The PowerShares NASDAQ-100 BuyWrite Portfolio (Fund) is based on the CBOE NASDAQ-100 BuyWrite Index™ (Index). The Fund will normally invest at least 80% of its total assets in common stocks of the 100 companies included in the NASDAQ-100® Index and will write (sell) call options thereon. The Index measures the potential returns of a theoretical portfolio including the NASDAQ-100 Index stocks on which NASDAQ-100 Index call options are systematically written (sold) against the portfolio through a buy-write strategy. A buy-write, also called a covered call, generally is considered to be an investment strategy in which an investor buys a stock or basket of stocks, and also sells call options that correspond to the stock or basket of stocks. |

 |
Date |
|
9/1/2010 |
|
 |
Price |
|
21.11 |
|
 |
Bid/Ask Midpoint |
|
21.19 |
|
| |

 |
NAV |
|
21.21 |
|
 |
Bid/Ask Prem/Disc  |
|
-0.03 |
|
 |
Bid/Ask Prem/Disc |
|
-0.14% |
|
|
 |
 |
 |
 |
| As of 6/30/2010 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| CBOE Nasdaq-100 BuyWrite Index | 6.42 | -6.73 | | | -5.78 |
| NASDAQ-100 Index | 18.52 | -2.88 | | | -6.60 |
| S&P 500 Index | 14.43 | -9.80 | | | -11.60 |
 |
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 5.15 | | | | -7.04 |
| After Tax Held | 3.27 | | | | -7.86 |
| After Tax Sold | 3.64 | | | | -6.32 |
| Market Price | 3.50 | | | | -7.01 |
| 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 6/30/2008, 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 |
3 |
2 |
1 |
0 |
0 |
0 |
| 3/31/2010 |
61 |
7 |
1 |
0 |
5 |
0 |
0 |
| 12/31/2009 |
64 |
12 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2009 |
63 |
7 |
12 |
13 |
2 |
1 |
0 |
| Fund Inception: 6/12/2008 |
 |
| Ex-Date |  | Record Date |  | Pay Date |  | $ / Share |  | Ordinary Income |  | Short Term Gains |  | Long Term Gains |  | Return of Capital |
| 12/28/2009 |  | 12/30/2009 |  | 12/31/2009 |  | 0.14639 |  | N.A. |  | N.A. |  | 0.14639 |  | N.A. |
| 12/18/2009 |  | 12/22/2009 |  | 12/31/2009 |  | 1.11926 |  | 1.11926 |  | N.A. |  | N.A. |  | N.A. | |
| |
| Distribution Information |
 |
| Multi-Cap Core Style | Fund | |
| Large-Cap Growth | 72.49 | |
| Large-Cap Value | 8.16 | |
| Mid-Cap Growth | 18.11 | |
| Mid-Cap Value | 2.81 | |
| Unclassified style data | -1.58 | |
| As of 9/1/2010 |

 |
Fund Holdings subject to change |
|
 |
Apple Inc. |
|
19.29% |
|
 |
QUALCOMM Inc. |
|
4.76% |
|
 |
Microsoft Corp. |
|
4.38% |
|
 |
Google Inc. (Cl A) |
|
4.17% |
|
 |
Oracle Corp. |
|
2.88% |
|
 |
As of 9/1/2010 |
|
|
|
|
|

 | |
 |
Cisco Systems Inc. |
|
2.51% |
|
 |
Amazon.com Inc. |
|
2.38% |
|
 |
Teva Pharmaceutical Industries Ltd. ADS |
|
2.29% |
|
 |
Intel Corp. |
|
2.15% |
|
 |
Gilead Sciences Inc. |
|
1.76% |
|
|
 |

|  |  |

As of 9/1/2010
Performance data quoted represents past performance. Past performance is no guarantee of future results. PowerShares Exchange-Traded Fund Trust portfolios are not actively
managed and are subject to risk similar to stocks and covered call options, as
well as those risks related to short selling and margin maintenance. The PowerShares NASDAQ-100 BuyWrite Portfolio's return may not match the return of the CBOE NASDAQ-100
BuyWrite Index, as outlined in the prospectus, including costs in buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in composition of the Underlying Index. For actual Fund performance, please contact your financial advisor. The Underlying Index performance does not reflect charges and expenses associated with the Fund or brokerage commissions associated with buying and selling Fund shares.
The options investment strategy used by the Fund is not suitable for all investors.
There are additional risks involved in writing (selling) covered call options on the stocks of the NASDAQ-100 Index. The Fund, by writing covered call options on this Reference Index, will give up the opportunity to benefit from potential increases in the value of the index stocks above the exercise prices of the options, but will continue to bear the risk of declines in the value
of the Reference Index. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the Reference Index over time. In addition, exchanges may suspend
trading of options in volatile markets. If trading is suspended, the Fund may be unable to write (sell) options at times that may be desirable or advantageous for the Fund to do so.
Trading suspensions may limit the Fund's ability to achieve its investment objectives. The Fund may be required to sell investments from its portfolio to make cash settlement on (or
transfer ownership of an Index stock to physically settle) any options that are exercised. Such sales (or transfers) may occur at inopportune times, and the Fund may incur transaction
costs that increase its expenses.
The net asset value (NAV) of the Fund's shares will generally fluctuate with changes in the
market value of the Fund's holdings. The market prices of the shares will
generally fluctuate in accordance with changes in NAV as well as the relative
supply of and demand for the shares on the exchange. The Adviser cannot
predict whether the shares will trade below, at or above their NAV. Price
differences may be due, in large part, to the fact that supply and demand forces
at work in the secondary trading market for the shares will be closely related to,
but not identical to, the same forces influencing the prices of the securities of the Fund's Underlying Index trading individually or in the aggregate at any point in
time. 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 NASDAQ-100 BuyWrite Portfolio will fluctuate so that shares, when sold, may be worth more or less than their original cost.
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 CBOE NASDAQ-100
BuyWrite Index, as would be the case if it purchased all the securities in the CBOE NASDAQ-100
BuyWrite Index, with the same weightings as the Reference Index.
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 Annual Fund Operating Expenses. You may purchase or sell PowerShares NASDAQ-100 BuyWrite 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 NASDAQ-100 BuyWrite Portfolio shares directly from the Trust in large block creation/redemption units. The PowerShares NASDAQ-100 BuyWrite 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 NASDAQ-100 Index includes 100 of the largest domestic and international nonfinancial securities
listed on The Nasdaq Stock Market based on
market capitalization. The S&P 500® Index is an
unmanaged index considered representative of the
U.S. stock market.
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 NASDAQ-100 BuyWrite Portfolio is subject to risk similar to stocks and covered call options, as well as those risks related to short selling and margin maintenance. Shares are not FDIC insured, may lose value and have no bank guarantee.
Usual brokerage commissions apply.
"CBOE®" is a registered trademark of and "BuyWrite" is a trademark of Chicago Board Options Exchange, Incorporated ("CBOE"). These marks have been licensed for use by PowerShares. The PowerShares NASDAQ-100 BuyWrite Portfolio is not sponsored, endorsed, sold or promoted by CBOE, and CBOE make no representation regarding the advisability of investing in the PowerShares NASDAQ-100 BuyWrite Portfolio.
For more information regarding PowerShares NASDAQ-100 BuyWrite Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.