ETF Research Center

Invesco KBW Regional Banking Portfolio is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the KBW Regional Banking Index (the "Underlying Index"). The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Tax Exempt Securities Trust In
Website	www.powershares.com
Inception date	Nov 01, 2011
Assets (mns)	$67
Currency	USD
Expense ratio	35 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	51
Wgt avg mkt cap (mns)	$3,957
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	93.4%
Small cap (<$2bn)	6.7%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	29.0 %
COMMERCE BANCSHARES INC	4.0 %
SIGNATURE BANK	3.9 %
CHEMICAL FINANCIAL CORP	3.7 %
EAST WEST BANCORP INC	3.6 %
CULLEN/FROST BANKERS INC	3.1 %
UMPQUA HOLDINGS CORP	2.2 %
WESTERN ALLIANCE BANCORP	2.1 %
POPULAR INC	2.1 %
HOME BANCSHARES INC	2.1 %
WEBSTER FINANCIAL CORP	2.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.8 %
	PUERTO RICO	2.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
23.6%	23.6%	8.3%	--	12.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.36	60%
MSCI EAFE	1.15	36%
MSCI Emg. Mkts.	0.73	25%

Technical Indicators
Recent close	$53.73
30d moving avg.	$53.58
Annualized volatility	21.2%
Short interest (ETF)	3.1%
Short interest (Underlying)	5.8%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	4
Turnover	0.3%
Bid/Ask (% of price)	0.17%
ADV underlying (mns)	$958

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

KBWR

Expense:

35 bp

ALTAR Score™:

8.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KBWR
Ticker	Fund Name	Overlap¹ vs KBWR (%)	Expense ratio (bp)	Savings vs KBWR (bp)	ALTAR Score™ (%)	ALTAR vs KBWR (%)
KRE	SPDR KBW Regional Banking	45.5	35	0	7.9	-0.3
KBE	KBW Bank ETF	44.3	35	0	7.9	-0.3
QABA	First Trust NASDAQ ABA Community Bank	42.2	60	-25	7.8	-0.4
IAT	iShares DJ US Regional Banks	28.0	42	-7	7.3	-0.9
FTXO	First Trust Nasdaq Bank	19.8	60	-25	7.6	-0.7
PSCF	Invesco S&P Small Cap Financials	16.8	29	6	8.9	+0.7
FOVL	iShares Focused Value Factor	16.7	25	10	8.4	+0.2
PXMV	Invesco Fundamental Pure Mid Value	14.8	39	-4	8.3	+0.0
MDYV	SPDR S&P400 Mid Cap Value	13.7	15	20	7.6	-0.7
IJJ	iShares S&P MidCap 400 Value	13.7	25	10	7.5	-0.8
SDVY	First Trust SMID Cap Rising Dividend Achievers	13.7	60	-25	7.1	-1.1
JKL	iShares Morningstar Small Cap Value	12.9	30	5	8.7	+0.5
FXO	First Trust Financial Alphadex	12.7	63	-28	7.5	-0.7
REGL	ProShares S&P MidCap 400 Dividend Aristocrats	11.7	40	-5	5.6	-2.6
IVOV	Vanguard S&P Mid-Cap 400 Value	11.3	20	15	7.1	-1.2
FNK	First Trust Mid Cap Value AlphaDEX	10.6	70	-35	8.6	+0.3
TPSC	Timothy Plan US Small Cap Core	9.9	52	-17	6.5	-1.7
EZM	WisdomTree Midcap Earnings	9.7	38	-3	8.2	-0.0
JHSC	John Hancock Multifactor Small Cap	9.3	50	-15	5.4	-2.8
XSLV	Invesco S&P SmallCap Low Volatility	9.1	25	10	6.9	-1.3

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 Regional Bank
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	9.8	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	8.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.68	CATEGORY AVERAGE	1.55

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.