ETF Research Center

Invesco Timber Index ETF is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond to the performance of the Beacon Global Timber Index, which is comprised of global timber companies.

FUND BASICS
Category	Global Equities
Fund Sponsor	Guggenheim
Website	guggenheiminvestments.com
Inception date	Nov 09, 2007
Assets (mns)	$110
Currency	USD
Expense ratio	55 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	79
Wgt avg mkt cap (mns)	$8,933
Large cap (>$10bn)	44.3%
Mid cap ($2-10bn)	44.9%
Small cap (<$2bn)	10.8%
Developed mkts	91.1%
Emerging mkts	8.9%

TOP TEN HOLDINGS
Total	48.0 %
MONDI PLC	5.3 %
WEYERHAEUSER CO	5.3 %
AMCOR PLC	5.2 %
AVERY DENNISON CORP	5.1 %
WESTROCK CO.	5.1 %
UPM-KYMMENE OYJ	5.0 %
INTERNATIONAL PAPER CO	4.8 %
PACKAGING CORP OF AMERICA	4.6 %
SMURFIT KAPPA GROUP PLC	4.1 %
STORA ENSO OYJ-R SHS	3.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	42.1 %
	BRITAIN	13.5 %
	FINLAND	11.4 %
	SWEDEN	6.0 %
	BRAZIL	4.9 %
	JAPAN	4.7 %
	IRELAND	4.1 %
	CANADA	4.0 %
	HONG KONG	1.4 %
	CHILE	1.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-7.1%	0.2%	3.9%	7.1%	2.8%

Market Correlations
versus...	Beta	R-squared
S&P500	1.18	66%
MSCI EAFE	1.35	71%
MSCI Emg. Mkts.	0.97	63%

Technical Indicators
Recent close	$24.83
30d moving avg.	$27.63
Annualized volatility	17.6%
Short interest (ETF)	0.1%
Relative strength (RSI)	34

Liquidity measures
Avg. volume (thou.)	29
Turnover	0.7%
Bid/Ask (% of price)	0.19%
ADV underlying (mns)	$1,235

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Invesco MSCI Global Timber ETF ETF based on the alternatives' overlap in portfolio holdings with CUT. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

CUT

Expense:

55 bp

ALTAR Score™:

9.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH CUT
Ticker	Fund Name	Overlap¹ vs CUT (%)	Expense ratio (bp)	Savings vs CUT (bp)	ALTAR Score™ (%)	ALTAR vs CUT (%)
WOOD	iShares Global Timber & Forestry ETF	49.8	46	9	10.5	+0.9
GNR	SPDR S&P Global Natural Resources ETF	17.8	40	15	7.5	-2.1
RTM	Invesco S&P 500 Equal Weight Materials ETF	16.5	40	15	6.7	-2.9
JHMA	John Hancock Multifactor Materials ETF	14.9	40	15	7.4	-2.2
FXZ	First Trust Materials AlphaDEX Fund	12.7	65	-10	8.4	-1.2
EFNL	iShares MSCI Finland Capped ETF	11.4	53	2	6.1	-3.5
FTRI	First Trust Indxx Global Natural Resources Income ETF	10.8	70	-15	11.5	+1.9
PYZ	Invesco DWA Basic Materials Momentum ETF	10.7	60	-5	5.7	-3.9
VAW	Vanguard Materials Index Fund	10.5	10	45	6.9	-2.7
FMAT	Fidelity MSCI Materials Index ETF	10.3	8	47	6.9	-2.7
XLB	Materials Select Sector SPDR Fund	10.2	13	42	6.6	-3.0
GRES	IQ Global Resources ETF	9.1	77	-22	7.9	-1.7
DVP	Deep Value ETF	7.4	59	-4	14.9	+5.3
RDIV	Invesco S&P Ultra Dividend Revenue ETF	7.2	39	16	10.7	+1.1
MXI	iShares Global Materials ETF	7.2	46	9	7.0	-2.6
SPHD	Invesco S&P 500 High Dividend Low Volatility ETF	5.7	30	25	8.8	-0.7
QVAL	Alpha Architect U.S. Quantitative Value ETF	5.7	49	6	12.8	+3.2
IGE	iShares North American Natural Resources ETF	5.5	46	9	5.1	-4.5
WBIY	WBI Power Factor High Dividend ETF	5.4	70	-15	12.3	+2.7

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2015	2016	2017	2018	2019	2020E	2021E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Invesco MSCI Global Timber ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.0	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	55	bp
Equals: ALTAR Score	9.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	CATEGORY AVERAGE	1.56

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.