Fund Description: Invesco S&P SmallCap Materials ETF, formerly PowerShares S&P SmallCap Materials 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 Materials ETF seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the S&P SmallCap 600 Capped Materials Index. INDEX DESCRIPTION: The S&P SmallCap 600 Capped Materials Index is comprised of common stocks of U.S. basic materials companies. These are companies that are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals. The Index is compiled, maintained and calculated by Standard & Poor's. As of December 31, 2009, the Index consisted of 30 securities of companies. FUND STRATEGY: The Fund uses an indexing investment approach and attempts to replicate the performance of its Index. The Fund will normally invest at least 80% of its total assets in common stocks of small capitalization basic materials companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.