The PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (Fund) is based on the FTSE RAFI Developed Asia Pacific ex Japan Index (Index). The Fund will normally invest at least 90% of its total assets in securities that
comprise the Index and ADRs based on the securities in the Index. The Index is designed to track the performance of the largest
equities of companies domiciled in the Asia Pacific region (excluding Japan), selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. The 1000 equities with the highest fundamental strength are weighted according to their fundamental scores. The fundamentally weighted portfolio is rebalanced and
reconstituted annually. |

 |
Date |
|
9/1/2010 |
|
 |
Price |
|
46.79 |
|
 |
Bid/Ask Midpoint |
|
46.83 |
|
| |

 |
NAV |
|
46.57 |
|
 |
Bid/Ask Prem/Disc  |
|
0.25 |
|
 |
Bid/Ask Prem/Disc |
|
0.54% |
|
|
 |
 |
 |
 |
| As of 6/30/2010 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| FTSE RAFI Asia Pacific ex-Japan Index | 23.68 | -1.35 | | | -1.48 |
| MSCI Pacific ex Japan Index | 18.43 | -5.61 | | | -5.61 |
| MSCI EAFE Index | 5.92 | -13.38 | | | -13.38 |
| S&P 500 Index | 14.43 | -9.80 | | | -9.80 |
 |
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 22.33 | -2.27 | | | -2.40 |
| After Tax Held | 20.43 | -3.55 | | | -3.67 |
| After Tax Sold | 14.59 | -2.64 | | | -2.74 |
| Market Price | 20.76 | -3.06 | | | -2.87 |
| aFund and underlying Index returns are based on the inception date of the Fund. Returns for the benchmark indexes are based on the closest month end to the Fund's inception date. |
Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV.
|
 |
| As of 6/30/2010 |
 |
| Data beginning 6/30/2007, the month end following Fund inception |
| An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
|
 |
| |
Bid/Ask MidPoint Above NAV |
Bid/Ask Midpoint Below NAV |
| Quarter |
Days  |
50-99 Basis Points |
100-199 Basis Points |
H200 Basis Points |
50-99 Basis Points |
100-199 Basis Points |
H200 Basis Points |
| 6/30/2010 |
63 |
12 |
3 |
0 |
12 |
9 |
2 |
| 3/31/2010 |
61 |
9 |
8 |
1 |
9 |
4 |
1 |
| 12/31/2009 |
64 |
18 |
14 |
1 |
9 |
2 |
0 |
| 9/30/2009 |
63 |
8 |
18 |
1 |
6 |
4 |
0 |
| Fund Inception: 6/25/2007 |
 |
| Multi-Cap Core Style | Fund | |
| Large-Cap Growth | 24.19 | |
| Large-Cap Value | 66.51 | |
| Mid-Cap Growth | 2.61 | |
| Mid-Cap Value | 5.99 | |
| Small-Cap Value | 0.65 | |
| Unclassified style data | 0.04 | |
| As of 9/1/2010 |
 |
| Country |
 |
Australia |
42.09% |
|
 |
South Korea |
34.01% |
|
 |
Hong Kong |
14.69% |
|
 |
Singapore |
7.01% |
|
 |
Bermuda |
0.94% |
|
 |
New Zealand |
0.87% |
|
 |
China |
0.34% |
|
 |
Unclassified |
0.04% |
|
|
| As of 9/1/2010 |

 |
Fund Holdings subject to change |
|
 |
BHP Billiton Ltd. |
|
5.53% |
|
 |
Samsung Electronics Co. Ltd. |
|
5.23% |
|
 |
Commonwealth Bank of Australia |
|
3.42% |
|
 |
National Australia Bank Ltd. |
|
3.41% |
|
 |
Australia & New Zealand Banking Group Ltd. |
|
2.90% |
|
 |
As of 9/1/2010 |
|
|
|
|
|

 | |
 |
Rio Tinto Ltd. |
|
2.69% |
|
 |
Westpac Banking Corp. |
|
2.61% |
|
 |
SK Holdings Co. Ltd. |
|
2.20% |
|
 |
POSCO |
|
2.18% |
|
 |
Hyundai Motor Co. Ltd. |
|
2.09% |
|
|
 |

|  |  |

As of 9/1/2010
Performance data quoted represents past performance. As stated in the Fund's prospectus, the expense ratio of 0.80% is expressed as a unitary fee to cover expenses incurred in connection with managing the portfolio. Past performance is no guarantee of future results. PowerShares Exchange-Traded Fund Trust II portfolios are not actively
managed and are subject to risk similar to stocks, including those related to short selling and margin maintenance. The PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio's return may not match the return of the FTSE RAFI Asia Pacific ex-Japan Index, as outlined in the prospectus. For actual Fund performance, please contact your financial advisor. Index performance does not reflect charges and expenses associated with the Fund or brokerage commissions associated with buying and selling Fund shares.
The value of the stocks in the FTSE RAFI Asia Pacific ex-Japan Index is likely to be more volatile than stocks of other issues. An investor in the Fund should anticipate that the value of their shares will increase or decease in value more or less in correlation with increases and decreases in the value of the Index. There are risks involved with investing in ETFs including the possible loss of money. The investment return and principal value of an investment in PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio will fluctuate so that shares, when sold, may be worth more or less than their original cost.
The Fund's return may not match the return of the FTSE RAFI Asia Pacific ex-Japan Index for a number of reasons. For example, the Fund incurs a number of operating expenses not applicable to the FTSE RAFI Asia Pacific ex-Japan Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in composition of the Index.
The Fund may not be fully invested at times, either as a result of cash flows into the fund or reserves of cash held by the Fund to meet redemptions and expenses. If the Fund utilizes a sampling approach or futures or other derivative positions, its return may not correlate as well with the return on the FTSE RAFI Asia Pacific ex-Japan Index, as would be the case if it purchased all the stocks in the FTSE RAFI Asia Pacific ex-Japan Index, with the same weightings as the Index.
Investing in securities of small and medium-sized companies involves greater risk than is customarily associated with investing in more established companies.
Please review a copy of the prospectus carefully prior to investing. The prospectus provides a detailed explanation of the costs of investing, including the Total Net Annual Fund Operating Expenses. You may purchase or sell PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio shares throughout the day through any brokerage account, which will result in typical brokerage commissions. However, only Authorized Participants may create or redeem PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio shares directly from the Trust in large block creation/redemption units. The PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio is obligated to distribute portfolio gains to shareholders, and trading Fund shares may generate tax consequences.
Shares are not individually redeemable and owners of the Shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
The MSCI Pacific Free ex Japan Index, the
MSCI EAFE® Index and the S&P 500® Index are
unmanaged indexes considered representative of
stocks of Asia Pacific countries excluding Japan;
stocks of Europe, Australasia and the Far East; and
the U.S. stock market, respectively.
Except where indicated otherwise, all information is as of date noted, and Invesco PowerShares Capital Management LLC is either the source of such data or has obtained it from third-party financial reporting sources.
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. Usual brokerage commissions apply.
Shares of the Fund are not in any way sponsored, endorsed, sold or
promoted by FTSE International Limited ("FTSE"), or by the London Stock Exchange Plc ("Exchange"), or by The Financial Times Limited ("FT") or by Research Affiliates LLC ("RA"), and neither FTSE nor Exchange nor FT nor RA makes any warranty or representation whatsoever, expressly or implicitly, as to the results to be obtained
from the use of the FTSE RAFI Asia-Pacific Ex-Japan Index ("Index") and/or the figure at which the said Index stands at any particular time on any particular day
or otherwise. The Index is compiled and calculated by FTSE in conjunction with RA; however, neither FTSE nor Exchange nor FT nor RA shall be liable (whether in
negligence or otherwise) to any person for any error in the Index, and neither FTSE nor the Exchange nor FT nor RA shall be under any obligation to advise any
person of any error therein. "FTSE"® is a registered trademark of the London Stock Exchange Plc and The Financial Times Limited and is used under icence. "Research Affiliates" and "Fundamental Index" are trademarks of RA.
For more information regarding PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.