The PowerShares Dynamic Food & Beverage Portfolio (Fund) is based on the Dynamic Food & Beverage IntellidexSM</SUP> 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 provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Underlying Intellidex is comprised of stocks of 30 U.S. food and beverage companies. These are companies that are principally engaged in the manufacture, sale or distribution of sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. The Fund is rebalanced and reconstituted quarterly in Feb, May, Aug, and Nov.