The PowerShares S&P 500<SPAN class=super>R</SUP></SPAN> High Beta Portfolio (Fund) is based on the S&P 500<SPAN class=super>R</SUP></SPAN> High Beta Index (Index). The Fund will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poors and consists of the 100 stocks from the S&P 500 Index with the highest sensitivity to market movements, or beta, over the past 12 months. Beta is a measure of how closely correlated a stocks returns are to that of the market, which for the Index includes all of the stocks included in the S&P 500<SPAN class=super>R</SUP></SPAN> Index. The Fund is rebalanced and reconstituted quarterly in Feb, May, Aug, and Nov.