Fund Description: Invesco S&P Emerging Markets Low Volatility ETF, formerly PowerShares S&P Emerging Markets Low Volatility Portfolio is an exchange-traded index fund or Index ETF which is a separate portfolio of the Invesco Exchange-Traded Fund Trust II, formerly PowerShares Exchange-Traded Fund Trust II, an open-end investment management company. INVESTMENT OBJECTIVE: The Invesco S&P Emerging Markets Low Volatility ETF seeks investment results that correspond generally to the price and yield, before fees and expenses, of the S&P BMI Emerging Markets Low Volatility Index. INDEX DESCRIPTION: The S&P BMI Emerging Markets Low Volatility Index is designed to measure the performance of 200 of the least volatile stocks of the S&P Emerging BMI Plus LargeMid Cap Index. The Index Provider, Standard & Poor's, determines which are the least volatile securities over the past 12 months of companies in the S&P Emerging BMI Plus LargeMid Cap Index for inclusion in the Index. As of December 30, 2011, the S&P Emerging BMI Plus LargeMid Cap Index includes all publicly listed equity securities with float-adjusted market values of at least $100 million and annual dollar value traded of at least $50 million from the following countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations (increases or decreases in a stock's price) over time. FUND STRATEGY: The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before expenses, the performance of the Index. The Fund generally will invest in the stocks comprising the Index in proportion to their weightings in the Index. The Fund does not purchase all of the securities in the Index. Instead, the Fund utilizes a sampling methodology in seeking to achieve its investment objective. Sampling means that the Adviser uses quantitative analysis to select securities to obtain a representative sample of securities that resemble the Index in terms of key risk factors, performance attributes and other characteristics. These include industry weightings, market capitalization and other financial characteristics of securities. The Adviser bases the quantity of holdings on a number of factors, including asset size of the Fund. The Fund is expected to hold less than the total number of securities in its Index, but reserves the right to hold as many securities as it believes necessary to achieve the Fund's investment objective. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.