ETF Research Center

The Invesco FTSE� RAFI US 1000 Portfolio is based on the FTSE� RAFI US 1000 Index, designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Dec 19, 2005
Assets (mns)	$5,660
Currency	USD
Expense ratio	39 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	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	992
Wgt avg mkt cap (mns)	$214,051
Large cap (>$10bn)	87.4%
Mid cap ($2-10bn)	11.5%
Small cap (<$2bn)	1.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	19.3 %
APPLE INC	4.0 %
AT&T INC	2.2 %
JPMORGAN CHASE & CO	2.0 %
MICROSOFT CORP	2.0 %
BERKSHIRE HATHAWAY INC-CL B	2.0 %
EXXON MOBIL CORP	1.8 %
VERIZON COMMUNICATIONS INC	1.4 %
CHEVRON CORP	1.3 %
WELLS FARGO & CO	1.3 %
BANK OF AMERICA CORP	1.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.5 %
	IRELAND	2.0 %
	BRITAIN	1.2 %
	SWITZERLAND	0.5 %
	BERMUDA	0.4 %
	NETHERLANDS	0.2 %
	SINGAPORE	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.
27.4%	27.4%	9.0%	12.5%	9.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.01	95%
MSCI EAFE	0.95	69%
MSCI Emg. Mkts.	0.62	50%

Technical Indicators
Recent close	$128.50
30d moving avg.	$126.83
Annualized volatility	12.6%
Short interest (ETF)	0.0%
Short interest (Underlying)	2.7%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	74
Turnover	0.2%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$163,702

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco FTSE-RAFI U.S. 1000 ETF based on the alternatives' overlap in portfolio holdings with PRF. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

PRF

Expense:

39 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PRF
Ticker	Fund Name	Overlap¹ vs PRF (%)	Expense ratio (bp)	Savings vs PRF (bp)	ALTAR Score™ (%)	ALTAR vs PRF (%)
FNDB	Schwab Fundamental Broad Mkt	86.1	25	14	6.2	-0.1
FNDX	Schwab Fundamental Large Cap	85.8	25	14	6.3	-0.1
VLU	SPDR S&P 1500 Value Tilt	81.6	12	27	7.1	+0.8
EXT	WisdomTree Total Earnings	71.9	28	11	6.6	+0.3
IYY	iShares DJ US Total Market	71.4	20	19	5.3	-1.0
VONE	Vanguard Russell 1000	71.4	12	27	5.4	-0.9
SCHK	Schwab 1000 Index	71.4	5	34	5.5	-0.8
IWB	iShares Russell 1000	71.2	15	24	5.3	-1.0
IUS	Invesco Strategic US	71.1	19	20	6.2	-0.1
EPS	WisdomTree Earnings 500	71.0	8	31	6.5	+0.2
PBP	Invesco S&P 500 Buy/Write	70.6	49	-10	5.2	-1.1
SCHX	Schwab U.S. Large-Cap	70.5	3	36	5.4	-0.9
SCHB	Schwab U.S. Broad Market	70.1	3	36	5.4	-0.9
VTHR	Vanguard Russell 3000	70.1	15	24	5.3	-1.1
ITOT	iShares Core S&P Total US	69.9	3	36	5.3	-1.0
IWV	iShares Russell 3000	69.9	20	19	5.2	-1.2
DTD	WisdomTree Total Dividend	69.9	28	11	6.4	+0.1
VTI	Vanguard Total Market	69.9	3	36	5.3	-1.0
PBUS	Invesco PureBeta MSCI USA	69.8	4	35	5.6	-0.7
IUSV	iShares Core U.S. Value	69.8	4	35	7.0	+0.7

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 U.S. 1000
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	13.6	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	39	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.56	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.