Fund Description: Invesco S&P SmallCap Quality ETF, formerly PowerShares S&P SmallCap Quality 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 S&P SmallCap Quality ETF seeks investment results that correspond generally to the price and yield, before fees and expenses, of the S&P SmallCap 600 Quality Index. INDEX DESCRIPTION: The S&P SmallCap 600 Quality Index is composed of 120 securities in the S&P SmallCap 600 Index that are of the highest quality that is, stocks of companies that seek to generate higher revenue and cash flow than their counterparts through prudent use of assets and finances. The S&P SmallCap 600 Index is designed to measure the small-capitalization segment of the U.S. equity market; to be eligible for inclusion in the S&P SmallCap 600 Index, equity securities must be issued by a company with an unadjusted market capitalization between $400 million and $1.8 billion. The Fund and the Index are rebalanced and reconstituted semi-annually. FUND STRATEGY: The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. Each component stock’s quality score represents the average of three equally weighted financial metrics of a company: (1) return-on-equity (calculated as the company’s trailing 12-month earnings per share divided by the company’s latest book value per share); (2) accruals ratio (calculated as the change in the company’s net operating assets over the last year divided by the company’s average net operating assets over the last two years); and (3) financial leverage ratio (calculated as the company’s latest total debt divided by the company’s book value). Based on this criteria, S&P Dow Jones Indices LLC, the Index Provider, selects the 120 stocks with the highest quality score for inclusion in the Index. The Fund is non-diversified. FUND MANAGEMENT: Invesco Capital Management LLC serves as the investment adviser to the Fund.