Fund Description: Invesco S&P SmallCap Health Care ETF, formerly PowerShares S&P SmallCap Health Care 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 Health Care ETF seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Capped HealthCare Index. INDEX DESCRIPTION: The S&P SmallCap 600 Capped HealthCare Index is comprised of common stocks of U.S. healthcare companies. These are companies that are principally engaged in the business of providing healthcare-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities. 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. As of December 31, 2009, the Index consisted of 79 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 healthcare 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.