ETF Research Center

Invesco S&P SmallCap Health Care Portfolio is an exchange traded fund incorporated in the USA. The Fund's objective is to seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the S&P SmallCap 600 Capped Health Care Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.invescopowershares.com
Inception date	Apr 07, 2010
Assets (mns)	$448
Currency	USD
Expense ratio	29 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	77
Wgt avg mkt cap (mns)	$1,860
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	42.9%
Small cap (<$2bn)	57.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	33.2 %
MEDICINES COMPANY	4.3 %
ARROWHEAD PHARMACEUTICALS, INC.	4.2 %
LHC GROUP INC	4.0 %
NEOGEN CORP	3.6 %
CONMED CORP	3.3 %
OMNICELL INC	3.3 %
AMN HEALTHCARE SERVICES INC	3.0 %
INTEGER HOLDINGS CORPORATION	2.6 %
HMS HOLDINGS CORP	2.5 %
EMERGENT BIOSOLUTIONS INC	2.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.6 %
	IRELAND	0.9 %

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.
9.1%	-3.9%	14.9%	--	18.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.36	64%
MSCI EAFE	1.00	29%
MSCI Emg. Mkts.	0.64	20%

Technical Indicators
Recent close	$117.77
30d moving avg.	$115.70
Annualized volatility	20.6%
Short interest (ETF)	0.5%
Short interest (Underlying)	9.1%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	17
Turnover	0.5%
Bid/Ask (% of price)	0.23%
ADV underlying (mns)	$1,047

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco S&P Small Cap Health Care ETF based on the alternatives' overlap in portfolio holdings with PSCH. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

PSCH

Expense:

29 bp

ALTAR Score™:

2.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PSCH
Ticker	Fund Name	Overlap¹ vs PSCH (%)	Expense ratio (bp)	Savings vs PSCH (bp)	ALTAR Score™ (%)	ALTAR vs PSCH (%)
RZG	Invesco S&P Smallcap 600 Pure Growth	22.3	35	-6	4.2	+1.3
IJT	iShares S&P 600 SmallCap Growth	20.3	25	4	4.6	+1.7
SLYG	SPDR S&P600 Small Cap Growth	20.3	15	14	4.7	+1.8
XHE	SPDR S&P Health Care Equipment	19.5	35	-6	2.2	-0.7
VIOG	Vanguard S&P Small-Cap 600 Growth	19.5	20	9	4.6	+1.7
XHS	SPDR S&P Health Care Services	18.8	35	-6	6.5	+3.6
PTH	Invesco DWA Healthcare Momentum	17.0	60	-31	-1.4	-4.3
PXSG	Invesco Fundamental Pure Small Growth	16.1	39	-10	4.7	+1.8
HTEC	Robo Global Healthcare Technology and Innovation	14.0	68	-39	0.0	-2.9
JSML	Janus Small Cap Growth Alpha	12.7	35	-6	6.9	+4.0
PBE	Invesco Dynamic Biotechnology & Genome	12.6	57	-28	0.0	-2.9
EWSC	Invesco S&P Small Cap 600 Equal Weight	12.4	40	-11	5.7	+2.8
IJR	iShares Core S&P Small-Cap	12.4	7	22	6.1	+3.2
SLY	SPDR S&P 600 Small Cap	12.3	15	14	6.1	+3.2
VIOO	Vanguard S&P Small-Cap 600	11.8	15	14	5.9	+3.0
XBI	SPDR S&P Biotech ETF	11.5	35	-6	-5.1	-8.0
FTXH	First Trust Nasdaq Pharmaceuticals	11.3	60	-31	5.6	+2.7
SCAP	AdvisorShares Cornerstone Small Cap	10.3	90	-61	3.9	+1.0
CALF	Pacer US Small Cap Cash Cows 100	9.7	59	-30	11.6	+8.7
PJP	Invesco Dynamic Pharmaceuticals	9.6	56	-27	9.9	+7.0

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 S&P Small Cap Health Care
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	9.5	%
Divided by: Fwd. P/BV	3.0	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	2.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.48	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.