PowerShares Aerospace & Defense Portfolio (Fund) seeks investment results that correspond generally to the price and yield, before the Fund’s fees and expenses, of the SPADE Defense Index (the Index). The Index is designed to identify a group of companies involved in the development, manufacturing, operations and support of the United States defense, homeland security and aerospace operations. The modified market-cap portfolio is rebalanced quarterly and reconstituted annually. The Fund’s investment advisor is Invesco PowerShares Capital Management LLC.