Fund Description: Invesco S&P SmallCap Consumer Discretionary ETF, formerly PowerShares S&P SmallCap Consumer Discretionary Portfolio ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Invesco Exchange-Traded Fund Trust II, formerly PowerShares Exchange-Traded Fund Trust II, an open-end investment management company. INVESTMENT OBJECTIVE: Invesco S&P SmallCap Consumer Discretionary ETF seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the S&P SmallCap 600 Capped Consumer Discretionary Index. INDEX DESCRIPTION: The S&P SmallCap 600 Capped Consumer Discretionary Index is comprised of common stocks of U.S. consumer discretionary companies that are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including, but not limited to, household durables, leisure products and services, apparel and luxury goods, computers and electronics, automobiles and auto components, hotel and restaurant services and television and other entertainment goods and services. The Index is a subset of the S&P SmallCap 600 Index, which is a float-adjusted, market-capitalization-weighted index reflecting the U.S. small-cap market. The Index is compiled, maintained and calculated by Standard & Poor's. As of December 31, 2009, the Index consisted of 113 securities of companies. FUND STRATEGY: The Fund uses an indexing investment approach and attempts to replicate the performance of the Index. The Fund will normally invest at least 80% of its total assets in common stocks of small capitalization consumer discretionary companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Index concentrates in an industry or group of industries. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.