Fund Description: Invesco Senior Loan ETF, formerly PowerShares Senior Loan Portfolio, is an exchange-traded index fund or index ETF which is a separate portfolio of the Invesco Exchange-Traded Fund II, formerly PowerShares Exchange-Traded Fund Trust II, an open-end investment management company. INVESTMENT OBJECTIVE: The Invesco Senior Loan ETF seeks investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of the S&P/LSTA U.S. Leveraged Loan 100 Index. INDEX DESCRIPTION: The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. As of Februrary 8, 2011, there were 100 loans included in the Index. A leveraged loan is rated below investment grade quality or is unrated but deemed to be of comparable quality. FUND STRATEGY: The Fund will invest under normal circumstances at least 80% of its net assets (plus any borrowings for investment purposes) in senior loans. The Advisor define senior loans to include loans referred to as leveraged loans, bank loans and/or floating rate loans. Senior loans, generally made by banks and other lending institutions, are made to or issued by corporations, partnerships or other entities (borrowers). These borrowers operate in a variety of industries and geographic regions. The Fund will invest at least 80% of its total assets in the component securities that comprise the Index. A leveraged loan is rated below investment grade quality or is unrated but deemed to be of comparable quality. The loans in which the Fund will invest are expected to be below investment grade quality and to bear interest at a floating rate that resets periodically. The Index may include, and the Fund may acquire and retain in its portfolio, loans of borrowers that have filed for bankruptcy protection. The Fund may also invest up to 20% of its assets in closed-end funds that invest all or a portion of their assets in senior loans and in other liquid instruments such as high yield securities, commonly known as junk bonds. Senior loans are often issued in connection with recapitalizations, acquisitions, leveraged buyouts and refinancings. Senior loans are typically structured and administered by a financial institution that acts as agent for the lenders in the lending group. The Fund will generally purchase loans from banks or other financial institutions through assignments or participations. The Fund may acquire a direct interest in a loan from the agent or another lender by assignment or an indirect interest in a loan as a participation in another lender's portion of a loan. The Fund will generally sell loans it holds by way of an assignment, but may at any time facilitate its ability to fund redemption requests by selling participation interests in such loans. The Fund does not purchase all of the securities in the Index. Instead, the Fund utilizes a sampling methodology in seeking to achieve the Fund's investment objective. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.