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Invesco Annual Report to Shareholders

April 30, 2019

 

PBE   Invesco Dynamic Biotechnology & Genome ETF
PKB   Invesco Dynamic Building & Construction ETF
PXE   Invesco Dynamic Energy Exploration & Production ETF
PBJ   Invesco Dynamic Food & Beverage ETF
PEJ   Invesco Dynamic Leisure and Entertainment ETF
PBS   Invesco Dynamic Media ETF
PXQ   Invesco Dynamic Networking ETF
PXJ   Invesco Dynamic Oil & Gas Services ETF
PJP   Invesco Dynamic Pharmaceuticals ETF
PMR   Invesco Dynamic Retail ETF
PSI   Invesco Dynamic Semiconductors ETF
PSJ   Invesco Dynamic Software ETF

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold accounts through a financial intermediary, you may contact your financial intermediary to enroll in electronic delivery. Please note that not all financial intermediaries may offer this service.

You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.

 


 

Table of Contents

 

The Market Environment      3  
Manager’s Analysis      4  
Industry Portfolios   
Schedules of Investments   

Invesco Dynamic Biotechnology & Genome ETF (PBE)

     28  

Invesco Dynamic Building & Construction ETF (PKB)

     29  

Invesco Dynamic Energy Exploration & Production ETF (PXE)

     30  

Invesco Dynamic Food & Beverage ETF (PBJ)

     31  

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

     32  

Invesco Dynamic Media ETF (PBS)

     33  

Invesco Dynamic Networking ETF (PXQ)

     34  

Invesco Dynamic Oil & Gas Services ETF (PXJ)

     35  

Invesco Dynamic Pharmaceuticals ETF (PJP)

     36  

Invesco Dynamic Retail ETF (PMR)

     37  

Invesco Dynamic Semiconductors ETF (PSI)

     38  

Invesco Dynamic Software ETF (PSJ)

     39  
Statements of Assets and Liabilities      40  
Statements of Operations      42  
Statements of Changes in Net Assets      44  
Financial Highlights      48  
Notes to Financial Statements      56  
Report of Independent Registered Public Accounting Firm      66  

Fund Expenses

     67  
Tax Information      69  
Trustees and Officers      70  
Board Considerations Regarding Continuation of Investment Advisory Agreement      76  

 

 

  2  

 


 

The Market Environment

 

 

 

Domestic Equity

The fiscal year proved to be an increasingly volatile time for U.S. equities. Throughout the summer, U.S. equities moved higher as corporate profits surged amid the benefit of corporate tax cuts and improving global economic growth. Several U.S. equity indexes reached new highs despite potential headwinds, including trade tensions, tariff announcements and contagion concerns over a Turkish currency crisis. After a relatively quiet summer, market volatility noticeably rose in October 2018, as U.S. equity markets suffered a sharp sell-off through year-end 2018, amid ongoing trade concerns between the U.S. and China, fears of a global economic slowdown and lower oil prices from a supply glut, with oil prices plummeting from near $75 per barrel in early October 2018 to around $45 per barrel in late December 2018.1 In this environment, there was a flight to safety, as investors fled to defensive areas of the markets, such as health care, utilities and U.S. Treasuries.

Given signs of a strong economy, the U.S. Federal Reserve (the “Fed”) raised interest rates three times during the fiscal year: in June, September and December 2018. Following December’s Fed meeting, the Fed raised interest rates by 25 basis points to a targeted range of 2.25% to 2.50%, which signaled a slightly more dovish stance than expected.2 In contrast, the European Central Bank and central banks in several other countries maintained extraordinarily accommodative monetary policies.

Equity markets rebounded at the start of 2019, fueled by optimism about a potential U.S.-China trade deal and the Fed’s indication that there would be no interest rate hikes in 2019, a surprising shift in monetary policy. The Fed’s more accommodative stance provided a supportive environment for equities and fixed income, even as U.S. economic data were mixed and overseas growth appeared to be slowing. By the end of the fiscal year, the U.S. equity market generally recovered the losses from fourth quarter 2018, backed by improving investor sentiment, low unemployment and a growing economy.

 

1 

Source: Bloomberg

2 

Source: U.S. Federal Reserve

Global Equity

The fiscal year began with significant market and currency volatility. While most domestic equity indexes delivered positive performance at the beginning of the fiscal year, most major international indexes had negative results. Many international stocks struggled as investors worried that heightened global trade tensions would derail economic growth. Other concerns, such as geopolitical uncertainty and the potential impact of higher interest rates, also weakened investor sentiment. In this environment, developed markets held up better than emerging markets. After a relatively quiet summer, market volatility markedly rose again in October 2018. Global equity markets (particularly the U.S.) declined sharply in the fourth quarter of 2018 amid rising interest rates and concerns that higher inflation could result in a more restrictive monetary policy. Investors also had concerns over the Brexit negotiations, ongoing U.S.-China trade tensions, declining oil prices and fears of slowing economic growth, particularly in the eurozone.

Following the sharp sell-off in the later part of 2018, global equities rebounded in the beginning of 2019, fueled by accommodative central bank policy and the potential for a U.S.-China trade deal. Central bank policy provided a supportive environment for equities and fixed income, even as global economic growth appeared to be slowing. In January, China’s central bank initiated a stimulus program to counteract its slowing economy, while the European Central Bank and U.S. Federal Reserve later indicated they would not raise interest rates for the remainder of 2019. Lack of consensus on a deal for the U.K.’s withdrawal from the European Union prompted additional concerns for the U.K. and eurozone economies, though equity markets across the region posted gains. U.S. and Chinese equities also delivered robust gains. Both emerging and developed markets had positive returns for the first quarter of 2019.

Despite concerns over a decline in global growth for 20191, global equity indexes, in general, ended the fiscal year in positive territory, with developed markets outperforming emerging markets.

 

1 

Source: International Monetary Fund World

 

 

  3  

 


 

 

PBE    Manager’s Analysis
   Invesco Dynamic Biotechnology & Genome ETF (PBE)

 

As an index fund, the Invesco Dynamic Biotechnology & Genome ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Biotech & Genome IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of biotechnology and genome companies that comprise the Index. These companies are engaged principally in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes, and are companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research. These companies may include, for example, companies involved in the research, development or production of pharmaceuticals, including veterinary drugs.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of biotechnology and genome companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 8.62%. On a net asset value (“NAV”) basis, the Fund returned 8.75%. During the same time period, the Index returned 9.08%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the S&P Composite 1500® Biotech Index (the “Benchmark Index”) returned (2.17)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 25 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the biotech industry. It is important to note, however, that the Index includes stocks from its proprietary “Biotechnology & Genome Group Universe” of which approximately 95% are considered pharmaceuticals, biotechnology and life sciences, while the remaining 5% of the Index contains stocks in other industry groups including materials, health care equipment & services, and technology hardware & equipment. The Benchmark Index contains 100% biotechnology companies. This Benchmark Index is relevant as a comparison, but the disparity compared to pure biotechnology exposure may produce potentially significant differences in performance when compared to the Fund.

Relative to the Benchmark Index, the Fund was most overweight in the life sciences tools & services sub-industry and most underweight in the biotechnology sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s stock selection within the biotechnology sub-industry.

For the fiscal year ended April 30, 2019, the biotechnology sub-industry contributed most significantly to the Fund’s return, followed by the life sciences tools & services sub-industry. The pharmaceuticals sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included Spark Therapeutics, Inc., a biotechnology company (no longer held at fiscal year-end) and Genomic Health, Inc., a biotechnology company (portfolio average weight of 3.04%). Positions that detracted most significantly from the Fund’s return during this period included Nektar Therapeutics, a pharmaceuticals company (no longer held at fiscal year-end) and Neurocrine Biosciences, Inc., a biotechnology company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Biotechnology      80.9  
Life Sciences Tools & Services      13.4  
Sub-Industry Types Each Less Than 3%      5.8  
Money Market Funds Plus Other Assets Less Liabilities      (0.1)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Alnylam Pharmaceuticals, Inc.      6.0  
Celgene Corp.      5.4  
Illumina, Inc.      5.4  
QIAGEN NV      5.1  
Amgen, Inc.      4.9  
Vertex Pharmaceuticals, Inc.      4.7  
Regeneron Pharmaceuticals, Inc.      4.2  
Sangamo Therapeutics, Inc.      3.8  
Biogen, Inc.      3.6  
Veracyte, Inc.      3.4  
Total      46.5  

 

*

Excluding money market fund holdings.

 

 

  4  

 


 

Invesco Dynamic Biotechnology & Genome ETF (PBE) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average

Annualized

   

3 Years

Cumulative

   

5 Years

Average

Annualized

   

5 Years

Cumulative

   

10 Years

Average

Annualized

   

10 Years

Cumulative

          Fund Inception  
Index        

Average

Annualized

    Cumulative  
Dynamic Biotech & Genome IntellidexSM Index     9.08     10.30     34.21     6.16     34.82     15.80     333.51       10.16     282.15
S&P Composite 1500® Biotech Index     (2.17     2.85       8.80       6.48       36.90       16.60       364.64         12.81       430.85  
Fund                    
NAV Return     8.75       10.25       34.02       6.20       35.08       15.37       317.77         9.83       266.36  
Market Price Return     8.62       10.26       34.03       6.21       35.18       15.40       318.74         9.82       266.12  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.59%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or

sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  5  

 


 

 

PKB    Manager’s Analysis
   Invesco Dynamic Building & Construction ETF (PKB)

 

As an index fund, the Invesco Dynamic Building & Construction ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Building & Construction IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of building and construction companies that comprise the Index. These companies are engaged primarily in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines and airports. These companies also may include manufacturers of building materials for home improvement and general construction projects and specialized machinery used for building and construction; companies that provide installation, maintenance or repair work; and land developers.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of building and construction companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned (0.47)%. On a net asset value (“NAV”) basis, the Fund returned (0.47)%. During the same time period, the Index returned 0.22%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Construction & Engineering Index (the “Benchmark Index”) returned 1.91%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 15 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the building & construction industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the building products sub-industry and most underweight in the construction & engineering sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s

underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the homebuilding and building products sub-industries.

For the fiscal year ended April 30, 2019, the construction & engineering sub-industry contributed most significantly to the Fund’s return, followed by the specialty stores sub-industry. The building products sub-industry detracted most significantly from the Fund’s return, followed by the homebuilding and office services & supplies sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included Tractor Supply Co., a specialty stores company (portfolio average weight of 5.30%) and Jacobs Engineering Group, Inc., a construction & engineering company (portfolio average weight of 2.42%). Positions that detracted most significantly from the Fund’s return during this period included NCI Building Systems, Inc., a building products company (no longer held at fiscal year-end) and Interface, Inc., an office services & supplies company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Building Products      18.6  
Construction & Engineering      18.5  
Homebuilding      16.1  
Construction Materials      13.2  
Home Improvement Retail      9.9  
Industrial Machinery      8.0  
Specialty Stores      5.0  
Sub-Industry Types Each Less Than 3%      10.7  
Money Market Funds Plus Other Assets Less Liabilities      0.0  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Martin Marietta Materials, Inc.      5.4  
Ingersoll-Rand PLC      5.4  
Vulcan Materials Co.      5.2  
Lennox International, Inc.      5.1  
Lowe’s Cos., Inc.      5.0  
Tractor Supply Co.      5.0  
Home Depot, Inc. (The)      4.9  
Jacobs Engineering Group, Inc.      4.9  
Armstrong World Industries, Inc.      3.1  
EMCOR Group, Inc.      3.0  
Total      47.0  

 

*

Excluding money market fund holdings.

 

 

  6  

 


 

Invesco Dynamic Building & Construction ETF (PKB) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

    1 Year    

3 Years

Average

Annualized

   

3 Years

Cumulative

   

5 Years

Average

Annualized

   

5 Years

Cumulative

   

10 Years

Average

Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Building & Construction IntellidexSM Index     0.22     7.26     23.41     7.32     42.35     12.36     220.69       6.63     138.02
S&P Composite 1500® Construction & Engineering Index     1.91       7.68       24.86       1.74       9.02       5.95       78.22         6.42       131.81  
Fund                    
NAV Return     (0.47     6.56       20.99       6.60       37.65       11.53       197.72         5.78       113.69  
Market Price Return     (0.47     6.57       21.03       6.60       37.63       11.51       197.28         5.78       113.62  

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or

sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  7  

 


 

 

PXE    Manager’s Analysis
   Invesco Dynamic Energy Exploration & Production ETF (PXE)

 

As an index fund, the Invesco Dynamic Energy Exploration & Production ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Energy Exploration & Production IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies engaged in energy exploration and production that comprise the Index. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells. These companies include petroleum refineries that process the crude oil into finished products, such as gasoline and automotive lubricants, and companies involved in gathering and processing natural gas, and manufacturing natural gas liquid.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of energy exploration and production companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned (17.96)%. On a net asset value (“NAV”) basis, the Fund returned (17.84)%. During the same time period, the Index returned (17.27)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500® Oil & Gas Exploration & Production Index (the “Benchmark Index”) returned (12.83)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 64 securities. The Benchmark Index was selected for its recognition in the marketplace and because its performance comparison is a useful measure for investors as a broad representation of the oil & gas exploration & production sub-industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas refining & marketing sub-industry and most underweight in the oil & gas exploration & production sub-industry

during the fiscal year ended April 30, 2019. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s stock selection in the oil & gas exploration & production sub-industry.

For the fiscal year ended April 30, 2019, the gas utilities sub-industry contributed most significantly to the Fund’s return. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas refining & marketing sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included Anadarko Petroleum Corp., an oil & gas exploration & production company (portfolio average weight of 2.07%) and California Resources Corp., an oil & gas exploration & production company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Laredo Petroleum, Inc., an oil & gas exploration & production company (portfolio average weight of 2.47%) and Antero Resources Corp., an oil & gas exploration & production company (portfolio average weight of 2.57%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Oil & Gas Exploration & Production      67.9  
Oil & Gas Refining & Marketing      25.6  
Integrated Oil & Gas      6.6  
Money Market Funds Plus Other Assets Less Liabilities      (0.1)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Anadarko Petroleum Corp.      8.3  
Hess Corp.      5.5  
Valero Energy Corp.      5.3  
EOG Resources, Inc.      5.0  
Phillips 66      4.8  
Marathon Petroleum Corp.      4.7  
ConocoPhillips      4.5  
Occidental Petroleum Corp.      4.4  
SRC Energy, Inc.      3.5  
Chesapeake Energy Corp.      3.0  
Total      49.0  

 

*

Excluding money market fund holdings.

 

 

  8  

 


 

Invesco Dynamic Energy Exploration & Production ETF (PXE) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Energy Exploration & Production IntellidexSM Index     (17.27 )%      (0.89 )%      (2.66 )%      (9.36 )%      (38.83 )%      6.89     94.74       3.76     64.77
S&P Composite 1500® Oil & Gas Exploration & Production Index     (12.83     (0.75     (2.23     (9.83     (40.40     2.49       27.94         1.96       30.05  
Fund                    
NAV Return     (17.84     (1.53     (4.52     (9.82     (40.35     6.22       82.87         3.15       52.02  
Market Price Return     (17.96     (1.49     (4.42     (9.80     (40.29     6.25       83.35         3.15       52.00  

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.77% and the net annual operating expense ratio was indicated as 0.65%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  9  

 


 

 

PBJ    Manager’s Analysis
   Invesco Dynamic Food & Beverage ETF (PBJ)

 

As an index fund, the Invesco Dynamic Food & Beverage ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Food & Beverage IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of food and beverage companies that comprise the Index. These companies are engaged principally in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. These companies may include consumer manufacturing of agricultural inputs like livestock and crops, as well as processed food and beverage products; food and beverage stores such as grocery stores, supermarkets, wholesale distributors of grocery items; and food and beverage services like restaurants, bars, snack bars, coffeehouses and other establishments providing food and refreshment. Companies with focused operations as tobacco growers and manufacturers, or pet supplies stores are specifically excluded from this universe.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of food and beverage companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 5.47%. On a net asset value (“NAV”) basis, the Fund returned 5.37%. During the same time period, the Index returned 5.84%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses, as well as trading costs around the rebalances that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Food Beverage & Tobacco Index (the “Benchmark Index”) returned 12.76%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the food & beverage industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the packaged foods & meats sub-industry and most underweight in the tobacco sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s

underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation to the soft drinks sub-industry.

For the fiscal year ended April 30, 2019, the soft drinks sub-industry contributed most significantly to the Fund’s return, followed by the packaged foods & meats and restaurants sub-industries, respectively. The distillers & vintners sub-industry detracted most significantly from the Fund’s return, followed by the food distributors sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included Mondelez International, Inc., Class A, a packaged foods & meats company (portfolio average weight of 5.09%) and Keurig Dr Pepper, Inc., a soft drinks company (portfolio average weight of 3.35%). Positions that detracted most significantly from the Fund’s return during this period included United Natural Foods, Inc., a food distributors company (no longer held at fiscal year-end) and Constellation Brands, Inc., Class A, a distillers & vintners company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Packaged Foods & Meats      40.1  
Soft Drinks      16.8  
Restaurants      16.3  
Food Distributors      10.2  
Food Retail      8.9  
Agricultural Products      7.6  
Money Market Funds Plus Other Assets Less Liabilities      0.1  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Yum! Brands, Inc.      5.3  
Starbucks Corp.      5.3  
Coca-Cola Co. (The)      5.1  
Mondelez International, Inc., Class A      5.0  
Archer-Daniels-Midland Co.      5.0  
Keurig Dr Pepper, Inc.      5.0  
Hormel Foods Corp.      4.6  
Kroger Co. (The)      4.4  
Coca-Cola Bottling Co. Consolidated, Inc.      3.7  
McCormick & Co, Inc.      3.0  
Total      46.4  

 

*

Excluding money market fund holdings.

 

 

  10  

 


 

Invesco Dynamic Food & Beverage ETF (PBJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Food & Beverage IntellidexSM Index     5.84     3.79     11.81     6.86     39.33     12.57     226.80       8.38     204.94
S&P Composite 1500® Food Beverage & Tobacco Index     12.76       4.52       14.17       8.95       53.50       14.85       299.19         11.34       342.72  
Fund                    
NAV Return     5.37       3.17       9.82       6.21       35.14       11.82       205.69         7.68       178.64  
Market Price Return     5.47       3.16       9.79       6.19       35.02       11.81       205.27         7.67       178.47  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.65% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  11  

 


 

 

PEJ    Manager’s Analysis
   Invesco Dynamic Leisure and Entertainment ETF (PEJ)

 

As an index fund, the Invesco Dynamic Leisure and Entertainment ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Leisure & Entertainment IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of leisure and entertainment companies that comprise the Index. These companies are engaged principally in the design, production or distribution of goods or services in the leisure and entertainment industries. These companies may include hospitality industry companies such as hotels, restaurants and bars, cruise lines, casinos, and all other recreation and amusement businesses, as well as entertainment programming companies engaged in the production of motion pictures, music by recording artists, programming for radio and television, related post-production and movie theaters.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of leisure companies and entertainment companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 0.12%. On a net asset value (“NAV”) basis, the Fund returned 0.33%. During the same time period, the Index returned 0.87%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Hotels Restaurants & Leisure Index (the “Benchmark Index”) returned 14.45%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the leisure & entertainment industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the movies & entertainment sub-industry and most underweight in the restaurants sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s underperformance

relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the restaurants sub-industry.

For the fiscal year ended April 30, 2019, the movies & entertainment sub-industry contributed most significantly to the Fund’s return, followed by the restaurants sub-industry. The casinos & gaming and internet & direct marketing retail sub-industries were the greatest detractors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included World Wrestling Entertainment, Inc., Class A, a movies & entertainment company (portfolio average weight of 3.13%) and Walt Disney Co. (The), a movies & entertainment company (portfolio average weight of 3.62%). Positions that detracted most significantly from the Fund’s return during this period included Manchester United PLC, Class A, a movies & entertainment company (portfolio average weight of 1.11%) and Wynn Resorts, Ltd., a casinos & gaming company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Movies & Entertainment      31.3  
Restaurants      30.6  
Airlines      17.8  
Broadcasting      6.9  
Internet & Direct Marketing Retail      5.1  
Sub-Industry Types Each Less Than 3%      8.3  
Money Market Funds Plus Other Assets Less Liabilities      0.0  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Walt Disney Co. (The)      8.3  
Chipotle Mexican Grill, Inc.      5.8  
Yum! Brands, Inc.      5.6  
Starbucks Corp.      5.5  
Expedia Group, Inc.      5.1  
United Continental Holdings, Inc.      5.1  
Southwest Airlines Co.      5.0  
Live Nation Entertainment, Inc.      3.2  
Cinemark Holdings, Inc.      3.2  
Central European Media Enterprises Ltd., Class A      3.1  
Total      49.9  

 

*

Excluding money market fund holdings.

 

 

  12  

 


 

Invesco Dynamic Leisure and Entertainment ETF (PEJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Dynamic Leisure & Entertainment IntellidexSM Index     0.87     9.38     30.88     8.17     48.08     17.13     385.85       9.91     270.23
S&P Composite 1500® Hotels Restaurants & Leisure Index     14.45       16.95       59.97       15.00       101.16       18.35       439.04         12.68       422.89  
Fund                    
NAV Return     0.33       8.64       28.21       7.41       42.97       16.18       347.96         9.22       239.46  
Market Price Return     0.12       8.63       28.19       7.41       42.95       16.19       348.61         9.22       239.40  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.65% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  13  

 


 

 

PBS    Manager’s Analysis
   Invesco Dynamic Media ETF (PBS)

 

As an index fund, the Invesco Dynamic Media ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Media IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of media companies that comprise the Index. These companies are engaged principally in the development, production, sale and distribution of goods or services used in the media industry. These companies produce and distribute information and entertainment content and may include television and radio stations, broadcast and cable networks, motion picture companies, music producers, print publishers, and providers of content delivered via the internet, as well as direct to home satellite services, traditional cable services, and advertising and related services.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of media companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 19.73%. On a net asset value (“NAV”) basis, the Fund returned 19.81%. During the same time period, the Index returned 20.35%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Media Index (the “Benchmark Index”) returned 28.73%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the media industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the interactive media & services sub-industry and most underweight in the cable & satellite sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s underperformance relative to the Benchmark Index during that

period can be attributed to the Fund’s relative underweight allocation to the cable & satellite sub-industry.

For the fiscal year ended April 30, 2019, the interactive media & services sub-industry contributed most significantly to the Fund’s return, followed by the movies & entertainment and broadcasting sub-industries, respectively. The publishing sub-industry detracted most significantly from the Fund’s return, followed by the internet & direct marketing retail and advertising sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included World Wrestling Entertainment, Inc., Class A, a movies & entertainment company (portfolio average weight of 3.05%) and Walt Disney Co. (The), a movies & entertainment company (portfolio average weight of 5.36%). Positions that detracted most significantly from the Fund’s return during this period included Care.com, Inc., an interactive media & services company (portfolio average weight of 0.36%) and Emerald Expositions Events, Inc., an advertising company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Broadcasting      30.5  
Interactive Media & Services      27.0  
Movies & Entertainment      22.9  
Publishing      9.9  
Advertising      5.3  
Cable & Satellite      4.5  
Money Market Funds Plus Other Assets Less Liabilities      (0.1)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Walt Disney Co. (The)      7.8  
Twitter, Inc.      6.2  
Facebook, Inc., Class A      5.7  
Alphabet, Inc., Class A      5.2  
CBS Corp., Class B      4.8  
Sirius XM Holdings, Inc.      4.5  
Spotify Technology S.A.      4.3  
Sinclair Broadcast Group, Inc., Class A      3.6  
Gray Television, Inc.      3.4  
TEGNA, Inc.      3.3  
Total      48.8  

 

*

Excluding money market fund holdings.

 

 

  14  

 


 

Invesco Dynamic Media ETF (PBS) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Media IntellidexSM Index     20.35     12.52     42.46     9.13     54.76     17.01     381.10       7.57     174.66
S&P Composite 1500® Media Index     28.73       11.13       37.24       9.82       59.72       19.61       499.29         10.18       282.94  
Fund                    
NAV Return     19.81       11.81       39.77       8.42       49.81       16.09       344.56         6.92       152.60  
Market Price Return     19.73       11.82       39.83       8.44       49.93       16.08       344.02         6.92       152.60  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs com to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  15  

 


 

 

PXQ    Manager’s Analysis
   Invesco Dynamic Networking ETF (PXQ)

 

As an index fund, the Invesco Dynamic Networking ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Networking IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of networking companies that comprise the Index. These companies are engaged principally in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions. These companies may include communications equipment companies that offer a broad range of access, transport, and connectivity equipment and devices which span across a diverse set of markets including enterprise networking, home networking, satellite, wireless (terrestrial), wireline wide area networking, and cable (CATV). Such companies also may provide integrated circuits specialized to facilitate communications within a network; software that enables, manages, supports, and secures enterprise networks; and equipment used to build storage networks, which are specialized, high speed networks dedicated to accessing storage data.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of networking companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 27.81%. On a net asset value (“NAV”) basis, the Fund returned 27.90%. During the same time period, the Index returned 28.42%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500® Communications Equipment Index (the “Benchmark Index”) returned 26.27%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 20 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the communications equipment industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the systems software sub-industry and most underweight in the

communications equipment sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocations to the systems software and semiconductors sub-industries.

For the fiscal year ended April 30, 2019, the systems software sub-industry contributed most significantly to the Fund’s return followed by the communications equipment and semiconductors sub-industries, respectively. The electronic equipment & instruments sub-industry detracted most significantly from the Fund’s return, followed by the semiconductor equipment sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included VMware, Inc., Class A, a systems software company (portfolio average weight of 5.35%) and QUALCOMM, Inc., a semiconductor company (portfolio average weight of 5.06%). Positions that detracted most significantly from the Fund’s return during this period included nLIGHT, Inc., an electronic equipment & instruments company (no longer held at fiscal year-end) and Varonis Systems, Inc., a systems software company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Systems Software      43.1  
Communications Equipment      35.8  
Semiconductors      7.6  
Application Software      5.0  
Internet Services & Infrastructure      3.2  
Sub-Industry Types Each Less Than 3%      5.3  
Money Market Funds Plus Other Assets Less Liabilities      0.0  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
QUALCOMM, Inc.      7.6  
VMware, Inc., Class A      5.5  
Arista Networks, Inc.      5.3  
Cisco Systems, Inc.      5.2  
Palo Alto Networks, Inc.      5.1  
Symantec Corp.      5.0  
Motorola Solutions, Inc.      4.8  
Check Point Software Technologies Ltd.      4.6  
Zscaler, Inc.      3.5  
Okta, Inc.      3.2  
Total      49.8  

 

*

Excluding money market fund holdings.

 

 

  16  

 


 

Invesco Dynamic Networking ETF (PXQ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Networking IntellidexSM Index     28.42     24.85     94.62     16.22     112.06     17.76     412.65       11.91     375.25
S&P Composite 1500® Communications Equipment Index     26.27       27.26       106.10       15.20       102.91       12.84       234.71         8.31       202.29  
Fund                    
NAV Return     27.90       24.43       92.66       15.75       107.79       17.10       384.60         11.27       339.27  
Market Price Return     27.81       24.42       92.60       15.75       107.79       17.07       383.73         11.27       339.12  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.83% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  17  

 


 

 

PXJ    Manager’s Analysis
   Invesco Dynamic Oil & Gas Services ETF (PXJ)

 

As an index fund, the Invesco Dynamic Oil & Gas Services ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Oil Services IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that assist in the production, processing and distribution of oil and gas that comprise the Index. The Index may include companies engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of oil and gas services companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned (28.69)%. On a net asset value (“NAV”) basis, the Fund returned (28.69)%. During the same time period, the Index returned (28.27)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500® Energy Equipment & Services Index (the “Benchmark Index”) returned (35.21)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the oil & gas services industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas drilling sub-industry and most underweight in the oil & gas equipment & services sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be

attributed to the Fund’s relative overweight allocation to the oil & gas storage & transportation sub-industry, as well as stock selection in the oil & gas equipment & services sub-industry. For the fiscal year ended April 30, 2019, there were no contributing sub-industries. The oil & gas equipment & services sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas drilling sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included Cactus, Inc., Class A, an oil & gas equipment & services company (portfolio average weight of 2.21%) and ProPetro Holding Corp., an oil & gas equipment & services company (portfolio average weight of 2.68%). Positions that detracted most significantly from the Fund’s return during this period included Core Laboratories NV, an oil & gas equipment & services company (no longer held at fiscal year-end) and Transocean Ltd., an oil & gas drilling company (fiscal year-end weight 4.81%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Oil & Gas Equipment & Services      75.1  
Oil & Gas Drilling      25.0  
Money Market Funds Plus Other Assets Less Liabilities      (0.1)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
TechnipFMC PLC      5.7  
Helmerich & Payne, Inc.      5.5  
Patterson-UTI Energy, Inc.      5.1  
Schlumberger Ltd.      5.0  
Transocean Ltd.      4.9  
Baker Hughes, a GE Co., Class A      4.8  
National Oilwell Varco, Inc.      4.8  
Halliburton Co.      4.7  
Ensco Rowan PLC, Class A      4.4  
ProPetro Holding Corp.      3.5  
Total      48.4  

 

*

Excluding money market fund holdings.

 

 

  18  

 


 

Invesco Dynamic Oil & Gas Services ETF (PXJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Oil Services IntellidexSM Index     (28.27 )%      (17.82 )%      (44.50 )%      (22.89 )%      (72.74 )%      (4.78 )%      (38.69 )%        (5.04 )%      (50.27 )% 
S&P Composite 1500® Energy Equipment & Services Index     (35.21     (13.41     (35.07     (15.55     (57.05     0.36       3.69         (0.86     (11.03
Fund                    
NAV Return     (28.69     (18.29     (45.44     (23.36     (73.56     (5.41     (42.65       (5.60     (54.12
Market Price Return     (28.69     (18.27     (45.40     (23.35     (73.55     (5.42     (42.74       (5.60     (54.13

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.86% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  19  

 


 

 

PJP    Manager’s Analysis
   Invesco Dynamic Pharmaceuticals ETF (PJP)

 

As an index fund, the Invesco Dynamic Pharmaceuticals ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Pharmaceutical IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of pharmaceutical companies that comprise the Index. These companies are engaged principally in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. These companies may include, for example, pharmaceutical companies and other companies involved in the research, development, manufacture, sale or distribution of drugs, including companies that facilitate the testing or regulatory approval of drugs.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of pharmaceutical companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 2.94%. On a net asset value (“NAV”) basis, the Fund returned 3.02%. During the same time period, the Index returned 3.68%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Pharmaceuticals Index (the “Benchmark Index”) returned 15.51%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 25 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the pharmaceuticals industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the pharmaceuticals sub-industry.

For the fiscal year ended April 30, 2019, pharmaceuticals was the primary contributing sub-industry. The biotechnology sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included Endo International PLC, a pharmaceuticals company (portfolio average weight of 3.03%) and Eli Lilly and Co., a pharmaceuticals company (portfolio average weight of 5.30%). Positions that detracted most significantly from the Fund’s return during this period included Akorn, Inc., a pharmaceuticals company (no longer held at fiscal year-end) and Acorda Therapeutics, Inc., a biotechnology company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Pharmaceuticals      67.5  
Biotechnology      27.0  
Health Care Equipment      5.5  
Money Market Funds Plus Other Assets Less Liabilities      0.0  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Abbott Laboratories      5.5  
Johnson & Johnson      5.5  
Merck & Co., Inc.      5.2  
Amgen, Inc.      5.1  
Pfizer, Inc.      5.0  
Eli Lilly and Co.      5.0  
Bristol-Myers Squibb Co.      4.9  
Biogen, Inc.      3.7  
Horizon Pharma PLC      3.4  
Corcept Therapeutics, Inc.      3.2  
Total      46.5  

 

*

Excluding money market fund holdings.

 

 

  20  

 


 

Invesco Dynamic Pharmaceuticals ETF (PJP) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Pharmaceutical IntellidexSM Index     3.68     1.71     5.22     4.51     24.69     18.83     461.19       13.07     447.99
S&P Composite 1500® Pharmaceuticals Index     15.51       8.11       26.35       7.82       45.74       15.01       304.79         9.01       230.25  
Fund                    
NAV Return     3.02       1.16       3.52       3.94       21.33       18.11       428.15         12.39       404.46  
Market Price Return     2.94       1.17       3.54       3.96       21.41       18.10       427.64         12.40       404.69  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or

sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  21  

 


 

 

PMR    Manager’s Analysis
   Invesco Dynamic Retail ETF (PMR)

 

As an index fund, the Invesco Dynamic Retail ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Retail IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of retail companies that comprise the Index. These companies are engaged principally in operating general merchandise stores such as department stores, discount stores, warehouse clubs and superstores; specialty stores, including apparel, electronics, accessories and footwear stores; and home improvement and home furnishings stores. Dealers of motor vehicles and parts, auction houses or rental companies also may be included.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of retail companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 5.95%. On a net asset value (“NAV”) basis, the Fund returned 6.09%. During the same time period, the Index returned 6.85%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Retailing Index (the “Benchmark Index”) returned 18.59%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 90 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the retail industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the hypermarkets & super centers sub-industry and most underweight in the internet & direct marketing retail sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the internet & direct marketing retail sub-industry.

For the fiscal year ended April 30, 2019, the automotive retail sub-industry contributed most significantly to the Fund’s return,

followed by the apparel, accessories & luxury goods and general merchandise stores sub-industries, respectively. The trading companies & distributors sub-industry detracted most significantly from the Fund’s return, followed by the forest products sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included lululemon athletica, Inc., an apparel, accessories & luxury goods company (portfolio average weight of 1.73%) and Etsy, Inc., an internet & direct marketing retail company (portfolio average weight of 2.19%). Positions that detracted most significantly from the Fund’s return during this period included Tailored Brands, Inc., an apparel retail company (no longer held at fiscal year-end) and Stitch Fix, Inc., Class A, an internet & direct marketing retail company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Apparel Retail      21.5  
Automotive Retail      13.2  
Hypermarkets & Super Centers      10.4  
Specialty Stores      10.2  
Food Retail      8.9  
Internet & Direct Marketing Retail      6.5  
Apparel, Accessories & Luxury Goods      5.7  
General Merchandise Stores      5.1  
Home Improvement Retail      5.1  
Homefurnishing Retail      4.6  
Computer & Electronics Retail      3.6  
Sub-Industry Types Each Less Than 3%      5.3  
Money Market Funds Plus Other Assets Less Liabilities      (0.1)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
lululemon athletica, Inc.      5.7  
AutoZone, Inc.      5.4  
Dollar General Corp.      5.1  
Home Depot, Inc. (The)      5.1  
Ross Stores, Inc.      5.0  
Walmart, Inc.      5.0  
O’Reilly Automotive, Inc.      4.8  
Kroger Co. (The)      4.4  
Abercrombie & Fitch Co., Class A      3.9  
Rent-A-Center, Inc.      3.6  
Total      48.0  

 

*

Excluding money market fund holdings.

 

 

  22  

 


 

Invesco Dynamic Retail ETF (PMR) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dynamic Retail IntellidexSM Index     6.85     4.25     13.29     4.67     25.65     12.13     214.08       8.85     214.56
S&P Composite 1500® Retailing Index     18.59       22.80       85.18       22.03       170.56       22.41       655.38         14.49       522.61  
Fund                    
NAV Return     6.09       3.63       11.30       4.03       21.85       11.36       193.35         8.15       188.36  
Market Price Return     5.95       3.62       11.27       4.03       21.85       11.36       193.29         8.14       188.10  

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.27% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table

above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  23  

 


 

 

PSI    Manager’s Analysis
   Invesco Dynamic Semiconductors ETF (PSI)

 

As an index fund, the Invesco Dynamic Semiconductors ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Semiconductor IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of semiconductor companies that comprise the Index. These companies are principally engaged in the manufacture of semiconductors. These companies manufacture semiconductors that serve as the core electronic components of virtually all electronic equipment; make or test chips for third parties; and provide equipment or services used in the production of semiconductors and other thin film products like flat panel displays and thin film heads.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of semiconductor companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 19.53%. On a net asset value (“NAV”) basis, the Fund returned 19.71%. During the same time period, the Index returned 20.49%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500® Semiconductor Index (the “Benchmark Index”) returned 16.77%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 50 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the semiconductors industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the semiconductor equipment sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight

allocation to the semiconductor equipment sub-industry and stock selection in the semiconductors sub-industry.

For the fiscal year ended April 30, 2019, the semiconductors sub-industry contributed most significantly to the Fund’s return, followed by the semiconductor equipment and electric components sub-industries, respectively. There were no detracting sub-industries.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included Xilinx, Inc., a semiconductors company (portfolio average weight of 4.34%) and QUALCOMM, Inc., a semiconductor company (portfolio average weight of 5.16%). Positions that detracted most significantly from the Fund’s return during this period included NVIDIA Corp., a semiconductors company (no longer held at fiscal year-end) and Nanometrics Inc., a semiconductor equipment company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Semiconductors      71.1  
Semiconductor Equipment      23.7  
Electronic Components      5.2  
Money Market Funds Plus Other Assets Less Liabilities      0.0  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
QUALCOMM, Inc.      7.7  
Lam Research Corp.      5.4  
Broadcom, Inc.      5.3  
Texas Instruments, Inc.      5.2  
Analog Devices, Inc.      5.2  
Micron Technology, Inc.      4.7  
Xilinx, Inc.      4.7  
Intel Corp.      4.7  
Cree, Inc.      3.3  
Ambarella, Inc.      3.2  
Total      49.4  

 

*

Excluding money market fund holdings.

 

 

  24  

 


 

Invesco Dynamic Semiconductors ETF (PSI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   Average
Annualized
    Cumulative  
Dynamic Semiconductor IntellidexSM Index     20.49     35.03     146.21     24.85     203.39     20.40     539.95       11.64     359.70
S&P Composite 1500® Semiconductor Index     16.77       30.26       121.01       22.28       173.33       19.57       497.37         10.34       290.67  
Fund                    
NAV Return     19.71       34.13       141.31       23.94       192.50       19.52       494.70         10.84       315.95  
Market Price Return     19.53       34.13       141.30       23.92       192.24       19.51       494.18         10.83       315.32  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or

sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  25  

 


 

 

PSJ    Manager’s Analysis
   Invesco Dynamic Software ETF (PSJ)

 

As an index fund, the Invesco Dynamic Software ETF (the “Fund”) is passively managed and seeks to track the returns of an underlying index. The Fund seeks to track the investment results (before fees and expenses) of the Dynamic Software IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of software companies that comprise the Index. These are companies that are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services. These companies may include companies that design and market computer applications targeted toward various end user markets, including home/office, design/engineering, and IT infrastructure; as well as distributors of third-party software applications, primarily to resellers, retailers, and corporations.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) includes common stocks of software companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2019, on a market price basis, the Fund returned 35.58%. On a net asset value (“NAV”) basis, the Fund returned 35.71%. During the same time period, the Index returned 36.62%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.

During this same time period, the S&P Composite 1500® Software & Services Index (the “Benchmark Index”) returned 26.44%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 100 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the software industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the data processing & outsourced services sub-industry during the fiscal year ended April 30, 2019. The majority of the Fund’s outperformance relative to the Benchmark Index during that

period can be attributed to the Fund’s overweight allocation to the application software sub-industry.

For the fiscal year ended April 30, 2019, the application software sub-industry contributed most significantly to the Fund’s return, followed by the interactive home entertainment and systems software sub-industries, respectively. The communications equipment sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2019, included CyberArk Software Ltd., a systems software company (portfolio average weight of 1.89%) and HubSpot, Inc., an application software company (portfolio average weight of 2.81%). Positions that detracted most significantly from the Fund’s return during this period included Benefitfocus, Inc. an application software company (portfolio average weight of 0.35%) and Blucora, Inc., a management & custody banks company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Application Software      47.8  
Systems Software      22.3  
Interactive Home Entertainment      13.6  
Health Care Technology      10.0  
Alternative Carriers      3.5  
IT Consulting & Other Services      2.8  
Money Market Funds Plus Other Assets Less Liabilities      0.0  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2019
 
Security   
Cadence Design Systems, Inc.      5.6  
VMware, Inc., Class A      5.4  
Cerner Corp.      5.2  
Activision Blizzard, Inc.      5.2  
Atlassian Corp. PLC, Class A      4.8  
Intuit, Inc.      4.8  
Oracle Corp.      4.8  
Red Hat, Inc.      4.5  
Trade Desk, Inc. (The), Class A      3.6  
Bandwidth, Inc., Class A      3.5  
Total      47.4  

 

*

Excluding money market fund holdings.

 

 

  26  

 


 

Invesco Dynamic Software ETF (PSJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2019

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   Average
Annualized
    Cumulative  
Dynamic Software IntellidexSM Index     36.62     32.50     132.62     24.06     193.87     20.97     571.16       15.12     603.17
S&P Composite 1500® Software & Services Index     26.44       26.24       101.17       21.13       160.82       20.41       540.88         13.33       465.81  
Fund                    
NAV Return     35.71       31.58       127.80       23.19       183.74       20.15       526.93         14.38       543.25  
Market Price Return     35.58       31.58       127.81       23.22       184.07       20.15       527.12         14.38       543.02  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2021. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder

would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

Notes Regarding Indexes and Fund Performance History:

 

-

Average Annualized and Cumulative Inception returns for the Fund, Index and Benchmark Index are based on the inception date of the Fund.

 

 

  27  

 


 

Schedule of Investments(a)

Invesco Dynamic Biotechnology & Genome ETF (PBE)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—100.1%  
       Biotechnology—80.9%  
  1,062,904      Akebia Therapeutics, Inc.(b)    $ 6,419,940  
  211,800      Alkermes PLC(b)      6,421,776  
  165,945      Alnylam Pharmaceuticals, Inc.(b)      14,825,526  
  68,174      Amgen, Inc.      12,224,962  
  303,756      Array BioPharma, Inc.(b)      6,867,923  
  382,807      Arrowhead Pharmaceuticals, Inc.(b)(c)      6,882,870  
  39,378      Biogen, Inc.(b)      9,027,013  
  142,657      Celgene Corp.(b)      13,503,912  
  108,256      Emergent BioSolutions, Inc.(b)      5,594,670  
  70,374      Enanta Pharmaceuticals, Inc.(b)      6,135,909  
  325,081      Exelixis, Inc.(b)      6,391,092  
  123,427      FibroGen, Inc.(b)      5,767,744  
  88,042      Genomic Health, Inc.(b)      5,663,742  
  415,303      Halozyme Therapeutics, Inc.(b)      6,698,837  
  217,607      Myriad Genetics, Inc.(b)      6,850,268  
  2,517,602      OPKO Health, Inc.(b)(c)      6,017,069  
  219,897      PTC Therapeutics, Inc.(b)      8,228,546  
  30,211      Regeneron Pharmaceuticals, Inc.(b)      10,366,602  
  151,009      REGENXBIO, Inc.(b)      7,610,854  
  118,832      Repligen Corp.(b)      8,006,900  
  807,753      Sangamo Therapeutics, Inc.(b)      9,442,633  
  58,946      United Therapeutics Corp.(b)      6,046,091  
  344,396      Vanda Pharmaceuticals, Inc.(b)      5,610,211  
  366,930      Veracyte, Inc.(b)      8,391,689  
  69,087      Vertex Pharmaceuticals, Inc.(b)      11,674,321  
     

 

 

 
            200,671,100  
     

 

 

 
       Health Care Equipment—2.9%  
  198,739      Cardiovascular Systems, Inc.(b)      7,063,184  
     

 

 

 
       Life Sciences Tools & Services—13.4%  
  35,568      Bio—Techne Corp.      7,276,857  
  42,602      Illumina, Inc.(b)      13,291,824  
  326,114      QIAGEN NV(b)      12,705,401  
     

 

 

 
        33,274,082  
     

 

 

 
       Pharmaceuticals—2.9%  
  162,158      Catalent, Inc.(b)      7,267,922  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $243,689,553) 248,276,288
  
     
       Money Market Funds—0.0%  
  69,857      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $69,857)
     69,857  
     

 

 

 
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $243,759,410)—100.1%
     248,346,145  
     

 

 

 
     
       Investments Purchased with Cash Collateral from
Securities on Loan
 
     
       Money Market Funds—3.0%  
  5,455,325      Invesco Government & Agency Portfolio— Institutional Class, 2.34%(d)(e)      5,455,325  
Number
of Shares
          Value  
       Money Market Funds (continued)  
  1,817,897      Invesco Liquid Assets Portfolio—Institutional Class,
2.48%(d)(e)
   $ 1,818,442  
     

 

 

 
   Total Money Market Funds
(Cost $7,273,767)
     7,273,767  
     

 

 

 
   Total Investments in Securities
(Cost $251,033,177)—103.1%
     255,619,912  
   Other assets less liabilities—(3.1)%      (7,592,821
     

 

 

 
   Net Assets—100.0%    $ 248,027,091  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  28  

 


 

Schedule of Investments(a)

Invesco Dynamic Building & Construction ETF (PKB)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—100.0%  
       Building Products—18.6%  
  81,229      Apogee Enterprises, Inc.    $ 3,273,529  
  42,226      Armstrong World Industries, Inc.      3,659,727  
  109,664      Continental Building Products, Inc.(b)      2,812,882  
  72,178      Gibraltar Industries, Inc.(b)      2,863,301  
  22,194      Lennox International, Inc.      6,024,561  
  92,699      Universal Forest Products, Inc.      3,425,228  
     

 

 

 
        22,059,228  
     

 

 

 
       Construction & Engineering—18.5%  
  97,495      AECOM(b)      3,305,080  
  42,694      EMCOR Group, Inc.      3,592,273  
  74,904      Jacobs Engineering Group, Inc.      5,838,018  
  38,062      NV5 Global, Inc.(b)      2,410,847  
  83,296      Quanta Services, Inc.      3,381,818  
  168,163      Tutor Perini Corp.(b)      3,358,215  
     

 

 

 
        21,886,251  
     

 

 

 
       Construction Machinery & Heavy Trucks—2.6%  
  37,986      Oshkosh Corp.      3,137,264  
     

 

 

 
       Construction Materials—13.2%  
  29,023      Martin Marietta Materials, Inc.      6,440,204  
  171,517      Summit Materials, Inc., Class A(b)      3,004,978  
  48,896      Vulcan Materials Co.      6,166,274  
     

 

 

 
        15,611,456  
     

 

 

 
       Environmental & Facilities Services—2.8%  
  50,908      Tetra Tech, Inc.      3,294,766  
     

 

 

 
       Forest Products—2.4%  
  113,636      Louisiana—Pacific Corp.      2,846,582  
     

 

 

 
       Home Improvement Retail—9.9%  
  28,798      Home Depot, Inc. (The)      5,866,152  
  52,356      Lowe’s Cos., Inc.      5,923,558  
     

 

 

 
        11,789,710  
     

 

 

 
       Homebuilding—16.1%  
  48,994      LGI Homes, Inc.(b)      3,395,774  
  102,742      MDC Holdings, Inc.      3,139,796  
  66,235      Meritage Homes Corp.(b)      3,387,920  
  145,867      Skyline Champion Corp.      3,079,252  
  80,789      Toll Brothers, Inc.      3,078,061  
  227,954      TRI Pointe Group, Inc.(b)      2,974,800  
     

 

 

 
        19,055,603  
     

 

 

 
       Industrial Conglomerates—2.9%  
  24,671      Carlisle Cos., Inc.      3,488,973  
     

 

 

 
       Industrial Machinery—8.0%  
  79,386      Columbus McKinnon Corp.      3,124,633  
  52,339      Ingersoll—Rand PLC      6,417,285  
     

 

 

 
        9,541,918  
     

 

 

 
       Specialty Stores—5.0%  
  56,950      Tractor Supply Co.      5,894,325  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $109,005,237)
     118,606,076  
     

 

 

 
Number
of Shares
          Value  
       Money Market Funds—0.2%  
  255,728      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(c)
(Cost $255,728)
   $ 255,728  
     

 

 

 
   Total Investments in Securities
(Cost $109,260,965)—100.2%
     118,861,804  
   Other assets less liabilities—(0.2)%      (222,599
     

 

 

 
   Net Assets—100.0%    $ 118,639,205  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  29  

 


 

Schedule of Investments(a)

Invesco Dynamic Energy Exploration & Production ETF (PXE)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—100.1%  
       Integrated Oil & Gas—6.6%  
  29,847      Occidental Petroleum Corp.    $ 1,757,391  
  66,187      Unit Corp.(b)      897,496  
     

 

 

 
        2,654,887  
     

 

 

 
       Oil & Gas Exploration & Production—67.9%  
  45,347      Anadarko Petroleum Corp.      3,303,529  
  111,760      Antero Resources Corp.(b)      810,260  
  32,464      Apache Corp.      1,068,390  
  91,169      Carrizo Oil & Gas, Inc.(b)      1,168,787  
  416,877      Chesapeake Energy Corp.(b)(c)      1,213,112  
  14,830      Cimarex Energy Co.      1,018,228  
  103,566      CNX Resources Corp.(b)      927,951  
  28,300      ConocoPhillips.      1,786,296  
  508,144      Denbury Resources, Inc.(b)      1,133,161  
  36,288      Devon Energy Corp.      1,166,296  
  20,848      EOG Resources, Inc.      2,002,450  
  56,925      EQT Corp.      1,164,116  
  55,930      Geopark Ltd. (Colombia)(b)      878,101  
  473,080      Gran Tierra Energy, Inc. (Canada)(b)      1,130,661  
  136,785      Gulfport Energy Corp.(b)      895,942  
  34,462      Hess Corp.      2,209,704  
  302,905      Laredo Petroleum, Inc.(b)      914,773  
  179,149      Oasis Petroleum, Inc.(b)      1,092,809  
  100,012      Range Resources Corp.      904,109  
  253,244      Southwestern Energy Co.(b)      1,000,314  
  227,131      SRC Energy, Inc.(b)      1,396,856  
     

 

 

 
        27,185,845  
     

 

 

 
       Oil & Gas Refining & Marketing—25.6%  
  26,160      CVR Energy, Inc.      1,193,158  
  29,958      Delek US Holdings, Inc.      1,110,243  
  19,682      HollyFrontier Corp.      939,422  
  30,742      Marathon Petroleum Corp.      1,871,265  
  31,976      PBF Energy, Inc., Class A      1,073,754  
  20,533      Phillips 66      1,935,646  
  23,530      Valero Energy Corp.      2,133,230  
     

 

 

 
        10,256,718  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $49,929,102)
     40,097,450  
     

 

 

 
  
       Money Market Funds—0.2%  
  96,102      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $96,102)
     96,102  
     

 

 

 
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $50,025,204)—100.3%
     40,193,552  
     

 

 

 
       Investments Purchased with Cash Collateral from
Securities on Loan
 
  
       Money Market Funds—0.3%  
  90,736      Invesco Government & Agency Portfolio—Institutional Class, 2.34%(d)(e)      90,736  
Number
of Shares
          Value  
       Money Market Funds (continued)  
  30,236      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)    $ 30,245  
     

 

 

 
   Total Money Market Funds
(Cost $120,981)
     120,981  
     

 

 

 
   Total Investments in Securities
(Cost $50,146,185)—100.6%
     40,314,533  
   Other assets less liabilities—(0.6)%      (236,278
     

 

 

 
   Net Assets—100.0%    $ 40,078,255  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  30  

 


 

Schedule of Investments(a)

Invesco Dynamic Food & Beverage ETF (PBJ)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—99.9%  
       Agricultural Products—7.6%  
  80,977      Archer—Daniels—Midland Co.    $ 3,611,574  
  85,545      Darling Ingredients, Inc.(b)      1,865,737  
     

 

 

 
        5,477,311  
     

 

 

 
       Food Distributors—10.2%  
  50,984      Andersons, Inc. (The)      1,667,177  
  58,759      Chefs’ Warehouse, Inc. (The)(b)      1,920,244  
  48,336      Performance Food Group Co.(b)      1,979,359  
  107,877      SpartanNash Co.      1,744,371  
     

 

 

 
        7,311,151  
     

 

 

 
       Food Retail—8.9%  
  120,616      Kroger Co. (The)      3,109,480  
  80,734      Sprouts Farmers Market, Inc.(b)      1,729,322  
  36,132      Weis Markets, Inc.      1,519,351  
     

 

 

 
        6,358,153  
     

 

 

 
       Packaged Foods & Meats—40.1%  
  69,231      B&G Foods, Inc.(c)      1,800,006  
  89,538      Flowers Foods, Inc.      1,946,556  
  47,542      Freshpet, Inc.(b)      2,123,226  
  16,909      Hershey Co. (The)      2,111,089  
  82,096      Hormel Foods Corp.      3,278,914  
  26,490      Lamb Weston Holdings, Inc.      1,855,624  
  11,683      Lancaster Colony Corp.      1,737,379  
  14,057      McCormick & Co., Inc.      2,164,356  
  71,209      Mondelez International, Inc., Class A      3,620,978  
  18,333      Post Holdings, Inc.(b)      2,067,596  
  91,946      Simply Good Foods Co. (The)(b)      2,065,107  
  51,317      Tootsie Roll Industries, Inc.      1,992,639  
  30,911      TreeHouse Foods, Inc.(b)      2,070,419  
     

 

 

 
        28,833,889  
     

 

 

 
       Restaurants—16.3%  
  3,128      Chipotle Mexican Grill, Inc.(b)      2,152,189  
  48,758      Starbucks Corp.      3,787,521  
  105,813      Wendy’s Co. (The)      1,969,180  
  36,332      Yum! Brands, Inc.      3,792,698  
     

 

 

 
        11,701,588  
     

 

 

 
       Soft Drinks—16.8%  
  8,292      Coca—Cola Bottling Co. Consolidated, Inc.      2,695,149  
  75,168      Coca—Cola Co. (The)      3,687,742  
  40,315      Coca—Cola European Partners PLC (United Kingdom)      2,160,481  
  122,371      Keurig Dr Pepper, Inc.(c)      3,557,325  
     

 

 

 
        12,100,697  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $65,042,645)
     71,782,789  
     

 

 

 
Number
of Shares
          Value  
       Money Market Funds—0.3%  
  186,032      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $186,032)
   $ 186,032  
     

 

 

 
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $65,228,677)—100.2%
     71,968,821  
     

 

 

 
     
       Investments Purchased with Cash Collateral from
Securities on Loan
 
     
       Money Market Funds—6.1%  
  3,313,533      Invesco Government & Agency Portfolio— Institutional Class, 2.34%(d)(e)      3,313,533  
  1,104,180      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)      1,104,511  
     

 

 

 
   Total Money Market Funds
(Cost $4,418,044)
     4,418,044  
     

 

 

 
   Total Investments in Securities
(Cost $69,646,721)—106.3%
     76,386,865  
   Other assets less liabilities—(6.3)%      (4,555,967
     

 

 

 
   Net Assets—100.0%    $ 71,830,898  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  31  

 


 

Schedule of Investments(a)

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

April 30, 2019

 

Number
of Shares
          Value  
      

Common Stocks & Other Equity

Interests–100.0%

 
       Airlines—17.8%  
  29,466      Alaska Air Group, Inc.    $ 1,823,945  
  58,429      Hawaiian Holdings, Inc.      1,648,282  
  62,524      Southwest Airlines Co.      3,390,677  
  31,088      Spirit Airlines, Inc.(b)      1,690,565  
  38,223      United Continental Holdings, Inc.(b)      3,396,496  
     

 

 

 
        11,949,965  
     

 

 

 
       Broadcasting—6.9%  
  29,059      AMC Networks, Inc., Class A(b)      1,697,336  
  523,221      Central European Media Enterprises Ltd., Class A (Czech Republic)(b)      2,071,955  
  22,317      Fox Corp., Class A(b)      870,140  
     

 

 

 
        4,639,431  
     

 

 

 
       Food Distributors—2.9%  
  47,614      Performance Food Group Co.(b)      1,949,793  
     

 

 

 
       Interactive Media & Services—2.5%  
  116,564      Liberty TripAdvisor Holdings, Inc., Series A(b)      1,718,153  
     

 

 

 
       Internet & Direct Marketing Retail—5.1%  
  26,508      Expedia Group, Inc.      3,441,799  
     

 

 

 
       Leisure Facilities—2.9%  
  35,750      Cedar Fair, L.P.      1,929,428  
     

 

 

 
       Movies & Entertainment—31.3%  
  135,197      AMC Entertainment Holdings, Inc.(c)      2,049,587  
  50,195      Cinemark Holdings, Inc.      2,110,700  
  33,152      Live Nation Entertainment, Inc.(b)      2,166,152  
  6,278      Madison Square Garden Co. (The), Class A(b)      1,961,498  
  92,564      Manchester United PLC, Class A (United Kingdom)(c)      1,824,437  
  44,739      Marcus Corp. (The)      1,683,081  
  63,453      Viacom, Inc., Class B      1,834,426  
  40,865      Walt Disney Co. (The)      5,597,279  
  21,418      World Wrestling Entertainment, Inc., Class A      1,795,899  
     

 

 

 
        21,023,059  
     

 

 

 
       Restaurants—30.6%  
  84,306      Bloomin’ Brands, Inc.      1,685,277  
  42,191      Brinker International, Inc.      1,804,509  
  5,648      Chipotle Mexican Grill, Inc.(b)      3,886,050  
  10,787      Cracker Barrel Old Country Store, Inc.      1,820,198  
  16,671      Darden Restaurants, Inc.      1,960,510  
  48,030      Starbucks Corp.      3,730,970  
  104,232      Wendy’s Co. (The)      1,939,758  
  35,790      Yum! Brands, Inc.      3,736,118  
     

 

 

 
        20,563,390  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $64,017,398)
     67,215,018  
     

 

 

 
Number
of Shares
          Value  
       Money Market Funds—0.2%  
  124,448      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $124,448)
   $ 124,448  
     

 

 

 
     
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $64,141,846)—100.2%
     67,339,466  
     

 

 

 
     
       Investments Purchased with Cash Collateral from
Securities on Loan
 
     
       Money Market Funds—2.0%  
  1,004,340      Invesco Government & Agency Portfolio— Institutional Class, 2.34%(d)(e)      1,004,340  
  334,679      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)      334,780  
     

 

 

 
     
   Total Money Market Funds
(Cost $1,339,120)
     1,339,120  
     

 

 

 
   Total Investments in Securities
(Cost $65,480,966)—102.2%
     68,678,586  
   Other assets less liabilities—(2.2)%      (1,477,512
     

 

 

 
   Net Assets—100.0%    $ 67,201,074  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  32  

 


 

Schedule of Investments(a)

Invesco Dynamic Media ETF (PBS)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—100.1%  
       Advertising—5.3%  
  97,718      Interpublic Group of Cos., Inc. (The)    $ 2,247,514  
  30,540      Omnicom Group, Inc.      2,444,116  
     

 

 

 
        4,691,630  
     

 

 

 
       Broadcasting—30.5%  
  35,892      AMC Networks, Inc., Class A(b)      2,096,452  
  82,364      CBS Corp., Class B      4,222,802  
  646,215      Central European Media Enterprises Ltd., Class A (Czech Republic)(b)      2,559,011  
  115,827      E.W. Scripps Co. (The), Class A      2,639,697  
  27,558      Fox Corp., Class A(b)      1,074,486  
  126,736      Gray Television, Inc.(b)      2,969,425  
  25,185      Nexstar Media Group, Inc., Class A      2,947,904  
  69,528      Sinclair Broadcast Group, Inc., Class A      3,183,687  
  185,231      TEGNA, Inc.      2,948,878  
  49,269      Tribune Media Co., Class A      2,276,228  
     

 

 

 
        26,918,570  
     

 

 

 
       Cable & Satellite—4.5%  
  689,788      Sirius XM Holdings, Inc.(c)      4,007,668  
     

 

 

 
       Interactive Media & Services—27.0%  
  3,805      Alphabet, Inc., Class A(b)      4,562,043  
  141,032      ANGI Homeservices, Inc., Class A(b)      2,451,136  
  92,465      Care.com, Inc.(b)      1,548,789  
  26,207      Facebook, Inc., Class A(b)      5,068,434  
  10,544      IAC/InterActiveCorp.(b)      2,370,713  
  40,327      Match Group, Inc.      2,435,751  
  136,340      Twitter, Inc.(b)      5,441,329  
     

 

 

 
        23,878,195  
     

 

 

 
       Movies & Entertainment—22.9%  
  74,299      Liberty Media Corp.—Liberty Formula One, Class A(b)      2,805,530  
  149,028      Lions Gate Entertainment Corp., Class A      2,174,319  
  28,241      Spotify Technology S.A.(b)      3,834,281  
  78,373      Viacom, Inc., Class B      2,265,763  
  50,530      Walt Disney Co. (The)      6,921,094  
  26,455      World Wrestling Entertainment, Inc., Class A      2,218,252  
     

 

 

 
        20,219,239  
     

 

 

 
       Publishing—9.9%  
  214,599      Gannett Co., Inc.      2,002,208  
  71,198      New York Times Co. (The), Class A      2,360,214  
  178,716      News Corp., Class A      2,219,653  
  53,650      Scholastic Corp.      2,139,562  
     

 

 

 
        8,721,637  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $82,250,116)
     88,436,939  
     

 

 

 
Number
of Shares
          Value  
       Money Market Funds—0.1%  
  57,302      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $57,302)
   $ 57,302  
     

 

 

 
     
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $82,307,418)—100.2%
     88,494,241  
     

 

 

 
     
       Investments Purchased with Cash Collateral from
Securities on Loan
 
     
       Money Market Funds—1.3%  
  860,884      Invesco Government & Agency Portfolio— Institutional Class, 2.34%(d)(e)      860,884  
  286,875      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)      286,961  
     

 

 

 
   Total Money Market Funds
(Cost $1,147,845)
     1,147,845  
     

 

 

 
   Total Investments in Securities
(Cost $83,455,263)—101.5%
     89,642,086  
   Other assets less liabilities—(1.5)%      (1,293,866
     

 

 

 
   Net Assets—100.0%    $ 88,348,220  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  33  

 


 

Schedule of Investments(a)

Invesco Dynamic Networking ETF (PXQ)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—100.0%  
       Application Software—5.0%  
  24,245      Citrix Systems, Inc.    $ 2,447,775  
  24,790      New Relic, Inc.(b)      2,608,900  
     

 

 

 
        5,056,675  
     

 

 

 
       Communications Equipment—35.8%  
  17,251      Arista Networks, Inc.(b)      5,387,315  
  60,102      Ciena Corp.(b)      2,305,513  
  94,442      Cisco Systems, Inc.      5,284,030  
  14,987      F5 Networks, Inc.(b)      2,351,460  
  106,366      Finisar Corp.(b)      2,564,484  
  36,366      InterDigital, Inc.      2,377,973  
  93,441      Juniper Networks, Inc.      2,594,856  
  33,720      Motorola Solutions, Inc.      4,886,365  
  91,990      NetScout Systems, Inc.(b)      2,704,506  
  103,765      Radware Ltd. (Israel)(b)      2,707,229  
  17,867      Ubiquiti Networks, Inc.      3,045,430  
     

 

 

 
        36,209,161  
     

 

 

 
       Consumer Electronics—2.6%  
  30,882      Garmin Ltd.      2,647,823  
     

 

 

 
       Internet Services & Infrastructure—3.2%  
  31,013      Okta, Inc.(b)      3,226,282  
     

 

 

 
       Semiconductor Equipment—2.7%  
  108,588      Xperi Corp.      2,698,412  
     

 

 

 
       Semiconductors—7.6%  
  89,140      QUALCOMM, Inc.      7,677,628  
     

 

 

 
       Systems Software—43.1%  
  38,507      Check Point Software Technologies Ltd. (Israel)(b)      4,650,105  
  24,453      CyberArk Software Ltd. (Israel)(b)      3,152,725  
  30,124      Fortinet, Inc.(b)      2,814,184  
  20,632      Palo Alto Networks, Inc.(b)      5,133,861  
  30,179      Qualys, Inc.(b)      2,723,957  
  55,684      Rapid7, Inc.(b)      3,025,869  
  83,509      SailPoint Technologies Holding, Inc.(b)      2,359,964  
  124,101      SecureWorks Corp., Class A(b)(c)      2,410,041  
  208,884      Symantec Corp.      5,057,082  
  87,319      Tenable Holdings, Inc.(b)      3,134,752  
  27,323      VMware, Inc., Class A      5,577,444  
  51,244      Zscaler, Inc.(b)      3,500,478  
     

 

 

 
        43,540,462  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $85,189,067)
     101,056,443  
     

 

 

 
     
       Money Market Funds—0.1%  
  149,027      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $149,027)
     149,027  
     

 

 

 
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $85,338,094)—100.1%
     101,205,470  
     

 

 

 
Number
of Shares
          Value  
       Investments Purchased with Cash Collateral from
Securities on Loan
 
     
       Money Market Funds—1.7%  
  1,275,053      Invesco Government & Agency Portfolio— Institutional Class, 2.34%(d)(e)    $ 1,275,053  
  424,891      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)      425,018  
     

 

 

 
     
   Total Money Market Funds
(Cost $1,700,071)
     1,700,071  
     

 

 

 
   Total Investments in Securities
(Cost $87,038,165)—101.8%
     102,905,541  
   Other assets less liabilities—(1.8)%      (1,854,955
     

 

 

 
   Net Assets—100.0%    $ 101,050,586  
     

 

 

 

Notes to Schedule of Investments:

(a)

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b)

Non-income producing security.

(c)

All or a portion of this security was out on loan at April 30, 2019.

(d)

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e)

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

This Fund has holdings greater than 10% of net assets in the following country:

 

Israel     10.4

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  34  

 


 

Schedule of Investments(a)

Invesco Dynamic Oil & Gas Services ETF (PXJ)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—100.1%  
       Oil & Gas Drilling—25.0%  
  48,042      Diamond Offshore Drilling, Inc.(b)(c)    $ 466,488  
  55,031      Ensco Rowan PLC, Class A      768,783  
  16,518      Helmerich & Payne, Inc.      966,633  
  159,934      Noble Corp. PLC(b)      420,626  
  66,072      Patterson-UTI Energy, Inc.      897,919  
  107,972      Transocean Ltd.(b)      848,660  
     

 

 

 
        4,369,109  
     

 

 

 
       Oil & Gas Equipment & Services—75.1%  
  12,446      Apergy Corp.      493,982  
  48,838      Archrock, Inc.      493,752  
  34,936      Baker Hughes, a GE Co., Class A      839,163  
  28,281      C&J Energy Services, Inc.(b)      397,348  
  13,791      Cactus, Inc., Class A(b)      500,613  
  13,406      Dril-Quip, Inc.(b)      583,965  
  47,182      FTS International, Inc.(b)      488,334  
  29,247      Halliburton Co.      828,568  
  69,142      Helix Energy Solutions Group, Inc.(b)      540,690  
  45,344      Keane Group, Inc.(b)      475,659  
  29,639      Liberty Oilfield Services, Inc., Class A(c)      441,917  
  21,420      Mammoth Energy Services, Inc.      333,938  
  65,955      McDermott International, Inc.(b)      533,576  
  31,910      National Oilwell Varco, Inc.      834,127  
  53,828      Newpark Resources, Inc.(b)      392,944  
  19,740      Nine Energy Service, Inc.(b)      397,366  
  28,250      Oil States International, Inc.(b)      545,790  
  27,340      ProPetro Holding Corp.(b)      605,034  
  46,481      RPC, Inc.(c)      478,290  
  20,523      Schlumberger Ltd.      875,922  
  51,983      Select Energy Services, Inc., Class A(b)      598,844  
  40,520      TechnipFMC PLC (United Kingdom)      996,387  
  21,634      Tidewater, Inc.(b)      486,765  
     

 

 

 
        13,162,974  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $23,076,105)
     17,532,083  
     

 

 

 
     
       Money Market Funds—0.7%  
  112,339      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $112,339)
     112,339  
     

 

 

 
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $23,188,444)—100.8%
     17,644,422  
     

 

 

 
     
       Investments Purchased with Cash Collateral from
Securities on Loan
 
     
       Money Market Funds—5.4%  
  714,857      Invesco Government & Agency Portfolio— Institutional
Class, 2.34%(d)(e)
     714,857  
Number
of Shares
          Value  
       Money Market Funds (continued)  
  238,214      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)    $ 238,286  
     

 

 

 
   Total Money Market Funds
(Cost $953,143)
     953,143  
     

 

 

 
   Total Investments in Securities
(Cost $24,141,587)—106.2%
     18,597,565  
   Other assets less liabilities—(6.2)%      (1,078,557
     

 

 

 
   Net Assets—100.0%    $ 17,519,008  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  35  

 


 

Schedule of Investments(a)

Invesco Dynamic Pharmaceuticals ETF (PJP)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity
Interests—100.0%
 
       Biotechnology—27.0%       
  93,470      Alexion Pharmaceuticals, Inc.(b)    $ 12,724,071  
  117,831      Amgen, Inc.      21,129,455  
  68,055      Biogen, Inc.(b)      15,600,928  
  134,489      Celgene Corp.(b)      12,730,729  
  187,105      Emergent BioSolutions, Inc.(b)      9,669,587  
  121,630      Enanta Pharmaceuticals, Inc.(b)      10,604,920  
  28,481      Regeneron Pharmaceuticals, Inc.(b)      9,772,970  
  101,883      United Therapeutics Corp.(b)      10,450,139  
  595,227      Vanda Pharmaceuticals, Inc.(b)      9,696,248  
     

 

 

 
        112,379,047  
     

 

 

 
       Health Care Equipment—5.5%       
  290,893      Abbott Laboratories      23,143,447  
     

 

 

 
       Pharmaceuticals—67.5%       
  87,280      Allergan PLC      12,830,160  
  492,861      Amphastar Pharmaceuticals, Inc.(b)      10,640,869  
  507,117      Bausch Health Cos. Inc.(b)      11,709,332  
  436,022      Bristol-Myers Squibb Co.      20,244,500  
  1,075,054      Corcept Therapeutics, Inc.(b)(c)      13,309,169  
  178,110      Eli Lilly and Co.      20,845,994  
  1,153,035      Endo International PLC(b)      8,647,762  
  561,318      Horizon Pharma PLC(b)      14,330,449  
  800,696      Innoviva, Inc.(b)      11,233,765  
  95,218      Jazz Pharmaceuticals PLC(b)      12,356,440  
  161,405      Johnson & Johnson      22,790,386  
  581,010      Mallinckrodt PLC(b)      8,982,415  
  273,801      Merck & Co., Inc.      21,550,877  
  383,849      Mylan N.V.(b)      10,360,084  
  300,995      Pacira BioSciences, Inc.(b)      11,985,621  
  246,739      Perrigo Co. PLC      11,823,733  
  518,691      Pfizer, Inc.      21,064,041  
  411,828      Prestige Consumer Healthcare, Inc.(b)      12,115,980  
  325,482      Supernus Pharmaceuticals, Inc.(b)      11,954,954  
  116,113      Taro Pharmaceutical Industries Ltd.      12,471,697  
     

 

 

 
        281,248,228  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $405,273,840)
     416,770,722  
     

 

 

 
  
       Money Market Funds—0.0%  
  59,262      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d) (Cost $59,262)      59,262  
     

 

 

 
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan) (Cost $405,333,102)—100.0%
     416,829,984  
     

 

 

 
  
       Investments Purchased with Cash Collateral from
Securities on Loan
 
  
       Money Market Funds—0.2%  
  564,992      Invesco Government & Agency Portfolio—Institutional Class, 2.34%(d)(e)      564,992  
Number
of Shares
          Value  
       Money Market Funds (continued)  
  188,274      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)    $ 188,331  
     

 

 

 
   Total Money Market Funds
(Cost $753,323)
     753,323  
     

 

 

 
   Total Investments in Securities
(Cost $406,086,425)—100.2%
     417,583,307  
   Other assets less liabilities—(0.2)%      (992,711
     

 

 

 
   Net Assets—100.0%    $ 416,590,596  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  36  

 


 

Schedule of Investments(a)

Invesco Dynamic Retail ETF (PMR)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity
Interests—100.1%
 
       Apparel Retail—21.5%  
  10,053      Abercrombie & Fitch Co., Class A    $ 300,484  
  7,288      Boot Barn Holdings, Inc.(b)      209,822  
  1,235      Burlington Stores, Inc.(b)      208,604  
  7,206      Designer Brands Inc., Class A      160,333  
  3,356      Foot Locker, Inc.      191,997  
  4,394      Genesco, Inc.(b)      196,895  
  3,947      Ross Stores, Inc.      385,464  
     

 

 

 
        1,653,599  
     

 

 

 
       Apparel, Accessories & Luxury Goods—5.7%  
  2,493      lululemon athletica, Inc.(b)      439,641  
     

 

 

 
       Automotive Retail—13.2%  
  2,836      Asbury Automotive Group, Inc.(b)      227,391  
  407      AutoZone, Inc.(b)      418,522  
  971      O’Reilly Automotive, Inc.(b)      367,591  
     

 

 

 
        1,013,504  
     

 

 

 
       Computer & Electronics Retail—3.6%  
  11,174      Rent-A-Center, Inc.(b)      278,568  
     

 

 

 
       Department Stores—2.9%       
  3,087      Kohl’s Corp.      219,486  
     

 

 

 
       Distributors—2.4%       
  1,833      Genuine Parts Co.      187,956  
     

 

 

 
       Food Retail—8.9%       
  12,915      Kroger Co. (The)      332,949  
  8,646      Sprouts Farmers Market, Inc.(b)      185,197  
  3,870      Weis Markets, Inc.      162,733  
     

 

 

 
        680,879  
     

 

 

 
       General Merchandise Stores—5.1%  
  3,117      Dollar General Corp.      393,022  
       Home Improvement Retail—5.1%       
  1,924      Home Depot, Inc. (The)      391,919  
       Homefurnishing Retail—4.6%       
  3,716      Aaron’s, Inc.      206,944  
  1,402      RH(b)(c)      149,607  
     

 

 

 
        356,551  
     

 

 

 
       Hypermarkets & Super Centers—10.4%  
  7,899      BJs Wholesale Club Holdings, Inc.(b)      223,937  
  3,229      PriceSmart, Inc.      193,126  
  3,714      Walmart, Inc.      381,948  
     

 

 

 
        799,011  
     

 

 

 
       Internet & Direct Marketing Retail—6.5%  
  11,525      1-800-Flowers.com, Inc., Class A(b)      245,367  
  3,798      Etsy, Inc.(b)      256,517  
     

 

 

 
        501,884  
     

 

 

 
       Specialty Stores—10.2%       
  5,316      Dick’s Sporting Goods, Inc.      196,692  
  1,553      Five Below, Inc.(b)      227,344  
  59,750      Office Depot, Inc.      143,400  
  2,076      Tractor Supply Co.      214,866  
     

 

 

 
        782,302  
     

 

 

 
   Total Common Stocks & Other Equity Interests
(Cost $7,005,994)
     7,698,322  
     

 

 

 
Number
of Shares
          Value  
       Money Market Funds—1.2%       
  94,221      Invesco Premier U.S. Government Money Portfolio—Institutional Class, 2.32%(d)
(Cost $94,221)
   $ 94,221  
     

 

 

 
   Total Investments in Securities
(excluding investments purchased with cash collateral from securities on loan)
(Cost $7,100,215)—101.3%
     7,792,543  
     

 

 

 
     
       Investments Purchased with Cash Collateral from
Securities on Loan
 
     
       Money Market Funds—1.8%  
  103,639      Invesco Government & Agency Portfolio—Institutional Class, 2.34%(d)(e)      103,639  
  34,746      Invesco Liquid Assets Portfolio—Institutional Class, 2.48%(d)(e)      34,757  
     

 

 

 
   Total Money Market Funds
(Cost $138,396)
     138,396  
     

 

 

 
   Total Investments in Securities
(Cost $7,238,611)—103.1%
     7,930,939  
   Other assets less liabilities—(3.1)%      (234,946
     

 

 

 
   Net Assets—100.0%    $ 7,695,993  
     

 

 

 

Notes to Schedule of Investments:

(a) 

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2019.

(d) 

The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2019.

(e) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

  37  

 


 

Schedule of Investments(a)

Invesco Dynamic Semiconductors ETF (PSI)

April 30, 2019

 

Number
of Shares
          Value  
       Common Stocks & Other Equity Interests—100.0%  
       Electronic Components—5.2%       
  315,038      Knowles Corp.(b)    $ 5,947,917  
  230,471      Vishay Intertechnology, Inc.      4,565,631  
     

 

 

 
        10,513,548  
     

 

 

 
       Semiconductor Equipment—23.7%  
  548,787      Amkor Technology, Inc.(b)      4,972,010  
  276,317      Cohu, Inc.      4,097,781  
  318,959      FormFactor, Inc.(b)      6,044,273  
  45,364      KLA-Tencor Corp.      5,783,003  
  219,514      Kulicke & Soffa Industries, Inc. (Singapore)      5,108,091  
  52,551      Lam Research Corp.      10,900,654  
  488,625      Photronics, Inc.(b)      4,563,757  
  124,712      Teradyne, Inc.      6,110,888  
     

 

 

 
        47,580,457  
     

 

 

 
       Semiconductors—71.1%  
  214,285      Advanced Micro Devices, Inc.(b)      5,920,695  
  129,110      Ambarella, Inc.(b)      6,470,993  
  89,258      Analog Devices, Inc.      10,375,350  
  33,449      Broadcom, Inc.      10,650,162  
  130,392      Cirrus Logic, Inc.(b)      6,204,051  
  98,990      Cree, Inc.(b)      6,542,249  
  124,895      Diodes, Inc.(b)      4,548,676  
  119,535      Inphi Corp.(b)      5,457,968  
  182,787      Intel Corp.      9,329,449  
  432,911      Lattice Semiconductor Corp.(b)      5,606,197  
  92,756      Maxim Integrated Products, Inc.      5,565,360  
  221,603      MaxLinear, Inc.(b)      5,963,337  
  226,271      Micron Technology, Inc.(b)      9,516,958  
  228,213      ON Semiconductor Corp.(b)      5,262,592  
  179,505      QUALCOMM, Inc.      15,460,766  
  93,705      Semtech Corp.(b)      5,047,888  
  124,621      Synaptics, Inc.(b)      4,694,473  
  88,119      Texas Instruments, Inc.      10,383,062  
  78,795      Xilinx, Inc.      9,466,431