ETF Research Center

The Invesco S&P SmallCap Quality Portfolio tracks an index of US small-cap stocks selected by return on equity, accruals ratio, and financial leverage. Stocks are weighted by these quality factors and scaled by market cap.

FUND BASICS
Category	US Equities
Fund Sponsor	Invesco PowerShares
Website	www.invesco.com
Inception date	Apr 06, 2017
Assets (mns)	$4
Currency	USD
Expense ratio	29 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	121
Wgt avg mkt cap (mns)	$2,163
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	54.9%
Small cap (<$2bn)	45.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	18.9 %
EXPONENT INC	2.2 %
SIMPSON MANUFACTURING CO INC	2.0 %
BROOKS AUTOMATION INC	2.0 %
POWER INTEGRATIONS INC	1.9 %
BALCHEM CORP	1.9 %
COMMUNITY BANK SYSTEM INC	1.8 %
LEXINGTON REALTY TRUST	1.8 %
VIAVI SOLUTIONS INC.	1.8 %
JOHN BEAN TECHNOLOGIES CORP	1.8 %
WD-40 CO	1.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.8 %
	CAYMAN ISLANDS	2.2 %
	PUERTO RICO	1.2 %
	BERMUDA	0.5 %

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.
-4.3%	3.4%	--	--	7.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.07	72%
MSCI EAFE	1.06	56%
MSCI Emg. Mkts.	0.65	35%

Technical Indicators
Recent close	$28.47
30d moving avg.	$28.76
Annualized volatility	16.9%
Short interest (ETF)	0.0%
Relative strength (RSI)	45

Liquidity measures
Avg. volume (thou.)	1
Turnover	0.7%
Bid/Ask (% of price)	0.31%
ADV underlying (mns)	$1,148

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

XSHQ

Expense:

29 bp

ALTAR Score™:

5.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XSHQ
Ticker	Fund Name	Overlap¹ vs XSHQ (%)	Expense ratio (bp)	Savings vs XSHQ (bp)	ALTAR Score™ (%)	ALTAR vs XSHQ (%)
IJT	iShares S&P 600 SmallCap Growth	28.4	25	4	4.9	-0.8
SLYG	SPDR S&P600 Small Cap Growth	28.4	15	14	5.0	-0.7
VIOG	Vanguard S&P Small-Cap 600 Growth	28.0	16	13	4.8	-0.8
PSCI	Invesco S&P Small Cap Industrials	27.2	29	0	6.5	+0.8
PXSG	Invesco Fundamental Pure Small Growth	26.8	39	-10	4.7	-1.0
IJR	iShares Core S&P Small-Cap	23.2	7	22	6.1	+0.4
SLY	SPDR S&P 600 Small Cap	23.2	15	14	6.0	+0.4
SPSM	SPDR Portfolio Small Cap	23.2	5	24	6.1	+0.5
VIOO	Vanguard S&P Small-Cap 600	23.1	10	19	6.0	+0.3
XSLV	Invesco S&P SmallCap Low Volatility	22.8	25	4	6.5	+0.9
RZG	Invesco S&P Smallcap 600 Pure Growth	20.9	35	-6	5.9	+0.3
EWSC	Invesco S&P Small Cap 600 Equal Weight	19.8	40	-11	5.4	-0.3
CALF	Pacer US Small Cap Cash Cows 100	18.3	59	-30	10.3	+4.6
CSF	Compass EMP US Discovery 500 Enhanced Vol.	18.2	35	-6	7.3	+1.7
CSA	Victory CEMP US Small Cap Volatility Wtd	18.1	35	-6	7.3	+1.7
PSCT	Invesco S&P Small Cap Information Technology	18.0	29	0	5.4	-0.2
TPSC	Timothy Plan US Small Cap Core	17.8	52	-23	6.9	+1.3
SCAP	AdvisorShares Cornerstone Small Cap	17.8	90	-61	3.8	-1.9
SLYV	SPDR S&P600 Small Cap Value	17.4	15	14	7.3	+1.7
VIOV	Vanguard S&P Small-Cap 600 Value	17.4	15	14	7.3	+1.7

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 S&P SmallCap Quality 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	13.2	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	5.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.66	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.