The PowerShares S&P 500 BuyWrite Portfolio (Fund) is based on the CBOE S&P 500 BuyWrite Index (Index). The Fund will normally invest at least 80% of its total assets in common stocks of the 500 companies included in the S&P 500R Index and will write (sell) call options thereon. The Index measures the total rate of return of an S&P 500R covered call strategy. This strategy consists of holding a portfolio indexed to the S&P 500R (Reference Index) and selling a succession of written options, each with an exercise price at or above the prevailing price level of the S&P 500R. The CBOE S&P 500 BuyWrite Index provides a benchmark measure of the total return performance of this hypothetical strategy. Dividends paid on the component stocks underlying the S&P 500R and the dollar value of option premiums received from written options are reinvested. The Fund is rebalanced and reconstituted quarterly.