Invesco DWA Tactical Sector Rotation ETF

C000161056 Fund Overview

Invesco DWA Tactical Sector Rotation ETF is a US ETF managed by Invesco Exchange-Traded Fund Trust II, categorised as United States Multi-Cap / All-Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Invesco Exchange-Traded Fund Trust II
• Category: United States Multi-Cap / All-Cap Blend / Core Equity
• Assets under management: $69.90M
• SEC CIK: 0001378872
• SEC series ID: S000051159
• Share class ID: C000161056

C000161056 Investment Objective and Strategy

Invesco DWA Tactical Sector Rotation ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Invesco Exchange-Traded Fund Trust II.

Investment objective

"The PowerShares DWA Tactical Sector Rotation Portfolio (the ""Fund"") seeks to track the investment results (before fees and expenses) of the Dorsey Wright ® Sector 4 Index (the ""Underlying Index"")."

Principal investment strategy

"The Fund generally will invest at least 90% of its total assets in securities that comprise the Underlying Index. The Fund is a ""fund of funds,"" meaning that it invests its assets in the shares of other exchange-traded funds (""ETFs"") eligible for inclusion in the Underlying Index, rather than in securities of individual companies. The Fund also may invest in 1 to 6-month U.S. Treasury Bills included in the Underlying Index. The underlying funds included in the Underlying Index are ETFs advised by the Fund's adviser or its affiliates (the ""PowerShares ETFs""). The Fund and the PowerShares ETFs are part of the same group of investment companies. Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the ""Index Provider"" or ""Dorsey Wright"") compiles, maintains and calculates the Underlying Index which, at any given time, is composed of up to four PowerShares ETFs from an eligible universe of nine PowerShares ETFs, each of which is designed to seek to track separate sector-specific underlying indexes.

Each PowerShares ETF's underlying index also is compiled and maintained by the Index Provider. The PowerShares ETFs that are eligible for inclusion in the Underlying Index represent the nine macroeconomic sectors of the U.S. equity markets: PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio. The Underlying Index seeks to gain exposure to the sectors of the U.S. equity markets that display the strongest relative strength, as evaluated on a monthly basis.

""Relative strength"" is the measurement of a security's performance in a given universe as compared to the performance of all other securities in that universe. Therefore, at any given time, the components of the Underlying Index are those PowerShares ETFs that the Index Provider believes offer the greatest potential to outperform each other eligible PowerShares ETF. Using its proprietary methodology, the Index Provider calculates the relative strength of each economic sector by analyzing the monthly change in prices of securities within each sector in the equity markets, and then ranks each sector by the strongest increase in prices during that period as compared with the other sectors. The Underlying Index is composed of up to four eligible PowerShares ETFs that invest in the representative economic sectors that have the highest relative strength ranking.

The Underlying Index is equal weighted, with each constituent PowerShares ETF representing 25% of its weight. However, during market periods when fewer than four eligible PowerShares ETFs demonstrate sufficient relative strength (that is, when most sectors represented by the PowerShares ETFs are out of favor), the Underlying Index will hold a cash position, represented by 1- to 6-month U.S. Treasury Bills, in an amount equal to the weight of the missing PowerShares ETF(s) (for example, at times when, pursuant to its methodology, the Underlying Index only holds two PowerShares ETFs, it will invest 50% of its weight in Treasury Bills). During periods when equity securities as a whole are out of favor, the Underlying Index may hold a 100% cash position. The Index Provider evaluates the Underlying Index constituents monthly and Underlying Index changes are transacted using a replacement method (an Underlying Index constituent that represents a sector that has fallen out of favor is replaced by the PowerShares ETF representing a sector demonstrating relative strength), and the Underlying Index is rebalanced on a change only when a position drifts materially from its targeted equal-weight allocation.

The Fund generally invests in each constituent PowerShares ETF comprising the Underlying Index in proportion to its weightings in the Underlying Index. The Fund is ""non-diversified"" and therefore is not required to meet certain diversification requirements under the Investment Company Act of 1940, as amended (the ""1940 Act""). Concentration Policy. The Fund will concentrate its investments (i.e., invest more than 25% of the value of its net assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries."

C000161056 Costs and Fees

C000161056 costs about $75 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.75%
• Gross expense ratio: 0.75%
• Portfolio turnover: 129%
• Brokerage commissions: 5.95 bps of average net assets (SEC N-CEN)

C000161056 Cashflows

Over the 12 months to 2019-11, Invesco DWA Tactical Sector Rotation ETF had net inflows of $1.72M, from monthly SEC N-PORT filings.

C000161056 Debt Constituents

No individual debt constituents are reported in Invesco DWA Tactical Sector Rotation ETF's latest SEC N-PORT filing.

C000161056 Prospectus and SEC Filings

Official Invesco DWA Tactical Sector Rotation ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-01-14
• Prospectus (485BPOS) — filed 2019-01-15
• Prospectus (485BPOS) — filed 2018-03-16
• Portfolio holdings (N-PORT) — filed 2020-01-29
• Annual census (N-CEN) — filed 2019-11-14
• Annual census (N-CEN) — filed 2018-11-15

Related Funds

Other United States Multi-Cap / All-Cap Blend / Core Equity funds tracked on ABC INVEST:

• MFS International Diversification Fund (MDIDX)
• Vanguard Lifestrategy Growth Fund (VASGX)
• Vanguard Lifestrategy Moderate Growth Fund (VSMGX)
• Vanguard Star Fund (VGSTX)
• Eaton Vance Short Duration Strategic Income Fund (ETSIX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.