ETF Research Center

The Invesco Dynamic Biotechnology & Genome Portfolio ETF tracks a tiered equal-weighted index of companies principally engaged in biotechnology and genetic engineering.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Jun 23, 2005
Assets (mns)	$236
Currency	USD
Expense ratio	57 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	BNY Mellon
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	31
Wgt avg mkt cap (mns)	$88,793
Large cap (>$10bn)	57.2%
Mid cap ($2-10bn)	16.0%
Small cap (<$2bn)	26.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	47.4 %
ELI LILLY & CO	5.7 %
BRISTOL-MYERS SQUIBB CO	5.5 %
JOHNSON & JOHNSON	5.2 %
PFIZER INC	5.0 %
ABBOTT LABORATORIES	5.0 %
MERCK & CO. INC.	5.0 %
AMGEN INC	4.9 %
ABBVIE INC	4.8 %
ENDO INTERNATIONAL PLC	3.3 %
HORIZON PHARMA PLC	3.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	79.9 %
	IRELAND	12.0 %
	BRITAIN	3.0 %
	CANADA	2.8 %
	ISRAEL	2.3 %

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.
18.7%	18.7%	2.6%	13.2%	9.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.33	55%
MSCI EAFE	1.12	33%
MSCI Emg. Mkts.	0.82	30%

Technical Indicators
Recent close	$56.87
30d moving avg.	$56.01
Annualized volatility	21.6%
Short interest (ETF)	0.0%
Short interest (Underlying)	8.4%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	7
Turnover	0.2%
Bid/Ask (% of price)	0.13%
ADV underlying (mns)	$6,736

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

PBE

Expense:

57 bp

ALTAR Score™:

10.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PBE
Ticker	Fund Name	Overlap¹ vs PBE (%)	Expense ratio (bp)	Savings vs PBE (bp)	ALTAR Score™ (%)	ALTAR vs PBE (%)
PJP	Invesco Dynamic Pharmaceuticals	100.0	56	1	10.5	+0.0
FTXH	First Trust Nasdaq Pharmaceuticals	55.8	60	-3	4.2	-6.4
IEIH	iShares Evolved U.S. Innovative Healthcare	48.1	18	39	3.8	-6.7
XPH	SPDR S&P Pharmaceuticals ETF	45.3	35	22	4.5	-6.0
PPH	VanEck Vectors Pharmaceuticals	40.4	36	21	8.9	-1.6
IHE	iShares DJ US Pharmaceuticals	38.7	42	15	4.9	-5.6
XLV	Health Care Select Sector SPDR	38.5	13	44	6.8	-3.7
IYH	iShares US Healthcare	37.1	43	14	5.9	-4.6
FHLC	Fidelity MSCI Health Care	35.7	8	49	5.5	-5.0
VHT	Vanguard Health Care	34.8	10	47	5.5	-5.0
JHMH	John Hancock Multifactor Health Care	31.0	40	17	6.3	-4.2
IXJ	iShares S&P Global Healthcare	29.0	46	11	6.0	-4.5
DURA	VanEck Vectors Morningstar Durable Dividend	24.8	29	28	6.5	-4.1
RYH	Invesco S&P Equal Weight Healthcare	22.8	40	17	6.7	-3.9
FXH	First Trust Health Care Alphadex	22.0	63	-6	6.7	-3.8
SPHQ	Invesco S&P 500 Quality	20.2	15	42	5.4	-5.2
IBB	iShares NASDAQ Biotechnology	19.8	47	10	1.0	-9.5
FTVA	Aptus Fortified Value	16.8	79	-22	10.1	-0.4
OUSA	O'Shares FTSE U.S. Quality Dividend	16.6	48	9	5.7	-4.9
BBP	BioShares Biotech Products	15.6	79	-22	-3.8	-14.3

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 Dynamic Biotechnology & Genome
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	29.8	%
Divided by: Fwd. P/BV	2.7	x
Less: Expense ratio	57	bp
Equals: ALTAR Score	10.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.48	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.