Important Risk Information

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index.

The Funds are considered non-diversified and may be subject to greater risks than a diversified fund.

Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.

The Funds may contain securities in the financial, insurance, banking, and capital market sectors. Companies engaged in these sectors are subject to greater risks, and are more greatly impacted by market volatility, than more diversified investments.

PowerShares KBW International Financial Portfolio Risk Information The Fund’s investments in foreign financial institutions involve risks that are in addition to the risks associated with domestic securities.

PowerShares KBW Premium Yield Equity REIT Portfolio Risk Information Although the Funds will not invest in real estate directly, the REITS in which the Fund will invest will be subject to risks inherent in the direct ownership of real estate. At times, high yielding, dividend paying securities may be out of favor and underperform other market segments.

PowerShares KBW High Dividend Yield Financial Portfolio Risk Information There are certain risks inherent in investing in Business Development Corporations (“BDCs”). The Investment Company Act of 1940, as amended (the “1940 Act”), imposes certain restraints upon the operations of a BDC. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information exists for private and thinly traded companies and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Additionally, a BDC may only incur indebtedness 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. To the extent that the Fund invests a portion of its assets in BDCs, a shareholder in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly the expenses of the BDCs.

Note: Not all products available through all firms.