ETF Research Center

The Invesco Dynamic Building & Construction Sector Portfolio ETF tracks a quantitative index that selects building and construction companies most likely to outperform based on growth and value metrics.

FUND BASICS
Category	Global Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Oct 26, 2005
Assets (mns)	$116
Currency	USD
Expense ratio	60 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)	$9,628
Large cap (>$10bn)	39.1%
Mid cap ($2-10bn)	38.7%
Small cap (<$2bn)	22.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	45.2 %
PULTE HOMES INC	5.3 %
DR HORTON INC	5.0 %
JACOBS ENGINEERING GROUP INC	5.0 %
INGERSOLL-RAND PLC	4.9 %
MARTIN MARIETTA MATERIALS	4.7 %
LENNOX INTERNATIONAL INC	4.7 %
JOHNSON CONTROLS INTERNATIONAL PLC	4.6 %
NVR INC	4.6 %
OSHKOSH CORP	3.3 %
UNIVERSAL FOREST PRODUCTS	3.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	90.5 %
	IRELAND	9.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
41.2%	29.6%	9.5%	12.5%	6.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.23	61%
MSCI EAFE	1.01	35%
MSCI Emg. Mkts.	0.61	21%

Technical Indicators
Recent close	$34.06
30d moving avg.	$33.47
Annualized volatility	19.0%
Short interest (ETF)	0.8%
Short interest (Underlying)	3.7%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	18
Turnover	0.5%
Bid/Ask (% of price)	0.20%
ADV underlying (mns)	$1,484

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

PKB

Expense:

60 bp

ALTAR Score™:

6.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PKB
Ticker	Fund Name	Overlap¹ vs PKB (%)	Expense ratio (bp)	Savings vs PKB (bp)	ALTAR Score™ (%)	ALTAR vs PKB (%)
XHB	SPDR S&P Homebuilders	33.9	35	25	7.7	+1.2
ITB	iShares US Home Construction	33.9	42	18	8.3	+1.8
AIRR	First Trust RBA American Industrial Renaissance	15.1	70	-10	5.4	-1.1
HOMZ	Hoya Capital Housing	14.1	45	15	6.4	-0.2
PSCD	Invesco S&P Small Cap Consumer Discretionary	12.5	29	31	8.3	+1.8
DVLU	First Trust Dorsey Wright Momentum & Value	11.0	60	0	8.4	+1.9
PAVE	Global X U.S. Infrastructure Development	10.6	47	13	5.8	-0.7
VAMO	Cambria Value & Momentum	10.5	64	-4	6.3	-0.2
FLM	First Trust ISE Global Engineering & Construction	9.0	70	-10	7.7	+1.2
PRN	Invesco DWA Industrials Momentum	8.2	60	0	4.1	-2.4
JHMI	John Hancock Multifactor Industrials	8.1	40	20	6.6	+0.1
KNOW	Direxion All-Cap Insider Sentiment	7.0	59	1	10.2	+3.7
RZV	Invesco S&P Smallcap 600 Pure Value	6.9	35	25	8.7	+2.2
IFRA	iShares U.S. Infrastructure	6.5	40	20	5.9	-0.6
XKII	SPDR Kensho Intelligent Structures	6.1	45	15	6.6	+0.1
PVAL	Principal Contrarian Value Index	5.9	29	31	7.2	+0.6
FXZ	First Trust Materials Alphadex	5.9	64	-4	8.1	+1.6
SDVY	First Trust SMID Cap Rising Dividend Achievers	5.9	60	0	7.6	+1.1
LSAF	LeaderShares AlphaFactor US Core Equity	5.9	75	-15	6.5	+0.0
PWC	Invesco Dynamic Market	5.8	59	1	7.4	+0.9

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 Building & Construction
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	15.2	%
Divided by: Fwd. P/BV	2.1	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	6.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.54

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.