ETF Research Center

The Invesco DWA Basic Materials Momentum Portfolio tracks an index of U.S. basic materials firms selected and weighted by price momentum.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Oct 12, 2006
Assets (mns)	$49
Currency	USD
Expense ratio	60 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	BNY Mellon
Weighting	Momentum
Index replication
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	51
Wgt avg mkt cap (mns)	$14,302
Large cap (>$10bn)	37.0%
Mid cap ($2-10bn)	42.3%
Small cap (<$2bn)	20.7%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	35.0 %
NEWMONT MINING CORP	4.5 %
FMC CORP	4.3 %
AIR PRODUCTS & CHEMICALS INC	4.2 %
ECOLAB INC	3.7 %
AVERY DENNISON CORP	3.6 %
PPG INDUSTRIES INC	3.3 %
CF INDUSTRIES HOLDINGS INC	3.1 %
CELANESE CORP-SERIES A	2.8 %
RELIANCE STEEL & ALUMINUM	2.8 %
AVANTOR, INC.	2.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.4 %
	BRITAIN	1.7 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-8.4%	0.0%	3.4%	9.6%	7.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.40	76%
MSCI EAFE	1.43	66%
MSCI Emg. Mkts.	1.00	56%

Technical Indicators
Recent close	$58.04
30d moving avg.	$59.98
Annualized volatility	19.4%
Short interest (ETF)	0.0%
Short interest (Underlying)	4.6%
Relative strength (RSI)	46

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.2%
Bid/Ask (% of price)	0.20%
ADV underlying (mns)	$3,121

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Invesco DWA Basic Materials Momentum ETF ETF based on the alternatives' overlap in portfolio holdings with PYZ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

PYZ

Expense:

60 bp

ALTAR Score™:

5.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH PYZ
Ticker	Fund Name	Overlap¹ vs PYZ (%)	Expense ratio (bp)	Savings vs PYZ (bp)	ALTAR Score™ (%)	ALTAR vs PYZ (%)
IYM	iShares U.S. Basic Materials ETF	41.8	42	18	7.8	+2.3
VAW	Vanguard Materials Index Fund	40.7	10	50	8.1	+2.5
FMAT	Fidelity MSCI Materials Index ETF	40.2	8	52	8.1	+2.5
JHMA	John Hancock Multifactor Materials ETF	40.1	40	20	7.6	+2.0
RTM	Invesco S&P 500 Equal Weight Materials ETF	39.6	40	20	7.8	+2.2
XLB	Materials Select Sector SPDR Fund	32.4	13	47	8.3	+2.7
FXZ	First Trust Materials AlphaDEX Fund	29.7	65	-5	8.0	+2.4
XME	SPDR S&P Metals & Mining ETF	24.6	35	25	3.4	-2.2
MXI	iShares Global Materials ETF	18.4	46	14	6.8	+1.2
PSCM	Invesco S&P SmallCap Materials ETF	16.8	29	31	9.9	+4.3
EQRR	ProShares Equities for Rising Rates ETF	12.5	35	25	8.3	+2.7
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF	11.8	60	0	7.2	+1.7
NANR	SPDR S&P North American Natural Resources ETF	11.7	35	25	4.6	-1.0
DIET	Defiance Next Gen Food & Agriculture ETF	10.7	30	30	4.9	-0.7
CUT	Invesco MSCI Global Timber ETF	10.7	55	5	7.5	+1.9
FTAG	First Trust Indxx Global Agriculture ETF	10.6	70	-10	7.8	+2.2
SLX	VanEck Vectors Steel ETF	9.7	56	4	17.0	+11.4
GUNR	Flexshares Morningstar Global Upstream Natural Resources	9.2	46	14	6.4	+0.8
PAVE	Global X U.S. Infrastructure Development ETF	8.7	47	13	5.9	+0.4

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Invesco DWA Basic Materials Momentum ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	11.8	%
Divided by: Fwd. P/BV	1.9	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	5.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.55	CATEGORY AVERAGE	1.56

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.