ETF Research Center

Invesco FTSE RAFI Emerging Markets Portfolio seeks investment results that correspond to the FTSE RAFI Emerging Markets Index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Sep 27, 2007
Assets (mns)	$1,327
Currency	USD
Expense ratio	50 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	360
Wgt avg mkt cap (mns)	$69,059
Large cap (>$10bn)	73.1%
Mid cap ($2-10bn)	23.5%
Small cap (<$2bn)	1.4%
Developed mkts	6.8%
Emerging mkts	93.2%

TOP TEN HOLDINGS
Total	25.8 %
TAIWAN SEMICONDUCTOR MANUFAC	4.4 %
CHINA CONSTRUCTION BANK-H	4.3 %
IND & COMM BK OF CHINA - H	3.1 %
GAZPROM OAO	2.6 %
LUKOIL OAO	2.5 %
BANK OF CHINA LTD - H	2.1 %
CHINA MOBILE LIMITED	1.8 %
SBERBANK	1.8 %
VALE SA	1.6 %
ITAU UNIBANCO HOLDING SA	1.6 %

TOP COUNTRY EXPOSURE
	CHINA	26.7 %
	TAIWAN	13.9 %
	BRAZIL	12.9 %
	RUSSIA	10.3 %
	INDIA	8.4 %
	SOUTH AFRICA	6.8 %
	HONG KONG	6.3 %
	MEXICO	3.9 %
	THAILAND	3.5 %
	TURKEY	2.1 %

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%	8.2%	3.7%	2.9%	0.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.78	38%
MSCI EAFE	1.04	59%
MSCI Emg. Mkts.	0.97	84%

Technical Indicators
Recent close	$20.91
30d moving avg.	$20.77
Annualized volatility	15.1%
Short interest (ETF)	0.8%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	332
Turnover	0.5%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$11,954

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

PXH

Expense:

50 bp

ALTAR Score™:

12.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PXH
Ticker	Fund Name	Overlap¹ vs PXH (%)	Expense ratio (bp)	Savings vs PXH (bp)	ALTAR Score™ (%)	ALTAR vs PXH (%)
FNDE	Schwab Fundamental Emg Mkt Large Cap	65.9	39	11	11.2	-1.4
JHEM	John Hancock Multifactor Emerging Markets	51.7	55	-5	8.9	-3.7
SCHE	Schwab Emerging Markets Equity	50.9	13	37	8.8	-3.8
PBEE	Invesco PureBeta FTSE Emerging Markets	50.1	14	36	9.3	-3.2
EEM	iShares MSCI Emerging Markets	50.0	67	-17	8.7	-3.9
BKF	iShares MSCI BRIC	46.7	67	-17	8.9	-3.7
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	46.7	65	-15	8.6	-4.0
REEM	Invesco Emerging Markets Revenue ETF	46.6	46	4	11.8	-0.8
IEMG	iShares Core MSCI Emerging Markets	45.2	14	36	8.7	-3.9
DVEM	WisdomTree Emerging Markets Dividend	44.8	32	18	11.4	-1.2
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	44.7	30	20	8.7	-3.9
VWO	Vanguard Emerging Markets	44.3	12	38	8.8	-3.8
KEMX	KraneShares MSCI Emerging Markets EX China Index	43.2	49	1	8.8	-3.8
ISEM	Invesco Strategic Emerging Markets	42.7	35	15	10.1	-2.5
EEMA	iShares MSCI Emg Mkts Asia	42.5	50	0	8.8	-3.8
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	40.8	45	5	9.3	-3.3
EMXC	iShares MSCI Emerging Markets ex China	38.6	49	1	8.8	-3.8
AAXJ	iShares MSCI Asia ex-Japan	38.3	67	-17	8.3	-4.3
FLAX	Franklin FTSE Asia Ex Japan	37.8	19	31	8.8	-3.8
SPEM	SPDR Portfolio Emerging Markets	37.8	11	39	8.5	-4.0

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 FTSE-RAFI Emerging Markets
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.3	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	50	bp
Equals: ALTAR Score	12.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.46	CATEGORY AVERAGE	1.49

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.