Fund Description: Invesco Variable Rate Preferred ETF, formerly PowerShares Variable Rate Preferred Portfolio is an exchange-traded index fund or Index ETF which is a separate portfolio of the Invesco Exchange-Traded Fund Trust II, formerly PowerShares Exchange-Traded Fund Trust II, an open-end investment management company. INVESTMENT OBJECTIVE: The Invesco Variable Rate Preferred ETF seeks investment results that correspond generally to the price and yield, before fees and expenses, of the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. INDEX DESCRIPTION: The Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index is a market capitalization-weighted index designed to track the performance of preferred stock, as well as certain types of hybrid securities that are functionally equivalent to preferred stocks, that are issued by U.S.-based or foreign issuers and that pay a floating or variable rate dividend or coupon. The Index Provider, Wells Fargo & Company, employs a proprietary methodology to select for the Index issues of preferred stock and hybrid securities that are functionally equivalent to preferred stock, including certain convertible securities, depositary preferred stock, trust preferred securities, perpetual subordinated debt listed on the New York Stock Exchange, NYSE Arca or NASDAQ and other types of hybrid securities that receive preferred treatment within an issuer's capital structure similar to that of traditional preferred stock. To be eligible for inclusion in the Index, the preferred stock or hybrid security must: (i) maintain a minimum par value of $100 million outstanding or a minimum of 10 million shares outstanding; (ii) have floating or variable dividends or coupons; and (iii) be U.S. dollar denominated and U.S. registered (or otherwise exempt from registration in the United States). FUND STRATEGY: The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Fund considers the traditional preferred stocks and functionally equivalent hybrid securities included in the Index, collectively, to be Preferred Securities. In general, preferred stock is a class of equity security that is so named because it is preferred over common stock within an issuer's capital structure. This preference means that an issuer must pay distributions on its preferred stock before paying dividends on its common stock, and that claims of preferred stockholders to an issuer's assets are placed ahead of claims of common stockholders when an issuer liquidates. However, as an equity security, preferred stock is junior to an issuer's various forms of debt. Hybrid securities that are functionally equivalent to preferred stock are those securities that, like traditional preferred stock, have preference over the common stock within an issuer's capital structure, and are issued and traded in a similar manner to traditional preferred stock. Like preferred stock (but unlike debt securities or common stock), hybrid securities have the ability to defer dividend payments to stockholders and to extend their maturity dates to different durations. Variable- or floating-rate securities pay interest at rates that adjust whenever a specified benchmark interest rate (e.g., the LIBOR or a T-Bill rate) changes, float at a fixed margin above a generally recognized base lending rate, or are reset or re-determined on specified dates (such as the last day of a month or calendar quarter). Dividends may be paid on a variable rate percentage of the fixed par value at which the preferred stock is issued, and preferred stocks often have a liquidation value that equals the original purchase price of the stock at the time of issuance. The Fund does not purchase all of the Preferred Securities in the Index; instead, the Fund utilizes a sampling methodology to seek to achieve its investment objective. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.