Fund Description: Invesco S&P SmallCap Energy ETF, formerly PowerShares S&P SmallCap Energy 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 Energy ETF seeks investment results that correspond, before fees and expenses, generally to the price and yield performance of the S&P SmallCap 600 Capped Energy Index. INDEX DESCRIPTION: The S&P SmallCap 600 Capped Energy Index is comprised of common stocks of U.S. energy companies that are principally engaged in the business of producing, distributing or servicing energy related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy. 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 23 securities of companies. FUND STRATEGY: The Fund uses an indexing investment approach and attempts to replicate performance of the Index. The Fund will normally invest at least 80% of its total assets in common stocks of small capitalization energy companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index and also 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.