The PowerShares FTSE NASDAQ Small Cap Portfolio (Ticker: PQSC) seeks to provide investment results that, before expenses, correspond to the performance of the FTSE NASDAQ Small Cap Index. The index is designed to track the performance of the smallest companies in the FTSE NASDAQ Index universe of listed companies ranked by market capitalization. A company is considered to be “small” if it falls within the smallest 10% of companies in the FTSE NASDAQ Index universe of listed companies. Eligible securities include common stock, american depository receipts (“ADRs”), real estate investment trusts and tracking stocks. The index is adjusted annually.