Fund Description: Invesco FTSE RAFI US 1000 ETF, formerly PowerShares FTSE RAFI US 1000 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 FTSE RAFI US 1000 ETF seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the FTSE RAFI US 1000 Index (AMEX ticker symbols: Index: FR10, Intraday NAV: PRF.IV). INDEX DESCRIPTION: The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures. An overall weight is calculated for each firm by equally-weighting each fundamental measure. For companies that have never paid dividends, that measure will be excluded from the average. Each of the 1000 equities with the highest fundamental weight are then selected and assigned a weight equal to its fundamental weight. As of September 30, 2005, the FTSE RAFI US 1000 Index included companies with a market capitalization range of between $270.0 million and $260.0 billion. FTSE International Limited ("FTSE") is the Index Provider for the Fund. FUND STRATEGY: The Fund will normally invest at least 90% of its total assets in common stocks that comprise the FTSE RAFI US 1000 Index. The 90% investment policy noted above is non-fundamental and requires 60 days' prior written notice to shareholders before it can be changed. The Fund, using an "indexing" investment approach, attempts to replicate, before expenses, the performance of the FTSE RAFE US 1000 Index. The Adviser seeks a correlation of 0.95 or better between the Fund's performance and the performance of the FTSE RAFE US 1000 Index; a figure of 1.00 would represent perfect correlation. The Fund expects to generally invest in the stocks comprising the FTSE RAFE US 1000 Index in proportion to their weightings in the FTSE RAFE US 1000 Index. However, it is possible that the Adviser may determine to utilize instead a "sampling" methodology in seeking its objective. In those circumstances, the Fund may purchase a sample of stocks in the FTSE RAFE US 1000 Index as a whole. Sampling means that the Adviser uses quantitative analysis to select stocks from the FTSE RAFI US 1000 Index universe to obtain a representative sample of stocks that resemble the FTSE RAFI US 1000 Index in terms of key risk factors, performance attributes and other characteristics. These include industry weightings, market capitalization and other financial characteristics of stocks. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund. In addition, there may be instances in which the Adviser may choose to overweight another stock in the FTSE RAFE US 1000 Index, purchase securities not in the FTSE RAFE US 1000 Index which the Adviser believes are appropriate to substitute for certain securities in the FTSE RAFE US 1000 Index or utilize various combinations of other available investment techniques, in seeking to track the FTSE RAFE US 1000 Index. The Fund may sell stocks that are represented in the FTSE RAFE US 1000 Index in anticipation of their removal from the FTSE RAFE US 1000 Index, or purchase stocks not represented in the FTSE RAFE US 1000 Index in anticipation of their addition to the FTSE RAFE US 1000 Index. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.