year	$	839,252		$	36,883		$	(17,802	)	$	49,810
Changes in Shares Outstanding:
Shares sold		1,750,000			1,750,000			15,000,000			1,400,000
Shares repurchased		(3,200,000	)		(4,600,000	)		(6,650,000	)		(1,400,000	)
Shares outstanding, beginning of year		6,800,000			9,650,000			2,400,000			2,400,000
Shares outstanding, end of year		5,350,000			6,800,000			10,750,000			2,400,000

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

50

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)
2017			2016			2017			2016			2017			2016			2017			2016
$	731,303		$	1,896,595		$	1,801,830		$	3,062,976		$	1,044,971		$	557,579		$	211,830		$	315,578
	2,825,635			(39,225,841	)		15,868,689			13,614,760			10,536,127			(3,610,897	)		1,535,520			(6,158,013	)
	(6,397,391	)		776,822			(2,278,113	)		(1,735,070	)		7,527,722			(5,120,787	)		8,137,501			(6,304,545	)
	(2,840,453	)		(36,552,424	)		15,392,406			14,942,666			19,108,820			(8,174,105	)		9,884,851			(12,146,980	)
	(4,659,938	)		(2,429,800	)		(2,825,653	)		(2,995,165	)		(921,794	)		(444,265	)		(132,206	)		(1,074,222	)
	50,986,365			49,529,499			95,111,390			342,040,166			236,681,567			158,374,155			140,220,058			125,469,044
	(62,407,209	)		(53,458,266	)		(261,312,296	)		(319,253,170	)		(252,721,340	)		(199,941,946	)		(92,203,321	)		(167,455,100	)
	(11,420,844	)		(3,928,767	)		(166,200,906	)		22,786,996			(16,039,773	)		(41,567,791	)		48,016,737			(41,986,056	)
	(18,921,235	)		(42,910,991	)		(153,634,153	)		34,734,497			2,147,253			(50,186,161	)		57,769,382			(55,207,258	)
	74,681,730			117,592,721			300,455,095			265,720,598			142,754,290			192,940,451			90,460,974			145,668,232
$	55,760,495		$	74,681,730		$	146,820,942		$	300,455,095		$	144,901,543		$	142,754,290		$	148,230,356		$	90,460,974
$	308,344		$	3,806,375		$	(24,151	)	$	711,699		$	85,767		$	(17,566	)	$	60,240		$	(19,384	)
	2,350,000			1,800,000			2,850,000			10,700,000			6,050,000			4,250,000			5,200,000			4,800,000
	(2,900,000	)		(2,200,000	)		(7,800,000	)		(9,850,000	)		(6,600,000	)		(5,550,000	)		(3,500,000	)		(6,650,000	)
	3,300,000			3,700,000			9,300,000			8,450,000			4,000,000			5,300,000			3,600,000			5,450,000
	2,750,000			3,300,000			4,350,000			9,300,000			3,450,000			4,000,000			5,300,000			3,600,000

51

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2017 and 2016

	PowerShares Dynamic Networking Portfolio (PXQ)						PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
	2017			2016			2017			2016
Operations:
Net investment income (loss)	$	136,835		$	103,581		$	206,865		$	733,288
Net realized gain (loss)		4,014,153			1,107,416			(10,208,009	)		(21,165,065	)
Net change in unrealized appreciation (depreciation)		1,941,605			(3,430,513	)		1,097,948			(975,438	)
Net increase (decrease) in net assets resulting from operations		6,092,593			(2,219,516	)		(8,903,196	)		(21,407,215	)
Distributions to Shareholders from:
Net investment income		(105,774	)		—			(311,011	)		(831,786	)
Net realized gains		—			—			—			—
Return of capital		—			—			(270,928	)		—
Total distributions to shareholders		(105,774	)		—			(581,939	)		(831,786	)
Shareholder Transactions:
Proceeds from shares sold		24,087,502			9,058,713			18,842,331			15,134,853
Value of shares repurchased		(24,118,556	)		(14,134,635	)		(21,717,430	)		(20,147,734	)
Net increase (decrease) in net assets resulting from shares transactions		(31,054	)		(5,075,922	)		(2,875,099	)		(5,012,881	)
Increase (Decrease) in Net Assets		5,955,765			(7,295,438	)		(12,360,234	)		(27,251,882	)
Net Assets:
Beginning of year		20,189,319			27,484,757			45,533,808			72,785,690
End of year	$	26,145,084		$	20,189,319		$	33,173,574		$	45,533,808
Undistributed net investment income (loss) at end of year	$	121,195		$	90,135		$	(25,435	)	$	84,581
Changes in Shares Outstanding:
Shares sold		600,000			250,000			1,500,000			1,050,000
Shares repurchased		(600,000	)		(400,000	)		(1,850,000	)		(1,450,000	)
Shares outstanding, beginning of year		600,000			750,000			3,450,000			3,850,000
Shares outstanding, end of year		600,000			600,000			3,100,000			3,450,000

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

52

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)						PowerShares Dynamic Retail Portfolio (PMR)						PowerShares Dynamic Semiconductors Portfolio (PSI)						PowerShares Dynamic Software Portfolio (PSJ)
2017			2016			2017			2016			2017			2016			2017			2016
$	7,687,781		$	9,639,772		$	148,044		$	168,368		$	630,446		$	252,292		$	(97,245	)	$	(146,626	)
	(56,978,188	)		135,708,693			(1,615,595	)		59,120			10,507,591			(4,881,907	)		9,309,690			(516,409	)
	27,322,624			(370,625,568	)		1,210,879			(1,126,743	)		45,382,539			(3,462,052	)		10,743,771			(4,707,107	)
	(21,967,783	)		(225,277,103	)		(256,672	)		(899,255	)		56,520,576			(8,091,667	)		19,956,216			(5,370,142	)
	(8,704,516	)		(9,438,012	)		(176,636	)		(182,321	)		(737,311	)		(100,980	)		(27,911	)		(83,133	)
	—			(78,190,579	)		—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	(8,704,516	)		(87,628,591	)		(176,636	)		(182,321	)		(737,311	)		(100,980	)		(27,911	)		(83,133	)
	127,298,859			402,286,845			28,684,191			18,333,024			205,868,787			43,249,104			115,699,119			98,889,794
	(500,243,797	)		(847,789,130	)		(35,238,705	)		(34,245,374	)		(74,952,115	)		(64,968,217	)		(107,928,638	)		(76,919,326	)
	(372,944,938	)		(445,502,285	)		(6,554,514	)		(15,912,350	)		130,916,672			(21,719,113	)		7,770,481			21,970,468
	(403,617,237	)		(758,407,979	)		(6,987,822	)		(16,993,926	)		186,699,937			(29,911,760	)		27,698,786			16,517,193
	1,168,525,708			1,926,933,687			21,416,458			38,410,384			48,998,851			78,910,611			73,846,584			57,329,391
$	764,908,471		$	1,168,525,708		$	14,428,636		$	21,416,458		$	235,698,788		$	48,998,851		$	101,545,370		$	73,846,584
$	747,015		$	1,763,750		$	(9,481	)	$	19,111		$	31,204		$	138,069		$	(103,946	)	$	(58,979	)
	2,050,000			5,400,000			800,000			500,000			5,800,000			1,600,000			2,400,000			2,300,000
	(8,250,000	)		(12,500,000	)		(1,000,000	)		(900,000	)		(2,250,000	)		(2,600,000	)		(2,250,000	)		(1,900,000	)
	18,800,000			25,900,000			600,000			1,000,000			2,000,000			3,000,000			1,750,000			1,350,000
	12,600,000			18,800,000			400,000			600,000			5,550,000			2,000,000			1,900,000			1,750,000

53

Financial Highlights

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	39.35		$	52.98		$	39.71		$	28.26		$	22.26
Net investment income (loss)(a)		0.33			0.50			0.34			0.03			(0.05	)
Net realized and unrealized gain (loss) on investments		3.63			(13.56	)		13.21			11.42			6.05
Total from investment operations		3.96			(13.06	)		13.55			11.45			6.00
Distributions to shareholders from:
Net investment income		(0.20	)		(0.57	)		(0.28	)		—			—
Net asset value at end of year	$	43.11		$	39.35		$	52.98		$	39.71		$	28.26
Market price at end of year(b)	$	43.13		$	39.35		$	52.95		$	39.68		$	28.27
Net Asset Value Total Return:(c)		10.09	%		(24.92	)%		34.25	%		40.52	%		26.96	%
Market Price Total Return(c)		10.15	%		(24.88	)%		34.28	%		40.36	%		27.29	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	230,631		$	267,584		$	511,262		$	361,320		$	155,453
Ratio to average net assets of:
Expenses, after Waivers		0.58	%		0.58	%		0.57	%		0.59	%		0.63	%
Expenses, prior to Waivers		0.58	%		0.58	%		0.57	%		0.59	%		0.63	%
Net investment income (loss), after Waivers		0.81	%		1.00	%		0.69	%		0.09	%		(0.20	)%
Portfolio turnover rate(d)		69	%		74	%		95	%		64	%		53	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

54

Financial Highlights (continued)

PowerShares Dynamic Building & Construction Portfolio (PKB)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	25.08		$	22.99		$	22.09		$	19.65		$	14.23
Net investment income(a)		0.07			0.04			0.03			0.00	(b)		0.07
Net realized and unrealized gain on investments		4.52			2.08			0.89			2.44			5.44
Total from investment operations		4.59			2.12			0.92			2.44			5.51
Distributions to shareholders from:
Net investment income		(0.09	)		(0.03	)		(0.02	)		—			(0.09	)
Net asset value at end of year	$	29.58		$	25.08		$	22.99		$	22.09		$	19.65
Market price at end of year(c)	$	29.60		$	25.08		$	22.98		$	22.10		$	19.63
Net Asset Value Total Return:(d)		18.33	%		9.21	%		4.17	%		12.42	%		38.85	%
Market Price Total Return(d)		18.41	%		9.26	%		4.08	%		12.58	%		39.01	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	317,995		$	60,201		$	55,177		$	123,688		$	104,121
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%		0.68	%		0.65	%		0.63	%		0.69	%
Net investment income, after Waivers		0.24	%		0.18	%		0.15	%		0.01	%		0.44	%
Portfolio turnover rate(e)		129	%		90	%		96	%		117	%		95	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	22.63		$	31.78		$	37.76		$	30.27		$	24.58
Net investment income(a)		0.24			0.51			0.39			0.48			0.53
Net realized and unrealized gain (loss) on investments		(1.15	)		(9.04	)		(5.84	)		7.55			5.81
Total from investment operations		(0.91	)		(8.53	)		(5.45	)		8.03			6.34
Distributions to shareholders from:
Net investment income		(1.44	)		(0.62	)		(0.53	)		(0.54	)		(0.65	)
Net asset value at end of year	$	20.28		$	22.63		$	31.78		$	37.76		$	30.27
Market price at end of year(b)	$	20.28		$	22.63		$	31.77		$	37.76		$	30.23
Net Asset Value Total Return:(c)		(3.96	)%		(26.93	)%		(14.51	)%		26.93	%		26.14	%
Market Price Total Return(c)		(3.96	)%		(26.91	)%		(14.54	)%		27.10	%		26.03	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	55,760		$	74,682		$	117,593		$	130,273		$	104,427
Ratio to average net assets of:
Expenses, after Waivers		0.80	%(d)		0.65	%		0.64	%		0.64	%		0.65	%
Expenses, prior to Waivers		0.88	%(d)		0.67	%		0.64	%		0.64	%		0.69	%
Net investment income, after Waivers		1.13	%		2.09	%		1.20	%		1.46	%		1.97	%
Portfolio turnover rate(e)		91	%		134	%		140	%		96	%		80	%

^(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)  Expenses, after Waivers and Expenses, prior to Waivers include state income taxes paid during the fiscal year ended April 30, 2017. Expenses, after Waivers and Expenses, prior to Waivers excluding the taxes paid are 0.63% and 0.71%, respectively.

^(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

55

Financial Highlights (continued)

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	32.31		$	31.45		$	26.98		$	23.62		$	19.77
Net investment income(a)		0.33			0.39			0.31			0.38			0.26
Net realized and unrealized gain on investments		1.61			0.88			4.58			3.19			3.92
Total from investment operations		1.94			1.27			4.89			3.57			4.18
Distributions to shareholders from:
Net investment income		(0.50	)		(0.41	)		(0.42	)		(0.21	)		(0.33	)
Net asset value at end of year	$	33.75		$	32.31		$	31.45		$	26.98		$	23.62
Market price at end of year(b)	$	33.74		$	32.30		$	31.43		$	26.99		$	23.61
Net Asset Value Total Return:(c)		6.03	%		4.06	%		18.25	%		15.16	%		21.45	%
Market Price Total Return(c)		6.03	%		4.10	%		18.13	%		15.25	%		21.40	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	146,821		$	300,455		$	265,721		$	434,371		$	236,226
Ratio to average net assets of:
Expenses, after Waivers		0.59	%		0.58	%		0.58	%		0.61	%		0.63	%
Expenses, prior to Waivers		0.59	%		0.58	%		0.58	%		0.61	%		0.63	%
Net investment income, after Waivers		0.99	%		1.21	%		1.05	%		1.47	%		1.28	%
Portfolio turnover rate(d)		145	%		109	%		124	%		145	%		92	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	35.69		$	36.40		$	32.35		$	27.23		$	22.18
Net investment income(a)		0.31			0.11			0.31			0.15			0.12
Net realized and unrealized gain (loss) on investments		6.26			(0.74	)		4.04			5.10			5.09
Total from investment operations		6.57			(0.63	)		4.35			5.25			5.21
Distributions to shareholders from:
Net investment income		(0.26	)		(0.08	)		(0.30	)		(0.13	)		(0.16	)
Net asset value at end of year	$	42.00		$	35.69		$	36.40		$	32.35		$	27.23
Market price at end of year(b)	$	42.00		$	35.68		$	36.39		$	32.34		$	27.21
Net Asset Value Total Return:(c)		18.52	%		(1.73	)%		13.47	%		19.29	%		23.67	%
Market Price Total Return(c)		18.55	%		(1.73	)%		13.47	%		19.34	%		23.47	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	144,902		$	142,754		$	192,940		$	177,930		$	85,765
Ratio to average net assets of:
Expenses, after Waivers		0.61	%		0.61	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.61	%		0.61	%		0.63	%		0.63	%		0.69	%
Net investment income, after Waivers		0.83	%		0.29	%		0.88	%		0.48	%		0.52	%
Portfolio turnover rate(d)		183	%		136	%		187	%		171	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 Dynamic Media Portfolio (PBS)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	25.13		$	26.73		$	23.81		$	20.11		$	14.84
Net investment income(a)		0.06			0.07			0.21			0.09			0.12
Net realized and unrealized gain (loss) on investments		2.82			(1.45	)		2.89			3.70			5.28
Total from investment operations		2.88			(1.38	)		3.10			3.79			5.40
Distributions to shareholders from:
Net investment income		(0.04	)		(0.22	)		(0.18	)		(0.09	)		(0.13	)
Net asset value at end of year	$	27.97		$	25.13		$	26.73		$	23.81		$	20.11
Market price at end of year(b)	$	27.98		$	25.12		$	26.72		$	23.79		$	20.10
Net Asset Value Total Return:(c)		11.49	%		(5.18	)%		13.04	%		18.87	%		36.62	%
Market Price Total Return(c)		11.57	%		(5.18	)%		13.09	%		18.83	%		36.55	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	148,230		$	90,461		$	145,668		$	171,430		$	150,788
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.61	%		0.59	%		0.62	%		0.63	%
Expenses, prior to Waivers		0.63	%		0.61	%		0.59	%		0.62	%		0.63	%
Net investment income, after Waivers		0.21	%		0.26	%		0.84	%		0.38	%		0.71	%
Portfolio turnover rate(d)		103	%		124	%		131	%		120	%		70	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Networking Portfolio (PXQ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	33.65		$	36.65		$	31.20		$	25.00		$	27.71
Net investment income (loss)(a)		0.21			0.15			(0.01	)		(0.04	)		0.20	(b)
Net realized and unrealized gain (loss) on investments		9.90			(3.15	)		5.46			6.44			(2.85	)
Total from investment operations		10.11			(3.00	)		5.45			6.40			(2.65	)
Distributions to shareholders from:
Net investment income		(0.18	)		—			—			(0.20	)		(0.06	)
Net asset value at end of year	$	43.58		$	33.65		$	36.65		$	31.20		$	25.00
Market price at end of year(c)	$	43.59		$	33.65		$	36.64		$	31.19		$	24.97
Net Asset Value Total Return:(d)		30.19	%		(8.19	)%		17.47	%		25.69	%		(9.57	)%
Market Price Total Return(d)		30.22	%		(8.16	)%		17.48	%		25.80	%		(9.58	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	26,145		$	20,189		$	27,485		$	29,643		$	30,000
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.64	%
Expenses, prior to Waivers		0.89	%		0.88	%		0.85	%		0.82	%		0.75	%
Net investment income (loss), after Waivers		0.55	%		0.42	%		(0.02	)%		(0.12	)%		0.81	%(b)
Portfolio turnover rate(e)		97	%		87	%		74	%		69	%		68	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 Dynamic Oil & Gas Services Portfolio (PXJ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	13.20		$	18.91		$	28.01		$	22.49		$	20.48
Net investment income(a)		0.06			0.20			0.22			0.08			0.04
Net realized and unrealized gain (loss) on investments		(2.41	)		(5.69	)		(9.07	)		5.53	(b)		2.00
Total from investment operations		(2.35	)		(5.49	)		(8.85	)		5.61			2.04
Distributions to shareholders from:
Net investment income		(0.08	)		(0.22	)		(0.25	)		(0.09	)		(0.03	)
Return of capital		(0.07	)		—			—			—			—
Total distributions		(0.15	)		(0.22	)		(0.25	)		(0.09	)		(0.03	)
Net asset value at end of year	$	10.70		$	13.20		$	18.91		$	28.01		$	22.49
Market price at end of year(c)	$	10.70		$	13.19		$	18.92		$	28.00		$	22.49
Net Asset Value Total Return:(d)		(17.99	)%		(29.06	)%		(31.67	)%		24.98	%(b)		9.95	%
Market Price Total Return(d)		(17.92	)%		(29.15	)%		(31.61	)%		24.94	%		9.95	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	33,174		$	45,534		$	72,786		$	135,849		$	116,973
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.61	%		0.62	%
Expenses, prior to Waivers		0.75	%		0.72	%		0.64	%		0.61	%		0.62	%
Net investment income (loss), after Waivers		0.47	%		1.46	%		0.96	%		0.31	%		0.18	%
Portfolio turnover rate(e)		90	%		89	%		79	%		259	%(b)		68	%

^(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)  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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	62.16		$	74.40		$	57.65		$	40.72		$	32.00
Net investment income(a)		0.48			0.41			0.32			0.26			0.54	(b)
Net realized and unrealized gain (loss) on investments		(1.40	)		(8.81	)		18.42			16.90			8.72
Total from investment operations		(0.92	)		(8.40	)		18.74			17.16			9.26
Distributions to shareholders from:
Net investment income		(0.53	)		(0.39	)		(0.34	)		(0.23	)		(0.54	)
Net realized gains		—			(3.45	)		(1.65	)		—			—
Total distributions		(0.53	)		(3.84	)		(1.99	)		(0.23	)		(0.54	)
Net asset value at end of year	$	60.71		$	62.16		$	74.40		$	57.65		$	40.72
Market price at end of year(c)	$	60.71		$	62.14		$	74.35		$	57.60		$	40.72
Net Asset Value Total Return:(d)		(1.47	)%		(11.86	)%		32.95	%		42.27	%		29.25	%
Market Price Total Return(d)		(1.44	)%		(11.83	)%		32.97	%		42.15	%		29.29	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	764,908		$	1,168,526		$	1,926,934		$	1,104,007		$	468,305
Ratio to average net assets of:
Expenses, after Waivers		0.56	%		0.57	%		0.56	%		0.58	%		0.63	%
Expenses, prior to Waivers		0.56	%		0.57	%		0.56	%		0.58	%		0.63	%
Net investment income, after Waivers		0.79	%		0.58	%		0.48	%		0.52	%		1.52	%(b)
Portfolio turnover rate(e)		26	%		26	%		47	%		39	%		24	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 Dynamic Retail Portfolio (PMR)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	35.69		$	38.41		$	33.15		$	29.12		$	25.98
Net investment income(a)		0.27			0.25			0.22			0.32			0.66
Net realized and unrealized gain (loss) on investments		0.43			(2.70	)		5.38			3.99			3.11
Total from investment operations		0.70			(2.45	)		5.60			4.31			3.77
Distributions to shareholders from:
Net investment income		(0.32	)		(0.27	)		(0.34	)		(0.28	)		(0.63	)
Net asset value at end of year	$	36.07		$	35.69		$	38.41		$	33.15		$	29.12
Market price at end of year(b)	$	36.05		$	35.69		$	38.42		$	33.14		$	29.11
Net Asset Value Total Return:(c)		1.98	%		(6.40	)%		16.97	%		14.81	%		14.87	%
Market Price Total Return(c)		1.92	%		(6.42	)%		17.04	%		14.81	%		14.83	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	14,429		$	21,416		$	38,410		$	24,864		$	24,750
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.99	%		0.88	%		0.91	%		0.79	%		0.74	%
Net investment income, after Waivers		0.76	%		0.67	%		0.61	%		0.96	%		2.59	%
Portfolio turnover rate(d)		152	%		129	%		111	%		184	%		83	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Semiconductors Portfolio (PSI)

	Year Ended April 30, 2017
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	24.50		$	26.30		$	20.62		$	15.22		$	15.75
Net investment income(a)		0.19			0.10			0.25	(b)		0.10			0.11
Net realized and unrealized gain (loss) on investments		18.02			(1.86	)		5.88			5.41			(0.52	)
Total from investment operations		18.21			(1.76	)		6.13			5.51			(0.41	)
Distribution to shareholder from:
Net investment income		(0.24	)		(0.04	)		(0.33	)		(0.11	)		(0.12	)
Return of capital		—			—			(0.12	)		—			—
Total distributions		(0.24	)		(0.04	)		(0.45	)		(0.11	)		(0.12	)
Net asset value at end of year	$	42.47		$	24.50		$	26.30		$	20.62		$	15.22
Market price at end of year(c)	$	42.51		$	24.48		$	26.31		$	20.62		$	15.19
Net Asset Value Total Return:(d)		74.65	%		(6.69	)%		29.90	%		36.38	%		(2.56	)%
Market Price Total Return(d)		74.96	%		(6.80	)%		29.95	%		36.66	%		(2.50	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	235,699		$	48,999		$	78,911		$	20,621		$	16,744
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%		0.68	%		0.78	%		1.05	%		1.05	%
Net investment income, after Waivers		0.55	%		0.38	%		1.03	%(b)		0.55	%		0.77	%
Portfolio turnover rate(e)		62	%		104	%		103	%		126	%		91	%

^(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 of $16.50 per share owned of KLA-Tencor Corp. on November 26, 2014. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.05 and 0.22%, 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

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

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Financial Highlights (continued)

PowerShares Dynamic Software Portfolio (PSJ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	42.20		$	42.47		$	33.96		$	30.16		$	26.87
Net investment income (loss)(a)		(0.05	)		(0.08	)		0.11			(0.00	)(b)		(0.01	)
Net realized and unrealized gain (loss) on investments		11.30			(0.13	)		8.44			3.80			3.30
Total from investment operations		11.25			(0.21	)		8.55			3.80			3.29
Distributions to shareholders from:
Net investment income		(0.01	)		(0.06	)		(0.04	)		—			—
Net asset value at end of year	$	53.44		$	42.20		$	42.47		$	33.96		$	30.16
Market price at end of year(c)	$	53.39		$	42.21		$	42.48		$	33.93		$	30.12
Net Asset Value Total Return:(d)		26.67	%		(0.50	)%		25.18	%		12.60	%		12.24	%
Market Price Total Return(d)		26.52	%		(0.50	)%		25.32	%		12.65	%		12.09	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	101,545		$	73,847		$	57,329		$	54,335		$	48,257
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.64	%		0.66	%		0.71	%		0.69	%		0.74	%
Net investment income (loss), after Waivers		(0.11	)%		(0.19	)%		0.29	%		(0.01	)%		(0.03	)%
Portfolio turnover rate(e)		154	%		154	%		132	%		150	%		95	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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

April 30, 2017

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2017, 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 price of each Share 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
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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.

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A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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 asked 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 asked 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 asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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 Fund 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 Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in 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 will 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 Mid-Capitalization Company Risk. Investing in securities of small- and mid-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 mid-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.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

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 accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

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

D. Investment Transactions and Investment Income

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

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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.

G. 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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H. Accounting Estimates

The preparation of the financial statements in accordance with 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.

I. Securities Lending

During the fiscal year ended April 30, 2017, Dynamic Biotechnology & Genome Portfolio, Dynamic Building & Construction Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Networking Portfolio, Dynamic Oil & Gas Services Portfolio, Dynamic Pharmaceuticals Portfolio and Dynamic Retail 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% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is generally invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each Fund has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser 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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. 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 Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio, Dynamic Pharmaceuticals Portfolio, and Dynamic Semiconductors Portfolio.

Further, through August 31, 2019, 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. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2017, 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		170
Dynamic Energy Exploration & Production Portfolio		49,045
Dynamic Food & Beverage Portfolio		268
Dynamic Leisure and Entertainment Portfolio		200
Dynamic Media Portfolio		278

65

Dynamic Networking Portfolio	$	66,031
Dynamic Oil & Gas Services Portfolio		54,300
Dynamic Pharmaceuticals Portfolio		860
Dynamic Retail Portfolio		70,700
Dynamic Semiconductors Portfolio		148
Dynamic Software Portfolio		11,243

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 April 30, 2017 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/18		04/30/19		04/30/20
Dynamic Energy Exploration & Production Portfolio	$	64,291	$	—	$	15,566	$	48,725
Dynamic Media Portfolio		144		—		—		144
Dynamic Networking Portfolio		189,651		61,547		62,173		65,931
Dynamic Oil & Gas Services Portfolio		110,749		11,082		45,472		54,195
Dynamic Retail Portfolio		197,638		65,416		61,610		70,612
Dynamic Semiconductors Portfolio		87,406		54,742		32,664		—
Dynamic Software Portfolio		71,510		41,026		19,345		11,139

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 Group, 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 “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows Dynamic Pharmaceuticals Portfolio’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2017.

Dynamic Pharmaceuticals Portfolio

	Value April 30, 2016		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2017		Dividend Income
Heron Therapeutics, Inc.*	$	52,388,275	$	37,897,276	$	(42,386,345	)	$	27,440,477	$	(40,799,113	)	$	34,540,570	$	—

* At April 30, 2017, this security was no longer considered an affiliate.

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

66

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 April 30, 2017, 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
Dynamic Biotechnology & Genome Portfolio
Equity Securities	$	261,401,501	$	—	$	338,011	$	261,739,512

Note 6. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2017 and 2016:

	2017						2016
	Ordinary Income		Long-Term Capital Gains		Return of Capital		Ordinary Income		Long-Term Capital Gains		Return of Capital
Dynamic Biotechnology & Genome Portfolio	$	1,200,757	$	—	$	—	$	4,955,367	$	—	$	—
Dynamic Building & Construction Portfolio		485,721		—		—		67,537		—		—
Dynamic Energy Exploration & Production Portfolio		4,659,938		—		—		2,429,800		—		—
Dynamic Food & Beverage Portfolio		2,825,653		—		—		2,995,165		—		—
Dynamic Leisure and Entertainment Portfolio		921,794		—		—		444,265		—		—
Dynamic Media Portfolio		132,206		—		—		1,074,222		—		—
Dynamic Networking Portfolio		105,774		—		—		—		—		—
Dynamic Oil & Gas Services Portfolio		311,011		—		270,928		831,786		—		—
Dynamic Pharmaceuticals Portfolio		8,704,516		—		—		49,953,074		37,675,517		—
Dynamic Retail Portfolio		176,636		—		—		182,321		—		—
Dynamic Semiconductors Portfolio		737,311		—		—		100,980		—		—
Dynamic Software Portfolio		27,911		—		—		83,133		—		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)— Investment Securities			Capital Loss Carryforwards			Late-Year Ordinary/ Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic Biotechnology & Genome Portfolio	$	867,985	$	(28,733	)	$	6,510,757		$	(186,530,974	)	$	(15,679,573	)	$	425,491,366	$	230,630,828
Dynamic Building & Construction Portfolio		—		(17,802	)		15,886,696			(22,431,521	)		(3,666,669	)		328,224,359		317,995,063
Dynamic Energy Exploration & Production Portfolio		328,433		(20,089	)		(986,946	)		(105,588,315	)		(5,453,071	)		167,480,483		55,760,495
Dynamic Food & Beverage Portfolio		—		(24,151	)		10,132,812			(70,541,574	)		(3,190,824	)		210,444,679		146,820,942
Dynamic Leisure and Entertainment Portfolio		104,784		(19,017	)		8,357,205			(41,588,510	)		(3,284,293	)		181,331,374		144,901,543
Dynamic Media Portfolio		80,900		(20,660	)		10,077,111			(73,309,025	)		(3,332,992	)		214,735,022		148,230,356

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	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)— Investment Securities			Capital Loss Carryforwards			Late-Year Ordinary/ Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic Networking Portfolio	$	137,960	$	(16,765	)	$	3,098,094		$	(34,091,974	)	$	(400,836	)	$	57,418,605	$	26,145,084
Dynamic Oil & Gas Services Portfolio		—		(25,435	)		(7,349,146	)		(196,034,495	)		(4,313,407	)		240,896,057		33,173,574
Dynamic Pharmaceuticals Portfolio		791,197		(44,182	)		(76,582,044	)		(105,058,389	)		(92,654,893	)		1,038,456,782		764,908,471
Dynamic Retail Portfolio		6,533		(16,014	)		828,452			(20,571,177	)		(2,370,343	)		36,551,185		14,428,636
Dynamic Semiconductors Portfolio		48,089		(16,885	)		43,651,548			(30,438,787	)		(634,183	)		223,089,006		235,698,788
Dynamic Software Portfolio**		—		(17,539	)		12,139,575			(21,106,599	)		(3,061,598	)		113,591,531		101,545,370

* Includes net capital losses incurred after October 31(“Post-October Capital Losses”) and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year (“Late-Year Ordinary Losses”), that are deemed to arise on the first business day of each Fund’s next taxable year.

** The Dynamic Software Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $86,407,and Post-October Capital Losses of $2,975,191.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards 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 table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2017.

					Post-effective/ no expiration
	2018		2019		Short-Term		Long-Term		Total*		Expired
Dynamic Biotechnology & Genome Portfolio	$	50,397,332	$	12,898,182	$	116,533,637	$	6,701,823	$	186,530,974	$	34,286,844
Dynamic Building & Construction Portfolio		3,001,058		6,653,613		11,225,767		1,551,083		22,431,521		2,843,349
Dynamic Energy Exploration & Production Portfolio		21,471,013		1,361,799		65,178,685		17,576,818		105,588,315		7,646,917
Dynamic Food & Beverage Portfolio		10,245,302		—		56,437,590		3,858,682		70,541,574		7,585,250
Dynamic Leisure and Entertainment Portfolio		2,889,449		2,356,106		35,588,640		754,315		41,588,510		2,895,936
Dynamic Media Portfolio		5,161,647		6,294,489		59,702,252		2,150,637		73,309,025		4,930,761
Dynamic Networking Portfolio		512,618		730,670		22,792,087		10,056,599		34,091,974		1,975,581
Dynamic Oil & Gas Services Portfolio		85,028,926		35,877,910		46,286,369		28,841,290		196,034,495		24,680,663
Dynamic Pharmaceuticals Portfolio		—		—		87,936,521		17,121,868		105,058,389		—
Dynamic Retail Portfolio		1,816,180		2,176,015		15,694,128		884,854		20,571,177		2,427,604
Dynamic Semiconductors Portfolio		10,902,954		2,120,823		15,300,302		2,114,708		30,438,787		14,001,359
Dynamic Software Portfolio		2,938,722		3,242,208		14,925,669		—		21,106,599		7,095,351

* 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 fiscal year ended April 30, 2017, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
Dynamic Biotechnology & Genome Portfolio	$	170,908,622	$	170,379,519
Dynamic Building & Construction Portfolio		216,637,786		217,277,222
Dynamic Energy Exploration & Production Portfolio		59,079,654		62,782,157
Dynamic Food & Beverage Portfolio		273,892,337		275,083,575
Dynamic Leisure and Entertainment Portfolio		239,856,783		238,668,485
Dynamic Media Portfolio		106,572,543		107,224,022
Dynamic Networking Portfolio		24,697,768		25,729,989

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	Purchases		Sales
Dynamic Oil & Gas Services Portfolio	$	39,264,581	$	39,196,755
Dynamic Pharmaceuticals Portfolio		251,641,074		252,313,049
Dynamic Retail Portfolio		31,126,050		29,388,098
Dynamic Semiconductors Portfolio		73,380,715		73,224,324
Dynamic Software Portfolio		136,808,612		135,615,087

For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Biotechnology & Genome Portfolio	$	72,066,247	$	129,453,362
Dynamic Building & Construction Portfolio		417,786,084		183,404,857
Dynamic Energy Exploration & Production Portfolio		50,961,074		62,509,267
Dynamic Food & Beverage Portfolio		95,096,453		261,001,360
Dynamic Leisure and Entertainment Portfolio		236,513,676		253,527,066
Dynamic Media Portfolio		139,796,235		90,939,048
Dynamic Networking Portfolio		24,076,004		23,056,656
Dynamic Oil & Gas Services Portfolio		18,835,228		21,765,661
Dynamic Pharmaceuticals Portfolio		127,260,376		500,536,619
Dynamic Retail Portfolio		28,681,371		36,999,362
Dynamic Semiconductors Portfolio		205,787,141		75,071,829
Dynamic Software Portfolio		114,687,455		108,158,112

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

At April 30, 2017, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)			Cost
Dynamic Biotechnology & Genome Portfolio	$	28,211,517	$	(21,700,760	)	$	6,510,757		$	255,228,755
Dynamic Building & Construction Portfolio		18,766,217		(2,879,521	)		15,886,696			306,931,357
Dynamic Energy Exploration & Production Portfolio		2,983,859		(3,970,805	)		(986,946	)		58,038,945
Dynamic Food & Beverage Portfolio		12,284,544		(2,151,732	)		10,132,812			136,711,613
Dynamic Leisure and Entertainment Portfolio		10,491,194		(2,133,989	)		8,357,205			136,637,949
Dynamic Media Portfolio		11,720,718		(1,643,607	)		10,077,111			138,272,279
Dynamic Networking Portfolio		3,933,919		(835,825	)		3,098,094			24,925,283
Dynamic Oil & Gas Services Portfolio		942,991		(8,292,137	)		(7,349,146	)		44,537,428
Dynamic Pharmaceuticals Portfolio		63,684,035		(140,266,079	)		(76,582,044	)		907,015,146
Dynamic Retail Portfolio		1,137,341		(308,889	)		828,452			13,650,920
Dynamic Semiconductors Portfolio		44,010,719		(359,171	)		43,651,548			192,149,186
Dynamic Software Portfolio		13,032,710		(893,135	)		12,139,575			89,510,268

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Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2017, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Biotechnology & Genome Portfolio	$	—		$	9,838,400		$	(9,838,400	)
Dynamic Building & Construction Portfolio		46,052			(17,683,705	)		17,637,653
Dynamic Energy Exploration & Production Portfolio		430,604			(3,162,027	)		2,731,423
Dynamic Food & Beverage Portfolio		287,973			(18,151,136	)		17,863,163
Dynamic Leisure and Entertainment Portfolio		(19,844	)		(15,047,545	)		15,067,389
Dynamic Media Portfolio		—			(3,540,580	)		3,540,580
Dynamic Networking Portfolio		(1	)		(2,645,548	)		2,645,549
Dynamic Oil & Gas Services Portfolio		(5,870	)		24,946,451			(24,940,581	)
Dynamic Pharmaceuticals Portfolio		—			(54,350,016	)		54,350,016
Dynamic Retail Portfolio		—			321,715			(321,715	)
Dynamic Semiconductors Portfolio		—			1,977,452			(1,977,452	)
Dynamic Software Portfolio		80,189			(6,010,011	)		5,929,822

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, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated 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 principally 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.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

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

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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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Dynamic Oil & Gas Services Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Dynamic Semiconductors Portfolio and PowerShares Dynamic Software Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Dynamic Oil & Gas Services Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Dynamic Semiconductors Portfolio and PowerShares Dynamic Software Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 23, 2017

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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 April 30, 2017.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		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	$	1,158.20		0.57	%	$	3.05
Hypothetical (5% return before expenses)		1,000.00		1,021.97		0.57			2.86
PowerShares Dynamic Building & Construction Portfolio (PKB)
Actual		1,000.00		1,203.30		0.62			3.39
Hypothetical (5% return before expenses)		1,000.00		1,021.72		0.62			3.11
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
Actual		1,000.00		993.20		0.63			3.11
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
Actual		1,000.00		1,042.30		0.59			2.99
Hypothetical (5% return before expenses)		1,000.00		1,021.87		0.59			2.96
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Actual		1,000.00		1,154.00		0.60			3.20
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares Dynamic Media Portfolio (PBS)
Actual		1,000.00		1,136.50		0.63			3.34
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Networking Portfolio (PXQ)
Actual		1,000.00		1,130.80		0.63			3.33
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
Actual		1,000.00		1,003.60		0.63			3.13
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16

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Fees and Expenses (continued)

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		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	$	1,080.50		0.56	%	$	2.89
Hypothetical (5% return before expenses)		1,000.00		1,022.02		0.56			2.81
PowerShares Dynamic Retail Portfolio (PMR)
Actual		1,000.00		1,051.80		0.63			3.21
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Semiconductors Portfolio (PSI)
Actual		1,000.00		1,327.20		0.63			3.64
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Software Portfolio (PSJ)
Actual		1,000.00		1,138.40		0.63			3.34
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the results by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

74

Tax Information

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

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2017:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares Dynamic Biotechnology & Genome Portfolio		31	%		31	%
PowerShares Dynamic Building & Construction Portfolio		100	%		100	%
PowerShares Dynamic Energy Exploration & Production Portfolio		41	%		41	%
PowerShares Dynamic Food & Beverage Portfolio		100	%		100	%
PowerShares Dynamic Leisure and Entertainment Portfolio		100	%		100	%
PowerShares Dynamic Media Portfolio		100	%		100	%
PowerShares Dynamic Networking Portfolio		100	%		100	%
PowerShares Dynamic Oil & Gas Services Portfolio		100	%		76	%
PowerShares Dynamic Pharmaceuticals Portfolio		100	%		100	%
PowerShares Dynamic Retail Portfolio		100	%		100	%
PowerShares Dynamic Semiconductors Portfolio		100	%		100	%
PowerShares Dynamic Software Portfolio		100	%		100	%

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

75

Trustees and Officers

The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and Trustee since 2003	Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).	135	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2010	Assistant Professor of Business, Trinity Christian College (2010-2016); formerly Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank.	135	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

76

Trustees and Officers (continued)

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	135	None
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	135	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

77

Trustees and Officers (continued)

The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Unaffiliated Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex*** Overseen by Unaffiliated Trustee	Other Directorships Held by Unaffiliated Trustee During the Past 5 Years
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee**	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	135	None

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

** Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee.

*** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

78

Trustees and Officers (continued)

The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Interested Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Interested Trustee	Other Directorships Held by Interested Trustee During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP.	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

79

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer and Principal Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chief Compliance Officer	Since 2017	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2012	Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005).

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

80

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), Invesco PowerShares Capital Management LLC (2010-Present); Manager and Assistant Secretary, Invesco Indexing LLC (2017-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2011-Present); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.

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

81

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2016, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and

82

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

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

● 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

● 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio;

● 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth Portfolio); and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, were -0.06%, -0.19% and -0.62%, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio).

The Trustees also noted that the Adviser has agreed to waive a portion of its contractual advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2018, as set forth below:

● 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

● 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio;

● 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® Quality Portfolio;

83

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

● 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio			X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X

84

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X		X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio			X
PowerShares International Dividend AchieversTM Portfolio	X	N/A	X
PowerShares S&P 500® Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the contractual advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X

85

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X	X	X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio		X	X
PowerShares International Dividend AchieversTM Portfolio		N/A	X
PowerShares S&P 500® Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X

86

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted those Funds for which license fees are included in the Funds’ Expense Caps.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund’s Expense Cap) were reasonable and appropriate in light of the services provided.

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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

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

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

87

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Proxy Voting Policies and Procedures

A description of the 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.powershares.com.

P-PS-AR-7
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515
powershares.com    800 983 0903		@PowerShares

April 30, 2017

2017 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

The Market Environment	3
Manager’s Analysis	4
Sector Portfolios
Schedules of Investments
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)	33
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)	34
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)	36
PowerShares DWA Energy Momentum Portfolio (PXI)	37
PowerShares DWA Financial Momentum Portfolio (PFI)	38
PowerShares DWA Healthcare Momentum Portfolio (PTH)	39
PowerShares DWA Industrials Momentum Portfolio (PRN)	40
PowerShares DWA Technology Momentum Portfolio (PTF)	41
PowerShares DWA Utilities Momentum Portfolio (PUI)	42
PowerShares NASDAQ Internet Portfolio (PNQI)	43
Statements of Assets and Liabilities	46
Statements of Operations	48
Statements of Changes in Net Assets	50
Financial Highlights	54
Notes to Financial Statements	60
Report of Independent Registered Public Accounting Firm	70
Fees and Expenses	71
Tax Information	73
Trustees and Officers	74
Board Considerations Regarding Continuation of Investment Advisory Agreements	80

2

The Market Environment

US Equity

During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.

While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.

Global Equity

The fiscal year ended April 30, 2017, began on a negative note, with global equity investors concerned about economic weakness in China, falling oil prices and uncertainty over the US Federal Reserve’s (the “Fed”) monetary policy. Central banks, including the Fed, the European Central Bank and the Bank of Japan, soothed investors’ nerves throughout the reporting period with accommodative monetary policies and dovish rhetoric. Other factors contributing to investor sentiment included rebounding oil prices and, in the US, generally positive economic data.

In June 2016, the decision by UK voters to leave the European Union caused global markets to decline sharply, but only briefly. The outcome of the November US presidential election caused US stocks, particularly in the health care and financials sector, to rally. However, non-US equities, particularly emerging market equities, traded lower due to currency weakness and the potential for a less favorable trade environment. Also in November, OPEC agreed to cut production for the first time in eight years; the agreement helped support higher oil prices and energy stocks.

Global equity markets began calendar 2017 with a broad rally that marked the best first quarter for equities since 2013. Volatility was largely absent, and emerging market equities posted double-digit gains in the quarter. Improved consumer confidence and eurozone employment data fueled positive market sentiment, while investors generally shrugged off Fed interest rate hikes in

December 2016 and March 2017. For the reporting period as a whole, US equities outperformed non-US equities, and emerging markets outperformed their developed-market counterparts (excluding the US)—a reversal from previous years.

3

PYZ	Manager’s Analysis
	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

As an index fund, the PowerShares DWA Basic Materials Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Basic Materials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the basic materials sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the basic materials sector for inclusion in the Index. Companies in the basic materials sector are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 13.98%. On a net asset value (“NAV”) basis, the Fund returned 14.04%. During the same time period, the Index returned 14.84%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period.

During this same time period, the S&P 500^® Materials Index (the “Benchmark Index”) returned 15.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 25 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the materials sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the specialty chemicals sub-industry and most underweight in the diversified chemicals sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the steel sub-industry and underweight the construction materials sub-industry, as well as stock selection in the commodity chemicals sub-industry, and fees and operating expenses that the Fund incurred during the period.

For the fiscal year ended April 30, 2017, the specialty chemicals sub-industry contributed most significantly to the Fund’s return, followed by the diversified chemicals and silver sub-industries, respectively. The steel sub-industry detracted most significantly from the Fund’s return, followed by the gold and commodity chemicals sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Chemours Co. (The), a diversified chemicals company (portfolio average weight of 3.03%), and Albemarle Corp., a specialty chemicals company (portfolio average weight of 3.18%). Positions that detracted most significantly from the Fund’s return included Gold Resource Corp., a metals & mining company (no longer held at fiscal year-end), and United States Steel Corp., a metals & mining company (portfolio average weight of 2.51%).

4

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Specialty Chemicals	38.0
Steel	16.7
Diversified Chemicals	9.9
Paper Packaging	8.0
Commodity Chemicals	5.8
Fertilizers & Agricultural Chemicals	5.0
Industrial Gases	3.7
Paper Products	3.2
Forest Products	2.2
Copper	2.1
Aerospace & Defense	2.1
Oil & Gas Equipment & Services	2.0
Gold	1.3
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Chemours Co. (The)	5.4
FMC Corp.	5.0
International Paper Co.	4.6
Ashland Global Holdings, Inc.	4.1
Air Products & Chemicals, Inc.	3.8
Steel Dynamics, Inc.	3.5
Avery Dennison Corp.	3.3
Albemarle Corp.	3.2
Ecolab, Inc.	3.0
LyondellBasell Industries NV, Class A	3.0
Total	38.9

* Excluding money market fund holdings.

5

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Basic Materials Technical Leaders Index†		14.84	%		7.32	%		23.61	%		12.01	%		76.33	%		9.16	%		140.26	%		11.02	%		201.19	%
S&P 500® Materials Index		15.18			5.75			18.28			9.96			60.77			5.69			73.96			7.29			110.04
Fund
NAV Return		14.04			6.61			21.16			11.26			70.49			8.28			121.51			10.11			176.20
Market Price Return		13.98			6.62			21.21			11.28			70.67			8.27			121.30			10.11			176.31

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Basic Materials Technical Leaders Index performance is comprised of the performance of the Dynamic Basic Materials Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

6

PEZ	Manager’s Analysis
	PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

As an index fund, the PowerShares DWA Consumer Cyclicals Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Consumer Cyclicals Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the consumer discretionary (or cyclicals) sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the consumer discretionary sector for inclusion in the Index. Companies in the consumer discretionary sector are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and home construction and furnishing. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 5.90%. On a net asset value (“NAV”) basis, the Fund returned 5.85%. During the same time period, the Index returned 6.55%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily

due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period.

During this same time period, the S&P 500^® Consumer Discretionary Index (the “Benchmark Index”) returned 15.78%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 90 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the consumer discretionary sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More broadly, for the fiscal year, the Index weighting included small, mid and large capitalized components while the Benchmark Index was predominantly weighted to large capitalized components.

Relative to the Benchmark Index, the Fund was most overweight in the home entertainment software sub-industry and most underweight in the internet & direct marketing retail sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight the airlines sub-industry, and underweight internet & direct marketing retail, movies & entertainment and the home improvement retail sub-industries.

For the fiscal year ended April 30, 2017, the internet & direct marketing retail sub-industry contributed most significantly to the Fund’s return followed by the home entertainment software and restaurants sub-industries, respectively. The footwear sub-industry detracted most significantly from the Fund’s return, followed by the airlines and specialty stores sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Domino’s Pizza, Inc., a restaurants company (portfolio average weight of 5.41%), and Take-Two Interactive Software, Inc., a home entertainment software company (portfolio average weight of 3.10%). Positions that detracted most significantly from the Fund’s return included Skechers U.S.A., Inc., Class A, a footwear company (no longer held at fiscal year-end), and L Brands, Inc., an apparel retail company (no longer held at fiscal year-end).

7

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Apparel Retail	12.3
Internet & Direct Marketing Retail	12.0
Home Entertainment Software	9.5
Cable & Satellite	8.6
Restaurants	8.3
Auto Parts & Equipment	6.5
Casinos & Gaming	5.3
Broadcasting	5.1
Airlines	4.9
Automotive Retail	4.1
Home Improvement Retail	2.6
Leisure Facilities	2.6
Specialty Stores	2.5
Automobile Manufacturers	2.4
Hypermarkets & Super Centers	2.3
Tires & Rubber	2.2
Industrial Machinery	2.2
General Merchandise Stores	1.9
Home Furnishings	1.6
Specialized REITs	1.6
Office Services & Supplies	1.5
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Priceline Group, Inc. (The)	5.1
Amazon.com, Inc.	4.7
Ross Stores, Inc.	4.6
O’Reilly Automotive, Inc.	4.1
Domino’s Pizza, Inc.	4.1
Electronic Arts, Inc.	3.4
Take-Two Interactive Software, Inc.	3.4
Charter Communications, Inc., Class A	3.2
Sirius XM Holdings, Inc.	3.2
Southwest Airlines Co.	3.1
Total	38.9

* Excluding money market fund holdings.

8

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Consumer Cyclicals Technical Leaders Index†		6.55	%		4.91	%		15.47	%		9.64	%		58.40	%		5.81	%		75.93	%		6.78	%		99.76	%
S&P 500® Consumer Discretionary Index		15.78			14.06			48.37			16.51			114.67			10.60			173.91			10.71			192.46
Fund
NAV Return		5.85			4.22			13.20			8.90			53.17			5.17			65.47			6.12			87.19
Market Price Return		5.90			4.27			13.38			8.91			53.25			5.16			65.46			6.13			87.30

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.71% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Consumer Cyclicals Technical Leaders Index performance is comprised of the performance of the Dynamic Consumer Discretionary Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

9

PSL	Manager’s Analysis
	PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

As an index fund, the PowerShares DWA Consumer Staples Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Consumer Staples Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the consumer staples sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the consumer staples sector for inclusion in the Index. Companies in the consumer staples sector are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverages, and non-discretionary retail goods and services. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 8.12%. On a net asset value (“NAV”) basis, the Fund returned 8.12%. During the same time period, the Index returned 8.84%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily

due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period

During this same time period, the S&P 500^® Consumer Staples Index (the “Benchmark Index”) returned 8.64%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the consumer staples sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the packaged foods & meats sub-industry and most underweight in the soft drinks sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred.

For the fiscal year ended April 30, 2017, the education services sub-industry contributed most significantly to the Fund’s return, followed by the tobacco and internet & direct marketing retail sub-industries, respectively. The personal products sub-industry detracted most significantly from the Fund’s return, followed by the packaged foods & meats and household appliances sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Nutrisystem, Inc., an internet & direct marketing retail company (portfolio average weight of 2.11%), and DeVry Education Group, Inc., an education services company (portfolio average weight of 1.37%). Positions that detracted most significantly from the Fund’s return included Amplify Snack Brands, Inc., a packaged foods & meats company (no longer held at fiscal year-end), and Estee Lauder Cos., Inc. (The), Class A, a personal products company (no longer held at fiscal year-end).

10

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Packaged Foods & Meats	21.9
Household Products	15.6
Tobacco	8.5
Soft Drinks	8.2
Education Services	6.7
Distillers & Vintners	6.4
Specialized Consumer Services	4.7
Trading Companies & Distributors	4.4
Agricultural Products	3.5
Housewares & Specialties	3.4
Environmental & Facilities Services	2.9
Personal Products	2.8
Internet & Direct Marketing Retail	2.5
Industrial Machinery	2.4
Brewers	2.4
Health Care Services	2.2
Food Distributors	1.5
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Church & Dwight Co., Inc.	4.6
Constellation Brands, Inc., Class A	4.6
Altria Group, Inc.	4.3
Dr Pepper Snapple Group, Inc.	3.6
McCormick & Co., Inc.	3.5
Ingredion, Inc.	3.5
Newell Brands, Inc.	3.4
Spectrum Brands Holdings, Inc.	3.4
United Rentals, Inc.	3.1
Post Holdings, Inc.	3.0
Total	37.0

* Excluding money market fund holdings.

11

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Consumer Staples Technical Leaders Index†		8.84	%		13.59	%		46.55	%		15.19	%		102.84	%		10.16	%		163.08	%		10.89	%		197.54	%
S&P 500® Consumer Staples Index		8.64			10.61			35.33			13.06			84.76			10.33			167.29			10.71			192.48
Fund
NAV Return		8.12			12.87			43.80			14.46			96.49			9.42			145.96			10.15			177.18
Market Price Return		8.12			12.88			43.84			14.47			96.57			9.41			145.75			10.15			177.13

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Consumer Staples Technical Leaders Index performance is comprised of the performance of the Dynamic Consumer Staples Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

12

PXI	Manager’s Analysis
	PowerShares DWA Energy Momentum Portfolio (PXI)

As an index fund, the PowerShares DWA Energy Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Energy Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the energy sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the energy sector for inclusion in the Index. Companies in the energy sector are principally engaged in the business of producing, distributing or servicing energy-related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned (3.60)%. On a net asset value (“NAV”) basis, the Fund returned (3.60)%. During the same time period, the Index returned (3.21)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund

incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the S&P 500^® Energy Index (the “Benchmark Index”) returned 2.08%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 35 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the energy sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas exploration & production sub-industry and most underweight in the integrated oil & gas sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the oil & gas drilling sub-industry as well as stock selection in the oil & gas equipment & services and the oil & gas exploration & production sub-industries.

For the fiscal year ended April 30, 2017, the coal & consumable fuels sub-industry contributed most significantly to the Fund’s return, followed by the oil & gas refining & marketing and oil & gas storage & transportation sub-industries, respectively. The oil & gas drilling sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas equipment & services and oil & gas exploration & production sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Clayton Williams Energy, Inc., an oil & gas exploration & production company (no longer held at fiscal year-end), and Targa Resources Corp., an oil & gas storage & transportation company (portfolio average weight of 3.36%). Positions that detracted most significantly from the Fund’s return included Whiting Petroleum Corp., an oil & gas exploration & production company (portfolio average weight of 1.47%), and Bill Barrett Corp., an oil & gas exploration & production company (no longer held at fiscal year-end).

13

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Oil & Gas Exploration & Production	45.1
Oil & Gas Refining & Marketing	13.6
Oil & Gas Equipment & Services	12.6
Oil & Gas Storage & Transportation	10.4
Oil & Gas Drilling	9.1
Integrated Oil & Gas	5.5
Coal & Consumable Fuels	2.2
Specialty Chemicals	1.5
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Cheniere Energy, Inc.	4.5
Concho Resources, Inc.	4.3
Targa Resources Corp.	3.9
Diamondback Energy, Inc.	3.9
Pioneer Natural Resources Co.	3.9
Parsley Energy, Inc., Class A	3.8
Marathon Petroleum Corp.	3.6
WPX Energy, Inc.	3.6
Valero Energy Corp.	3.5
RSP Permian, Inc.	3.3
Total	38.3

* Excluding money market fund holdings.

14

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Energy Technical Leaders Index†		(3.21	)%		(14.07	)%		(36.56	)%		(0.35	)%		(1.76	)%		2.81	%		31.87	%		4.79	%		63.76	%
S&P 500® Energy Index		2.08			(7.47	)		(20.78	)		1.32			6.77			2.54			28.47			4.20			54.43
Fund
NAV Return		(3.60	)		(14.58	)		(37.68	)		(0.99	)		(4.85	)		2.18			24.05			4.15			53.56
Market Price Return		(3.60	)		(14.57	)		(37.65	)		(1.00	)		(4.92	)		2.17			23.98			4.15			53.63

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.76% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Energy Technical Leaders Index performance is comprised of the performance of the Dynamic Energy Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

15

PFI	Manager’s Analysis
	PowerShares DWA Financial Momentum Portfolio (PFI)

As an index fund, the PowerShares DWA Financial Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Financials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the financials sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Underlying Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the financial sector for inclusion in the Index. Companies in the financial services sector are principally engaged in the business of providing services and products, including banking, investment services, insurance and real estate finance services. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 6.41%. On a net asset value (“NAV”) basis, the Fund returned 6.51%. During the same time period, the Index returned 7.27%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period.

During this same time period, the S&P 500^® Financials Index (the “Benchmark Index”) returned 27.16%. The Benchmark Index is

an unmanaged index weighted by market capitalization based on the average performance of approximately 70 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the financials sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More broadly, for the fiscal year, the Index weighting included small, mid and large capitalized components while the Benchmark Index was predominantly weighted to large capitalized components.

Relative to the Benchmark Index, the Fund was most overweight in the regional banks sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight the retail real estate investment trust (“REIT”) and specialized REITs sub-industries, and underweight the diversified bank sub-industry.

For the fiscal year ended April 30, 2017, the regional banks sub-industry contributed most significantly to the Fund’s return, followed by the life & health insurance and property & casualty insurance sub-industries, respectively. The specialized REITs sub-industry detracted most significantly from the Fund’s return, followed by the investment banking & brokerage and retail REITs sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Principal Financial Group, Inc., a life & health insurance company (portfolio average weight of 1.62%), and Western Alliance Bancorp, a regional banks company (portfolio average weight of 2.39%). Positions that detracted most significantly from the Fund’s return included Bank of the Ozarks, Inc., a regional banks company (portfolio average weight of 1.46%), and Genworth Financial, Inc., Class A, a life & health insurance company (no longer held at fiscal year-end).

16

PowerShares DWA Financial Momentum Portfolio (PFI) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Regional Banks	47.1
Life & Health Insurance	17.2
Investment Banking & Brokerage	8.2
Diversified Banks	6.5
Multi-line Insurance	4.5
Property & Casualty Insurance	4.2
Specialized REITs	3.0
Financial Exchanges & Data	2.6
Reinsurance	2.0
Mortgage REITs	1.9
Consumer Finance	1.9
Thrifts & Mortgage Finance	0.9
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Fifth Third Bancorp	4.7
Unum Group	4.6
Bank of the Ozarks, Inc.	4.2
JPMorgan Chase & Co.	4.2
Huntington Bancshares, Inc.	3.7
Principal Financial Group, Inc.	3.3
Prudential Financial, Inc.	3.1
E*TRADE Financial Corp.	2.6
MarketAxess Holdings, Inc.	2.6
Western Alliance Bancorp	2.5
Total	35.5

* Excluding money market fund holdings.

17

PowerShares DWA Financial Momentum Portfolio (PFI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Financials Technical Leaders Index†		7.27	%		5.60	%		17.76	%		11.28	%		70.66	%		3.68	%		43.47	%		4.06	%		52.17	%
S&P 500® Financials Index		27.16			11.91			40.17			15.74			107.66			(0.31	)		(3.06	)		0.26			2.81
Fund
NAV Return		6.51			4.89			15.41			10.50			64.73			2.88			32.84			3.27			40.44
Market Price Return		6.41			4.91			15.46			10.49			64.70			2.87			32.66			3.27			40.40

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.84% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Financials Technical Leaders Index performance is comprised of the performance of the Dynamic Financial Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

18

PTH	Manager’s Analysis
	PowerShares DWA Healthcare Momentum Portfolio (PTH)

As an index fund, the PowerShares DWA Healthcare Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Healthcare Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the healthcare sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the healthcare sector for inclusion in the Index. Companies in the healthcare sector are principally engaged in the business of providing healthcare-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 24.26%. On a net asset value (“NAV”) basis, the Fund returned 24.19%. During the same time period, the Index returned 25.04%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period.

During this same time period, the S&P 500^® Health Care Index (the “Benchmark Index”) returned 10.09%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 60 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the health care sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the health care equipment sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the biotechnology, health care equipment and health care supplies sub-industries.

For the fiscal year ended April 30, 2017, the health care equipment sub-industry contributed most significantly to the Fund’s return, followed by the biotechnology and health care supplies sub-industries, respectively. The health care services sub-industry detracted most significantly from the Fund’s return, followed by the health care facilities and life sciences tools & services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Exelixis, Inc., a biotechnology company (portfolio average weight of 3.98%), and Sarepta Therapeutics, Inc., a biotechnology company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Puma Biotechnology, Inc., a biotechnology company (no longer held at fiscal year-end), and DexCom, Inc., a health care equipment company (no longer held at fiscal year-end).

19

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Biotechnology	42.4
Health Care Equipment	24.5
Managed Health Care	10.8
Pharmaceuticals	9.1
Health Care Supplies	7.8
Health Care Services	3.6
Life Sciences Tools & Services	1.8
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Exact Sciences Corp.	5.9
Exelixis, Inc.	5.4
Masimo Corp.	4.4
Clovis Oncology, Inc.	4.0
Align Technology, Inc.	3.8
Esperion Therapeutics, Inc.	3.7
UnitedHealth Group, Inc.	3.6
Becton, Dickinson and Co.	3.4
IDEXX Laboratories, Inc.	2.9
Boston Scientific Corp.	2.9
Total	40.0

* Excluding money market fund holdings.

20

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Healthcare Technical Leaders Index†		25.04	%		7.44	%		24.03	%		12.37	%		79.13	%		7.75	%		110.86	%		8.74	%		142.02	%
S&P 500® Health Care Index		10.09			10.86			36.26			17.06			119.84			9.76			153.73			10.18			178.05
Fund
NAV Return		24.19			6.67			21.37			11.57			72.87			6.96			95.99			7.95			124.04
Market Price Return		24.26			6.66			21.35			11.56			72.79			6.95			95.89			7.95			124.00

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Healthcare Technical Leaders Index performance is comprised of the performance of the Dynamic Healthcare Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

21

PRN	Manager’s Analysis
	PowerShares DWA Industrials Momentum Portfolio (PRN)

As an index fund, the PowerShares DWA Industrials Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Industrials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the industrials sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the industrials sector for inclusion in the Index. Companies in the industrials sector are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing products and services. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 16.48%. On a net asset value (“NAV”) basis, the Fund returned 16.50%. During the same time period, the Index returned 17.28%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, as well as trading costs around the rebalances during the period.

During this same time period, the S&P 500^® Industrials Index (the “Benchmark Index”) returned 19.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 70 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the industrial sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the building products sub-industry and most underweight in the industrial conglomerates sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection in the aerospace & defense sub-industry as well as being underweight in the industrial conglomerate sub-industry.

For the fiscal year ended April 30, 2017, the aerospace & defense sub-industry contributed most significantly to the Fund’s return, followed by the building products and industrial machinery sub-industries, respectively. The construction materials sub-industry detracted most significantly from the Fund’s return, followed by the electrical components & equipment and specialty chemicals sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included A. O. Smith Corp., a building products company (portfolio average weight of 3.73%), and Packaging Corp. of America, a paper packaging company (portfolio average weight of 2.06%). Positions that detracted most significantly from the Fund’s return included Energy Recovery, Inc., an industrial machinery company (no longer held at fiscal year-end), and U.S. Concrete, Inc., a construction materials company (no longer held at fiscal year-end).

22

PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Aerospace & Defense	19.0
Industrial Machinery	10.2
Building Products	7.1
Construction & Engineering	6.8
Airport Services	6.1
Electronic Components	5.8
IT Consulting & Other Services	4.5
Life Sciences Tools & Services	4.2
Health Care Equipment	3.1
Electronic Equipment & Instruments	2.9
Paper Packaging	2.8
Human Resource & Employment Services	2.8
Electronic Manufacturing Services	2.5
Data Processing & Outsourced Services	2.4
Electrical Components & Equipment	2.3
Diversified Support Services	2.3
Health Care Services	2.3
Trucking	2.2
Commodity Chemicals	2.0
Agricultural & Farm Machinery	2.0
Semiconductor Equipment	1.8
Commercial Printing	1.8
Trading Companies & Distributors	1.5
Distributors	1.5
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Macquarie Infrastructure Corp.	6.1
Lockheed Martin Corp.	5.7
Mettler-Toledo International, Inc.	4.2
Dycom Industries, Inc.	3.6
Huntington Ingalls Industries, Inc.	3.3
Accenture PLC, Class A	3.2
Danaher Corp.	3.1
Parker-Hannifin Corp.	2.9
Coherent, Inc.	2.9
Packaging Corp. of America	2.8
Total	37.8

* Excluding money market fund holdings.

23

PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Industrials Technical Leaders Index†		17.28	%		5.16	%		16.28	%		13.49	%		88.27	%		7.71	%		110.09	%		8.69	%		140.97	%
S&P 500® Industrials Index		19.40			10.01			33.12			14.81			99.51			7.84			112.70			8.22			130.16
Fund
NAV Return		16.50			4.46			14.00			12.63			81.26			6.82			93.35			7.81			120.97
Market Price Return		16.48			4.49			14.07			12.64			81.34			6.81			93.25			7.81			121.02

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.65% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Industrials Technical Leaders Index performance is comprised of the performance of the Dynamic Industrials Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

24

PTF	Manager’s Analysis
	PowerShares DWA Technology Momentum Portfolio (PTF)

As an index fund, the PowerShares DWA Technology Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Technology Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the technology sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the technology sector for inclusion in the Index. Companies in the technology sector are principally engaged in the business of providing technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors, and wireless communication technologies. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 25.38%. On a net asset value (“NAV”) basis, the Fund returned 25.46%. During the same time period, the Index returned 25.95%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund

incurred during the period partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P 500^® Information Technology Index (the “Benchmark Index”) returned 35.36%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 70 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the technology sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the technology hardware storage & peripherals sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to being underweight the data processing & outsourced services, the systems software and technology hardware storage & peripherals sub-industries.

For the fiscal year ended April 30, 2017, the semiconductors sub-industry contributed most significantly to the Fund’s return, followed by the IT consulting & other services and internet software & services sub-industries, respectively. The internet & direct marketing retail sub-industry detracted most significantly from the Fund’s return, followed by the systems software and electrical components & equipment sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., a semiconductors company (no longer held at fiscal year-end), and DXC Technology Co., an IT consulting & other services company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Acacia Communications Inc., a communications equipment company (no longer held at fiscal year-end), and NeoPhotonics Corporation, a semiconductors company (no longer held at fiscal year-end).

25

PowerShares DWA Technology Momentum Portfolio (PTF) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Semiconductors	18.0
Application Software	15.8
Internet Software & Services	13.3
Technology Hardware, Storage & Peripherals	11.5
Semiconductor Equipment	9.8
Communications Equipment	9.5
Electronic Components	4.7
Wireless Telecommunication Services	4.0
Health Care Technology	3.1
IT Consulting & Other Services	2.8
Systems Software	2.1
Data Processing & Outsourced Services	1.9
Aerospace & Defense	1.9
Technology Distributors	1.6
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Apple, Inc.	4.9
Amphenol Corp., Class A	4.7
Advanced Micro Devices, Inc.	4.2
T-Mobile US, Inc.	3.9
Facebook, Inc., Class A	3.5
Applied Optoelectronics, Inc.	3.4
Cadence Design Systems, Inc.	3.1
Lam Research Corp.	2.8
Adobe Systems, Inc.	2.6
Micron Technology, Inc.	2.5
Total	35.6

* Excluding money market fund holdings.

26

PowerShares DWA Technology Momentum Portfolio (PTF) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Technology Technical Leaders Index†		25.95	%		12.74	%		43.28	%		11.79	%		74.63	%		5.93	%		77.86	%		6.49	%		94.06	%
S&P 500® Information Technology Index		35.36			17.68			62.99			15.65			106.84			11.04			184.93			11.16			205.40
Fund
NAV Return		25.46			12.08			40.80			11.05			68.92			5.21			66.15			5.76			80.60
Market Price Return		25.38			12.04			40.66			11.05			68.88			5.19			65.93			5.76			80.48

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Technology Technical Leaders Index performance is comprised of the performance of the Dynamic Technology Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

27

PUI	Manager’s Analysis
	PowerShares DWA Utilities Momentum Portfolio (PUI)

As an index fund, the PowerShares DWA Utilities Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright^® Utilities Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The Index is composed of at least 30 common stocks of companies in the utilities sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the utilities sector for inclusion in the Index. Companies in the utilities sector are principally engaged in providing energy, water, natural gas or telecommunications services. These companies may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as deal with associated wastewater; and provide land line telephone services. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 13.78%. On a net asset value (“NAV”) basis, the Fund returned 13.65%. During the same time period, the Index returned 14.28%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s

performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P 500^® Utilities Index (the “Benchmark Index”) returned 10.57%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the utilities sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the gas utilities sub-industry and most underweight in the electric utilities sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the gas utilities sub-industry as well as stock selection in the oil & gas storage & transportation sub-industry.

For the fiscal year ended April 30, 2017, the electric utilities sub-industry contributed most significantly to the Fund’s return, followed by the multi-utilities and gas utilities sub-industries, respectively. The wireless telecommunication services sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included ONEOK, Inc., an oil & gas storage & transportation company (portfolio average weight of 3.64%), and NRG Energy, Inc., an independent power producers & energy traders company (portfolio average weight of 1.39%). Positions that detracted most significantly from the Fund’s return included Shenandoah Telecommunications Co., a wireless telecommunication services company (no longer held at fiscal year-end), and TerraForm Power, Inc., Class A, a renewable electricity company (no longer held at fiscal year-end).

28

PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Electric Utilities	35.6
Multi-Utilities	32.7
Gas Utilities	15.3
Water Utilities	6.7
Oil & Gas Storage & Transportation	3.3
Independent Power Producers & Energy Traders	2.5
Integrated Telecommunication Services	2.1
Renewable Electricity	1.7
Other Assets Less Liabilities	0.1
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017
Security
PG&E Corp.	3.8
Edison International	3.7
CMS Energy Corp.	3.6
Duke Energy Corp.	3.5
WEC Energy Group, Inc.	3.4
ONEOK, Inc.	3.4
NiSource, Inc.	3.4
NextEra Energy, Inc.	3.3
Xcel Energy, Inc.	3.3
DTE Energy Co.	3.2
Total	34.6

29

PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund  Inception††
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright® Utilities Technical Leaders Index†		14.28	%		10.85	%		36.20	%		14.37	%		95.67	%		6.90	%		94.83	%		9.10	%		172.69	%
S&P 500® Utilities Index		10.57			10.07			33.34			11.87			75.19			6.34			84.88			8.75			162.80
Fund
NAV Return		13.65			10.18			33.77			13.65			89.61			6.12			81.16			8.32			150.96
Market Price Return		13.78			10.23			33.95			13.70			90.03			6.13			81.22			8.34			151.37

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.74% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

powershares.com to find the most recent month-end performance numbers.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  The Blended-Dorsey Wright^® Utilities Technical Leaders Index performance is comprised of the performance of the Dynamic Utilities Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2017.

^††  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

30

PNQI	Manager’s Analysis
	PowerShares NASDAQ Internet Portfolio (PNQI)

As an index fund, the PowerShares NASDAQ Internet Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ Internet Index^SM (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of Internet companies that comprise the Index.

Nasdaq, Inc. (the “Index Provider”) compiles the Index strictly in accordance with its guidelines and mandated procedures. The Index is designed to track the performance of the largest and most liquid U.S.-listed companies engaged in Internet-related businesses that are listed on one of the three major U.S. stock exchanges. Companies in the Index include Internet software and services companies involved in Internet-related services, including Internet access providers, Internet search engines, web hosting, website design, and e-commerce. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 29.73%. On a net asset value (“NAV”) basis, the Fund returned 29.63%. During the same time period, the Index returned 30.31%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the NASDAQ-100^® Index (the “Benchmark Index”) returned 30.23%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 110 securities. The Fund provided this additional comparative benchmark because of its recognition in the marketplace and to help investors better understand how the investment results of the Fund compares to the performance of a broad-based market benchmark.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that includes a set of companies engaged in Internet-related businesses, whereas the Benchmark Index consists of the approximately 100 largest non-financial companies listed on the NASDAQ Stock Market.

Relative to the Benchmark Index, the Fund was most overweight in the internet software & services sub-industry and most underweight in the technology hardware storage & peripherals sub-industry during the fiscal year ended April 30, 2017. The Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred during the period.

For the fiscal year ended April 30, 2017, the internet software & services sub-industry contributed most significantly to the Fund’s return, followed by the internet & direct marketing retail and

specialized real estate investment trust (“REIT”) sub-industries, respectively. The casinos & gaming sub-industry detracted most significantly from the Fund’s return, followed by the application software sub-industry.

Positions that contributed most significantly to the Fund’s return included Netflix, Inc., an internet & direct marketing retail company (portfolio average weight of 5.64%), and Amazon.com, Inc., an internet & direct marketing retail company (portfolio average weight of 8.32%). Positions that detracted most significantly from the Fund’s return included Baidu, Inc. ADR (China), an internet software & services company (portfolio average weight of 6.23%), and TripAdvisor, Inc., an internet & direct marketing retail company (portfolio average weight of 1.51%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017
Internet Software & Services	55.0
Internet & Direct Marketing Retail	38.7
Specialized REITs	4.1
Communications Equipment	1.6
Alternative Carriers	0.3
Wireless Telecommunication Services	0.1
Casinos & Gaming	0.1
Application Software	0.1
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017
Security
Facebook, Inc., Class A	8.2
Alphabet, Inc., Class C	8.2
Amazon.com, Inc.	8.1
Priceline Group, Inc. (The)	8.0
Netflix, Inc.	8.0
JD.Com, Inc., Class A ADR	4.3
Equinix, Inc. REIT	4.1
Yahoo!, Inc.	3.9
Baidu, Inc. ADR	3.8
eBay, Inc.	3.7
Total	60.3

* Excluding money market fund holdings.

31

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

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

Fund Performance History as of April 30, 2017

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
NASDAQ Internet IndexSM		30.31	%		17.81	%		63.52	%		19.87	%		147.46	%		17.96	%		333.76	%
NASDAQ-100® Index		30.23			17.40			61.80			16.95			118.81			13.95			219.11
Fund
NAV Return		29.63			17.18			60.88			19.28			141.47			17.35			314.02
Market Price Return		29.73			17.26			61.23			19.29			141.54			17.14			307.69

Fund Inception: June 12, 2008

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the expense ratio of 0.60% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the

deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See powershares.com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

32

Schedule of Investments^(a)

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—2.1%
	76,958	Arconic, Inc.	$	2,103,262
		Commodity Chemicals—5.8%
	35,987	LyondellBasell Industries NV, Class A		3,050,258
	88,947	Olin Corp.		2,857,867
				5,908,125
		Copper—2.1%
	165,904	Freeport-McMoRan, Inc.(b)		2,115,276
		Diversified Chemicals—9.9%
	134,752	Chemours Co. (The)		5,429,158
	30,684	Eastman Chemical Co.		2,447,049
	86,072	Huntsman Corp.		2,132,004
				10,008,211
		Fertilizers & Agricultural Chemicals—5.0%
	69,124	FMC Corp.		5,061,951
		Forest Products—2.2%
	88,398	Louisiana-Pacific Corp.(b)		2,275,365
		Gold—1.3%
	18,622	Royal Gold, Inc.		1,316,203
		Industrial Gases—3.7%
	26,965	Air Products & Chemicals, Inc.		3,788,582
		Oil & Gas Equipment & Services—2.0%
	49,193	US Silica Holdings, Inc.		2,041,510
		Paper Packaging—8.0%
	40,636	Avery Dennison Corp.		3,381,321
	86,676	International Paper Co.		4,677,904
				8,059,225
		Paper Products—3.2%
	78,768	KapStone Paper and Packaging Corp.		1,661,217
	20,740	Neenah Paper, Inc.		1,624,979
				3,286,196
		Specialty Chemicals—38.0%
	29,894	Albemarle Corp.		3,255,756
	33,886	Ashland Global Holdings, Inc.		4,184,921
	13,739	Balchem Corp.		1,115,057
	30,952	Celanese Corp., Series A		2,694,062
	23,685	Ecolab, Inc.		3,057,497
	32,486	H.B. Fuller Co.		1,716,235
	33,488	Ingevity Corp.(b)		2,117,446
	26,129	Innospec, Inc.		1,724,514
	16,736	International Flavors & Fragrances, Inc.		2,319,442
	16,759	Minerals Technologies, Inc.		1,318,933
	5,216	NewMarket Corp.		2,455,171
	131,146	Platform Specialty Products Corp.(b)		1,858,339
	67,619	PolyOne Corp.		2,651,341
	22,534	PPG Industries, Inc.		2,475,135
	12,917	Quaker Chemical Corp.		1,867,798
	40,034	RPM International, Inc.		2,104,187
	18,751	Sensient Technologies Corp.		1,533,832
				38,449,666

Number of Shares			Value
		Common Stocks (continued)
		Steel—16.7%
	316,477	AK Steel Holding Corp.(b)	$	2,006,464
	432,631	Cliffs Natural Resources, Inc.(b)		2,907,280
	37,650	Nucor Corp.		2,309,074
	97,221	Steel Dynamics, Inc.		3,513,567
	121,425	SunCoke Energy, Inc.(b)		1,113,467
	69,663	TimkenSteel Corp.(b)		1,050,518
	119,677	United States Steel Corp.		2,671,191
	29,579	Worthington Industries, Inc.		1,286,687
				16,858,248
		Total Common Stocks (Cost $93,428,885)		101,271,820
		Money Market Fund—0.1%
	75,370	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $75,370)		75,370
		Total Investments (Cost $93,504,255)—100.1%		101,347,190
		Other assets less liabilities—(0.1)%		(78,343	)
		Net Assets—100.0%	$	101,268,847

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

33

Schedule of Investments^(a)

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Airlines—4.9%
	13,300	SkyWest, Inc.	$	494,760
	16,145	Southwest Airlines Co.		907,672
				1,402,432
		Apparel Retail—12.3%
	8,087	Burlington Stores, Inc.(b)		799,966
	5,731	Children’s Place, Inc. (The)		657,919
	20,334	Ross Stores, Inc.		1,321,710
	9,780	TJX Cos., Inc. (The)		769,099
				3,548,694
		Auto Parts & Equipment—6.5%
	6,069	LCI Industries		613,879
	4,695	Lear Corp.		669,789
	5,735	Visteon Corp.(b)		590,418
				1,874,086
		Automobile Manufacturers—2.4%
	7,195	Thor Industries, Inc.		692,015
		Automotive Retail—4.1%
	4,733	O’Reilly Automotive, Inc.(b)		1,174,494
		Broadcasting—5.1%
	28,420	Gray Television, Inc.(b)		416,353
	6,578	Nexstar Media Group, Inc., Class A		453,882
	23,231	TEGNA, Inc.		591,926
				1,462,161
		Cable & Satellite—8.6%
	2,709	Charter Communications, Inc., Class A(b)		935,038
	15,966	Comcast Corp., Class A		625,708
	186,821	Sirius XM Holdings, Inc.(c)		924,764
				2,485,510
		Casinos & Gaming—5.3%
	26,571	Eldorado Resorts, Inc.(b)		508,170
	20,933	Pinnacle Entertainment, Inc.(b)		430,592
	24,365	Scientific Games Corp., Class A(b)		578,669
				1,517,431
		General Merchandise Stores—1.9%
	14,602	Ollie’s Bargain Outlet Holdings, Inc.(b)		559,257
		Home Entertainment Software—9.5%
	14,883	Activision Blizzard, Inc.		777,637
	10,482	Electronic Arts, Inc.(b)		993,903
	15,572	Take-Two Interactive Software, Inc.(b)		978,700
				2,750,240
		Home Furnishings—1.6%
	9,078	Leggett & Platt, Inc.		476,958
		Home Improvement Retail—2.6%
	4,842	Home Depot, Inc. (The)		755,836
		Hypermarkets & Super Centers—2.3%
	3,758	Costco Wholesale Corp.		667,120
		Industrial Machinery—2.2%
	4,581	Middleby Corp. (The)(b)		623,612

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet & Direct Marketing Retail—12.0%
	1,457	Amazon.com, Inc.(b)	$	1,347,710
	12,152	Liberty Ventures, Series A(b)		654,385
	797	Priceline Group, Inc. (The)(b)		1,471,916
				3,474,011
		Leisure Facilities—2.6%
	3,778	Vail Resorts, Inc.		746,759
		Office Services & Supplies—1.5%
	30,708	ACCO Brands Corp.(b)		437,589
		Restaurants—8.3%
	4,010	Cracker Barrel Old Country Store, Inc.(c)		642,362
	9,030	Dave & Buster’s Entertainment, Inc.(b)		578,010
	6,442	Domino’s Pizza, Inc.		1,168,515
				2,388,887
		Specialized REITs—1.6%
	6,282	Lamar Advertising Co., Class A REIT		452,744
		Specialty Stores—2.5%
	2,565	Ulta Beauty, Inc.(b)		721,894
		Tires & Rubber—2.2%
	17,247	Goodyear Tire & Rubber Co. (The)		624,859
		Total Common Stocks and Other Equity Interests (Cost $25,310,236)		28,836,589
		Money Market Fund—0.2%
	58,516	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $58,516)		58,516
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $25,368,752)—100.2%		28,895,105
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.3%
	1,227,268	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,227,268)		1,227,268
		Total Investments (Cost $26,596,020)—104.5%		30,122,373
		Other assets less liabilities—(4.5)%		(1,285,873	)
		Net Assets—100.0%	$	28,836,500

Investment Abbreviations:

REIT—Real Estate Investment Trust

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

34

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

April 30, 2017

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

35

Schedule of Investments^(a)

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Agricultural Products—3.5%
	21,621	Ingredion, Inc.	$	2,677,112
		Brewers—2.4%
	19,540	Molson Coors Brewing Co., Class B		1,873,691
		Distillers & Vintners—6.4%
	20,392	Constellation Brands, Inc., Class A		3,518,436
	26,682	MGP Ingredients, Inc.		1,397,069
				4,915,505
		Education Services—6.7%
	19,680	Bright Horizons Family Solutions, Inc.(b)		1,498,042
	44,563	DeVry Education Group, Inc.		1,686,709
	26,017	Grand Canyon Education, Inc.(b)		1,955,438
				5,140,189
		Environmental & Facilities Services—2.9%
	58,761	Rollins, Inc.		2,281,690
		Food Distributors—1.5%
	41,975	US Foods Holding Corp.(b)		1,183,695
		Health Care Services—2.2%
	8,292	Chemed Corp.		1,669,843
		Household Products—15.6%
	71,613	Church & Dwight Co., Inc.		3,546,992
	24,188	Energizer Holdings, Inc.		1,432,655
	73,349	HRG Group, Inc.(b)		1,467,713
	14,850	Kimberly-Clark Corp.		1,926,787
	18,123	Spectrum Brands Holdings, Inc.		2,604,819
	9,950	WD-40 Co.		1,043,258
				12,022,224
		Housewares & Specialties—3.4%
	55,434	Newell Brands, Inc.		2,646,419
		Industrial Machinery—2.4%
	13,802	Stanley Black & Decker, Inc.		1,879,142
		Internet & Direct Marketing Retail—2.5%
	36,091	Nutrisystem, Inc.		1,929,064
		Packaged Foods & Meats—21.9%
	28,078	Campbell Soup Co.		1,615,608
	49,069	Conagra Brands, Inc.		1,902,896
	8,455	J & J Snack Foods Corp.		1,137,874
	15,462	JM Smucker Co. (The)		1,959,345
	27,567	Kellogg Co.		1,957,257
	8,758	Lancaster Colony Corp.		1,102,632
	27,354	McCormick & Co., Inc.		2,732,664
	38,291	Pinnacle Foods, Inc.		2,226,622
	27,420	Post Holdings, Inc.(b)		2,308,490
				16,943,388
		Personal Products—2.8%
	34,044	Herbalife Ltd.(b)(c)		2,153,623
		Soft Drinks—8.2%
	5,960	Coca-Cola Bottling Co. Consolidated		1,262,686
	30,302	Dr Pepper Snapple Group, Inc.		2,777,178
	25,606	National Beverage Corp.		2,268,435
				6,308,299

Number of Shares			Value
		Common Stocks (continued)
		Specialized Consumer Services—4.7%
	63,013	Service Corp. International	$	2,030,279
	33,133	Sotheby’s(b)(c)		1,569,179
				3,599,458
		Tobacco—8.5%
	46,716	Altria Group, Inc.		3,353,275
	15,801	Philip Morris International, Inc.		1,751,383
	19,627	Universal Corp.		1,441,603
				6,546,261
		Trading Companies & Distributors—4.4%
	23,077	Herc Holdings, Inc.(b)		1,049,311
	21,613	United Rentals, Inc.(b)		2,370,082
				3,419,393
		Total Common Stocks (Cost $70,539,467)		77,188,996
		Money Market Fund—0.1%
	82,698	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $82,698)		82,698
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $70,622,165)—100.1%		77,271,694
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.6%
	2,751,133	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $2,751,133)		2,751,133
		Total Investments (Cost $73,373,298)—103.7%		80,022,827
		Other assets less liabilities—(3.7)%		(2,831,414	)
		Net Assets—100.0%	$	77,191,413

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

36

Schedule of Investments^(a)

PowerShares DWA Energy Momentum Portfolio (PXI)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Coal & Consumable Fuels—2.2%
	162,345	CONSOL Energy, Inc.(b)	$	2,464,397
		Integrated Oil & Gas—5.5%
	30,117	Chevron Corp.		3,213,484
	48,525	Occidental Petroleum Corp.		2,986,229
				6,199,713
		Oil & Gas Drilling—9.1%
	45,912	Helmerich & Payne, Inc.		2,784,104
	129,847	Patterson-UTI Energy, Inc.		2,810,538
	215,603	Transocean Ltd.(b)		2,378,101
	106,235	Unit Corp.(b)		2,282,990
				10,255,733
		Oil & Gas Equipment & Services—12.6%
	129,296	Archrock, Inc.		1,525,693
	67,521	Exterran Corp.(b)		1,848,050
	116,328	Forum Energy Technologies, Inc.(b)		1,965,943
	70,027	Halliburton Co.		3,212,839
	248,376	Helix Energy Solutions Group, Inc.(b)		1,520,061
	281,600	McDermott International, Inc.(b)		1,841,664
	124,173	RPC, Inc.(c)		2,256,223
				14,170,473
		Oil & Gas Exploration & Production—45.1%
	30,479	Cimarex Energy Co.		3,556,290
	37,874	Concho Resources, Inc.(b)		4,797,121
	54,403	Continental Resources, Inc.(b)		2,307,231
	44,113	Diamondback Energy, Inc.(b)		4,404,242
	37,107	EOG Resources, Inc.		3,432,398
	203,653	Laredo Petroleum, Inc.(b)		2,618,978
	293,787	Oasis Petroleum, Inc.(b)		3,507,817
	143,900	Parsley Energy, Inc., Class A(b)		4,286,781
	62,341	PDC Energy, Inc.(b)		3,443,093
	25,170	Pioneer Natural Resources Co.		4,354,158
	116,484	Rice Energy, Inc.(b)		2,479,944
	98,087	RSP Permian, Inc.(b)		3,732,210
	219,021	Sanchez Energy Corp.(b)(c)		1,695,223
	268,721	Whiting Petroleum Corp.(b)		2,230,384
	335,571	WPX Energy, Inc.(b)		4,003,362
				50,849,232
		Oil & Gas Refining & Marketing—13.6%
	107,350	CVR Energy, Inc.(c)		2,349,891
	93,255	Delek US Holdings, Inc.		2,244,648
	80,677	Marathon Petroleum Corp.		4,109,686
	33,085	Phillips 66		2,632,243
	61,783	Valero Energy Corp.		3,991,800
				15,328,268
		Oil & Gas Storage & Transportation—10.4%
	111,248	Cheniere Energy, Inc.(b)		5,045,097
	67,043	SemGroup Corp., Class A		2,232,532
	80,243	Targa Resources Corp.		4,423,796
				11,701,425
		Specialty Chemicals—1.5%
	144,394	Flotek Industries, Inc.(b)(c)		1,734,172
		Total Common Stocks (Cost $120,329,576)		112,703,413

Number of Shares			Value
		Money Market Fund—0.1%
	141,457	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $141,457)	$	141,457
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $120,471,033)—100.1%		112,844,870
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.0%
	7,905,625	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $7,905,625)		7,905,625
		Total Investments (Cost $128,376,658)—107.1%		120,750,495
		Other assets less liabilities—(7.1)%		(8,019,455	)
		Net Assets—100.0%	$	112,731,040

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

37

Schedule of Investments^(a)

PowerShares DWA Financial Momentum Portfolio (PFI)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Finance—1.9%
	128,479	SLM Corp.(b)	$	1,611,127
		Diversified Banks—6.5%
	86,447	Bank of America Corp.		2,017,673
	41,072	JPMorgan Chase & Co.		3,573,264
				5,590,937
		Financial Exchanges & Data—2.6%
	11,715	MarketAxess Holdings, Inc.		2,255,372
		Investment Banking & Brokerage—8.2%
	44,353	Charles Schwab Corp. (The)		1,723,114
	65,797	E*TRADE Financial Corp.(b)		2,273,286
	13,907	Evercore Partners, Inc., Class A		1,025,641
	27,623	Raymond James Financial, Inc.		2,058,466
				7,080,507
		Life & Health Insurance—17.2%
	28,420	Lincoln National Corp.		1,873,731
	16,555	Primerica, Inc.		1,387,309
	43,632	Principal Financial Group, Inc.		2,841,752
	24,878	Prudential Financial, Inc.		2,662,692
	26,262	Torchmark Corp.		2,014,558
	85,511	Unum Group		3,961,725
				14,741,767
		Mortgage REITs—1.9%
	52,912	Blackstone Mortgage Trust, Inc., Class A REIT		1,633,922
		Multi-line Insurance—4.5%
	13,186	American Financial Group, Inc.		1,283,130
	18,598	Assurant, Inc.		1,789,871
	19,609	Horace Mann Educators Corp.		757,888
				3,830,889
		Property & Casualty Insurance—4.2%
	12,629	Arch Capital Group Ltd.(b)		1,224,634
	11,615	Argo Group International Holdings Ltd.		766,009
	26,401	Assured Guaranty Ltd.		1,006,670
	12,093	Selective Insurance Group, Inc.		638,511
				3,635,824
		Regional Banks—47.1%
	19,708	Ameris Bancorp		928,247
	49,326	BancorpSouth, Inc.		1,501,977
	75,560	Bank of the Ozarks, Inc.		3,586,833
	12,905	Banner Corp.		712,356
	18,703	Cathay General Bancorp		711,649
	26,755	Centerstate Banks, Inc.		675,029
	27,993	CVB Financial Corp.		602,969
	14,041	Eagle Bancorp, Inc.(b)		841,056
	38,196	East West Bancorp, Inc.		2,072,897
	12,332	FCB Financial Holdings, Inc., Class A(b)		582,687
	164,751	Fifth Third Bancorp		4,024,867
	21,894	First Merchants Corp.		905,974
	20,599	First Republic Bank		1,904,584
	15,169	Great Western Bancorp, Inc.		624,963
	27,993	Home BancShares, Inc.		712,422
	248,571	Huntington Bancshares, Inc.		3,196,623

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Regional Banks (continued)
	84,004	Investors Bancorp, Inc.	$	1,163,455
	24,496	Pacific Premier Bancorp, Inc.(b)		895,329
	21,864	PacWest Bancorp		1,079,863
	24,718	Pinnacle Financial Partners, Inc.		1,581,952
	135,347	Regions Financial Corp.		1,861,021
	16,766	Renasant Corp.		710,878
	26,832	Seacoast Banking Corp. of Florida(b)		649,334
	25,428	ServisFirst Bancshares, Inc.		961,178
	40,277	Sterling Bancorp		936,440
	32,776	Synovus Financial Corp.		1,370,037
	12,594	Texas Capital Bancshares, Inc.(b)		958,403
	24,015	United Community Banks, Inc.		656,810
	36,687	Webster Financial Corp.		1,864,067
	44,341	Western Alliance Bancorp(b)		2,123,934
				40,397,834
		Reinsurance—2.0%
	13,528	Reinsurance Group of America, Inc.		1,691,541
		Specialized REITs—3.0%
	15,376	CoreSite Realty Corp. REIT		1,504,542
	21,137	DuPont Fabros Technology, Inc. REIT		1,089,612
				2,594,154
		Thrifts & Mortgage Finance—0.9%
	16,809	Walker & Dunlop, Inc.(b)		753,884
		Total Common Stocks and Other Equity Interests (Cost $85,261,571)		85,817,758
		Money Market Fund—0.1%
	96,496	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $96,496)		96,496
		Total Investments (Cost $85,358,067)—100.1%		85,914,254
		Other assets less liabilities—(0.1)%		(57,645	)
		Net Assets—100.0%	$	85,856,609

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

38

Schedule of Investments^(a)

PowerShares DWA Healthcare Momentum Portfolio (PTH)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—42.4%
	20,348	Aimmune Therapeutics, Inc.(b)	$	395,565
	17,686	Avexis, Inc.(b)		1,423,723
	17,453	Bluebird Bio, Inc.(b)		1,552,444
	24,306	Blueprint Medicines Corp.(b)		1,132,174
	70,759	Cara Therapeutics, Inc.(b)(c)		1,124,361
	43,159	Clovis Oncology, Inc.(b)		2,498,475
	26,736	Concert Pharmaceuticals, Inc.(b)		424,300
	31,048	Epizyme, Inc.(b)		560,416
	65,763	Esperion Therapeutics, Inc.(b)		2,351,027
	123,887	Exact Sciences Corp.(b)(c)		3,717,849
	152,802	Exelixis, Inc.(b)		3,422,765
	14,012	Foundation Medicine, Inc.(b)		497,426
	46,758	Global Blood Therapeutics, Inc.(b)		1,353,644
	186,007	Immunomedics, Inc.(b)(c)		1,065,820
	16,005	Kite Pharma, Inc.(b)		1,313,690
	11,063	Loxo Oncology, Inc.(b)		509,562
	20,899	NewLink Genetics Corp.(b)		390,602
	39,590	Portola Pharmaceuticals, Inc.(b)		1,583,204
	86,238	Progenics Pharmaceuticals, Inc.(b)		683,005
	12,023	Sage Therapeutics, Inc.(b)		853,633
				26,853,685
		Health Care Equipment—24.5%
	11,503	Becton, Dickinson and Co.		2,150,716
	68,864	Boston Scientific Corp.(b)		1,816,632
	8,606	Cantel Medical Corp.		640,373
	21,255	Glaukos Corp.(b)		1,010,250
	12,178	Hill-Rom Holdings, Inc.		921,144
	11,070	IDEXX Laboratories, Inc.(b)		1,856,771
	8,319	Inogen, Inc.(b)		689,562
	16,322	Integra LifeSciences Holdings Corp.(b)		750,322
	21,388	K2M Group Holdings, Inc.(b)		473,744
	27,328	Masimo Corp.(b)		2,807,679
	15,185	NuVasive, Inc.(b)		1,101,065
	15,743	NxStage Medical, Inc.(b)		470,558
	9,633	Penumbra, Inc.(b)		823,140
				15,511,956
		Health Care Services—3.6%
	12,034	Amedisys, Inc.(b)		652,243
	36,805	Teladoc, Inc.(b)		912,764
	20,099	Tivity Health, Inc.(b)		675,326
				2,240,333
		Health Care Supplies—7.8%
	17,955	Align Technology, Inc.(b)		2,417,102
	15,458	Merit Medical Systems, Inc.(b)		520,935
	45,131	OraSure Technologies, Inc.(b)		591,667
	18,726	Spectranetics Corp. (The)(b)		535,564
	9,106	West Pharmaceutical Services, Inc.		838,025
				4,903,293
		Life Sciences Tools & Services—1.8%
	18,121	PRA Health Sciences, Inc.(b)		1,159,019
		Managed Health Care—10.8%
	11,950	Aetna, Inc.		1,614,087
	7,469	Anthem, Inc.		1,328,660

Number of Shares			Value
		Common Stocks (continued)
		Managed Health Care (continued)
	13,023	UnitedHealth Group, Inc.	$	2,277,462
	10,608	WellCare Health Plans, Inc.(b)		1,627,373
				6,847,582
		Pharmaceuticals—9.1%
	29,419	Aerie Pharmaceuticals, Inc.(b)		1,295,907
	186,853	Chelsea Therapeutics International Ltd.(b)		14,948
	58,309	Corcept Therapeutics, Inc.(b)		556,268
	6,844	Heska Corp.(b)		740,863
	29,067	Medicines Co. (The)(b)		1,433,585
	36,124	Nektar Therapeutics(b)		685,272
	32,323	Supernus Pharmaceuticals, Inc.(b)		1,053,730
				5,780,573
		Total Common Stocks (Cost $54,188,609)		63,296,441
		Money Market Fund—0.2%
	88,540	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $88,540)		88,540
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $54,277,149)—100.2%		63,384,981
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—9.4%
	5,970,939	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $5,970,939)		5,970,939
		Total Investments (Cost $60,248,088)—109.6%		69,355,920
		Other assets less liabilities—(9.6)%		(6,076,982	)
		Net Assets—100.0%	$	63,278,938

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

39

Schedule of Investments^(a)

PowerShares DWA Industrials Momentum Portfolio (PRN)

April 30, 2017

Number of Shares			Value
		Common Stocks—99.9%
		Aerospace & Defense—19.0%
	16,975	Boeing Co. (The)	$	3,137,489
	23,321	HEICO Corp.		1,657,424
	21,619	Huntington Ingalls Industries, Inc.		4,343,041
	27,636	Lockheed Martin Corp.		7,446,520
	12,422	Northrop Grumman Corp.		3,055,315
	16,656	Orbital ATK, Inc.		1,648,944
	22,582	Raytheon Co.		3,504,952
				24,793,685
		Agricultural & Farm Machinery—2.0%
	40,462	Toro Co. (The)		2,626,793
		Airport Services—6.1%
	98,372	Macquarie Infrastructure Corp.		8,004,530
		Building Products—7.1%
	59,580	A.O. Smith Corp.		3,210,170
	23,602	Apogee Enterprises, Inc.		1,286,309
	19,970	Lennox International, Inc.		3,302,838
	21,492	Patrick Industries, Inc.(b)		1,527,007
				9,326,324
		Commercial Printing—1.8%
	32,130	Deluxe Corp.		2,310,468
		Commodity Chemicals—2.0%
	39,697	Trinseo SA		2,635,881
		Construction & Engineering—6.8%
	20,067	Argan, Inc.		1,341,479
	44,078	Dycom Industries, Inc.(b)		4,657,281
	44,673	EMCOR Group, Inc.		2,936,803
				8,935,563
		Data Processing & Outsourced Services—2.4%
	26,302	Fiserv, Inc.(b)		3,133,620
		Distributors—1.5%
	16,147	Pool Corp.		1,931,504
		Diversified Support Services—2.3%
	24,604	Cintas Corp.		3,013,252
		Electrical Components & Equipment—2.3%
	19,304	Rockwell Automation, Inc.		3,037,484
		Electronic Components—5.8%
	46,075	II-VI, Inc.(b)		1,527,386
	15,743	Littelfuse, Inc.		2,426,783
	40,099	Universal Display Corp.		3,582,846
				7,537,015
		Electronic Equipment & Instruments—2.9%
	17,568	Coherent, Inc.(b)		3,787,661
		Electronic Manufacturing Services—2.5%
	132,788	KEMET Corp.(b)		1,488,554
	47,428	Sanmina Corp.(b)		1,766,693
				3,255,247
		Health Care Equipment—3.1%
	49,402	Danaher Corp.		4,116,669

Number of Shares			Value
		Common Stocks (continued)
		Health Care Services—2.3%
	73,286	AMN Healthcare Services, Inc.(b)	$	2,993,733
		Human Resource & Employment Services—2.8%
	14,295	Insperity, Inc.		1,305,848
	31,722	WageWorks, Inc.(b)		2,341,084
				3,646,932
		Industrial Machinery—10.2%
	25,035	IDEX Corp.		2,622,666
	21,970	Illinois Tool Works, Inc.		3,033,837
	24,975	John Bean Technologies Corp.		2,214,034
	153,388	Mueller Water Products, Inc., Class A		1,725,615
	23,701	Parker-Hannifin Corp.		3,811,121
				13,407,273
		IT Consulting & Other Services—4.5%
	34,047	Accenture PLC, Class A		4,129,901
	48,237	Booz Allen Hamilton Holding Corp.		1,733,156
				5,863,057
		Life Sciences Tools & Services—4.2%
	10,637	Mettler-Toledo International, Inc.(b)		5,461,249
		Paper Packaging—2.8%
	37,381	Packaging Corp. of America		3,692,495
		Semiconductor Equipment—1.8%
	31,357	Advanced Energy Industries, Inc.(b)		2,314,147
		Trading Companies & Distributors—1.5%
	13,917	Watsco, Inc.		1,931,680
		Trucking—2.2%
	32,489	Old Dominion Freight Line, Inc.		2,875,926
		Total Common Stocks (Cost $120,378,712)		130,632,188
		Money Market Fund—0.1%
	100,659	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $100,659)		100,659
		Total Investments (Cost $120,479,371)—100.0%		130,732,847
		Other assets less liabilities—(0.0)%		(63,526	)
		Net Assets—100.0%	$	130,669,321

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

40

Schedule of Investments^(a)

PowerShares DWA Technology Momentum Portfolio (PTF)

April 30, 2017

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—1.9%
	66,406	Mercury Systems, Inc.(b)	$	2,482,256
		Application Software—15.8%
	112,963	8x8, Inc.(b)		1,643,612
	25,025	Adobe Systems, Inc.(b)		3,346,844
	122,712	Cadence Design Systems, Inc.(b)		3,996,730
	33,742	Ebix, Inc.(c)		2,081,881
	26,577	Intuit, Inc.		3,327,706
	40,626	Pegasystems, Inc.		1,850,514
	56,223	RealPage, Inc.(b)		2,083,062
	76,255	RingCentral, Inc., Class A(b)		2,436,347
				20,766,696
		Communications Equipment—9.5%
	90,897	Applied Optoelectronics, Inc.(b)(c)		4,489,403
	22,145	Arista Networks, Inc.(b)		3,092,328
	67,391	CommScope Holding Co., Inc.(b)		2,833,117
	268,762	Extreme Networks, Inc.(b)		2,100,375
				12,515,223
		Data Processing & Outsourced Services—1.9%
	25,840	Jack Henry & Associates, Inc.		2,504,413
		Electronic Components—4.7%
	85,444	Amphenol Corp., Class A		6,178,456
		Health Care Technology—3.1%
	41,008	Veeva Systems, Inc., Class A(b)		2,198,849
	74,297	Vocera Communications, Inc.(b)		1,884,172
				4,083,021
		Internet Software & Services—13.3%
	3,157	Alphabet, Inc., Class A(b)		2,918,709
	30,250	Facebook, Inc., Class A(b)		4,545,062
	112,607	Five9, Inc.(b)		2,054,515
	24,603	j2 Global, Inc.		2,220,175
	64,119	MINDBODY, Inc., Class A(b)		1,817,774
	49,406	Q2 Holdings, Inc.(b)		1,884,839
	115,985	TrueCar, Inc.(b)(c)		2,032,057
				17,473,131
		IT Consulting & Other Services—2.8%
	37,727	Leidos Holdings, Inc.		1,986,704
	22,812	Science Applications International Corp.		1,665,048
				3,651,752
		Semiconductor Equipment—9.8%
	79,282	Applied Materials, Inc.		3,219,642
	78,271	Brooks Automation, Inc.		1,977,125
	25,143	Lam Research Corp.		3,641,964
	55,634	Nanometrics, Inc.(b)		1,755,531
	116,923	Ultra Clean Holdings, Inc.(b)		2,249,599
				12,843,861
		Semiconductors—18.0%
	415,901	Advanced Micro Devices, Inc.(b)		5,531,483
	32,468	Analog Devices, Inc.		2,474,062
	52,295	Inphi Corp.(b)		2,166,059
	94,503	MaxLinear, Inc., Class A(b)		2,630,018
	120,473	Micron Technology, Inc.(b)		3,333,488
	38,416	Microsemi Corp.(b)		1,803,247

Number of Shares			Value
		Common Stocks (continued)
		Semiconductors (continued)
	32,006	Monolithic Power Systems, Inc.	$	2,928,549
	34,966	Texas Instruments, Inc.		2,768,608
				23,635,514
		Systems Software—2.1%
	87,681	Symantec Corp.		2,773,350
		Technology Distributors—1.6%
	35,554	CDW Corp.		2,100,886
		Technology Hardware, Storage & Peripherals—11.5%
	44,848	Apple, Inc.		6,442,415
	60,799	NCR Corp.(b)		2,507,959
	66,677	Seagate Technology PLC		2,809,102
	37,145	Western Digital Corp.		3,308,505
				15,067,981
		Wireless Telecommunication Services—4.0%
	77,024	T-Mobile US, Inc.(b)		5,181,405
		Total Common Stocks (Cost $113,613,223)		131,257,945
		Money Market Fund—0.1%
	105,657	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $105,657)		105,657
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $113,718,880)—100.1%		131,363,602
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—5.3%
	6,947,671	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $6,947,671)		6,947,671
		Total Investments (Cost $120,666,551)—105.4%		138,311,273
		Other assets less liabilities—(5.4)%		(7,094,616	)
		Net Assets—100.0%	$	131,216,657

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 April 30, 2017.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

41

Schedule of Investments^(a)

PowerShares DWA Utilities Momentum Portfolio (PUI)

April 30, 2017

Number of Shares			Value
		Common Stocks—99.9%
		Electric Utilities—35.6%
	69,272	Alliant Energy Corp.	$	2,723,775
	51,726	American Electric Power Co., Inc.		3,508,575
	58,916	Duke Energy Corp.		4,860,570
	63,916	Edison International		5,111,363
	68,092	Eversource Energy		4,044,665
	34,912	IDACORP, Inc.		2,950,762
	38,814	MGE Energy, Inc.		2,495,740
	34,199	NextEra Energy, Inc.		4,567,618
	88,119	OGE Energy Corp.		3,064,779
	78,774	PG&E Corp.		5,281,797
	89,082	PNM Resources, Inc.		3,318,304
	56,682	Portland General Electric Co.		2,569,962
	100,281	Xcel Energy, Inc.		4,517,659
				49,015,569
		Gas Utilities—15.3%
	46,326	Atmos Energy Corp.		3,753,333
	87,127	New Jersey Resources Corp.		3,515,575
	37,075	ONE Gas, Inc.		2,551,872
	71,112	South Jersey Industries, Inc.		2,668,122
	32,874	Southwest Gas Holdings, Inc.		2,753,526
	40,188	Spire, Inc.		2,754,887
	59,607	UGI Corp.		2,989,887
				20,987,202
		Independent Power Producers & Energy Traders—2.5%
	200,513	NRG Energy, Inc.		3,388,670
		Integrated Telecommunication Services—2.1%
	63,770	Verizon Communications, Inc.		2,927,681
		Multi-Utilities—32.7%
	58,216	Ameren Corp.		3,183,833
	65,891	Avista Corp.		2,658,043
	41,774	Black Hills Corp.		2,841,467
	129,894	CenterPoint Energy, Inc.		3,705,876
	108,804	CMS Energy Corp.		4,939,702
	50,611	Consolidated Edison, Inc.		4,012,440
	42,389	DTE Energy Co.		4,433,465
	189,687	NiSource, Inc.		4,599,910
	47,296	NorthWestern Corp.		2,827,355
	60,373	SCANA Corp.		4,003,334
	51,926	Vectren Corp.		3,085,443
	76,525	WEC Energy Group, Inc.		4,631,293
				44,922,161
		Oil & Gas Storage & Transportation—3.3%
	87,483	ONEOK, Inc.		4,602,480
		Renewable Electricity—1.7%
	39,188	Ormat Technologies, Inc.		2,314,443

Number of Shares			Value
		Common Stocks (continued)
		Water Utilities—6.7%
	55,077	American Water Works Co., Inc.	$	4,392,941
	85,588	Aqua America, Inc.		2,832,107
	56,581	California Water Service Group		2,019,942
				9,244,990
		Total Investments (Cost $134,759,093)—99.9%		137,403,196
		Other assets less liabilities—0.1%		72,386
		Net Assets—100.0%	$	137,475,582

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.

42

Schedule of Investments^(a)

PowerShares NASDAQ Internet Portfolio (PNQI)

April 30, 2017

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Alternative Carriers—0.3%
	26,625	Cogent Communications Holdings, Inc.	$	1,198,125
		Application Software—0.1%
	49,934	NQ Mobile, Inc., Class A ADR (China)(b)(c)		188,251
		Casinos & Gaming—0.1%
	16,734	500.com Ltd., Class A ADR (China)(b)(c)		217,710
		Communications Equipment—1.6%
	41,464	Arista Networks, Inc.(c)		5,790,033
		Internet & Direct Marketing Retail—38.7%
	20,826	1-800-Flowers.com, Inc., Class A(c)		223,879
	30,940	Amazon.com, Inc.(c)		28,619,190
	244,990	Ctrip.com International Ltd. ADR (China)(c)		12,374,445
	67,967	Etsy, Inc.(c)		731,325
	80,010	Expedia, Inc.		10,698,937
	15,930	FTD Cos., Inc.(c)		318,600
	328,967	Groupon, Inc., Class A(c)		1,289,551
	30,650	HSN, Inc.		1,130,985
	427,799	JD.Com, Inc., Class A ADR (China)(c)		15,002,911
	18,745	Lands’ End, Inc.(b)(c)		442,382
	31,657	Liberty Expedia Holdings, Inc., Class A(c)		1,529,350
	42,181	Liberty TripAdvisor Holdings, Inc., Series A(c)		620,061
	30,559	MakeMyTrip Ltd. (India)(b)(c)		1,173,466
	183,949	Netflix, Inc.(c)		27,997,038
	17,486	Nutrisystem, Inc.		934,627
	14,855	Overstock.com, Inc.(c)		257,734
	12,012	PetMed Express, Inc.(b)		277,477
	15,165	Priceline Group, Inc. (The)(c)		28,007,025
	19,693	Shutterfly, Inc.(c)		1,022,067
	76,657	TripAdvisor, Inc.(c)		3,450,331
				136,101,381
		Internet Software & Services—55.0%
	33,925	21Vianet Group, Inc., Class A ADR (China)(b)(c)		183,534
	27,641	2U, Inc.(c)		1,254,901
	19,712	Actua Corp.(c)		275,968
	101,150	Akamai Technologies, Inc.(c)		6,164,081
	26,908	Alarm.com Holdings, Inc.(c)		877,470
	31,759	Alphabet, Inc., Class C(c)		28,772,384
	34,782	Angie’s List, Inc.(c)		204,518
	29,461	Autohome, Inc., Class A ADR (China)(c)		1,019,351
	75,101	Baidu, Inc. ADR (China)(c)		13,535,453
	52,752	Bankrate, Inc.(c)		559,171
	16,405	Baozun, Inc. ADR (China)(b)(c)		250,504
	48,850	Bazaarvoice, Inc.(c)		229,595
	17,976	Benefitfocus, Inc.(b)(c)		566,244
	24,631	Blucora, Inc.(c)		454,442
	19,935	Brightcove, Inc.(c)		173,434
	15,955	Carbonite, Inc.(c)		344,628
	18,199	Cimpress NV (Netherlands)(b)(c)		1,493,774
	33,159	Cornerstone OnDemand, Inc.(c)		1,302,486
	19,032	CoStar Group, Inc.(c)		4,584,618
	29,252	Coupa Software, Inc.(c)		811,743
	35,415	Criteo SA ADR (France)(c)		1,926,222
	29,042	DHI Group, Inc.(c)		111,812
	385,750	eBay, Inc.(c)		12,887,908

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	83,192	Endurance International Group Holdings, Inc.(c)	$	632,259
	25,198	Envestnet, Inc.(c)		876,890
	192,891	Facebook, Inc., Class A(c)		28,981,873
	31,251	Five9, Inc.(c)		570,175
	52,168	GoDaddy, Inc., Class A(c)		2,030,379
	50,505	Gogo, Inc.(b)(c)		636,868
	35,562	Hortonworks, Inc.(b)(c)		370,200
	41,982	IAC/InterActiveCorp.(c)		3,484,926
	27,975	j2 Global, Inc.		2,524,464
	18,372	Liquidity Services, Inc.(c)		143,302
	33,929	LivePerson, Inc.(c)		239,199
	30,642	LogMeIn, Inc.		3,462,546
	26,953	Match Group, Inc.(b)(c)		502,134
	34,450	Meet Group, Inc. (The)(c)		205,322
	25,785	MercadoLibre, Inc. (Argentina)		5,902,444
	32,259	Mimecast Ltd.(c)		779,700
	19,235	MINDBODY, Inc., Class A(c)		545,312
	45,774	Momo, Inc., Class A ADR (China)(c)		1,738,497
	42,867	NetEase, Inc. ADR (China)		11,376,473
	30,893	New Relic, Inc.(c)		1,235,102
	38,626	NIC, Inc.		824,665
	28,623	Nutanix, Inc., Class A(b)(c)		434,783
	137,710	Pandora Media, Inc.(b)(c)		1,494,154
	28,006	RetailMeNot, Inc.(c)		324,870
	20,196	Shutterstock, Inc.(c)		873,073
	41,351	SINA Corp. (China)(c)		3,176,170
	22,716	Sohu.com, Inc. (China)(c)		881,381
	10,056	SPS Commerce, Inc.(c)		555,695
	9,983	Stamps.com, Inc.(b)(c)		1,059,695
	10,385	Trade Desk, Inc. (The), Class A(b)(c)		387,880
	50,016	TrueCar, Inc.(b)(c)		876,280
	424,423	Twitter, Inc.(c)		6,994,491
	59,743	VeriSign, Inc.(b)(c)		5,312,348
	29,472	Web.com Group, Inc.(c)		568,810
	22,015	WebMD Health Corp.(c)		1,193,873
	33,292	Weibo Corp., Class A ADR (China)(b)(c)		1,859,691
	24,696	Wix.com Ltd. (Israel)(c)		2,036,185
	286,409	Yahoo!, Inc.(c)		13,807,778
	162,025	Yandex NV, Class A (Russia)(c)		4,416,802
	22,434	YY, Inc., Class A ADR (China)(c)		1,098,593
	31,878	Zillow Group, Inc., Class A(c)		1,226,984
				193,626,507
		Specialized REITs—4.1%
	34,776	Equinix, Inc. REIT		14,525,935
		Wireless Telecommunication Services—0.1%
	22,406	Boingo Wireless, Inc.(c)		320,182
		Total Common Stocks and Other Equity Interests (Cost $290,195,041)		351,968,124

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

43

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

April 30, 2017

Number of Shares			Value
		Money Market Fund—0.0%
	106,392	Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $106,392)	$	106,392
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $290,301,433)—100.0%		352,074,516
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.1%
	14,476,799	Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $14,476,799)		14,476,799
		Total Investments (Cost $304,778,232)—104.1%		366,551,315
		Other assets less liabilities—(4.1)%		(14,612,179	)
		Net Assets—100.0%	$	351,939,136

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)  All or a portion of this security was out on loan at April 30, 2017.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2017.

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

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

China 17.9 % 

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

44

(This Page Intentionally Left Blank)

45

Statements of Assets and Liabilities

April 30, 2017

	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)			PowerShares DWA Financial Momentum Portfolio (PFI)
Assets:
Unaffiliated investments, at value(a)	$	101,271,820		$	28,836,589		$	77,188,996		$	112,703,413		$	85,817,758
Affiliated investments, at value		75,370			1,285,784			2,833,831			8,047,082			96,496
Total investments, at value		101,347,190			30,122,373			80,022,827			120,750,495			85,914,254
Receivables:
Dividends		57,820			8,664			41,998			73,107			63,622
Investments sold		—			—			—			—			—
Securities lending		—			2,681			1,519			11,000			—
Other assets		847			738			1,028			789			646
Total Assets		101,405,857			30,134,456			80,067,372			120,835,391			85,978,522
Liabilities:
Payables:
Shares repurchased		—			—			—			—			—
Collateral upon return of securities loaned		—			1,227,268			2,751,133			7,905,625			—
Accrued advisory fees		26,818			577			25,398			41,076			28,016
Accrued trustees’ and officer’s fees		18,965			17,431			18,620			21,699			16,479
Accrued expenses		91,227			52,680			80,808			135,951			77,418
Total Liabilities		137,010			1,297,956			2,875,959			8,104,351			121,913
Net Assets	$	101,268,847		$	28,836,500		$	77,191,413		$	112,731,040		$	85,856,609
Net Assets Consist of:
Shares of beneficial interest	$	129,050,449		$	71,471,661		$	113,569,901		$	255,040,126		$	100,241,421
Undistributed net investment income (loss)		(9,366	)		(16,636	)		(17,913	)		(20,542	)		(15,674	)
Undistributed net realized gain (loss)		(35,615,171	)		(46,144,878	)		(43,010,104	)		(134,662,381	)		(14,925,325	)
Net unrealized appreciation (depreciation)		7,842,935			3,526,353			6,649,529			(7,626,163	)		556,187
Net Assets	$	101,268,847		$	28,836,500		$	77,191,413		$	112,731,040		$	85,856,609
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,650,000			650,000			1,300,000			3,100,000			2,800,000
Net asset value	$	61.38		$	44.36		$	59.38		$	36.36		$	30.66
Market price	$	61.38		$	44.37		$	59.38		$	36.35		$	30.64
Unaffiliated investments, at cost	$	93,428,885		$	25,310,236		$	70,539,467		$	120,329,576		$	85,261,571
Affiliated investments, at cost	$	75,370		$	1,285,784		$	2,833,831		$	8,047,082		$	96,496
Total investments, at cost	$	93,504,255		$	26,596,020		$	73,373,298		$	128,376,658		$	85,358,067
(a) Includes securities on loan with an aggregate value of	$	—		$	1,174,780		$	2,700,372		$	7,714,867		$	—

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

46

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)
$	63,296,441		$	130,632,188		$	131,257,945		$	137,403,196		$	351,968,124
	6,059,479			100,659			7,053,328			—			14,583,191
	69,355,920			130,732,847			138,311,273			137,403,196			366,551,315
	1,257			69,975			17,864			195,095			53
	—			—			2,272,175			4,153,046			—
	3,674			—			2,297			—			24,193
	717			686			997			1,019			—
	69,361,568			130,803,508			140,604,606			141,752,356			366,575,561
	—			—			2,272,066			4,153,655			—
	5,970,939			—			6,947,671			—			14,476,799
	21,414			53,602			41,849			29,236			159,626
	20,434			19,117			18,229			17,959			—
	69,843			61,468			108,134			75,924			—
	6,082,630			134,187			9,387,949			4,276,774			14,636,425
$	63,278,938		$	130,669,321		$	131,216,657		$	137,475,582		$	351,939,136
$	147,063,588		$	183,021,719		$	187,152,727		$	151,781,962		$	315,340,365
	(135,123	)		10,597			(17,440	)		302,506			(763,581	)
	(92,757,359	)		(62,616,471	)		(73,563,352	)		(17,252,989	)		(24,410,731	)
	9,107,832			10,253,476			17,644,722			2,644,103			61,773,083
$	63,278,938		$	130,669,321		$	131,216,657		$	137,475,582		$	351,939,136
	1,150,000			2,500,000			2,900,000			5,000,000			3,550,000
$	55.03		$	52.27		$	45.25		$	27.50		$	99.14
$	55.02		$	52.26		$	45.22		$	27.51		$	99.17
$	54,188,609		$	120,378,712		$	113,613,223		$	134,759,093		$	290,195,041
$	6,059,479		$	100,659		$	7,053,328		$	—		$	14,583,191
$	60,248,088		$	120,479,371		$	120,666,551		$	134,759,093		$	304,778,232
$	5,845,969		$	—		$	6,798,842		$	—		$	14,146,144

47

Statements of Operations

For the year ended April 30, 2017

	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)			PowerShares DWA Financial Momentum Portfolio (PFI)
Investment Income:
Unaffiliated dividend income	$	2,030,947		$	412,899		$	3,709,969		$	1,039,516		$	1,172,725
Affiliated dividend income		485			436			933			654			354
Securities lending income		49			12,566			7,227			432,541			—
Foreign withholding tax		—			—			—			—			(1,035	)
Total Income		2,031,481			425,901			3,718,129			1,472,711			1,172,044
Expenses:
Advisory fees		729,631			225,067			964,786			783,822			275,030
Sub-licensing fees		164,079			67,487			289,429			235,129			53,514
Accounting & administration fees		36,830			35,936			43,913			38,383			36,827
Professional fees		27,933			27,444			30,405			27,906			26,358
Trustees’ and officer’s fees		9,381			8,804			11,281			9,779			8,065
Custodian & transfer agent fees		5,382			4,366			4,537			2,321			3,122
Other expenses		27,632			16,099			28,128			28,099			19,120
Total Expenses		1,000,868			385,203			1,372,479			1,125,439			422,036
Less: Waivers		(125,530	)		(115,326	)		(215,185	)		(184,863	)		(92,176	)
Net Expenses		875,338			269,877			1,157,294			940,576			329,860
Net Investment Income (Loss)		1,156,143			156,024			2,560,835			532,135			842,184
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(8,207,019	)		(7,809,559	)		(16,542,364	)		(22,968,040	)		(2,819,014	)
In-kind redemptions		30,571,800			3,355,327			18,859,675			32,533,623			5,194,084
Net realized gain (loss)		22,364,781			(4,454,232	)		2,317,311			9,565,583			2,375,070
Net change in unrealized appreciation (depreciation) on investment securities		(6,190,316	)		5,160,383			(2,462,507	)		(26,190,023	)		(777,578	)
Net realized and unrealized gain (loss)		16,174,465			706,151			(145,196	)		(16,624,440	)		1,597,492
Net increase (decrease) in net assets resulting from operations	$	17,330,608		$	862,175		$	2,415,639		$	(16,092,305	)	$	2,439,676

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

48

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)
$	115,722		$	1,060,033		$	701,733		$	4,278,341		$	778,900
	437			390			598			550			265
	22,906			—			478,233			140,383			190,647
	—			(8,560	)		(10,779	)		—			—
	139,065			1,051,863			1,169,785			4,419,274			969,812
	337,706			442,814			761,518			721,721			1,726,226
	101,393			44,478			228,637			200,018			—
	34,126			36,073			35,045			38,051			—
	26,499			25,557			28,447			28,015			—
	8,424			8,420			9,969			9,992			—
	2,869			3,097			6,617			6,378			—
	19,027			18,046			24,365			27,634			—
	530,044			578,485			1,094,598			1,031,809			1,726,226
	(124,992	)		(47,287	)		(181,049	)		(166,005	)		(116	)
	405,052			531,198			913,549			865,804			1,726,110
	(265,987	)		520,665			256,236			3,553,470			(756,298	)
	(8,034,317	)		(4,141,118	)		(15,683,419	)		(3,693,792	)		(8,708,341	)
	15,936,437			10,699,472			33,711,832			15,941,355			26,533,887
	7,902,120			6,558,354			18,028,413			12,247,563			17,825,546
	6,866,058			8,227,537			15,379,489			(6,365,320	)		58,680,808
	14,768,178			14,785,891			33,407,902			5,882,243			76,506,354
$	14,502,191		$	15,306,556		$	33,664,138		$	9,435,713		$	75,750,056

49

Statements of Changes in Net Assets

For the years ended April 30, 2017 and 2016

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)						PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
	2017			2016			2017			2016
Operations:
Net investment income	$	1,156,143		$	814,137		$	156,024		$	722,497
Net realized gain (loss)		22,364,781			(3,589,718	)		(4,454,232	)		(19,340,333	)
Net change in unrealized appreciation (depreciation)		(6,190,316	)		9,952,259			5,160,383			(8,257,723	)
Net increase (decrease) in net assets resulting from operations		17,330,608			7,176,678			862,175			(26,875,559	)
Distributions to Shareholders from:
Net investment income		(1,284,408	)		(869,950	)		(418,318	)		(507,462	)
Return of capital		—			—			—			—
Total distributions to shareholders		(1,284,408	)		(869,950	)		(418,318	)		(507,462	)
Shareholder Transactions:
Proceeds from shares sold		168,900,387			118,077,520			19,237,137			242,968,038
Value of shares repurchased		(252,175,160	)		(33,968,926	)		(83,808,889	)		(219,083,505	)
Net increase (decrease) in net assets resulting from shares transactions		(83,274,773	)		84,108,594			(64,571,752	)		23,884,533
Increase (Decrease) in Net Assets		(67,228,573	)		90,415,322			(64,127,895	)		(3,498,488	)
Net Assets:
Beginning of year		168,497,420			78,082,098			92,964,395			96,462,883
End of year	$	101,268,847		$	168,497,420		$	28,836,500		$	92,964,395
Undistributed net investment income at end of year	$	(9,366	)	$	118,899		$	(16,636	)	$	243,228
Changes in Shares Outstanding:
Shares sold		2,950,000			2,350,000			450,000			5,250,000
Shares repurchased		(4,400,000	)		(700,000	)		(2,000,000	)		(5,150,000	)
Shares outstanding, beginning of year		3,100,000			1,450,000			2,200,000			2,100,000
Shares outstanding, end of year		1,650,000			3,100,000			650,000			2,200,000

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

50

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)						PowerShares DWA Energy Momentum Portfolio (PXI)						PowerShares DWA Financial Momentum Portfolio (PFI)
2017			2016			2017			2016			2017			2016
$	2,560,835		$	1,859,483		$	532,135		$	1,751,429		$	842,184		$	444,647
	2,317,311			2,917,120			9,565,583			(47,431,832	)		2,375,070			(1,326,466	)
	(2,462,507	)		2,304,927			(26,190,023	)		5,917,263			(777,578	)		(271,892	)
	2,415,639			7,081,530			(16,092,305	)		(39,763,140	)		2,439,676			(1,153,711	)
	(3,477,597	)		(1,309,748	)		(693,416	)		(2,409,629	)		(1,505,911	)		(414,019	)
	—			—			(214,044	)		—			—			—
	(3,477,597	)		(1,309,748	)		(907,460	)		(2,409,629	)		(1,505,911	)		(414,019	)
	79,228,734			384,038,893			213,214,864			40,220,901			135,281,308			6,051,459
	(298,045,382	)		(190,454,068	)		(208,770,512	)		(55,939,362	)		(79,776,451	)		(13,512,339	)
	(218,816,648	)		193,584,825			4,444,352			(15,718,461	)		55,504,857			(7,460,880	)
	(219,878,606	)		199,356,607			(12,555,413	)		(57,891,230	)		56,438,622			(9,028,610	)
	297,070,019			97,713,412			125,286,453			183,177,683			29,417,987			38,446,597
$	77,191,413		$	297,070,019		$	112,731,040		$	125,286,453		$	85,856,609		$	29,417,987
$	(17,913	)	$	650,671		$	(20,542	)	$	140,739		$	(15,674	)	$	119,151
	1,400,000			6,850,000			5,000,000			1,100,000			4,400,000			200,000
	(5,400,000	)		(3,450,000	)		(5,200,000	)		(1,500,000	)		(2,600,000	)		(450,000	)
	5,300,000			1,900,000			3,300,000			3,700,000			1,000,000			1,250,000
	1,300,000			5,300,000			3,100,000			3,300,000			2,800,000			1,000,000

51

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2017 and 2016

	PowerShares DWA Healthcare Momentum Portfolio (PTH)						PowerShares DWA Industrials Momentum Portfolio (PRN)
	2017			2016			2017			2016
Operations:
Net investment income (loss)	$	(265,987	)	$	(954,074	)	$	520,665		$	441,691
Net realized gain (loss)		7,902,120			(58,814,460	)		6,558,354			(6,082,402	)
Net change in unrealized appreciation (depreciation)		6,866,058			(13,159,154	)		8,227,537			(4,408,769	)
Net increase (decrease) in net assets resulting from operations		14,502,191			(72,927,688	)		15,306,556			(10,049,480	)
Distributions to Shareholders from:
Net investment income		—			—			(553,696	)		(525,854	)
Return of capital		—			—			—			—
Total distributions to shareholders		—			—			(553,696	)		(525,854	)
Shareholder Transactions:
Proceeds from shares sold		69,403,752			169,070,157			158,242,219			64,488,214
Value of shares repurchased		(95,958,769	)		(199,613,152	)		(85,202,042	)		(123,450,417	)
Net increase (decrease) in net assets resulting from shares transactions		(26,555,017	)		(30,542,995	)		73,040,177			(58,962,203	)
Increase (Decrease) in Net Assets		(12,052,826	)		(103,470,683	)		87,793,037			(69,537,537	)
Net Assets:
Beginning of year		75,331,764			178,802,447			42,876,284			112,413,821
End of year	$	63,278,938		$	75,331,764		$	130,669,321		$	42,876,284
Undistributed net investment income (loss) at end of year	$	(135,123	)	$	(194,516	)	$	10,597		$	43,628
Changes in Shares Outstanding:
Shares sold		1,350,000			2,800,000			3,250,000			1,400,000
Shares repurchased		(1,900,000	)		(4,200,000	)		(1,700,000	)		(2,850,000	)
Shares outstanding, beginning of year		1,700,000			3,100,000			950,000			2,400,000
Shares outstanding, end of year		1,150,000			1,700,000			2,500,000			950,000

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

52

PowerShares DWA Technology Momentum Portfolio (PTF)						PowerShares DWA Utilities Momentum Portfolio (PUI)						PowerShares NASDAQ Internet Portfolio (PNQI)
2017			2016			2017			2016			2017			2016
$	256,236		$	(57,773	)	$	3,553,470		$	1,801,366		$	(756,298	)	$	(509,838	)
	18,028,413			(26,246,821	)		12,247,563			4,654,292			17,825,546			13,802,424
	15,379,489			(4,839,493	)		(6,365,320	)		6,605,206			58,680,808			(6,067,975	)
	33,664,138			(31,144,087	)		9,435,713			13,060,864			75,750,056			7,224,611
	(172,973	)		—			(3,999,102	)		(1,178,184	)		—			—
	(192,217	)		—			—			—			—			—
	(365,190	)		—			(3,999,102	)		(1,178,184	)		—			—
	105,469,937			288,451,357			181,244,678			198,194,423			84,874,769			136,066,781
	(190,175,480	)		(139,271,747	)		(250,158,823	)		(44,017,408	)		(87,837,710	)		(80,990,297	)
	(84,705,543	)		149,179,610			(68,914,145	)		154,177,015			(2,962,941	)		55,076,484
	(51,406,595	)		118,035,523			(63,477,534	)		166,059,695			72,787,115			62,301,095
	182,623,252			64,587,729			200,953,116			34,893,421			279,152,021			216,850,926
$	131,216,657		$	182,623,252		$	137,475,582		$	200,953,116		$	351,939,136		$	279,152,021
$	(17,440	)	$	(100,703	)	$	302,506		$	748,138		$	(763,581	)	$	(305,621	)
	2,500,000			7,050,000			6,650,000			8,250,000			950,000			1,750,000
	(4,650,000	)		(3,600,000	)		(9,650,000	)		(1,800,000	)		(1,050,000	)		(1,100,000	)
	5,050,000			1,600,000			8,000,000			1,550,000			3,650,000			3,000,000
	2,900,000			5,050,000			5,000,000			8,000,000			3,550,000			3,650,000

53

Financial Highlights

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	54.35		$	53.85		$	52.33		$	43.38		$	38.24
Net investment income(a)		0.46			0.58			0.43			0.51			0.63
Net realized and unrealized gain on investments		7.14			0.59			1.57			8.95			5.16
Total from investment operations		7.60			1.17			2.00			9.46			5.79
Distributions to shareholders from:
Net investment income		(0.57	)		(0.67	)		(0.48	)		(0.51	)		(0.65	)
Net asset value at end of year	$	61.38		$	54.35		$	53.85		$	52.33		$	43.38
Market price at end of year(b)	$	61.38		$	54.38		$	53.80		$	52.31		$	43.29
Net Asset Value Total Return(c)		14.04	%		2.32	%		3.82	%		21.97	%		15.37	%
Market Price Total Return(c)		13.98	%		2.47	%		3.77	%		22.18	%		15.26	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	101,269		$	168,497		$	78,082		$	94,190		$	80,253
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.64	%		0.65	%
Expenses, prior to Waivers		0.69	%		0.69	%		0.69	%		0.68	%		0.72	%
Net investment income, after Waivers		0.79	%		1.17	%		0.79	%		1.08	%		1.59	%
Portfolio turnover rate(d)		132	%		96	%		80	%		158	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	42.26		$	45.93		$	39.79		$	34.19		$	29.90
Net investment income(a)		0.15			0.17			0.27			0.17			0.39
Net realized and unrealized gain (loss) on investments		2.30			(3.71	)		6.06			5.63			4.24
Total from investment operations		2.45			(3.54	)		6.33			5.80			4.63
Distributions to shareholders from:
Net investment income		(0.35	)		(0.13	)		(0.19	)		(0.20	)		(0.34	)
Net asset value at end of year	$	44.36		$	42.26		$	45.93		$	39.79		$	34.19
Market price at end of year(b)	$	44.37		$	42.25		$	45.93		$	39.74		$	34.16
Net Asset Value Total Return(c)		5.85	%		(7.73	)%		15.91	%		16.97	%		15.67	%
Market Price Total Return(c)		5.90	%		(7.76	)%		16.06	%		16.93	%		15.60	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	28,837		$	92,964		$	96,463		$	45,754		$	23,933
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.64	%		0.65	%
Expenses, prior to Waivers		0.86	%		0.71	%		0.81	%		0.91	%		0.93	%
Net investment income, after Waivers		0.35	%		0.39	%		0.63	%		0.42	%		1.29	%
Portfolio turnover rate(d)		117	%		139	%		114	%		236	%		130	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

54

Financial Highlights (continued)

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	56.05		$	51.43		$	43.04		$	39.69		$	32.61
Net investment income(a)		0.76			0.43			0.76	(b)		0.66			0.66
Net realized and unrealized gain on investments		3.69			4.54			8.37			3.26			7.13
Total from investment operations		4.45			4.97			9.13			3.92			7.79
Distributions to shareholders from:
Net investment income		(1.12	)		(0.35	)		(0.74	)		(0.57	)		(0.71	)
Net asset value at end of year	$	59.38		$	56.05		$	51.43		$	43.04		$	39.69
Market price at end of year(c)	$	59.38		$	56.05		$	51.43		$	43.03		$	39.67
Net Asset Value Total Return(d)		8.12	%		9.67	%		21.28	%		9.93	%		24.29	%
Market Price Total Return(d)		8.12	%		9.67	%		21.31	%		9.97	%		24.27	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	77,191		$	297,070		$	97,713		$	38,738		$	37,708
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.64	%		0.65	%
Expenses, prior to Waivers		0.71	%		0.69	%		0.78	%		0.79	%		0.82	%
Net investment income, after Waivers		1.33	%		0.76	%		1.54	%(b)		1.56	%		1.94	%
Portfolio turnover rate(e)		106	%		113	%		83	%		175	%		57	%

^(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 of $5.77 per share owned of Pilgrim’s Pride Corp. on January 28, 2015. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.28 and 0.55%, 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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	37.97		$	49.51		$	60.41		$	48.39		$	40.45
Net investment income(a)		0.14			0.51			0.53			0.34			0.47
Net realized and unrealized gain (loss) on investments		(1.50	)		(11.39	)		(10.82	)		12.01			8.13
Total from investment operations		(1.36	)		(10.88	)		(10.29	)		12.35			8.60
Distributions to shareholders from:
Net investment income		(0.19	)		(0.66	)		(0.61	)		(0.33	)		(0.66	)
Return of capital		(0.06	)		—			—			—			—
Total distributions		(0.25	)		(0.66	)		(0.61	)		(0.33	)		(0.66	)
Net asset value at end of year	$	36.36		$	37.97		$	49.51		$	60.41		$	48.39
Market price at end of year(b)	$	36.35		$	37.95		$	49.51		$	60.37		$	48.36
Net Asset Value Total Return(c)		(3.62	)%		(22.01	)%		(17.08	)%		25.66	%		21.48	%
Market Price Total Return(c)		(3.60	)%		(22.05	)%		(17.02	)%		25.66	%		21.35	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	112,731		$	125,286		$	183,178		$	214,441		$	137,916
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.64	%		0.66	%
Expenses, prior to Waivers		0.72	%		0.76	%		0.74	%		0.64	%		0.69	%
Net investment income, after Waivers		0.34	%		1.32	%		0.97	%		0.65	%		1.10	%
Portfolio turnover rate(d)		116	%		119	%		109	%		198	%		80	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

55

Financial Highlights (continued)

PowerShares DWA Financial Momentum Portfolio (PFI)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	29.42		$	30.76		$	27.82		$	23.92		$	20.08
Net investment income(a)		0.47			0.42			0.37			0.32			0.35
Net realized and unrealized gain (loss) on investments		1.43			(1.37	)		2.92			3.93			3.83
Total from investment operations		1.90			(0.95	)		3.29			4.25			4.18
Distributions to shareholders from:
Net investment income		(0.66	)		(0.39	)		(0.35	)		(0.35	)		(0.34	)
Net asset value at end of year	$	30.66		$	29.42		$	30.76		$	27.82		$	23.92
Market price at end of year(b)	$	30.64		$	29.43		$	30.76		$	27.79		$	23.90
Net Asset Value Total Return(c)		6.51	%		(3.11	)%		11.84	%		17.89	%		21.07	%
Market Price Total Return(c)		6.41	%		(3.08	)%		11.96	%		17.86	%		21.03	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	85,857		$	29,418		$	38,447		$	36,167		$	20,330
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%(d)		0.64	%(d)		0.66	%(d)
Expenses, prior to Waivers		0.77	%		0.84	%		0.85	%(d)		0.91	%(d)		1.10	%(d)
Net investment income, after Waivers		1.53	%		1.38	%		1.24	%		1.20	%		1.66	%
Portfolio turnover rate(e)		204	%		119	%		115	%		232	%		118	%

^(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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

56

Financial Highlights (continued)

PowerShares DWA Healthcare Momentum Portfolio (PTH)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	44.31		$	57.68		$	45.34		$	38.76		$	32.29
Net investment income (loss)(a)		(0.19	)		(0.27	)		(0.20	)		0.00	(b)		0.43
Net realized and unrealized gain (loss) on investments		10.91			(13.10	)		12.54			6.73			6.39
Total from investment operations		10.72			(13.37	)		12.34			6.73			6.82
Distributions to shareholders from:
Net investment income		—			—			—			(0.15	)		(0.35	)
Net asset value at end of year	$	55.03		$	44.31		$	57.68		$	45.34		$	38.76
Market price at end of year(c)	$	55.02		$	44.28		$	57.64		$	45.34		$	38.69
Net Asset Value Total Return(d)		24.19	%		(23.18	)%		27.22	%		17.41	%		21.31	%
Market Price Total Return(d)		24.26	%		(23.18	)%		27.13	%		17.62	%		21.06	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	63,279		$	75,332		$	178,802		$	106,560		$	60,071
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.64	%		0.65	%
Expenses, prior to Waivers		0.78	%		0.70	%		0.68	%		0.68	%		0.74	%
Net investment income (loss), after Waivers		(0.39	)%		(0.48	)%		(0.38	)%		0.01	%		1.26	%
Portfolio turnover rate(e)		175	%		200	%		151	%		278	%		93	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	45.13		$	46.84		$	46.47		$	36.74		$	30.02
Net investment income(a)		0.29			0.22			0.17			0.19			0.52
Net realized and unrealized gain (loss) on investments		7.14			(1.73	)		0.35			9.72			6.89
Total from investment operations		7.43			(1.51	)		0.52			9.91			7.41
Distributions to shareholders from:
Net investment income		(0.29	)		(0.20	)		(0.15	)		(0.18	)		(0.65	)
Return of capital		—			—			—			—			(0.04	)
Total distributions		(0.29	)		(0.20	)		(0.15	)		(0.18	)		(0.69	)
Net asset value at end of year	$	52.27		$	45.13		$	46.84		$	46.47		$	36.74
Market price at end of year(b)	$	52.26		$	45.13		$	46.85		$	46.43		$	36.72
Net Asset Value Total Return(c)		16.50	%		(3.24	)%		1.12	%		27.01	%		25.18	%
Market Price Total Return(c)		16.48	%		(3.26	)%		1.23	%		26.97	%		25.19	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	130,669		$	42,876		$	112,414		$	169,622		$	38,573
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.63	%		0.65	%
Expenses, prior to Waivers		0.65	%		0.65	%		0.64	%		0.66	%		0.92	%
Net investment income, after Waivers		0.59	%		0.48	%		0.36	%		0.43	%		1.65	%
Portfolio turnover rate(d)		122	%		122	%		121	%		285	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

57

Financial Highlights (continued)

PowerShares DWA Technology Momentum Portfolio (PTF)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	36.16		$	40.37		$	32.44		$	29.14		$	27.29
Net investment income (loss)(a)		0.07			(0.01	)		0.17			0.04			0.17
Net realized and unrealized gain (loss) on investments		9.12			(4.20	)		8.02			3.32			1.88
Total from investment operations		9.19			(4.21	)		8.19			3.36			2.05
Distributions to shareholders from:
Net investment income		(0.05	)		—			(0.26	)		(0.06	)		(0.20	)
Return of capital		(0.05	)		—			—			—			—
Total distributions		(0.10	)		—			(0.26	)		(0.06	)		(0.20	)
Net asset value at end of year	$	45.25		$	36.16		$	40.37		$	32.44		$	29.14
Market price at end of year(b)	$	45.22		$	36.16		$	40.36		$	32.45		$	29.06
Net Asset Value Total Return(c)		25.46	%		(10.43	)%		25.29	%		11.52	%		7.59	%
Market Price Total Return(c)		25.38	%		(10.41	)%		25.22	%		11.86	%		7.34	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	131,217		$	182,623		$	64,588		$	53,525		$	32,053
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.64	%		0.65	%
Expenses, prior to Waivers		0.72	%		0.70	%		0.77	%		0.80	%		0.89	%
Net investment income (loss), after Waivers		0.17	%		(0.03	)%		0.46	%		0.13	%		0.63	%
Portfolio turnover rate(d)		147	%		159	%		157	%		263	%		95	%

^(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) Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	25.12		$	22.51		$	22.49		$	19.82		$	16.69
Net investment income(a)		0.65			0.64			0.57			0.47			0.45
Net realized and unrealized gain (loss) on investments		2.71			2.60			(0.01	)		2.68			3.14
Total from investment operations		3.36			3.24			0.56			3.15			3.59
Distributions to shareholders from:
Net investment income		(0.98	)		(0.63	)		(0.54	)		(0.48	)		(0.46	)
Net asset value at end of year	$	27.50		$	25.12		$	22.51		$	22.49		$	19.82
Market price at end of year(b)	$	27.51		$	25.10		$	22.50		$	22.47		$	19.79
Net Asset Value Total Return(c)		13.65	%		14.86	%		2.48	%		16.27	%		21.90	%
Market Price Total Return(c)		13.78	%		14.81	%		2.53	%		16.35	%		21.94	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	137,476		$	200,953		$	34,893		$	41,601		$	42,604
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.71	%		0.74	%		0.80	%		0.77	%		0.81	%
Net investment income, after Waivers		2.46	%		2.74	%		2.49	%		2.31	%		2.54	%
Portfolio turnover rate(d)		54	%		91	%		47	%		131	%		48	%

^(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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

58

Financial Highlights (continued)

PowerShares NASDAQ Internet Portfolio (PNQI)

	Year Ended April 30,
	2017			2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	76.48		$	72.28		$	61.62		$	46.09		$	41.08
Net investment income (loss)(a)		(0.22	)		(0.16	)		(0.21	)		(0.27	)		(0.01	)
Net realized and unrealized gain on investments		22.88			4.36			10.87			15.80			5.04
Total from investment operations		22.66			4.20			10.66			15.53			5.03
Distributions to shareholders from:
Net investment income		—			—			—			—			(0.02	)
Net asset value at end of year	$	99.14		$	76.48		$	72.28		$	61.62		$	46.09
Market price at end of year(b)	$	99.17		$	76.44		$	72.26		$	61.51		$	46.08
Net Asset Value Total Return(c)		29.63	%		5.81	%		17.30	%		33.70	%		12.26	%
Market Price Total Return(c)		29.73	%		5.79	%		17.48	%		33.48	%		12.23	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	351,939		$	279,152		$	216,851		$	289,628		$	64,525
Ratio to average net assets of:
Expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income (loss)		(0.26	)%		(0.21	)%		(0.31	)%		(0.42	)%		(0.02	)%
Portfolio turnover rate(d)		14	%		27	%		31	%		21	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2017

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2017, 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 The NASDAQ Stock Market LLC. Prior to December 7, 2016, Shares of each Fund (except for NASDAQ Internet Portfolio) were listed and traded on NYSE Arca, Inc.

The market price of each Share 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	Dorsey Wright® Basic Materials Technical Leaders Index
DWA Consumer Cyclicals Momentum Portfolio	Dorsey Wright® Consumer Cyclicals Technical Leaders Index
DWA Consumer Staples Momentum Portfolio	Dorsey Wright® Consumer Staples Technical Leaders Index
DWA Energy Momentum Portfolio	Dorsey Wright® Energy Technical Leaders Index
DWA Financial Momentum Portfolio	Dorsey Wright® Financials Technical Leaders Index
DWA Healthcare Momentum Portfolio	Dorsey Wright® Healthcare Technical Leaders Index
DWA Industrials Momentum Portfolio	Dorsey Wright® Industrials Technical Leaders Index
DWA Technology Momentum Portfolio	Dorsey Wright® Technology Technical Leaders Index
DWA Utilities Momentum Portfolio	Dorsey Wright® Utilities Technical Leaders Index
NASDAQ Internet Portfolio	NASDAQ Internet IndexSM

Note 2. Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.

60

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 asked 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 asked 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 asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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 Fund 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 Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in 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 will 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 Mid-Capitalization Company Risk. Investing in securities of small- and mid-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 mid-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.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

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.

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Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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, acquired fund fees and expenses, if any, litigation expenses and other 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.

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G. 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.

H. Accounting Estimates

The preparation of the financial statements in accordance with 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.

I. Securities Lending

During the fiscal year ended April 30, 2017, DWA Basic Materials Momentum Portfolio, DWA Consumer Cyclicals Momentum Portfolio, DWA Consumer Staples Momentum Portfolio, DWA Energy Momentum Portfolio, DWA Healthcare Momentum Portfolio, DWA Technology Momentum Portfolio, DWA Utilities 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% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is generally invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, 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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except 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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.

Further, through August 31, 2019, 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. This agreement is not subject to recapture by the Adviser.

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For the fiscal year ended April 30, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA Basic Materials Momentum Portfolio	$	125,530
DWA Consumer Cyclicals Momentum Portfolio		115,326
DWA Consumer Staples Momentum Portfolio		215,185
DWA Energy Momentum Portfolio		184,863
DWA Financial Momentum Portfolio		92,176
DWA Healthcare Momentum Portfolio		124,992
DWA Industrials Momentum Portfolio		47,287
DWA Technology Momentum Portfolio		181,049
DWA Utilities Momentum Portfolio		166,005
NASDAQ Internet Portfolio		116

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 April 30, 2017 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/18		4/30/19		4/30/20
DWA Basic Materials Momentum Portfolio	$	271,955	$	82,414	$	64,234	$	125,307
DWA Consumer Cyclicals Momentum Portfolio		445,718		127,393		203,205		115,120
DWA Consumer Staples Momentum Portfolio		545,016		101,972		228,313		214,731
DWA Energy Momentum Portfolio		673,958		290,036		199,340		184,582
DWA Financial Momentum Portfolio		264,505		94,203		78,303		91,999
DWA Healthcare Momentum Portfolio		406,146		88,576		192,773		124,797
DWA Industrials Momentum Portfolio		145,345		48,372		49,864		47,109
DWA Technology Momentum Portfolio		457,067		104,492		171,801		180,774
DWA Utilities Momentum Portfolio		339,669		83,252		90,675		165,742

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 Basic Materials Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Consumer Cyclicals Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Consumer Staples Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Energy Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Financial Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Healthcare Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Industrials Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Technology Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Utilities Momentum Portfolio	Dorsey Wright & Associates, LLC
NASDAQ Internet Portfolio	Nasdaq, 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.

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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.

Except for the Fund listed below, as of April 30, 2017, 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	$	69,340,972	$	—	$	14,948	$	69,355,920

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

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2017 and 2016:

	2017				2016
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
DWA Basic Materials Momentum Portfolio	$	1,284,408	$	—	$	869,950	$	—
DWA Consumer Cyclicals Momentum Portfolio		418,318		—		507,462		—
DWA Consumer Staples Momentum Portfolio		3,477,597		—		1,309,748		—
DWA Energy Momentum Portfolio		693,416		214,044		2,409,629		—
DWA Financial Momentum Portfolio		1,505,911		—		414,019		—
DWA Industrials Momentum Portfolio		553,696		—		525,854		—
DWA Technology Momentum Portfolio		172,973		192,217		—		—
DWA Utilities Momentum Portfolio		3,999,102		—		1,178,184		—

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Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)— Investment Securities			Capital Loss Carryforwards			Late-Year Ordinary/ Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
DWA Basic Materials Momentum Portfolio	$	8,666	$	(18,032	)	$	7,238,568		$	(31,303,679	)	$	(3,707,125	)	$	129,050,449	$	101,268,847
DWA Consumer Cyclicals Momentum Portfolio		—		(16,636	)		3,462,066			(44,126,062	)		(1,954,529	)		71,471,661		28,836,500
DWA Consumer Staples Momentum Portfolio		—		(17,913	)		6,442,211			(39,230,930	)		(3,571,856	)		113,569,901		77,191,413
DWA Energy Momentum Portfolio		—		(20,542	)		(9,712,766	)		(115,467,608	)		(17,108,170	)		255,040,126		112,731,040
DWA Financial Momentum Portfolio		—		(15,674	)		383,409			(13,035,410	)		(1,717,137	)		100,241,421		85,856,609
DWA Healthcare Momentum Portfolio**		—		(19,957	)		9,016,797			(87,454,852	)		(5,326,638	)		147,063,588		63,278,938
DWA Industrials Momentum Portfolio		28,849		(18,252	)		10,156,767			(59,031,297	)		(3,488,465	)		183,021,719		130,669,321
DWA Technology Momentum Portfolio		—		(17,440	)		17,581,734			(62,372,312	)		(11,128,052	)		187,152,727		131,216,657
DWA Utilities Momentum Portfolio		319,705		(17,199	)		2,396,314			(16,584,266	)		(420,934	)		151,781,962		137,475,582
NASDAQ Internet Portfolio**		—		—			54,899,318			(13,809,358	)		(4,491,189	)		315,340,365		351,939,136

* Includes net capital losses incurred after October 31 (“Post-October Capital Losses”) and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year (“Late-Year Ordinary Losses”), that are deemed to arise on the first business day of each Fund’s next taxable year.

** The DWA Healthcare Momentum Portfolio and NASDAQ Internet Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $115,166 and $267,316, and Post-October Capital Losses of $5,211,472 and $4,223,873, respectively.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards 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 table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2017:

					Post-effective/ no expiration
	2018		2019		Short-Term		Long-Term		Total*		Expired
DWA Basic Materials Momentum Portfolio	$	4,534,904	$	2,521,492	$	21,732,766	$	2,514,517	$	31,303,679	$	3,783,798
DWA Consumer Cyclicals Momentum Portfolio		—		2,042,056		41,681,282		402,724		44,126,062		1,993,654
DWA Consumer Staples Momentum Portfolio		3,935,363		1,180,566		33,738,969		376,032		39,230,930		2,156,980
DWA Energy Momentum Portfolio		3,914,682		1,167,692		96,476,790		13,908,444		115,467,608		2,869,667
DWA Financial Momentum Portfolio		4,413,894		1,979,006		6,365,897		276,613		13,035,410		1,821,971
DWA Healthcare Momentum Portfolio		18,737,951		2,739,963		65,976,938		—		87,454,852		17,890,879
DWA Industrials Momentum Portfolio		21,245,288		2,746,746		34,870,158		169,105		59,031,297		6,525,387
DWA Technology Momentum Portfolio		7,658,564		3,016,840		51,533,698		163,210		62,372,312		8,220,697
DWA Utilities Momentum Portfolio		5,885,935		874,386		8,310,646		1,513,299		16,584,266		1,366,073
NASDAQ Internet Portfolio		3,360		74,863		6,210,819		7,520,316		13,809,358		—

* 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.

67

Note 6. Investment Transactions

For the fiscal year ended April 30, 2017, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
DWA Basic Materials Momentum Portfolio	$	206,660,505	$	210,012,707
DWA Consumer Cyclicals Momentum Portfolio		55,231,001		57,501,049
DWA Consumer Staples Momentum Portfolio		210,405,382		214,955,092
DWA Energy Momentum Portfolio		187,532,631		189,017,073
DWA Financial Momentum Portfolio		120,323,339		118,686,295
DWA Healthcare Momentum Portfolio		125,992,777		125,663,616
DWA Industrials Momentum Portfolio		114,273,021		112,341,230
DWA Technology Momentum Portfolio		236,367,972		235,354,170
DWA Utilities Momentum Portfolio		79,301,318		79,819,520
NASDAQ Internet Portfolio		41,730,918		43,282,956

For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA Basic Materials Momentum Portfolio	$	168,863,501	$	248,829,144
DWA Consumer Cyclicals Momentum Portfolio		19,233,920		81,807,329
DWA Consumer Staples Momentum Portfolio		79,220,188		294,325,720
DWA Energy Momentum Portfolio		213,222,133		207,389,343
DWA Financial Momentum Portfolio		132,910,144		79,485,857
DWA Healthcare Momentum Portfolio		69,196,140		96,354,313
DWA Industrials Momentum Portfolio		158,201,611		87,093,970
DWA Technology Momentum Portfolio		105,448,816		191,031,690
DWA Utilities Momentum Portfolio		181,211,891		249,902,527
NASDAQ Internet Portfolio		84,814,875		86,945,235

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

At April 30, 2017, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)			Cost
DWA Basic Materials Momentum Portfolio	$	11,453,640	$	(4,215,072	)	$	7,238,568		$	94,108,622
DWA Consumer Cyclicals Momentum Portfolio		3,676,293		(214,227	)		3,462,066			26,660,307
DWA Consumer Staples Momentum Portfolio		7,324,815		(882,604	)		6,442,211			73,580,616
DWA Energy Momentum Portfolio		1,045,582		(10,758,348	)		(9,712,766	)		130,463,261
DWA Financial Momentum Portfolio		2,107,058		(1,723,649	)		383,409			85,530,845
DWA Healthcare Momentum Portfolio		10,356,033		(1,339,236	)		9,016,797			60,339,123
DWA Industrials Momentum Portfolio		10,596,960		(440,193	)		10,156,767			120,576,080
DWA Technology Momentum Portfolio		18,850,591		(1,268,857	)		17,581,734			120,729,539
DWA Utilities Momentum Portfolio		2,955,611		(559,297	)		2,396,314			135,006,882
NASDAQ Internet Portfolio		76,452,493		(21,553,175	)		54,899,318			311,651,997

68

Note 7. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2017, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)		Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
DWA Basic Materials Momentum Portfolio	$	—	$	(25,596,488	)	$	25,596,488
DWA Consumer Cyclicals Momentum Portfolio		2,430		(669,988	)		667,558
DWA Consumer Staples Momentum Portfolio		248,178		(15,520,290	)		15,272,112
DWA Energy Momentum Portfolio		—		(27,116,488	)		27,116,488
DWA Financial Momentum Portfolio		528,902		(3,035,094	)		2,506,192
DWA Healthcare Momentum Portfolio		325,380		2,161,149			(2,486,529	)
DWA Industrials Momentum Portfolio		—		(3,866,342	)		3,866,342
DWA Technology Momentum Portfolio		—		(25,318,838	)		25,318,838
DWA Utilities Momentum Portfolio		—		(14,006,029	)		14,006,029
NASDAQ Internet Portfolio		298,338		(24,255,212	)		23,956,874

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, any Unaffiliated Trustee, and an Officer of the Trust. 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” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated 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 principally 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.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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.

69

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio, PowerShares DWA Utilities Momentum Portfolio and PowerShares NASDAQ Internet Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio, PowerShares DWA Utilities Momentum Portfolio and PowerShares NASDAQ Internet Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 23, 2017

70

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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2017.

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 November 1, 2016		Ending Account Value April 30, 2017		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	$	1,122.40		0.60	%	$	3.16
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
Actual		1,000.00		1,096.10		0.60			3.12
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
Actual		1,000.00		1,093.50		0.60			3.11
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Energy Momentum Portfolio (PXI)
Actual		1,000.00		945.10		0.60			2.89
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Financial Momentum Portfolio (PFI)
Actual		1,000.00		1,049.90		0.60			3.05
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Healthcare Momentum Portfolio (PTH)
Actual		1,000.00		1,230.00		0.60			3.32
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01

71

Fees and Expenses (continued)

	Beginning Account Value November 1, 2016		Ending Account Value April 30, 2017		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares DWA Industrials Momentum Portfolio (PRN)
Actual	$	1,000.00	$	1,129.60		0.60	%	$	3.17
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Technology Momentum Portfolio (PTF)
Actual		1,000.00		1,150.50		0.60			3.20
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Utilities Momentum Portfolio (PUI)
Actual		1,000.00		1,096.50		0.60			3.12
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares NASDAQ Internet Portfolio (PNQI)
Actual		1,000.00		1,142.00		0.60			3.19
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

72

Tax Information

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

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2017:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares DWA Basic Materials Momentum Portfolio		100	%		100	%
PowerShares DWA Consumer Cyclicals Momentum Portfolio		100	%		100	%
PowerShares DWA Consumer Staples Momentum Portfolio		100	%		100	%
PowerShares DWA Energy Momentum Portfolio		100	%		100	%
PowerShares DWA Financial Momentum Portfolio		64	%		61	%
PowerShares DWA Healthcare Momentum Portfolio		0	%		0	%
PowerShares DWA Industrials Momentum Portfolio		100	%		100	%
PowerShares DWA Technology Momentum Portfolio		100	%		100	%
PowerShares DWA Utilities Momentum Portfolio		100	%		100	%
PowerShares NASDAQ Internet Portfolio		0	%		0	%

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

73

Trustees and Officers

The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and Trustee since 2003	Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).	135	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2010	Assistant Professor of Business, Trinity Christian College (2010-2016); formerly Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank.	135	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

74

Trustees and Officers (continued)

Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	135	None
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	135	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006).	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

75

Trustees and Officers (continued)

The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Unaffiliated Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex*** Overseen by Unaffiliated Trustee	Other Directorships Held by Unaffiliated Trustee During the Past 5 Years
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee**	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	135	None

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

** Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee.

*** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

76

Trustees and Officers (continued)

The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.

The information is current as of April 30, 2017.

Name, Address and Year of Birth of Interested Trustee	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Interested Trustee	Other Directorships Held by Interested Trustee During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP.	135	None

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

** Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser.

77

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer and Principal Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chief Compliance Officer	Since 2017	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2012	Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005).

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

78

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), Invesco PowerShares Capital Management LLC (2010-Present); Manager and Assistant Secretary, Invesco Indexing LLC (2017-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2011-Present); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is

available, without charge, upon request at (800) 983-0903.

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

79

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers ^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2016, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable

80

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

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

● 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth Portfolio); and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps as defined below, were -0.06%, -0.19% and -0.62%, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio).

The Trustees also noted that the Adviser has agreed to waive a portion of its contractual advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2018, as set forth below:

● 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

● 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio;

81

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

● 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® Quality Portfolio;

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

● 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback AchieversTM Portfolio			X
PowerShares CleantechTM Portfolio			X
PowerShares Dividend AchieversTM Portfolio			X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X

82

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X		X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio			X
PowerShares International Dividend AchieversTM Portfolio	X	N/A	X
PowerShares S&P 500® Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the contractual advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*		Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio				X
PowerShares Buyback AchieversTM Portfolio				X
PowerShares CleantechTM Portfolio				X
PowerShares Dividend AchieversTM Portfolio			X	X

83

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio	X	X	X
PowerShares Russell Midcap Pure Growth Portfolio		X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend AchieversTM Portfolio		X	X
PowerShares International Dividend AchieversTM Portfolio		N/A	X

84

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares S&P 500® Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted those Funds for which license fees are included in the Funds’ Expense Caps.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund’s Expense Cap) were reasonable and appropriate in light of the services provided.

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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

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

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

85

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 11, 2017, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for PowerShares NASDAQ Internet Portfolio and PowerShares S&P 500 BuyWrite Portfolio (each, a “Fund” and together, the “Funds”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds.

The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year and since-inception (June 12, 2008 for PowerShares NASDAQ Internet Portfolio and December 20, 2007 for PowerShares S&P 500 BuyWrite Portfolio) periods ended December 31, 2016, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between the Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund’s particular circumstances.

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

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

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual unitary advisory fee is 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other operating expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

The Trustees noted that the Adviser represented that it does not serve as an investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio’s net expense ratio was higher than the median net expense ratios of its ETF peer funds and open-end index peer funds, but was lower than the median net expense ratio of its open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio’s net expense ratio was lower than the median net expense ratios of its ETF peer funds, open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund’s advisory fee was reasonable because of the nature of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

86

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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

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

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

87

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Proxy Voting Policies and Procedures

A description of the 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.powershares.com.

P-PS-AR-3
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515
powershares.com    800 983 0903		@PowerShares

Item 2. Code of Ethics.

The Registrant has adopted a Code of Ethics that applies to the Registrant’s principal executive officer and principal financial officer. This Code is filed as an exhibit to this report on Form N-CSR under Item 12(a)(1). No substantive amendments to this Code were made during the reporting period. There were no waivers for the fiscal year ended April 30, 2017.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees (the “Board”) has determined that the Registrant has three “audit committee financial experts” serving on its audit committee: Mr. Marc M. Kole, Mr. Gary R. Wicker and Mr. Donald H. Wilson. Each of these audit committee members is “independent,” meaning that he is not an “interested person” of the Registrant (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) and he does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in his capacity as a Board or committee member).

An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that person has any greater duties, obligations, or liability than those imposed on a person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the audit committee or Board of trustees.

Item 4. Principal Accountant Fees and Services.

(a) to (d)

PricewaterhouseCoopers LLP (“PwC”), the Registrant’s independent registered public accounting firm, billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years shown in the following table. The Audit Committee pre-approved all audit and non-audit services provided to the Registrant.

	Fees Billed by PwC for Services Rendered to the Registrant for fiscal year end 2017	Fees Billed by PwC for Services Rendered to the Registrant for fiscal year end 2016
Audit Fees	$    723,925	$    755,425
Audit-Related Fees	$    0	$    0
Tax Fees(1)	$    371,160	$    420,560
All Other Fees	$    0	$    0
Total Fees	$    1,095,085	$    1,175,985

(1)        Tax fees for the fiscal year ended April 30, 2017 include fees billed for reviewing tax returns, 2016 excise tax returns and excise tax distributions calculations. Tax fees for the fiscal year ended April 30, 2016 included fees billed for reviewing tax returns, 2015 excise tax returns and excise tax distribution calculations.

Fees Billed by PwC Related to PowerShares and PowerShares Affiliates

PwC billed Invesco PowerShares Capital Management LLC (“PowerShares”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with PowerShares that provides ongoing services to the Registrant (“Affiliates”) aggregate fees for pre-approved non-audit services rendered to PowerShares and Affiliates for the last two fiscal years shown in the following table:

	Fees Billed for Non-Audit Services Rendered to PowerShares and Affiliates for fiscal year end 2017 That Were Required to be Pre-Approved by the Registrant’s Audit Committee	Fees Billed for Non-Audit Services Rendered to PowerShares and Affiliates for   fiscal year end 2016 That Were Required to be Pre-Approved by the Registrant’s Audit Committee
Audit-Related Fees	$  635,000	$  634,963
Tax Fees	$  0	$  0
All Other Fees	$  2,827,000	$  3,750,000
Total Fees(1)	$  3,462,000	$  4,384,963

(1) Audit-Related fees for the year end 2017 include fees billed related reviewing controls at a service organization. Audit-Related fees for the year end 2016 include fees billed related to reviewing controls at a service organization.

All other fees for the year end 2017 include fees billed related to reviewing operating effectiveness of strategic projects

(e) (1) Audit Committee Pre Approval Policies and Procedures

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES

POLICIES AND PROCEDURES

As Adopted by the Audit Committee of

the PowerShares Funds (the “Funds”)

Adopted June 26, 2009, amended September 29, 2016

Statement of Principles

Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committee of the Funds’ (the “Audit Committee”) Board of Trustees (the “Board”) is responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committee pre-approves the audit and non-audit services provided to the Funds by each Auditor, as well as all non-

audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.

Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committee (“general pre-approval”) or require the specific pre-approval of the Audit Committee (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committee before payment is made. The Audit Committee will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.

The Audit Committee will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee. The term of any general pre-approval runs from the date of such pre-approval through June 30th of the following year, unless the Audit Committee considers a different period and states otherwise. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committee in fulfilling its responsibilities.

Delegation

The Chairman of the Audit Committee (or, in his or her absence, any member of the Audit Committee) may grant specific pre-approval for non-prohibited services. All such delegated pre-approvals shall be presented to the Audit Committee no later than the next Audit Committee meeting.

Audit Services

The annual Audit services engagement terms will be subject to specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committee will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.

In addition to the annual Audit services engagement, the Audit Committee may grant either general or specific pre-approval of other Audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

Non-Audit Services

The Audit Committee may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committee believes that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committee’s general principles and policies as set forth herein.

Audit-Related Services

“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Funds’ financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; and assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities.

Tax Services

“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committee will scrutinize carefully the retention of the Auditor in connection with a transaction initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.

No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.

Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committee pre-approval of permissible Tax services, the Auditor shall:

1. Describe in writing to the Audit Committee, which writing may be in the form of the proposed engagement letter:

a. The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and

b. Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service;

2. Discuss with the Audit Committee the potential effects of the services on the independence of the Auditor; and

3. Document the substance of its discussion with the Audit Committee.

All Other Auditor Services

The Audit Committee may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.

Pre-Approval Fee Levels or Established Amounts

Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committee at the quarterly Audit Committee meeting and will require specific approval by the Audit Committee before payment is made.

The Audit Committee will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.

Procedures

On an annual basis, the Auditor will submit to the Audit Committee for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.

Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committee will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committee.

Each request to provide services that require specific approval by the Audit Committee shall be submitted to the Audit Committee jointly by the Funds’ Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the pre-approval policies and procedures and the SEC Rules.

Each request to provide Tax services under either the general or specific pre-approval of the Audit Committee will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will discuss with the Audit Committee the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.

Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committee for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.

On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.

The Audit Committee has designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committee on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management will immediately report to the Chairman of the Audit Committee any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management.

Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures

Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)

• Bookkeeping or other services related to the accounting records or financial statements of the audit client

• Financial information systems design and implementation

• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

• Actuarial services

• Internal audit outsourcing services

Categorically Prohibited Non-Audit Services

• Management functions

• Human resources

• Broker-dealer, investment adviser, or investment banking services

• Legal services

• Expert services unrelated to the audit

• Any service or product provided for a contingent fee or a commission

• Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance

• Tax services for persons in financial reporting oversight roles at the Fund

• Any other service that the Public Company Oversight Board determines by regulation is impermissible.

(e)(2) There were no amounts that were pre-approved by the Audit Committee pursuant to the de minimus exception under Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) In addition to the amounts shown in the tables above, PwC billed PowerShares and Affiliates additional aggregate fees of $2,112,000 for the fiscal year ended 2017 and $4,775,000 for the fiscal year ended 2016, for non-audit services not required to be pre-approved by the Registrant’s Audit Committee. In total, PwC billed the Registrant, PowerShares and Affiliates aggregate non-audit fees of $5,945,000 for the fiscal year ended 2017 and $8,581,000 for the fiscal year ended 2016.

(h) With respect to the non-audit services above billed to PowerShares and Affiliates that were not required to be pre-approved by the Registrant’s Audit Committee, the Audit Committee received information from PwC about such services, including by way of comparison, that PwC provided audit services to entities within the Investment Company Complex, as defined by Rule 2-01(f)(14) of Regulation S-X, of approximately $22 million and non-audit services of approximately $16 million for the fiscal year ended 2017. The Audit Committee considered this information in evaluating PwC’s independence.

PwC informed the Audit Committee that it has identified an issue related to its independence under Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits accounting firms, such as PwC, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.

The Loan Rule specifically provides that an accounting firm would not be independent if it receives, or certain of its affiliates or covered persons receive, a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities (referred to as a “more than ten percent owner”). For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PwC informed the Audit Committee that it has, and that certain of its affiliates or covered persons have, relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex. These relationships call into question PwC’s independence under the Loan Rule with respect to those funds, as well as all other funds in the Invesco Fund Complex, which may implicate the Loan Rule.

On June 20, 2016, the SEC Staff issued a “no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances.

In an August 18, 2016 letter, and in subsequent communications, PwC affirmed to the Audit Committee that, as of the date of the letter and the subsequent communications, respectively, PwC is an independent accountant with respect to the Trust, within the meaning of PCAOB Rule 3520. In its letter and in its subsequent communications, PwC also informed the Audit Committee that, after evaluating the facts and circumstances and the applicable independence rules, PwC has concluded that with regard to its compliance with the independence criteria set forth in the rules and regulations of the SEC related to the Loan Rule, it believes that it remains objective and impartial despite matters that may ultimately be determined to be inconsistent with these criteria and therefore it can continue to serve as the Trust’s registered public accounting firm. PWC has advised the Audit Committee that this conclusion is based in part on the following considerations: (1) the lenders to PwC have no influence over any Fund, or other entity within the Invesco Fund Complex, or its investment adviser; (2) none of the officers or trustees of the Invesco Fund Complex whose shares are owned by PwC lenders are associated with those lenders; (3) PwC understands that the shares held by PwC lenders are held for the benefit of and on behalf of its policy owners/end investors; (4) investments in funds such as the Invesco Fund Complex funds are passive; (5) the PwC lenders are part of various syndicates of unrelated lenders; (6) there have been no changes to the loans in question since the origination of each respective note; (7) the debts are in good standing and no lender has the right to take action against PwC, as borrower, in connection with the financings; (8) the debt balances with each lender are immaterial to PwC and to each lender; and (9) the PwC audit engagement team has no involvement in PwC’s treasury function and PwC’s treasury function has no oversight of or ability to influence the PwC audit engagement team. In addition, PwC has communicated that the lending relationships appear to be consistent with the lending relationships described in the no-action letter and that they are not aware of other relationships that would be implicated by the Loan Rule. In addition to relying on PwC’s August 18, 2016 letter and subsequent communications regarding its independence, the Trust intends to rely upon the no-action letter.

If in the future the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’s no-action letter, the Fund may need to take

other action in order for the Fund’s filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. In addition, the SEC has indicated that the no-action relief will expire 18 months from its issuance after which the Funds will no longer be able rely on the letter unless it’s term is extended or made permanent by the SEC Staff.

Item 5. Audit Committee of Listed Registrants.

(a) The Registrant has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, which consists solely of independent trustees. The Audit Committee members are: Marc M. Kole, Gary R. Wicker and Donald H. Wilson.

(b) Not applicable

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 is attached as Exhibit 99.CODEETH.

(a)(2) Certifications of the Registrant’s President and Treasurer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and 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 Rule 30a-2(b) under the Investment Company Act of 1940 and 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/ Daniel E. Draper

Name:	Daniel E. Draper
Title:	President
Date: 7/5/2017

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/ Daniel E. Draper

Name:	Daniel E. Draper
Title:	President
Date: 7/5/2017

By:   /s/ Steven Hill

Name:	Steven Hill
Title:	Treasurer
Date: 7/5/2017