PowerShares S&P SmallCap Energy Portfolio

The investment seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600 Capped Energy Index (the underlying index). The fund generally will invest at least 90% of its total assets in the securities of small-capitalization U.S. energy companies that comprise the underlying index. These companies are principally engaged in the business of producing, distributing or servicing energy related products, including oil and gas exploration and production, refining, oil services and pipelines. It is non-diversified.