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PowerShares ETFs

A Sector Investing Perspective

PowerShares ETFs are issued by PowerShares Exchange Traded Fund Trust. PowerShares Capital Management, LLC is the advisor and sponsor of the PowerShares ETF family of exchange traded funds. PowerShares Capital Management, LLC is a unit of UK-based investment management company, INVESCO PLC.

Breadth of Sector ETFs

PowerShares Exchange Traded Fund Trust offers 45 sector and industry-group ETFs.

Investment Approach

PowerShares sector and industry group ETFs commonly use the American Stock Exchange's Intellidex Index (i.e., PowerShares Dynamic series) and FTSE RAFI Sector Index (i.e., PowerShares FTSE RAFI series) as underlying indexes. Selected industry group ETFs cover unique niches and use other indexes.

The Intellidex Index is an equal dollar-weighted index constructed from stocks having capital appreciation potential. The Intellidex Index is dynamic in that its component stocks are chosen every quarter. PowerShares ETFs are rebalanced and reallocated each quarter to match the composition of Intellidex index.

The FTSE RAFI sector index is constructed using equities in a particular sector by equally weighting scores on each of the four fundamental metrics, book value, cash flow, dividends, and sales. The FTSE RAFI sector indices are reconstituted annually.

Expense Ratio

The maximum expense ratio for PowerShares ETFs is 0.60%.

Trading Size

PowerShares ETFs shares may be purchased in 'round lots' of 100 shares or smaller with the minimum number being one share.

AlphaProfit Take

PowerShares offers a group of ETFs that span several sectors and industry groups. PowerShares ETFs in the Dynamic series are 'dynamically' indexed with both growth and valuation-related parameters being used to select securities. The Dynamic series of PowerShares ETFs may whet the appetite of GARP investors.

By using fundamental weighting factors, PowerShares ETFs in the FTSE RAFI series seek to avoid over-weighting over-valued stocks and under-weighting under-valued stocks. Security selection in this series of PowerShares ETFs is more in sync with criteria used by value investors.

Some PowerShares ETFs target unique niches like alternative energy, private equity, and water resources. Investors seeking industry group-specific ETFs will find the PowerShares offerings worthy of consideration.

The expense ratio of PowerShares ETFs usually tends to be a tad higher than competing ETFs. Some PowerShares ETFs may not be highly liquid and may have relatively large bid-ask spreads.

AlphaProfit Newsletter and PowerShares ETF Recommendations

AlphaProfit Sector Investors' Newsletter is the premier resource for sector investors. The Newsletter offers PowerShares exchange traded fund recommendations. The Newsletter and its model portfolios have frequently been ranked #1 by Hulbert Financial Digest.

About AlphaProfit MoneyMatters

AlphaProfit MoneyMatters is a free e-letter distributed to registered users of AlphaProfit's website. The e-letter analyzes the economy, markets, and sectors and provides money-making insights on stocks, exchange-traded funds, and mutual funds. AlphaProfit MoneyMatters is edited by Dr. Sam Subramanian acclaimed for his financial acumen and analytical skills. Sign Up for ETF Newsletter.

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PowerShares ETFs

Sector: Consumer Discretionary

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Consumer Discretionary Sector Portfolio, PEZ	10/12/2006	Dynamic Consumer Discretionary Sector Intellidex, EZZ	60 U. S. companies in apparel retail, luxury goods, leisure & recreation, advertising
PowerShares Dynamic Leisure & Entertainment Portfolio, PEJ	06/23/2005	Dynamic Leisure & Entertainment Intellidex, DZL	30 U. S. leisure & entertainment companies including resturants, hotels, casinos, and cable TV operators
PowerShares Dynamic Media Portfolio, PBS	06/23/2005	Dynamic Media Intellidex, DZM	30 U. S. companies.engaged in development, production and distribution of goods & services for print media, radio, and TV
PowerShares Dynamic Retail Portfolio, PMR	10/26/2005	Dynamic Retail Intellidex, DWR	30 U. S. retailers including department & super stores, specialty stores and home improvement stores
PowerShares FTSE RAFI Consumer Services Sector Portfolio, PRFS	09/20/2006	FTSE RAFI Consumer Services Sector Index, FRUSCS	160 U. S. companies providing services involving food, drug, entertainment, media, travel & leisure industries

Sector: Consumer Staples

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Consumer Staples Sector Portfolio, PSL	10/12/2006	Dynamic Consumer Staples Sector Intellidex,EZS	60 U. S. companies engaged in manufacture of packaged foods, beverages, tobacco, household and personal products
PowerShares Dynamic Food & Beverage Portfolio, PBJ	06/23/2005	Dynamic Food & Beverage Intellidex, DZF	30 U. S. companies engaged in manufacture, sale & distribution of food, beverage, and agricultural products
PowerShares FTSE RAFI Consumer Goods Sector Portfolio, PRFG	09/20/2006	FTSE RAFI Consumer Goods Sector Index, FRUSCG	110 U. S. companies engaged in manufacture and distribution of automobiles, food & beverage, personal and household products

Sector: Energy

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Energy Exploration & Production Portfolio, PXE	10/26/2005	Dynamic Energy Exploration & Production Intellidex, DWE	30 U. S. companies engaged in exploration, production and refining of oil & natural gas
PowerShares Dynamic Energy Sector Portfolio, PXI	10/12/2006	Dynamic Energy Sector Intellidex, EZK	60 U. S. companies engaged in oil & gas exploration, production, refining and equipment & services
PowerShares Dynamic Oil & Gas Services Portfolio, PXJ	10/26/2005	Dynamic Oil Services Intellidex, DWO	30 U. S. companies providing equipment or services for exploration, production and processing of oil and natural gas
PowerShares FTSE RAFI Energy Sector Portfolio, PRFE	09/20/2006	FTSE RAFI Oil & Gas Index, FRUSOG	50 U. S. companies engaged in oil & gas exploration, production, refining and equipment & services
PowerShares Global Clean Energy Portfolio, PBD	06/13/2007	WilderHill New Energy Global Innovation Index, NEX	About 85 global companies focusing on renewable energy, energy conservation, energy conversion, and power delivery
PowerShares WilderHill Clean Energy Portfolio, PBW	03/03/2005	WilderHill Clean Energy Index, ECO	Around 40 global companies focusing on renewable energy, energy conservation, energy conversion, and power delivery
PowerShares WilderHill Progressive Energy Portfolio, PUW	10/24/2006	WilderHill Progressive Energy Index, WHPRO	About 36 companies engaged in technology improvements for fossil, nuclear and bio-fuels in use as energy sources

Sector: Financials

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Banking Portfolio, PJB	10/12/2006	Dynamic Banking Intellidex, DHD	30 U. S. banking companies including money center banks, regional banks, and savings & loans institutions
PowerShares Dynamic Financials Sector Portfolio, PFI	10/12/2006	Dynamic Financial Sector Intellidex, EZF	60 U. S. companies providing banking, investment, insurance and real estate finance services
PowerShares Dynamic Insurance Portfolio, PIC	10/26/2005	Dynamic Insurance Intellidex, DWJ	30 U. S. companies engaged in life, health and property & casualty insurance
PowerShares Financial Preferred Portfolio, PGF	12/01/2006	WHPS Financial Index, WHPSF	Preferred securities issued in U.S. by 30 leading financial institutions per Bloomberg Professional Service
PowerShares FTSE RAFI Financials Sector Portfolio, PRFF	09/20/2006	FTSE RAFI Financials Sector Index, FRUSF	225 U. S. companies engaged in commercial banking, investment banking, brokerage services, insurance, and real estate financing
PowerShares Listed Private Equity Portfolio, PSP	10/24/2006	Listed Private Equity Index, LSTPE	34 listed private equity companies engaged in investing or lending capital to privately held companies

Sector: Health Care

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Biotechnology & Genome Portfolio, PBE	06/23/2005	Dynamic Biotechnology & Genome Intellidex, DZO	30 U. S. companies engaged in development, manufacture & distribution of biotechnology products, processes, and services
PowerShares Dynamic Healthcare Sector Portfolio, PTH	10/12/2006	Dynamic Healthcare Intellidex, EZX	60 U. S. companies engaged in providing managed health care, and manufacture of drugs, biotech products, and medical supplies
PowerShares Dynamic Healthcare Services Portfolio, PTJ	10/12/2006	Dynamic Healthcare Services Intellidex, DHC	30 U. S. companies engaged in providing managed health care, health care services and operating health care facilities
PowerShares Dynamic Pharmaceuticals Portfolio, PJP	06/23/2005	Dynamic Pharmaceuticals Intellidex, DZR	30 U. S. companies engaged in research, development, manufacture or distribution of pharmaceuticals
PowerShares FTSE RAFI Health Care Sector Portfolio, PRFH	09/20/2006	FTSE RAFI Health Care Sector Index, FRUSHC	70 U. S. companies engaged in pharmaceuticals, biotechnology products, and medical equipment, managed health care

Sector: Industrials

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Aerospace & Defense Portfolio, PPA	10/26/2005	SPADE Defense Index, DXS	About 57 U. S. companies engaged in defense, military, homeland security, and space operations
PowerShares Cleantech Portfolio, PZD	10/24/2006	Cleantech Index, CTIUS	75 U. S. companies that develop knowledge-based products or services in air quality, energy conservation, and water purification
PowerShares Dynamic Building & Construction Portfolio, PKB	10/26/2005	Dynamic Building & Construction Intellidex, DWC	30 U. S. companies engaged in building & construction and manufacture of building materials & construction machinery
PowerShares Dynamic Industrials Sector Portfolio, PRN	10/12/2006	Dynamic Industrials Intellidex, EZL	60 U. S. companies including industrial conglomerates engaged in manufacture of aerospace, construction, and farm equipment
PowerShares FTSE RAFI Industrials Sector Portfolio, PRFN	09/20/2006	FTSE RAFI Industrials Sector Index, FRUSIN	150 U. S. companies and industrial conglomerates engaged in manufacture of aerospace, construction, and farm equipment

Sector: Information Technology

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Hardware & Consumer Electronics Portfolio, PHW	12/06/2005	Dynamic Hardware & Consumer Electronics Intellidex, DZH	30 U. S. companies engaged in manufacture of computers, peripherals and consumer electronics products
PowerShares Dynamic Networking Portfolio, PXQ	06/23/2005	Dynamic Networking Intellidex, DZN	30 U. S. companies engaged in production & distribution of electronic networking products, services or technologies
PowerShares Dynamic Semiconductors Portfolio, PSI	06/23/2005	Dynamic Semiconductor Intellidex, DZE	30 U. S. companies engaged in manufacture of semiconductors and semiconductor capital equipment
PowerShares Dynamic Software Portfolio, PSJ	06/23/2005	Dynamic Software Intellidex, DZC	30 U. S. companies engaged in development of application, systems, & Internet software and provision of IT services
PowerShares Dynamic Technology Sector Portfolio, PTF	10/12/2006	Dynamic Technology Sector Intellidex, EZV	60 U. S. companies engaged in computer hardware & software, Internet, semiconductors, and communication technologies
PowerShares FTSE RAFI Telecom & Technology Sector Portfolio, PRFQ	09/20/2006	FTSE RAFI Telecom & Technology Sector Index, FRUST	110 U. S. companies engaged in communication services & equipment, computer hardware & software, and semiconductors
PowerShares Lux Nanotech Portfolio, PXN	10/26/2005	LUX Nanotech Index, LUXNI	26 U. S. companies engaged in development & applications of nanotechnology or supplying tools for nanotechnology research

Sector: Materials

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Basic Materials Sector Portfolio, PYZ	10/12/2006	Dynamic Basic Materials Sector Intellidex, EZB	60 U. S. companies engaged in mining, and manufacture of chemicals, construction materials, metals, paper and wood products
PowerShares FTSE RAFI Basic Materials Sector Portfolio, PRFM	09/20/2006	FTSE RAFI Basic Materials Sector Index, FRUSBM	50 U. S. companies engaged in mining and production of metals, minerals, chemicals, forest products and precious metals

Sector: Telecommunication Services

PowerShares ETF Telecommunication Services

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Telecommunications & Wireless Portfolio, PTE	12/06/2005	Dynamic Telecommunications & Wireless Intellidex, DWY	30 U. S. companies providing wireline, wireless, satellite and cable services for voice, data and video communication

Sector: Utilities

PowerShares ETF	Inception Date	Underlying Index	Index Description
PowerShares Dynamic Utilities Portfolio, PUI	10/26/2005	Dynamic Utilities Intellidex, DWU	30 U. S. utility companies supplying electricity, water or natural gas
PowerShares FTSE RAFI Utilities Sector Portfolio, PRFU	09/20/2006	FTSE RAFI Utilities Sector Index, FRUSU	70 U. S. utility companies supplying electricity, water or natural gas
PowerShares Global Water Portfolio, PIO	06/13/2007	Palisades Global Water Index, PHWI	About 40 global companies engaged in potable water supply, water treatment, and water consumption-related technology and services
PowerShares Water Resources Portfolio, PHO	12/06/2005	Palisades Water Index, ZWI	About 38 global companies engaged in potable water supply, water treatment, and water consumption-related technology and services

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The above content is for informational purposes only. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from any of the entities connected with PowerShares ETFs. PowerShares is the servicemark of PowerShares Capital Management, LLC.