ETF Research Center

The Invesco Water Resources fund is based on the Palisades Water Index�. The Index seeks to identify a group of companies that focus on the provision of potable water, the treatment of water, and the technology and services that are directly related to water consumption.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Dec 06, 2005
Assets (mns)	$1,168
Currency	USD
Expense ratio	60 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	36
Wgt avg mkt cap (mns)	$23,305
Large cap (>$10bn)	50.3%
Mid cap ($2-10bn)	41.9%
Small cap (<$2bn)	7.7%
Developed mkts	97.7%
Emerging mkts	2.4%

TOP TEN HOLDINGS
Total	60.6 %
DANAHER CORP	8.4 %
WATERS CORP	8.1 %
AMERICAN WATER WORKS CO INC	8.1 %
ROPER INDUSTRIES INC	7.9 %
ECOLAB INC	7.9 %
AQUA AMERICA INC	4.3 %
IDEX CORP	4.1 %
XYLEM INC	4.0 %
PENTAIR PLC	4.0 %
HD SUPPLY HOLDINGS INC	3.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.2 %
	BRITAIN	4.0 %
	BRAZIL	2.2 %
	BRITISH VIRGIN ISLANDS	0.4 %
	CAYMAN ISLANDS	0.2 %

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.
37.6%	37.6%	9.0%	9.3%	7.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.94	75%
MSCI EAFE	0.92	60%
MSCI Emg. Mkts.	0.61	45%

Technical Indicators
Recent close	$40.22
30d moving avg.	$38.76
Annualized volatility	13.1%
Short interest (ETF)	0.2%
Short interest (Underlying)	6.4%
Relative strength (RSI)	80

Liquidity measures
Avg. volume (thou.)	99
Turnover	0.3%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$5,893

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

PHO

Expense:

60 bp

ALTAR Score™:

3.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PHO
Ticker	Fund Name	Overlap¹ vs PHO (%)	Expense ratio (bp)	Savings vs PHO (bp)	ALTAR Score™ (%)	ALTAR vs PHO (%)
FIW	First Trust ISE Water	65.0	55	5	3.5	-0.3
PIO	Invesco Global Water	44.1	75	-15	3.9	+0.2
CGW	Invesco S&P Global Water	43.4	62	-2	3.9	+0.2
TBLU	Tortoise Water Fund	38.6	40	20	4.4	+0.7
XKII	SPDR Kensho Intelligent Structures	19.0	45	15	5.9	+2.2
PUI	Invesco DWA Utilities Momentum	12.7	60	0	3.8	+0.1
PRN	Invesco DWA Industrials Momentum	11.4	60	0	13.4	+9.6
PZD	Invesco Cleantech	10.2	68	-8	4.4	+0.6
IHI	iShares DJ US Medical Devices	9.5	43	17	3.6	-0.2
GRES	Index IQ Global Resources	9.0	77	-17	5.7	+2.0
SMDV	ProShares Russell 2000 Dividend Growers	8.5	40	20	5.4	+1.6
DIET	Defiance Next Gen Food & Agriculture	8.3	30	30	5.5	+1.7
KSCD	KFA Small Cap Quality Dividend Index	8.1	51	9	4.8	+1.0
PAVE	Global X U.S. Infrastructure Development	7.9	47	13	5.5	+1.7
IYM	iShares DJ US Basic Material	7.8	42	18	8.6	+4.8
RGI	Invesco S&P Equal Weight Industrials	7.2	40	20	6.4	+2.7
IFRA	iShares U.S. Infrastructure	7.1	40	20	5.1	+1.4
NOBL	ProShares S&P500 Aristocrats	7.0	35	25	5.6	+1.9
KNG	Cboe Vest S&P 500 Dividend Aristocrats Target Income	6.9	75	-15	5.2	+1.5
XLB	Materials Select Sector SPDR	6.9	13	47	9.2	+5.4

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 Water Resources
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	16.3	%
Divided by: Fwd. P/BV	3.7	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	3.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.71	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.