ETF Research Center

Invesco KBW High Dividend Yield Financial Portfolio seeks investment results that correspond (before fees and expenses) generally to the price and yield of the index called KBW Financial Sector Dividend Yield Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Dec 01, 2010
Assets (mns)	$294
Currency	USD
Expense ratio	242 bp
Distributions	Monthly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	40
Wgt avg mkt cap (mns)	$2,659
Large cap (>$10bn)	1.1%
Mid cap ($2-10bn)	45.4%
Small cap (<$2bn)	53.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	39.4 %
ORCHID ISLAND CAPITAL INC	4.8 %
ARLINGTON ASSET INVESTMENT-A	4.3 %
NEW RESIDENTIAL INVESTMENT	4.1 %
AGNC INVESTMENT CORP.	3.9 %
DYNEX CAPITAL INC	3.9 %
FS INVESTMENT CORP	3.8 %
TWO HARBORS INVESTMENT CORP.	3.8 %
WESTERN ASSET MORTGAGE CAPIT	3.7 %
AG MORTGAGE INVESTMENT TRUST	3.5 %
ANNALY CAPITAL MANAGEMENT IN	3.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.2 %
	BRITAIN	2.6 %
	BERMUDA	2.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
18.2%	6.7%	5.1%	--	7.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.87	51%
MSCI EAFE	0.82	37%
MSCI Emg. Mkts.	0.56	28%

Technical Indicators
Recent close	$21.60
30d moving avg.	$21.38
Annualized volatility	14.8%
Short interest (ETF)	0.4%
Short interest (Underlying)	3.8%
Relative strength (RSI)	61

Liquidity measures
Avg. volume (thou.)	51
Turnover	0.4%
Bid/Ask (% of price)	0.11%
ADV underlying (mns)	$982

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco KBW High Dividend Financial ETF based on the alternatives' overlap in portfolio holdings with KBWD. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

KBWD

Expense:

242 bp

ALTAR Score™:

10.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KBWD
Ticker	Fund Name	Overlap¹ vs KBWD (%)	Expense ratio (bp)	Savings vs KBWD (bp)	ALTAR Score™ (%)	ALTAR vs KBWD (%)
MORT	VanEck Vectors Mortgage REIT	32.5	42	200	10.7	+0.6
REM	iShares Mortgage Real Estate Capped	31.0	48	194	10.4	+0.4
SRET	Global X SuperDividend REIT	24.5	59	183	9.9	-0.2
KCE	SPDR KBW Capital Markets	14.5	35	207	8.0	-2.0
DIV	Global X SuperDividend US ETF	12.8	45	197	7.4	-2.6
SDIV	Global X Superdividend	12.7	58	184	11.0	+1.0
XSHD	Invesco S&P SmallCap High Div Low Volatility	10.7	30	212	8.1	-1.9
FDVV	Fidelity Core Dividend	7.9	29	213	7.3	-2.7
FXO	First Trust Financial Alphadex	7.8	63	179	7.9	-2.2
PEY	Invesco High Yield Equity Dividend Acheivers	7.6	53	189	6.7	-3.4
JKL	iShares Morningstar Small Cap Value	7.2	30	212	8.9	-1.1
CSB	Victory CEMP US Small Cap High Div Volatility Wtd	6.7	35	207	7.3	-2.8
BIZD	VanEck Vectors BDC Income	6.2	962	-720	1.7	-8.4
KBE	KBW Bank ETF	6.1	35	207	8.3	-1.8
ROOF	IQ US Real Estate Small Cap	6.0	70	172	8.5	-1.6
OUSM	O'Shares FTSE Russell Small Cap Quality Dividend	6.0	48	194	6.7	-3.3
FTXO	First Trust Nasdaq Bank	5.9	60	182	7.7	-2.3
DVY	iShares Select Dividend	5.8	39	203	8.0	-2.0
AUSF	Global X Adaptive U.S. Factor	5.8	27	215	6.9	-3.1
RFV	Invesco S&P Midcap 400 Pure Value	5.6	35	207	9.5	-0.6

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

	2014	2015	2016	2017	2018	2019E	2020E
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

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Invesco KBW High Dividend Financial
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	10.8	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	242	bp
Equals: ALTAR Score	10.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.75	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.