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)	$54
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	48
Wgt avg mkt cap (mns)	$14,282
Large cap (>$10bn)	40.3%
Mid cap ($2-10bn)	38.9%
Small cap (<$2bn)	20.8%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	33.7 %
RELIANCE STEEL & ALUMINUM	4.1 %
FMC CORP	3.9 %
AVERY DENNISON CORP	3.8 %
AIR PRODUCTS & CHEMICALS INC	3.7 %
PPG INDUSTRIES INC	3.3 %
CELANESE CORP-SERIES A	3.3 %
ECOLAB INC	3.0 %
DOW CHEMICAL	2.9 %
CF INDUSTRIES HOLDINGS INC	2.8 %
NEWMONT MINING CORP	2.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.0 %
	BRITAIN	2.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
15.7%	2.3%	3.5%	9.9%	7.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.37	79%
MSCI EAFE	1.34	63%
MSCI Emg. Mkts.	0.97	53%

Technical Indicators
Recent close	$60.33
30d moving avg.	$60.27
Annualized volatility	18.6%
Short interest (ETF)	0.0%
Short interest (Underlying)	4.6%
Relative strength (RSI)	60

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.2%
Bid/Ask (% of price)	0.21%
ADV underlying (mns)	$2,873

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco Dynamic Basic Materials Sector 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™:

5.9%

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 DJ US Basic Material	39.1	42	18	8.7	+2.8
VAW	Vanguard Materials	37.7	10	50	8.6	+2.8
FMAT	Fidelity MSCI Materials	37.5	8	52	8.6	+2.8
JHMA	John Hancock Multifactor Materials	35.9	40	20	7.5	+1.7
RTM	Invesco S&P Equal Weight Materials	35.6	40	20	8.4	+2.5
XLB	Materials Select Sector SPDR	29.1	13	47	9.3	+3.5
XME	SPDR Metals & Mining ETF	25.8	35	25	2.2	-3.7
FXZ	First Trust Materials Alphadex	24.2	64	-4	7.8	+2.0
PSCM	Invesco S&P Small Cap Materials	16.7	29	31	9.2	+3.3
MXI	iShares S&P Global Materials	16.7	46	14	6.8	+0.9
XLSY	Cushing Energy Supply Chain & MLP	13.0	65	-5	5.4	-0.5
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation	10.6	60	0	7.4	+1.5
NANR	SPDR S&P N. American Nat. Resources	10.5	35	25	4.1	-1.8
CUT	Invesco Timber	9.7	55	5	7.0	+1.2
SLX	VanEck Vectors Steel	9.7	56	4	12.1	+6.3
FTAG	First Trust Indxx Global Agriculture	9.3	70	-10	8.5	+2.6
DIET	Defiance Next Gen Food & Agriculture	8.8	30	30	5.7	-0.1
EQRR	ProShares Equities for Rising Rates	8.8	35	25	7.9	+2.1
VRAI	Virtus Real Asset Income ETF	8.5	55	5	8.7	+2.8
IFRA	iShares U.S. Infrastructure	8.5	40	20	5.7	-0.2

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 Dynamic Basic Materials Sector
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	11.4	%
Divided by: Fwd. P/BV	1.8	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	5.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	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.