ETF Research Center

Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio seeks investment results that correspond to the price and yield of the FTSE RAFI Developed Markets ex-U.S. Small-Mid Index

FUND BASICS
Category	International Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Sep 27, 2007
Assets (mns)	$328
Currency	USD
Expense ratio	49 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	1481
Wgt avg mkt cap (mns)	$3,500
Large cap (>$10bn)	5.9%
Mid cap ($2-10bn)	53.2%
Small cap (<$2bn)	40.9%
Developed mkts	92.0%
Emerging mkts	8.0%

TOP TEN HOLDINGS
Total	2.3 %
HITACHI CHEMICAL CO LTD	0.3 %
LEOPALACE21 CORP	0.3 %
BOVIS HOMES GROUP PLC	0.3 %
IBIDEN CO LTD	0.2 %
HITACHI HIGH-TECHNOLOGIES CO	0.2 %
AZIMUT HOLDING SPA	0.2 %
JB HI-FI LTD	0.2 %
REGUS PLC	0.2 %
ALTICE NV CLASS A	0.2 %
NEXANS SA	0.2 %

TOP COUNTRY EXPOSURE
	JAPAN	32.6 %
	BRITAIN	8.5 %
	CANADA	7.2 %
	SOUTH KOREA	5.6 %
	AUSTRALIA	5.5 %
	GERMANY	3.8 %
	SWITZERLAND	3.5 %
	SWEDEN	3.1 %
	FRANCE	2.9 %
	ITALY	2.9 %

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.
19.2%	19.2%	6.6%	6.6%	4.1%

Market Correlations
versus...	Beta	R-squared
S&P500	0.85	73%
MSCI EAFE	1.05	91%
MSCI Emg. Mkts.	0.74	79%

Technical Indicators
Recent close	$31.80
30d moving avg.	$31.92
Annualized volatility	12.0%
Short interest (ETF)	0.0%
Relative strength (RSI)	55

Liquidity measures
Avg. volume (thou.)	11
Turnover	0.1%
Bid/Ask (% of price)	0.34%
ADV underlying (mns)	$10,212

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco FTSE RAFI Developed Mkts ex-US Small-Mid Cap ETF based on the alternatives' overlap in portfolio holdings with PDN. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

PDN

Expense:

49 bp

ALTAR Score™:

6.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PDN
Ticker	Fund Name	Overlap¹ vs PDN (%)	Expense ratio (bp)	Savings vs PDN (bp)	ALTAR Score™ (%)	ALTAR vs PDN (%)
FNDC	Schwab Fundamental Intl Small Cap	67.2	39	10	4.5	-1.9
ISDS	Invesco Strategic Developed ex-US Small Company	44.7	35	14	5.1	-1.3
SCZ	iShares MSCI EAFE Small Cap	44.6	39	10	6.1	-0.3
SCHC	Schwab Intl Small-Cap Equity	39.9	12	37	6.4	-0.0
VSS	Vanguard FTSE All World ex-US Small Cap	34.6	12	37	6.3	-0.1
GWX	SPDR International SmallCap	31.7	40	9	4.5	-1.8
IEUS	iShares MSCI Europe Small Cap	28.2	40	9	6.2	-0.2
DDLS	WisdomTree Dynamic Currency Hedged Int'l SmallCap	27.8	43	6	8.1	+1.7
DLS	WisdomTree Int'l SmallCap Dividend	25.5	58	-9	8.1	+1.7
SCJ	iShares MSCI Japan Small Cap	24.0	47	2	6.2	-0.2
IDLB	Invesco FTSE Int'l Low Beta Equal Weight	23.9	45	4	6.9	+0.5
DXJS	WisdomTree Japan Hedged Small	21.3	58	-9	7.8	+1.5
DFJ	WisdomTree Japan Small Cap Dividend	21.3	58	-9	7.9	+1.6
TLTD	FlexShares Mngstr Developed Mkts ex-US Factor Tilt	21.2	39	10	8.2	+1.8
AVDV	Avantis International Small Cap Value	19.0	36	13	7.1	+0.8
AVDE	Avantis International Equity	17.0	23	26	7.3	+0.9
MFDX	PIMCO RAFI Dynamic Multi-Factor International Equity	16.6	39	10	6.1	-0.3
DEEF	Xtrackers FTSE Dev ex-US Comprehensive Factor	16.6	24	25	6.9	+0.5
DIM	WisdomTree Intl M/C Dividend	15.4	58	-9	7.3	+0.9
VPL	Vanguard Pacific ETF	15.3	9	40	7.5	+1.2

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 FTSE RAFI Developed Mkts ex-US Small-Mid Cap
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.0	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	49	bp
Equals: ALTAR Score	6.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.64	CATEGORY AVERAGE	1.63

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.