The PowerShares NASDAQ Internet Portfolio (Fund) is based on the NASDAQ Internet Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to track the performance of the largest and most liquid U.S.-listed companies engaged in internet-related businesses and that are listed on one of the major U.S. stock exchanges. The Underlying Index employs a modified market capitalization-weighted methodology based on the market capitalization ranking of the Underlying Index securities and is rebalanced quarterly. |

 |
Date |
|
9/1/2010 |
|
 |
Price |
|
28.66 |
|
 |
Bid/Ask Midpoint |
|
28.72 |
|
| |

 |
NAV |
|
28.73 |
|
 |
Bid/Ask Prem/Disc  |
|
-0.02 |
|
 |
Bid/Ask Prem/Disc |
|
-0.05% |
|
|
 |
 |
 |
 |
| As of 6/30/2010 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NASDAQ Internet Index | 32.54 | | | | 2.89 |
| NASDAQ-100 Index | 18.52 | | | | -6.60 |
| S&P 500 Index | 14.43 | | | | -11.60 |
 |
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 31.60 | | | | 2.32 |
| After Tax Held | 31.60 | | | | 2.30 |
| After Tax Sold | 20.54 | | | | 1.96 |
| Market Price | 31.66 | | | | 1.56 |
| 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 The results assume that no cash was added to or assets withdrawn from the Index.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 |
0 |
1 |
0 |
0 |
0 |
0 |
| 3/31/2010 |
61 |
0 |
0 |
0 |
0 |
0 |
0 |
| 12/31/2009 |
64 |
0 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2009 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| Fund Inception: 6/12/2008 |
 |
| Ex-Date |  | Record Date |  | Pay Date |  | $ / Share |  | Ordinary Income |  | Short Term Gains |  | Long Term Gains |  | Return of Capital |
| 12/19/2008 |  | 12/23/2008 |  | 12/31/2008 |  | 0.01258 |  | 0.01258 |  | N.A. |  | N.A. |  | N.A. | |
| |
| Distribution Information |
 |
| Multi-Cap Core Style | Fund | |
| Large-Cap Growth | 46.31 | |
| Mid-Cap Growth | 32.86 | |
| Mid-Cap Value | 1.87 | |
| Small-Cap Growth | 17.52 | |
| Small-Cap Value | 1.45 | |
| As of 9/1/2010 |

 |
Fund Holdings subject to change |
|
 |
eBay Inc. |
|
8.35% |
|
 |
Baidu Inc. ADS |
|
8.32% |
|
 |
Amazon.com Inc. |
|
7.86% |
|
 |
Google Inc. (Cl A) |
|
7.06% |
|
 |
Yahoo! Inc. |
|
6.49% |
|
 |
As of 9/1/2010 |
|
|
|
|
|

 | |
 |
priceline.com Inc. |
|
5.97% |
|
 |
Netflix Inc. |
|
4.52% |
|
 |
Akamai Technologies Inc. |
|
4.46% |
|
 |
Expedia Inc. |
|
4.23% |
|
 |
VeriSign Inc. |
|
3.94% |
|
|
 |

|  |  |

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, including those related to short selling and margin maintenance. The PowerShares NASDAQ Internet Portfolio's return may not match the return of the 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 NASDAQ Internet 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 NASDAQ Internet Portfolio will fluctuate so that shares, when sold, may be worth more or less than their original cost.
The Fund is considered to be concentrated
in the internet software and services sector.
This involves risks not associated with a more
diversified investment. These risks include, but
are not limited to, the internet software and
services sector can be significantly affected by
competitive pressures, such as technological
developments, fixed-rate pricing and the ability
to attract and retain skilled employees, and
the success of companies in the industry is
subject to the continued demand for internet
services. For example, as product cycles shorten
and manufacturing capacity increases, these
companies could become increasingly subject to
aggressive pricing, which hampers profitability.
Profitability can also be affected by changing
domestic and international demand, research
and development costs, availability and price of
components and product obsolescence.
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. You may purchase or sell PowerShares NASDAQ Internet 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 Internet Portfolio shares directly from the Trust in large block creation/redemption units.
The PowerShares NASDAQ Internet 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 Internet Portfolio is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. Usual brokerage commissions apply.
The PowerShares NASDAQ Internet Portfolio is not sponsored, endorsed, sold
or promoted by the NASDAQ OMX Group, Inc. or its affiliates) (NASDAQ
OMX, with its affiliates, are referred to as the "Corporations").
The Corporations have no liability in connection with the
administration, marketing or trading of the PowerShares NASDAQ Internet
Portfolio. "NASDAQ®" is a registered trademark and is used under license.
For more information regarding PowerShares NASDAQ Internet Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.