ETF Risk Report: CQQQ Buyer beware: Every ETF holds the full risk of its underlying equities Disclosures in the best interest of investors Invesco China Technology ETF Gray Swan Event Risks exist for every equity held by CQQQ. Gray swan events include accounting fraud, management failures, failed internal controls, M&A problems, restatements, etc. These risks occur Gray Swan Event Factor for CQQQ 2.64% infrequently, but consistently for all equities. Equities account for 99.93% of CQQQ’s assets. Most investors ignore these risks until after they are disclosed; whereupon a stock’s price drops precipitously. Just as insurance companies can predict likely costs for a driver’s future car accidents based on the driver’s history, Watchdog Research contacts each ETF asking how they notify investors about we predict the likely cost (price drop) for CQQQ following accounting governance risks in equities in their fund. We will publish their response gray swan disclosures within its holdings. The expected when received. price decrease across the CQQQ equity portfolio is 2.64%. However, individual equity risks vary signicantly. This report helps investors know their risk exposure. Inception Date: 12/08/2020 Year-to-Date Return: -1.07% Passively managed, the fund tracks the FTSE China Incl A 25% Technology Capped Index, which is composed of Net Assets: $1.58b 1-Year Return: 70.93% securities of companies that the index provider has classied as being in the technology industry and that are Price: $81.45 3-Year Return: 11.18% constituents of the FTSE China Index or FTSE China A Net Asset Value (NAV): $80.85 5-Year Return: 19.84% Stock Connect CNH Index. The index is rebalanced quarterly. Net Expense Ratio: 0.70% Yield: 0.47% As of: 03/31/2021 Company Ticker Held Current GSEF Category Value Top Holdings by Value Tencent 700 Long - NA $175m This table shows Gray Swan Event Factors for the top ten equity holdings by dollar-value, as of Sep 24, 2021. Meituan Dianping Cl... 3690 Long - NA $167m Investors should invest in ETFs only when they adequately Baidu, Inc. BIDU Long 2.62% Mid $155m understand an ETF’s risks. Buyer beware. ETF prospectuses generally acknowledge that ETF managers Sunny Optical Tech 2382 Long - NA $137m do NO traditional risk analysis on equities in their fund. Bilibili Inc. BILI Long 2.55% Mid $136m Our Gray Swan Event Factors are meant to inform investors of signicant traditional accounting and Tencent Music Enter... TME Long 2.96% Mid $71.4m managerial risks for the equities in each ETF. Gds Holdings Ltd. GDS Long 2.69% Mid $70.3m ETF Risk Reports are published quarterly on dedicated Kingdee Internation... 268 Long - NA $66.9m platforms like Factset, Renitiv, Capital IQ etc. Weekly updates are available for a paid subscription. Kuaishou Technology... 1024HK Long - NA $66.5m For more details contact: [email protected] Longi Green Energy ... 601012 Long - NA $53.8m Company Ticker Held Current GSEF Category Value Riskiest Holdings Tencent Music Enter... TME Long 2.96% Mid $71.4m This table shows the individual Gray Swan Event Factors for this ETF’s most at-risk equities as of Sep 24, 2021. Gds Holdings Ltd. GDS Long 2.69% Mid $70.3m The average equity GSEF across 6,500 public equities is Baidu, Inc. BIDU Long 2.62% Mid $155m 1.25%. Equities with a GSEF between 5% and 10% are considered high risk. Equities with a GSEF above 10% are Momo Inc. MOMO Long 2.57% Mid $24.7m extreme risks. Gray Swan Event Factors are derived from skilled analysts Weibo Corp. WB Long 2.57% Mid $30.2m charting 15 years of negative gray swan event disclosures Bilibili Inc. BILI Long 2.55% Mid $136m against stock price declines following such disclosures. A Gray Swan Event Factor is an assessment of the Autohome Inc. ATHM Long 2.45% Mid $40.2m likelihood of, and 12-month price risk for, gray swan Tencent 700 Long - NA $175m events for each equity. Meituan Dianping Cl... 3690 Long - NA $167m Sunny Optical Tech 2382 Long - NA $137m Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 This table lists the equity holdings for Invesco China Technology ETF ranked by highest GSE Factor (riskiest rst). We list all equities (US and foreign) for this ETF. However, some foreign listings only show via a ticker. To further evaluate risks, you can access details for each company by opening its Brief Watchdog Report available for viewing and pdf download. The report is free to readers for their personal consumption and it includes the executive summary data pulled from the full Watchdog Report. To learn more about the full Watchdog and GSEF Reports go to last page or visit watchdogresearch.com. Company Access Details Ticker Held Current GSEF Category Value Tencent Music Entertainment Group Watchdogresearch.com/watchdog/$TME TME Long 2.96% Mid $71.4m Gds Holdings Ltd. Watchdogresearch.com/watchdog/$GDS GDS Long 2.69% Mid $70.3m Baidu, Inc. Watchdogresearch.com/watchdog/$BIDU BIDU Long 2.62% Mid $155m Momo Inc. Watchdogresearch.com/watchdog/$MOMO MOMO Long 2.57% Mid $24.7m Weibo Corp. Watchdogresearch.com/watchdog/$WB WB Long 2.57% Mid $30.2m Bilibili Inc. Watchdogresearch.com/watchdog/$BILI BILI Long 2.55% Mid $136m Autohome Inc. Watchdogresearch.com/watchdog/$ATHM ATHM Long 2.45% Mid $40.2m Tencent - 700 Long - NA $175m Meituan Dianping Class B Common Stock - 3690 Long - NA $167m Usd.00001 Sunny Optical Tech - 2382 Long - NA $137m Kingdee International Sftwr - 268 Long - NA $66.9m Kuaishou Technology Common Stock - 1024HK Long - NA $66.5m Usd.0000053 Longi Green Energy Technol A - 601012 Long - NA $53.8m China Literature Ltd - 772 Long - NA $45.8m Joyy Inc - YYUW Long - NA $36m Kingsoft Cloud Holdings Adr Adr Usd.001 - KCUW Long - NA $32.4m Ming Yuan Cloud Group Holdings Ltd - 909 Long - NA $28.2m Hua Hong Semi - 1347 Long - NA $27.9m Boe Technology Group Co Lt A - 000725 Long - NA $23.6m Will Semiconductor Ltd A - 603501C Long - NA $21.8m Travelsky Technology Ltd H - 696 Long - NA $20.8m Dada Nexus Ltd Adr Adr - DADAUW Long - NA $19.1m Maxscend Microelectronics A - 300782C Long - NA $17.9m Iytek Co. Ltd. Class A - 002230 Long - NA $16.8m Sanan Optoelectronics Co L A - 600703 Long - NA $16.1m Focus Media Information Te A - 002027 Long - NA $15.4m Naura Technology Group Co A - 2371 Long - NA $15.4m Oneconnect Financial Techno Adr - OCFTUN Long - NA $15.1m Gigadevice Semiconductor B A - 603986 Long - NA $14m Shanghai Baosight Software B - 900926 Long - NA $13.2m Tianjin Zhonghuan Semicond A - 002129 Long - NA $13.1m Yonyou Network Technology A - 600588 Long - NA $12.2m Hundsun Technologies Inc A - 600570 Long - NA $10.9m Unigroup Guoxin Co Ltd A - 002049 Long - NA $10.5m Legend Holdings Corp H - 3396 Long - NA $8.75m Chaozhou Three Circle Group Co Ltd - 300408 Long - NA $8.61m Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Company Access Details Ticker Held Current GSEF Category Value Montage Technology Co Ltd A - 688008C Long - NA $7.89m Jiangsu Changjiang Electronics - 600584 Long - NA $7.49m Technology Co. Ltd. Class A Zhejiang Jingsheng Mechani A - 300316 Long - NA $7.26m Guangdong Ly Intelligent M A - 002600 Long - NA $7.25m Wuhan Guide Infrared Co Lt A - 2414 Long - NA $7.23m Hithink Royalush Information Network - 300033 Long - NA $6.77m Co. Ltd. Class A Sg Micro Corp A - 300661 Long - NA $6.65m Thunder Software Technolog A - 300496 Long - NA $6.64m Shengyi Technology Co Ltd A - 600183 Long - NA $5.99m Suzhou Maxwell Technologie A Common - 300751C Long - NA $5.23m Stock Cny1.0 Raytron Technology Co Ltd A - 688002C Long - NA $4.96m China Greatwall Technology A - 66 Long - NA $4.78m Boe Technology Group Co Lt B - 200725 Long - NA $4.75m Tianshui Huatian Technology Co. Ltd. - 2185 Long - NA $4.71m Class A Inspur Electronic Informat A - 000977 Long - NA $4.57m Dawning Information Indust A - 603019 Long - NA $4.48m Ingenic Semiconductor Co. Ltd. Class A - 300223 Long - NA $4.27m Sangfor Technologies Inc A - 300454 Long - NA $4.25m Shenzhen Sc New Energy Technology - 300724 Long - NA $4.02m Corp. Class A Beijing Shiji Information A - 002153 Long - NA $3.94m Shanghai Baosight Software A - 600845 Long - NA $3.89m Winning Health Technology Group Co. Ltd. - 300253 Long - NA $3.89m Class A Tianma Microelectronics A - 50 Long - NA $3.66m Tongfu Microelectronics Co. Ltd. Class A - 2156 Long - NA $3.57m Qingdao Tgood Electric Co. Ltd. Class A - 300001 Long - NA $3.5m Hans Laser Technology In A - 002008 Long - NA $3.44m Shenghe Resources Holdings A - 600392 Long - NA $3.41m Avary Holding Shenzhen Co A - 2938 Long - NA $3.31m Guangzhou Shiyuan Electron A - 002841 Long - NA $3.3m Unisplendour Corp. Ltd. Class A - 000938 Long - NA $3.25m Shenzhen Kaifa Technology A - 21 Long - NA $3.15m China National Software A - 600536 Long - NA $3.15m Wus Printed Circuit Kunsha A - 2463 Long - NA $2.98m All Winner Technology Co L A - 300458 Long - NA $2.78m Shenzhen Everwin Precision A - 300115 Long - NA $2.77m Dhc Software Co Ltd A - 002065 Long - NA $2.76m Olm Group Co Ltd A Common Stock - 002456 Long - NA $2.67m Cny1.0 Sieyuan Electric Co Ltd A - 2028 Long - NA $2.63m Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Company Access Details Ticker Held Current GSEF Category Value Shenzhen Goodix Technology Co.