The PowerShares S&P SmallCap Consumer Staples Portfolio (Fund) is based on the S&P SmallCap 600 Capped Consumer Staples Index<SPAN class=super>R</SPAN> (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 measure the overall performance of common stocks of U.S. consumer staples companies. These companies are principally engaged in the business of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverage, and nondiscretionary retail. <BR><BR>The Index is a subset of the S&P SmallCap 600 Index, which is a float-adjusted, market-capitalization-weighted index reflecting the U.S. small-cap market. The Fund is rebalanced and reconstituted quarterly.