Fund Description: Invesco Financial Preferred ETF, formerly PowerShares Financial Preferred Portfolio is an exchange-traded index fund or Index ETF which is a separate portfolio of the Invesco Exchange-Traded Fund Trust, formerly PowerShares Exchange-Traded Fund Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The Invesco Financial Preferred ETF seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the Wachovia Hybrid & Preferred Securities (WHPS) Financial Index. INDEX DESCRIPTION: The WHPS Financial Index is a market capitalization weighted index designed to track the performance of preferred securities issued in the U.S. market by financial institutions. The WHPS Financial Index is currently comprised of preferred securities of approximately 30 financial institutions that have received an industrial sector classification of "financial" from the Bloomberg Professional Service. Securities in the WHPS Financial Index will be selected by Wachovia Capital Markets, LLC (the "Index Provider") pursuant to a proprietary selection methodology. As of September 30, 2006, the WHPS Financial Index included companies with a market capitalization range of between $250 million and $1.5 billion. The WHPS Financial Index is adjusted monthly. FUND STRATEGY: The Fund will normally invest at least 80% of its total assets in preferred securities of financial institutions. The Fund will normally invest at least 90% of its total assets in preferred securities that comprise the WHPS Financial Index. The Fund, using an "indexing" investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Adviser seeks correlation over time of 0.95 or better between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index. However, under various circumstances, it may not be possible or practicable to purchase all of those securities in those weightings. In those circumstances, the Fund may purchase a sample of securities in the Index as a whole. There may also be instances in which the Adviser may choose to overweight another security in the Index, purchase securities not in the Index which the Adviser believes are appropriate to substitute for certain securities in the Index or utilize various combinations of other available investment techniques, in seeking to track the Index. The Fund may sell securities that are represented in the Index in anticipation of their removal from the Index or purchase securities not represented in the Index in anticipation of their addition to the Index. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.