ETF Research Center

The Invesco S&P SmallCap High Dividend Low Volatility ETF tracks a dividend-yield-weighted index of the 60 least volatile stocks chosen from a list of the 90 highest-yielding US small-cap stocks.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.invesco.com
Inception date	Dec 01, 2016
Assets (mns)	$27
Currency	USD
Expense ratio	30 bp
Distributions	Monthly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Dividend
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	59
Wgt avg mkt cap (mns)	$1,134
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	7.6%
Small cap (<$2bn)	92.4%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	32.4 %
PETMED EXPRESS INC	3.7 %
RAMCO-GERSHENSON PROPERTIES	3.5 %
KITE REALTY GROUP TRUST	3.4 %
CEDAR SHOPPING CENTERS INC	3.3 %
WHITESTONE REIT	3.2 %
GANNETT CO., INC.	3.1 %
PENNYMAC MORTGAGE INVESTMENT	3.1 %
GLOBAL NET LEASE INC	3.1 %
NEW YORK MORTGAGE TRUST INC	3.0 %
INNOPHOS HOLDINGS INC	3.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.8 %

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.
15.5%	6.4%	--	--	2.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.87	55%
MSCI EAFE	0.76	35%
MSCI Emg. Mkts.	0.45	20%

Technical Indicators
Recent close	$24.21
30d moving avg.	$24.08
Annualized volatility	14.5%
Short interest (ETF)	0.0%
Relative strength (RSI)	56

Liquidity measures
Avg. volume (thou.)	6
Turnover	0.6%
Bid/Ask (% of price)	0.34%
ADV underlying (mns)	$647

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

XSHD

Expense:

30 bp

ALTAR Score™:

8.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XSHD
Ticker	Fund Name	Overlap¹ vs XSHD (%)	Expense ratio (bp)	Savings vs XSHD (bp)	ALTAR Score™ (%)	ALTAR vs XSHD (%)
XSLV	Invesco S&P SmallCap Low Volatility	24.5	25	5	6.9	-1.3
SRET	Global X SuperDividend REIT	22.1	59	-29	10.1	+1.9
DIV	Global X SuperDividend US ETF	19.9	45	-15	7.6	-0.6
MORT	VanEck Vectors Mortgage REIT	19.2	42	-12	11.1	+2.9
ROOF	IQ US Real Estate Small Cap	16.9	70	-40	8.6	+0.4
REM	iShares Mortgage Real Estate Capped	16.6	48	-18	10.9	+2.7
CSB	Victory CEMP US Small Cap High Div Volatility Wtd	15.4	35	-5	7.4	-0.8
PSCU	Invesco S&P Small Cap Utilities	15.2	29	1	2.0	-6.2
KBWY	Invesco KBW Premium Yield Equity REIT	12.4	35	-5	14.8	+6.6
XSVM	Invesco S&P SmallCap Value with Momentum	12.3	39	-9	8.3	+0.2
DES	WisdomTree Smallcap Dividend	11.6	38	-8	7.3	-0.9
IJS	iShares S&P 600 SmallCap Value	11.3	25	5	7.3	-0.9
SLYV	SPDR S&P600 Small Cap Value	11.3	15	15	7.4	-0.8
PSCF	Invesco S&P Small Cap Financials	11.1	29	1	8.7	+0.5
VIOV	Vanguard S&P Small-Cap 600 Value	11.1	20	10	7.3	-0.9
KBWD	Invesco KBW High Dividend Financial	10.3	242	-212	10.3	+2.1
SDIV	Global X Superdividend	10.1	58	-28	11.1	+2.9
EWSC	Invesco S&P Small Cap 600 Equal Weight	9.8	40	-10	5.7	-2.5
IJR	iShares Core S&P Small-Cap	9.7	7	23	6.1	-2.1
SLY	SPDR S&P 600 Small Cap	9.7	15	15	6.1	-2.1

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 SmallCap High Div Low Volatility
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	9.8	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	30	bp
Equals: ALTAR Score	8.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.80	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.