The PowerShares Preferred Portfolio (Fund) is based on The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index (Index). The Fund will normally invest at least 90% of its total assets in securities that comprise the Index. The Index is designed to replicate the total return of a diversified group of investment-grade preferred securities. (Securities must be investment-grade, based on an average of three leading ratings agencies: Moody's, S&P and Fitch). The Index is rebalanced on a monthly basis.

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Date   9/1/2010   Price   14.42   Bid/Ask Midpoint   14.40		NAV   14.38   Bid/Ask Prem/Disc   0.02   Bid/Ask Prem/Disc   0.14%

As of 6/30/2010
	Index History (%)	1 Year	3 Year	5 Year	10 Year	Fund Inceptiona
	The BofA ML Core Fixed Rate Preferred Securities Index	21.64	-5.54			-6.41
	S&P Preferred Index	26.71	-1.52			0.04
	S&P 500 Index	14.43	-9.80			-9.22
	Fund History (%)	1 Year	3 Year	5 Year	10 Year	Fund Inceptiona
	NAV	19.56				-7.73
	After Tax Held	16.43				-10.49
	After Tax Sold	12.63				-8.13
	Market Price	19.68				-8.18

Monthly Standardized Report

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 The results assume that no cash was added to or assets withdrawn from the Index.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.

Ex-Date Record Date Pay Date $ / Share Ordinary Income Short Term Gains Long Term Gains Return of Capital 8/13/2010 8/17/2010 8/31/2010 0.07888 0.07888 N.A. N.A. N.A. 7/15/2010 7/19/2010 7/30/2010 0.07799 0.07799 N.A. N.A. N.A. 6/15/2010 6/17/2010 6/30/2010 0.07641 0.07641 N.A. N.A. N.A. 5/14/2010 5/18/2010 5/28/2010 0.07762 0.07762 N.A. N.A. N.A. 4/15/2010 4/19/2010 4/30/2010 0.07877 0.07877 N.A. N.A. N.A. 3/15/2010 3/17/2010 3/31/2010 0.07700 0.07700 N.A. N.A. N.A. 2/12/2010 2/17/2010 2/26/2010 0.07820 0.07820 N.A. N.A. N.A. 1/15/2010 1/20/2010 1/29/2010 0.08010 0.08010 N.A. N.A. N.A. 12/15/2009 12/17/2009 12/31/2009 0.14329 0.14329 N.A. N.A. N.A. 11/13/2009 11/17/2009 11/30/2009 0.08033 0.08033 N.A. N.A. N.A. 10/15/2009 10/19/2009 10/30/2009 0.08049 0.08049 N.A. N.A. N.A. 9/15/2009 9/17/2009 9/30/2009 0.08050 0.08050 N.A. N.A. N.A. 8/14/2009 8/18/2009 8/31/2009 0.08350 0.08350 N.A. N.A. N.A. 7/15/2009 7/17/2009 7/31/2009 0.08309 0.08309 N.A. N.A. N.A. 6/15/2009 6/17/2009 6/30/2009 0.08151 0.08151 N.A. N.A. N.A. 5/15/2009 5/19/2009 5/29/2009 0.09140 0.09140 N.A. N.A. N.A. 4/15/2009 4/17/2009 4/30/2009 0.08179 0.08179 N.A. N.A. N.A. 3/13/2009 3/17/2009 3/31/2009 0.08897 0.08897 N.A. N.A. N.A. 2/13/2009 2/18/2009 2/27/2009 0.09448 0.09448 N.A. N.A. N.A. 1/15/2009 1/20/2009 1/30/2009 0.10051 0.10051 N.A. N.A. N.A. 12/15/2008 12/17/2008 12/31/2008 0.11707 0.11707 N.A. N.A. N.A. 11/14/2008 11/18/2008 11/28/2008 0.12500 0.12500 N.A. N.A. N.A. 10/15/2008 10/17/2008 10/31/2008 0.07614 0.07614 N.A. N.A. N.A. 9/15/2008 9/17/2008 9/30/2008 0.10080 0.10080 N.A. N.A. N.A. 8/15/2008 8/19/2008 8/29/2008 0.11874 0.11874 N.A. N.A. N.A. 7/15/2008 7/17/2008 7/31/2008 0.11752 0.11752 N.A. N.A. N.A. 6/13/2008 6/17/2008 6/30/2008 0.11767 0.11767 N.A. N.A. N.A. 5/15/2008 5/19/2008 5/30/2008 0.11778 0.11778 N.A. N.A. N.A. 4/15/2008 4/17/2008 4/30/2008 0.11678 0.11678 N.A. N.A. N.A. 3/14/2008 3/18/2008 3/31/2008 0.11780 0.11780 N.A. N.A. N.A. 2/15/2008 2/19/2008 2/29/2008 0.11800 0.11800 N.A. N.A. N.A.

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^†Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change.

Performance data quoted represents past performance. 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 Preferred Portfolio's return may not match the return of The BofA Merrill Lynch Core Fixed Rate Preferred Securities 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 BofA Merrill Lynch Core Fixed Rate Preferred Securities 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 Preferred 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 The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index for a number of reasons. For example, the Fund incurs a number of operating expenses not applicable to The BofA Merrill Lynch Core Fixed Rate Preferred Securities 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's use of a representative sampling approach will result in its holding a smaller number of bonds than are in the underlying Index, and may be subject to greater volatility.

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.

The Fund, using an "indexing" investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The Adviser seeks correlation over time of 0.95% or better between the Fund's performance and the performance of the Underlying Index. The Adviser will use a "sampling" methodology in seeking to achieve the Fund's investment objective. Sampling involves the use of quantitative analysis to select securities from the Underlying Index to obtain a representative sample of municipal securities that have in the aggregate investment characteristics similar to the Underlying Index based on such factors as duration, maturity, credit quality, yield and coupon. The Adviser generally expects the Fund to hold less than the total number of securities in the Underlying Index but reserves the right to hold as many securities as it believes necessary to achieve the Fund's investment objective.

The Index may include small and medium-sized companies. Investing in securities of these companies involves greater risk than is customarily associated with investing in more established companies. These companies' stocks may be more volatile and less liquid than those of more established companies. These stocks may have returns that vary, sometimes significantly, from the overall stock market. Often smaller and medium capitalization companies and the industries in which they are focused are still evolving, and while this may offer better growth potential than larger, more established companies, it may also make them more sensitive to changing market conditions.

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 Preferred 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 Preferred Portfolio shares directly from the Trust in large block creation/redemption units. The PowerShares Preferred 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 50,000 Shares.

The S&P Preferred Index is an unmanaged index consisting of U.S.-listed preferred stocks. 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 Preferred Portfolio is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. Usual brokerage commissions apply.

"BofA Merrill Lynch" and "The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index" are reprinted with permission. ©Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated ("BofA Merrill Lynch"). All rights reserved. "BofA Merrill Lynch" and "The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index" are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PowerShares on behalf of the PowerShares Preferred Portfolio that is based on The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch's affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch's affiliates an adviser to the PowerShares Preferred Portfolio. BofA Merrill Lynch and BofA Merrill Lynch's affiliates make no representation, express or implied, regarding the advisability of investing in the PowerShares Preferred Portfolio or The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index and trade names which are composed by BofA Merrill Lynch without regard to PowerShares, the PowerShares Preferred Portfolio or any investor. BofA Merrill Lynch and BofA Merrill Lynch's affiliates do not provide investment advice to PowerShares or the PowerShares Preferred Portfolio and are not responsible for the performance of the PowerShares Preferred Portfolio.

For more information regarding PowerShares Preferred Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.