PowerShares FTSE RAFI US 1000 Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the FTSE Research Affiliates Fundamentals US 1000 Index (the Index). The Index is designed to track the performance of the largest United States equities, selected based on four fundamental measures of firm size: book value, cash flow, sales and dividends. The 1000 equities with the highest fundamental strength are weighted by their fundamental scores. The fundamentally weighted portfolio is rebalanced and reconstituted annually. The Fund’s investment advisor is Invesco PowerShares Capital Management LLC.