Fund Description: Invesco FTSE RAFI US 1500 Small-Mid ETF, formerly PowerShares FTSE RAFI US 1500 Small-Mid Portfolio is an exchange-traded index fund or Index ETF which is a separate portfolio of the Invesco Exchange-Traded Fund Trust, formerly PowerShares Exchange-Traded Fund Trust, an open-end investment management company. The Invesco FTSE RAFI US 1500 Small-Mid ETF seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the FTSE Research Affiliates Fundamentals US 1500 Small-Mid Index. INDEX DESCRIPTION: The FTSE US 1500 Small-Mid Index is comprised of approximately 1,500 U.S. stocks. The FTSE US 1500 Small-Mid Index is designed to track the performance of small and medium-sized U.S. equity stocks selected based on the following four fundamental measures of firm size: book value, income, cash flow and dividends. As of June 30, 2006, the FTSE US 1500 Small-Mid Index included companies with a market capitalization range of between $97 million and $16 billion. FTSE International Limited ("FTSE") is the index provider for the Fund. The Index is reconstituted on an annual basis. FUND STRATEGY: The Fund will normally invest at least 90% of its total assets in common stocks that comprise the FTSE US 1500 Small-Mid Index. The Fund, using an "indexing" investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Adviser seeks correlation over time of 0.95 or better between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index. However, under various circumstances, it may not be possible or practicable to purchase all of those securities in those weightings. In those circumstances, the Fund may purchase a sample of securities in the Index as a whole. There may also be instances in which the Adviser may choose to overweight another security in the Index, purchase securities not in the Index which the Adviser believes are appropriate to substitute for certain securities in the Index or utilize various combinations of other available investment techniques, in seeking to track the Index. The Fund may sell securities that are represented in the Index in anticipation of their removal from the Index or purchase securities not represented in the Index in anticipation of their addition to the Index. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.