ETF Research Center

Invesco S&P 500 High Quality Portfolio is an exchange-traded fund incorporated in the USA. It normally invests at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide exposure to the constituents of the S&P 500 Index that are identified as stocks reflecting long-term growth and stability of a company's earnings and dividends.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.powershares.com
Inception date	Dec 06, 2005
Assets (mns)	$1,829
Currency	USD
Expense ratio	15 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	100
Wgt avg mkt cap (mns)	$250,251
Large cap (>$10bn)	98.9%
Mid cap ($2-10bn)	1.1%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	44.2 %
APPLE INC	5.6 %
VISA INC-CLASS A SHARES	5.3 %
MASTERCARD INC-CLASS A	5.3 %
JOHNSON & JOHNSON	5.0 %
PROCTER & GAMBLE CO/THE	4.5 %
CISCO SYSTEMS INC	4.1 %
MERCK & CO. INC.	4.0 %
INTEL CORP	3.8 %
PFIZER INC	3.5 %
PEPSICO INC	3.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.5 %
	IRELAND	1.5 %
	SWITZERLAND	0.7 %
	BERMUDA	0.2 %
	BRITAIN	0.2 %

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.
33.6%	33.6%	11.4%	14.5%	7.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.96	95%
MSCI EAFE	0.88	66%
MSCI Emg. Mkts.	0.56	45%

Technical Indicators
Recent close	$37.68
30d moving avg.	$36.43
Annualized volatility	12.0%
Short interest (ETF)	0.3%
Short interest (Underlying)	3.6%
Relative strength (RSI)	79

Liquidity measures
Avg. volume (thou.)	337
Turnover	0.7%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$34,321

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco S&P 500 Quality ETF based on the alternatives' overlap in portfolio holdings with SPHQ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

SPHQ

Expense:

15 bp

ALTAR Score™:

5.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SPHQ
Ticker	Fund Name	Overlap¹ vs SPHQ (%)	Expense ratio (bp)	Savings vs SPHQ (bp)	ALTAR Score™ (%)	ALTAR vs SPHQ (%)
QUAL	iShares Edge MSCI USA Quality Factor	46.6	15	0	5.4	+0.1
OUSA	O'Shares FTSE U.S. Quality Dividend	45.8	48	-33	5.7	+0.3
QARP	Xtrackers Russell 1000 US QARP	39.3	19	-4	6.0	+0.7
USMC	Principal U.S. Mega-Cap Multi-Factor Index	38.5	12	3	5.1	-0.3
QLC	FlexShares US Quality Large Cap	37.8	32	-17	5.7	+0.4
HLAL	Wahed FTSE USA Shariah	37.5	50	-35	5.3	-0.1
DURA	VanEck Vectors Morningstar Durable Dividend	37.2	29	-14	6.5	+1.1
JQUA	JPMorgan U.S. Quality Factor	36.8	12	3	5.5	+0.1
DGRW	WisdomTree US Dividend Growth	36.6	28	-13	7.1	+1.7
OQAL	Invesco Russell 1000 Quality Factor ETF	36.2	19	-4	4.9	-0.5
QUS	SPDR MSCI USA Quality Mix	35.8	15	0	5.6	+0.2
SPUS	SP Funds S&P 500 Sharia Industry Exclusions	35.4	49	-34	4.7	-0.7
EDOW	First Trust Dow 30 Equal Weight	34.3	50	-35	5.9	+0.5
DGRO	iShares Core Dividend Growth	33.6	8	7	6.1	+0.7
DIVB	iShares U.S. Dividend & Buyback	33.3	25	-10	6.4	+1.0
QDF	FlexShares Quality Dividend	33.1	37	-22	6.8	+1.4
JKF	iShares Morningstar Large Value	32.6	25	-10	7.4	+2.0
FTCS	First Trust Capital Strength	32.1	60	-45	5.0	-0.4
DYNF	BlackRock U.S. Equity Factor Rotation	31.8	30	-15	6.2	+0.8
XLK	Technology Select Sector SPDR	31.5	13	2	5.0	-0.3

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 500 Quality
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	23.3	%
Divided by: Fwd. P/BV	4.2	x
Less: Expense ratio	15	bp
Equals: ALTAR Score	5.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.54	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.