Performance data quoted represents past performance. As stated in the Fund’s prospectus, the expense ratio of 0.25% is expressed as a unitary fee to cover expenses incurred in connection with managing the portfolio. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. See invescopowershares. com to find the most recent month-end performance numbers. After Tax Held represents total return after taxes on distributions and assumes Shares have not been sold. After Tax Sold represents total return after taxes on distributions and the sale of Fund Shares. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.

The fund’s heaviest overweight was in Canada (average weight 20.7%) which is held by the fund but not the MSCI EAFE Index. We feel this position contributed positively to the fund’s performance. Furthermore, we believe overweight positions in New Zealand and Singapore also contributed to the fund’s outperformance and that an underweight position to materials was the single largest contributor from a sector allocation perspective.

Across each of the low volatility funds, we found the main driver to outperformance and lower volatility was security selection. The stock selection wasn’t concentrated into single positions but rather was found across the entire portfolio. We feel that stock selection across numerous sectors and countries in most cases impacted performance as much as, if not more than the allocations across sectors and countries.

1,3,4 Source: S&P/LCD, as of May 31, 2012
2 The beginning universe of EELV’s underlying index is the S&P Emerging BMI Plus LargeMid Cap Index and the beginning universe of IDLV underlying index is the S&P Developed ex. US and South Korea LargeMid Cap BMI Index.
5 Source: FactSet, as of July 31, 2012
6,7,8 Source: FactSet, as of July 31, 2012

Important Risk Information

Unforeseen market conditions may prevent the funds from achieving their goal of providing low volatility.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The fund’s return may not match the return of the underlying index.

The prices of equity securities change in response to many factors, including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.

Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries.

The Fund’s use of a representative sampling approach will result in its holding a smaller number of bonds than are in the underlying Index, and may be subject to greater volatility.

Investing in securities of medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies.

The Funds are non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase the Funds’ volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Funds’ performance.

The Funds are considered non-diversified and may be subject to greater risks than a diversified fund.

Investors cannot directly invest in an index and that unmanaged index returns do not reflect any fees, expenses or sales charges, past performance cannot guarantee future results.

The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.

Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and have been licensed for use by Invesco PowerShares Capital Management LLC. The Fund is not sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Fund.

Note: Not all products available through all firms.

Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust II.

PowerShares is a registered trademark of Invesco PowerShares Capital Management LLC. Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.

Not FDIC Insured – No Bank Guarantee – May Lose Value

Shares are not individually redeemable and owners of the shares may acquire those shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 50,000 shares.

An investor should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the Fund, call 800 983 0903. Please read the prospectus carefully before investing.