Fund Description: Invesco S&P SmallCap Utilities ETF, formerly PowerShares S&P SmallCap Utilities 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 Utilities ETF seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the S&P SmallCap 600 Capped Utilities & Telecom Services Index. INDEX DESCRIPTION: The S&P SmallCap 600 Capped Utilities & Telecom Services Index is comprised of common stocks of U.S. utility companies. These companies are principally engaged in providing either energy, water, electric or natural gas utilities or providing telecommunications services. These companies may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as dealing with associated wastewater; and provide land line or wireless telephone 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 20 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 utility companies. In pursuit of its investment objective, 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.