PowerShares S&P SmallCap Materials Portfolio

The investment seeks to track the investment results that (before fees and expenses) of the S&P SmallCap 600 Capped Materials Index (the underlying index). The fund generally will invest at least 90% of its total assets in the securities of small-capitalization U.S. basic materials companies that comprise the underlying index. These companies are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals. The fund is non-diversified.