Fund Description: Invesco S&P SmallCap Industrials ETF, formerly PowerShares S&P SmallCap Industrials 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 Industrials 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 Industrials Index. INDEX DESCRIPTION: The S&P SmallCap 600 Capped Industrials Index is comprised of common stocks of U.S. industrial companies. These are companies that are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing. The Index is compiled, maintained and calculated by Standard & Poor's. As of December 31, 2009, the Index consisted of 94 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 industrial 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.