ETF Research Center

Invesco NASDAQ Internet Portfolio seeks investment results that correspond generally to the price and yield of the NASDAQ Internet Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Jun 12, 2008
Assets (mns)	$557
Currency	USD
Expense ratio	62 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	83
Wgt avg mkt cap (mns)	$272,076
Large cap (>$10bn)	83.8%
Mid cap ($2-10bn)	13.6%
Small cap (<$2bn)	2.6%
Developed mkts	72.5%
Emerging mkts	27.5%

TOP TEN HOLDINGS
Total	57.6 %
ALIBABA GROUP HOLDING LTD. SPONSOR	8.2 %
ALPHABET INC. CLASS C	8.2 %
FACEBOOK	8.0 %
NETFLIX INC	7.8 %
AMAZON.COM INC	7.5 %
BAIDU INC - SPON ADR	3.9 %
BOOKING HOLDINGS INC.	3.9 %
JD.COM INC-ADR	3.8 %
MERCADOLIBRE INC	3.4 %
EBAY INC	3.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	69.3 %
	CHINA	23.7 %
	ARGENTINA	3.4 %
	NETHERLANDS	1.3 %
	SINGAPORE	1.0 %
	ISRAEL	0.7 %
	IRELAND	0.3 %
	INDIA	0.2 %
	FRANCE	0.1 %

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.
28.8%	28.8%	16.1%	18.5%	17.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.22	63%
MSCI EAFE	1.26	56%
MSCI Emg. Mkts.	0.93	52%

Technical Indicators
Recent close	$152.60
30d moving avg.	$142.66
Annualized volatility	18.6%
Short interest (ETF)	1.1%
Short interest (Underlying)	4.8%
Relative strength (RSI)	80

Liquidity measures
Avg. volume (thou.)	29
Turnover	0.8%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$22,111

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

PNQI

Expense:

62 bp

ALTAR Score™:

2.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PNQI
Ticker	Fund Name	Overlap¹ vs PNQI (%)	Expense ratio (bp)	Savings vs PNQI (bp)	ALTAR Score™ (%)	ALTAR vs PNQI (%)
TTTN	TigerShares China-U.S. Internet Titans	66.5	59	3	3.6	+1.2
FDN	First Trust DJ Internet	45.1	52	10	2.9	+0.5
PLAT	WisdomTree Modern Tech Platforms	40.4	45	17	2.7	+0.2
EBIZ	Global X E-commerce	36.0	68	-6	2.5	+0.0
OGIG	O'Shares Global Internet Giants	35.4	48	14	1.2	-1.2
XWEB	SPDR S&P Internet	32.9	35	27	1.8	-0.7
GBUY	Goldman Sachs Motif New Age Consumer	30.2	50	12	2.7	+0.3
EMQQ	Emerging Markets Internet & E-Commerce	29.2	86	-24	3.2	+0.8
GIGE	SoFi Gig Economy	28.0	59	3	0.3	-2.2
ONLN	ProShares Online Retail	27.0	58	4	2.0	-0.4
DWLD	Davis Select Worldwide	27.0	64	-2	5.4	+3.0
ENTR	ERShares Entrepreneur 30	26.6	49	13	3.5	+1.1
VOX	Vanguard Communication Services	25.5	10	52	4.8	+2.4
FDNI	First Trust Dow Jones International Internet	25.5	65	-3	3.7	+1.3
SOCL	Global X Social Media	25.4	65	-3	3.8	+1.4
FCOM	Fidelity MSCI Communication Services	25.1	8	54	4.9	+2.4
MILN	Global X Millennials Thematic	24.2	50	12	2.7	+0.3
KWEB	KraneShares CSI China Internet	23.6	76	-14	3.5	+1.1
XLC	Communication Services Select Sector SPDR	23.6	13	49	5.6	+3.2
IBUY	Amplify Online Retail	23.6	65	-3	-0.6	-3.0

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 Nasdaq Internet
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	16.2	%
Divided by: Fwd. P/BV	5.3	x
Less: Expense ratio	62	bp
Equals: ALTAR Score	2.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.36	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.