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Prospectus |
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August 28, 2019 |
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Invesco Exchange-Traded Fund
Trust |
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PPA |
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Invesco Aerospace & Defense ETF |
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NYSE Arca, Inc. |
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EEB |
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Invesco BRIC ETF |
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NYSE Arca, Inc. |
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PKW |
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Invesco BuyBack AchieversTM ETF |
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The Nasdaq Stock Market |
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PZD |
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Invesco CleantechTM ETF |
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NYSE Arca, Inc. |
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PFM |
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Invesco Dividend AchieversTM ETF |
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The Nasdaq Stock Market |
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DJD |
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Invesco Dow Jones Industrial Average Dividend ETF |
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NYSE Arca, Inc. |
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PYZ |
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Invesco DWA Basic Materials Momentum ETF |
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The Nasdaq Stock Market |
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PEZ |
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Invesco DWA Consumer Cyclicals Momentum ETF |
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The Nasdaq Stock Market |
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PSL |
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Invesco DWA Consumer Staples Momentum ETF |
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The Nasdaq Stock Market |
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PXI |
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Invesco DWA Energy Momentum ETF |
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The Nasdaq Stock Market |
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PFI |
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Invesco DWA Financial Momentum ETF |
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The Nasdaq Stock Market |
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PTH |
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Invesco DWA Healthcare Momentum ETF |
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The Nasdaq Stock Market |
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PRN |
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Invesco DWA Industrials Momentum ETF |
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The Nasdaq Stock Market |
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PDP |
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Invesco DWA Momentum ETF |
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The Nasdaq Stock Market |
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DWAQ |
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Invesco DWA NASDAQ Momentum ETF |
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The Nasdaq
Stock Market |
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(continued on inside front
cover) |
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.
The
U.S. Securities and Exchange Commission (“SEC”) and the Commodity Futures
Trading Commission (“CFTC”) have not approved or disapproved these securities or
passed upon the accuracy or adequacy of this Prospectus. Any representation to
the contrary is a criminal offense.
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Invesco Exchange-Traded Fund Trust
(continued) |
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PTF |
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Invesco DWA Technology Momentum ETF |
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The Nasdaq Stock Market |
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PUI |
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Invesco DWA Utilities Momentum ETF |
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The Nasdaq Stock Market |
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PBE |
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Invesco Dynamic Biotechnology & Genome ETF |
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NYSE Arca, Inc. |
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PKB |
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Invesco Dynamic Building & Construction ETF |
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NYSE Arca, Inc. |
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PXE |
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Invesco Dynamic Energy Exploration & Production
ETF |
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NYSE Arca, Inc. |
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PBJ |
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Invesco Dynamic Food & Beverage ETF |
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NYSE Arca, Inc. |
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PWB |
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Invesco Dynamic Large Cap Growth ETF |
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NYSE Arca, Inc. |
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PWV |
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Invesco Dynamic Large Cap Value ETF |
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NYSE Arca, Inc. |
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PEJ |
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Invesco Dynamic Leisure and Entertainment ETF |
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NYSE Arca, Inc. |
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PWC |
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Invesco Dynamic Market ETF |
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NYSE Arca, Inc. |
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PBS |
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Invesco Dynamic Media ETF |
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NYSE Arca, Inc. |
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PXQ |
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Invesco Dynamic Networking ETF |
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NYSE Arca, Inc. |
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PXJ |
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Invesco Dynamic Oil & Gas Services ETF |
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NYSE Arca, Inc. |
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PJP |
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Invesco Dynamic Pharmaceuticals ETF |
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NYSE Arca, Inc. |
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PMR |
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Invesco Dynamic Retail ETF |
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NYSE Arca, Inc. |
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PSI |
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Invesco Dynamic Semiconductors ETF |
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NYSE Arca, Inc. |
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PSJ |
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Invesco Dynamic Software ETF |
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NYSE Arca, Inc. |
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PGF |
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Invesco Financial Preferred ETF |
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NYSE Arca, Inc. |
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PRF |
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Invesco FTSE RAFI US 1000 ETF |
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NYSE Arca, Inc. |
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PRFZ |
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Invesco FTSE RAFI US 1500 Small-Mid ETF |
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The Nasdaq Stock Market |
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PSP |
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Invesco Global Listed Private Equity ETF |
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NYSE Arca, Inc. |
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PGJ |
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Invesco Golden Dragon China ETF |
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The Nasdaq Stock Market |
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PEY |
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Invesco High Yield Equity Dividend AchieversTM ETF |
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The Nasdaq Stock Market |
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NFO |
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Invesco Insider Sentiment ETF |
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NYSE Arca, Inc. |
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PID |
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Invesco International Dividend AchieversTM ETF |
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The Nasdaq Stock Market |
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PNQI |
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Invesco NASDAQ Internet ETF |
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The Nasdaq Stock Market |
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RYJ |
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Invesco Raymond James SB-1 Equity ETF |
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NYSE Arca, Inc. |
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EQWL |
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Invesco S&P 100 Equal Weight ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell Top 200 Equal Weight
ETF) |
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PBP |
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Invesco S&P 500 BuyWrite ETF |
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NYSE Arca, Inc. |
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RSP |
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Invesco S&P 500® Equal Weight ETF |
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NYSE Arca, Inc. |
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EWCO |
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Invesco S&P 500® Equal Weight
Communication Services ETF |
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NYSE Arca, Inc. |
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RCD |
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Invesco S&P 500® Equal Weight Consumer
Discretionary ETF |
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NYSE Arca, Inc. |
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RHS |
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Invesco S&P 500® Equal Weight Consumer
Staples ETF |
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NYSE Arca, Inc. |
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RYE |
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Invesco S&P 500® Equal Weight Energy
ETF |
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NYSE Arca, Inc. |
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RYF |
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Invesco S&P 500® Equal Weight
Financials ETF |
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NYSE Arca, Inc. |
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RYH |
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Invesco S&P 500® Equal Weight Health
Care ETF |
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NYSE Arca, Inc. |
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RGI |
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Invesco S&P 500® Equal Weight
Industrials ETF |
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NYSE Arca, Inc. |
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RTM |
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Invesco S&P 500® Equal Weight Materials
ETF |
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NYSE Arca, Inc. |
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EWRE |
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Invesco S&P 500® Equal Weight Real
Estate ETF |
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NYSE Arca, Inc. |
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RYT |
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Invesco S&P 500® Equal Weight
Technology ETF |
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NYSE Arca, Inc. |
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RYU |
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Invesco S&P 500® Equal Weight Utilities
ETF |
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NYSE Arca, Inc. |
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SPGP |
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Invesco S&P 500 GARP ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell Top 200 Pure Growth
ETF) |
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RPG |
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Invesco S&P 500® Pure Growth ETF |
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NYSE Arca, Inc. |
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RPV |
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Invesco S&P 500® Pure Value ETF |
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NYSE Arca, Inc. |
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SPHQ |
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Invesco S&P 500® Quality ETF |
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NYSE Arca, Inc. |
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XLG |
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Invesco S&P 500® Top 50 ETF |
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NYSE Arca, Inc. |
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SPVM |
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Invesco S&P 500 Value with Momentum ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell Top 200 Pure Value
ETF) |
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EWMC |
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Invesco S&P MidCap 400® Equal Weight ETF |
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NYSE Arca, Inc. |
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RFG |
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Invesco S&P MidCap 400® Pure Growth ETF |
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NYSE Arca, Inc. |
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RFV |
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Invesco S&P MidCap 400® Pure Value ETF |
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NYSE Arca, Inc. |
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XMMO |
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Invesco S&P MidCap Momentum ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell Midcap Pure Growth
ETF) |
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XMHQ |
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Invesco S&P MidCap Quality ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell Midcap Equal Weight
ETF) |
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XMVM |
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Invesco S&P MidCap Value with Momentum ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell Midcap Pure Value ETF) |
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EWSC |
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Invesco S&P SmallCap 600® Equal Weight ETF |
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NYSE Arca, Inc. |
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Invesco Exchange-Traded Fund Trust
(continued) |
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RZG |
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Invesco S&P SmallCap 600® Pure Growth ETF |
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NYSE Arca, Inc. |
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RZV |
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Invesco S&P SmallCap 600® Pure Value ETF |
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NYSE Arca, Inc. |
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XSMO |
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Invesco S&P SmallCap Momentum ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell 2000 Pure Growth ETF) |
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XSVM |
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Invesco S&P SmallCap Value with Momentum ETF |
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NYSE Arca, Inc. |
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(formerly, Invesco Russell 2000 Pure Value ETF) |
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CSD |
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Invesco S&P Spin-Off ETF |
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NYSE Arca, Inc. |
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PHO |
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Invesco Water Resources ETF |
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The Nasdaq Stock Market |
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PBW |
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Invesco WilderHill Clean Energy ETF |
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NYSE Arca, Inc. |
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CZA |
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Invesco Zacks Mid-Cap ETF |
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NYSE Arca, Inc. |
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CVY |
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Invesco Zacks Multi-Asset Income ETF |
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NYSE Arca, Inc. |
Table of Contents
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PPA |
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Invesco Aerospace &
Defense ETF |
Summary Information
Investment Objective
The Invesco Aerospace & Defense ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the SPADE® Defense Index (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
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Annual Fund Operating Expenses |
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(expenses that you pay
each year as a percentage of the value of your investment) |
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Management Fees |
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0.50% |
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Other Expenses |
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0.09% |
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Total Annual Fund Operating
Expenses |
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0.59% |
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Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
$60 |
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$189 |
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$329 |
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$738 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 15% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, SPADE Indexes LLC (“SPADE Indexes” or the “Index Provider”)
compiles, maintains, and calculates the Underlying Index, which is composed of
common stocks of companies that are engaged principally in the development,
manufacture, operation and support of U.S. defense, military, homeland security
and space operations. These may include, for example, companies that provide the
following products or services: defense electronics, aircraft, naval vessels,
missiles, spacecraft and launch vehicles, ground vehicles, communications,
sensors, information technology and network centric warfare, unmanned vehicles,
satellite-based services and ground-based equipment and electronics, products or
services.
The Index Provider identifies for inclusion in the Underlying
Index, common stocks of U.S. companies whose shares are listed on the New York
Stock Exchange (“NYSE”) or The Nasdaq Stock Market (“Nasdaq”) and weights them
according to a modified market capitalization-weighted methodology. As of
June 30, 2019, the Underlying Index was composed of 49 common stocks of
companies with market capitalizations ranging from approximately $428 million to
$210 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the aerospace and
defense industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or
its industry. Such general economic conditions include changes in interest
rates, periods of market turbulence or instability, or general and prolonged
periods of economic decline and cyclical change. It is possible that a drop in
the stock market may depress the price of most or all of the common stocks that
the Fund holds. In addition, equity risk includes the risk that investor
sentiment toward one or more industries will become negative, resulting in those
investors exiting their investments in those industries, which could cause a
reduction of the value of companies in those industries more broadly. The value
of a company’s common stock may fall solely because of factors, such as an
increase in production costs, that negatively impact other companies in the same
region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Aerospace and Defense Industry Risk. Government aerospace
and defense regulation and spending policies can significantly affect the
aerospace and defense industry because many companies involved in the aerospace
and defense industry rely to a large extent on U.S. (and other) Government
demand for their products and services. There are significant risks inherent in
contracting with the U.S. Government that could have a material adverse effect
on the business, financial condition and results of operations of industry
participants.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 31.62%.
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Best Quarter |
|
Worst Quarter |
18.14% (2nd Quarter 2009) |
|
(19.28)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(7.36 |
)% |
|
|
11.03 |
% |
|
|
14.85 |
% |
Return After Taxes on
Distributions |
|
|
(7.53 |
)% |
|
|
10.74 |
% |
|
|
14.57 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.20 |
)% |
|
|
8.74 |
% |
|
|
12.54 |
% |
SPADE® Defense
Index (reflects no deduction for fees, expenses
or taxes) |
|
|
(6.84 |
)% |
|
|
11.71 |
% |
|
|
15.59 |
% |
S&P Composite 1500® Aerospace &
Defense Index (reflects no deduction for fees, expenses
or taxes) |
|
|
(7.61 |
)% |
|
|
12.46 |
% |
|
|
16.98 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account; in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
Summary Information
Investment Objective
The Invesco BRIC ETF (the “Fund”) seeks to track the investment
results (before fees and expenses) of the S&P/BNY Mellon BRIC Select DR
Index (USD) (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.35% |
|
Total Annual Fund Operating
Expenses |
|
|
0.85% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.21% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.64% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”)
through at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser up
to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses are equal to the Total Annual Fund
Operating Expenses After Fee Waivers and Expense Assumption in the first two
years and the Total Annual Fund Operating Expenses thereafter. This example does
not include the brokerage commissions that investors may pay to buy and sell
Shares. Although your actual costs may be higher or lower, your costs, based on
these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$65 |
|
$228 |
|
$429 |
|
$1,009 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the fiscal year ended
August 31, 2018, the portfolio turnover rate of the Guggenheim BRIC ETF
(the “Predecessor Fund”) and the Fund was 39% of the average value of the
portfolio. During the fiscal period September 1, 2018 to April 30,
2019, the portfolio turnover rate of the Fund was 42% of the average value of
the portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains, and calculates the Underlying Index, which is
composed of American depositary receipts (“ADRs”) and global depositary receipts
(“GDRs”) trading on the New York Stock Exchange (“NYSE”), NYSE American, The
Nasdaq Stock Market (“Nasdaq”) or the London Stock Exchange that represent
securities of companies domiciled in Brazil, Russia, India and China and, when
appropriate, China H-shares (securities issued by companies incorporated in
mainland China and listed on the Hong Kong Stock Exchange).
The depositary receipts that compose the Underlying Index are
sponsored (i.e., the company’s equity serves as the underlying asset for the
depositary receipt). As of June 30, 2019, the Underlying Index consisted of
116 securities with market capitalizations ranging from approximately $462
million to $439 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR and GDR Risk. ADRs are certificates that evidence
ownership of shares of a foreign issuer and are alternatives to purchasing
directly underlying foreign securities in their national markets and currencies.
GDRs are certificates issued by an international bank that generally are traded
and denominated in the currencies of countries other than the home country of
the issuer of the underlying shares. ADRs and GDRs may be subject to certain of
the risks associated with direct investments in the securities of foreign
companies, such as currency, political, economic and market risks, because their
values depend on the performance of the non-dollar denominated underlying
foreign securities. Moreover, ADRs and GDRs may not track the price of the
underlying foreign securities on which they are based, and their value may
change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only
authorized participants (“APs”) may engage in creation or redemption
transactions directly with the Fund. The Fund has a limited number of
institutions that may act as APs and such APs have no obligation to submit
creation or redemption orders. Consequently, there is no assurance that APs will
establish or maintain an active trading market for the Shares. This risk may be
heightened to the extent that securities held by the Fund are traded outside a
collateralized settlement system. In that case, APs may be required to post
collateral on certain trades on an agency basis (i.e., on behalf of other market
participants), which only a limited number of APs may be able to do. In
addition, to the extent that APs exit the business or are unable to proceed with
creation and/or redemption orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as defined below), this
may result in a significantly diminished trading market for Shares, and Shares
may be more likely to trade at a premium or discount to the Fund’s net asset
value (“NAV”) and to face trading halts and/or delisting. Investments in
non-U.S. securities, which may have lower trading volumes, may increase this
risk.
Currency Risk. Because the Fund’s NAV is determined in U.S.
dollars, the Fund’s NAV could decline if the currency of a non-U.S. market in
which the Fund invests depreciates against the U.S. dollar. Generally, an
increase in the value of the U.S. dollar against a foreign currency will reduce
the value of a security denominated in that foreign currency, thereby decreasing
the Fund’s overall NAV. Exchange rates may be volatile and may change quickly
and unpredictably in response to both global economic developments and economic
conditions, causing an adverse impact on the Fund. As a result, investors have
the potential for losses regardless of the length of time they intend to hold
Shares.
Emerging Markets Investment Risk. Investments in the
securities of issuers in emerging market countries involve risks often not
associated with investments in the securities of issuers in developed countries.
Securities in emerging markets may be subject to greater price fluctuations than
securities in more developed markets. Fluctuations in the value of the U.S.
dollar relative to the values of other currencies may adversely affect
investments in emerging market securities, and emerging market securities may
have relatively low market liquidity, decreased publicly available information
about issuers, and inconsistent and potentially less stringent accounting,
auditing and financial reporting requirements and standards of practice
comparable to those applicable to domestic issuers. Emerging market securities
also are subject to the risks of expropriation, nationalization or other adverse
political or economic developments and the difficulty of enforcing obligations
in other countries. Investments in emerging market securities also may be
subject to dividend withholding or confiscatory taxes, currency blockage and/or
transfer restrictions. Emerging markets usually are subject to greater market
volatility, lower trading volume, political and economic instability,
uncertainty regarding the existence of trading markets and more governmental
limitations on foreign investment than are more developed markets. Securities
law in many emerging market countries is relatively new and unsettled.
Therefore, laws regarding foreign investment in emerging market securities,
securities regulation, title to securities, and shareholder
rights may change quickly and unpredictably. In addition, the
enforcement of systems of taxation at federal, regional and local levels in
emerging market countries may be inconsistent and subject to sudden change.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Foreign Investment Risk. Investments in the securities of
non-U.S. issuers involve risks beyond those associated with investments in U.S.
securities. Foreign securities may have relatively low market liquidity, greater
market volatility, decreased publicly available information, and less reliable
financial information about issuers, and inconsistent and potentially less
stringent accounting, auditing and financial reporting requirements and
standards of practice comparable to those applicable to domestic issuers.
Foreign securities also are subject to the risks of expropriation,
nationalization, political instability or other adverse political or economic
developments and the difficulty of enforcing obligations in other countries.
Investments in foreign securities also may be subject to dividend withholding or
confiscatory taxes, currency blockage and/or transfer restrictions and higher
transactional costs. As the Fund will invest in securities denominated in
foreign currencies, fluctuations in the value of the U.S. dollar relative to the
values of other currencies may adversely affect investments in foreign
securities and may negatively impact the Fund’s returns.
Geographic Concentration Risk. A natural or other disaster
could occur in a geographic region in which the Fund invests, which could affect
the economy or particular business operations of companies in that specific
geographic region and adversely impact the Fund’s investments in the affected
region.
Brazil Exposure Risk. The Brazilian economy has
historically been exposed to high rates of inflation and a high level of debt,
each of which may reduce and/or prevent economic growth. Exposure to Brazilian
securities involves certain risks, including governmental restrictions on the
outflow of profits
to investors abroad, restrictions on the exchange or export of
Brazilian currency, seizure of foreign investment and imposition of high taxes.
China Exposure Risk. The value of securities of Chinese
companies is likely to be more volatile than that of other issuers. The economy
of China differs, often unfavorably, from the U.S. economy in such respects as
structure, general development, government involvement, wealth distribution,
rate of inflation, growth rate, allocation of resources and capital
reinvestment. The Chinese central government historically has exercised
substantial control over virtually every sector of the Chinese economy through
administrative regulation and/or state ownership. Actions of the Chinese
government authorities continue to have a substantial effect on economic
conditions in China. Investment and trading restrictions may impact the
availability, liquidity, and pricing of certain securities for non-Chinese
investors.
India Exposure Risk. Exposure to Indian securities involves
risks in addition to those associated with investments in securities of issuers
in more developed countries, which may adversely affect the value of the Fund’s
assets. Such heightened risks include, among others, political and legal
uncertainty, greater government control over the economy, currency fluctuations
or blockage and the risk of nationalization or expropriation of assets. In
addition, religious and border disputes persist in India. Moreover, India has
experienced civil unrest and hostilities with neighboring countries, including
Pakistan, and the Indian government has confronted separatist movements in
several Indian states.
Russia Exposure Risk. The United States and the European
Union have imposed economic sanctions on certain Russian individuals and
entities, and either the United States or the European Union also could
institute broader sanctions. The current sanctions, or the threat of further
sanctions, may result in the decline of the value or liquidity of Russian
securities, a weakening of the ruble or other adverse consequences to the
Russian economy, any of which could negatively impact the Fund’s exposure to
Russian securities. These economic sanctions also could result in the immediate
freeze of Russian securities, which could impair the ability of the Fund to buy,
sell, receive or deliver those securities, or affect the value and/or liquidity
of the depositary receipts representing such securities. Both the existing and
potential future sanctions also could result in Russia taking counter measures
or retaliatory actions, which further may impair the value or liquidity of
Russian securities, and therefore may negatively impact the Fund.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single
industry or industry group. To the extent that the Underlying
Index concentrates in the securities of issuers in a particular industry or
industry group, the Fund will also concentrate its investments to approximately
the same extent. By concentrating its investments in an industry or industry
group, the Fund may face more risks than if it were diversified broadly over
numerous industries or industry groups. Such industry-based risks, any of which
may adversely affect the companies in which the Fund invests, may include, but
are not limited to, legislative or regulatory changes, adverse market conditions
and/or increased competition within the industry or industry group. In addition,
at times, such industry or industry group may be out of favor and underperform
other industries, industry groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security can be more volatile than the market as
a whole and can perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Valuation Risk. Financial information related to securities
of non-U.S. issuers may be less reliable than information related to securities
of U.S. issuers, which may make it difficult to obtain a current price for a
non-U.S. security held by the Fund. In certain circumstances, market quotations
may not be readily available for some Fund securities, and those securities may
be fair valued. The value established for a security through fair valuation may
be different from what would be produced if the security had been valued using
market quotations. Fund securities that are valued
using techniques other than market quotations, including “fair
valued” securities, may be subject to greater fluctuation in their value from
one day to the next than would be the case if market quotations were used. In
addition, there is no assurance that the Fund could sell a portfolio security
for the value established for it at any time, and it is possible that the Fund
would incur a loss because a security is sold at a discount to its established
value.
Valuation Time Risk. The Fund will invest in foreign bonds
and, because foreign exchanges may be open on days when the Fund does not price
its Shares, the value of the non-U.S. securities in the Fund’s portfolio may
change on days when you will not be able to purchase or sell your Shares. As a
result, trading spreads and the resulting premium or discount on the Shares may
widen, and, therefore, increase the difference between the market price of the
Shares and the Fund’s NAV of such Shares.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and table gives you some idea of the risks
involved in investing in the Fund, the Fund’s past performance (before and after
taxes) is not necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Predecessor Fund as a result of the reorganization of the Predecessor Fund into
the Fund, which was consummated after the close of business on May 18,
2018. Accordingly, the performance information shown below for periods ending on
or prior to May 18, 2018 is that of the Predecessor Fund. Updated
performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
36.79% (2nd Quarter 2009) |
|
(24.90)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 16.09%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(11.40 |
)% |
|
|
0.82 |
% |
|
|
5.76 |
% |
Return After Taxes on
Distributions |
|
|
(11.93 |
)% |
|
|
(0.04 |
)% |
|
|
4.85 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.19 |
)% |
|
|
0.29 |
% |
|
|
4.26 |
% |
S&P/BNY Mellon BRIC Select DR Index
(USD) (Net)(1) (reflects
reinvested dividends net of withholding taxes but reflects no deductions
for fees, expenses or other taxes) |
|
|
(10.87 |
)% |
|
|
1.46 |
% |
|
|
N/A |
|
Blended – S&P/BNY Mellon BRIC
Select DR Index (USD) (Net)(2) (reflects
reinvested dividends net of withholding taxes but reflects no deductions
for fees, expenses or other taxes) |
|
|
(10.87 |
)% |
|
|
1.46 |
% |
|
|
6.43 |
% |
MSCI Emerging Markets IndexSM (Net) (reflects
reinvested dividends net of withholding taxes but reflects no deductions
for fees, expenses or other taxes) |
|
|
(14.58 |
)% |
|
|
1.65 |
% |
|
|
8.02 |
% |
(1) |
Performance information is not available
for periods prior to the Underlying Index’s commencement date of
October 31, 2013. |
(2) |
The Blended – S&P/BNY Mellon BRIC
Select DR Index (USD) (Net) reflects the performance of Fund’s prior
underlying index, the BNY Mellon BRIC Select ADR Index (Net), from the
Fund’s inception until October 31, 2013 and the Underlying Index
thereafter. |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
May 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
May 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
May 2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the
right to permit or require Creation Units to be issued in exchange
for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PKW |
|
Invesco BuyBack AchieversTM
ETF |
Summary Information
Investment Objective
The Invesco BuyBack AchieversTM ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the NASDAQ US BuyBack
AchieversTM Index (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.12% |
|
Total Annual Fund Operating
Expenses |
|
|
0.62% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$63 |
|
$199 |
|
$346 |
|
$774 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 76% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index. Strictly in accordance with
its guidelines and mandated procedures, Nasdaq, Inc. (“Nasdaq” or the “Index
Provider”) includes common stocks in the Underlying Index pursuant to a
proprietary selection methodology that identifies a universe of “BuyBack
AchieversTM”. To qualify
for the universe of “BuyBack AchieversTM,” an issuer must have
effected a net reduction in shares outstanding of 5% or more in the past 12
months.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the information
technology sector. The Fund’s portfolio holdings, and the extent to which
it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the
company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers located in a single industry or a sector. To the
extent that the Underlying Index concentrates in the securities of issuers in a
particular industry or sector, the Fund will also concentrate its investments to
approximately the same extent. By concentrating its investments in an industry
or sector, the Fund faces more risks than if it were diversified broadly over
numerous industries or sectors. Such industry-based risks, any of which may
adversely affect the companies in which the Fund invests, may include, but are
not limited to, the following: general economic conditions or cyclical market
patterns that could negatively affect supply and demand in a particular
industry; competition for resources, adverse labor relations, political or world
events; obsolescence of technologies; and increased competition or new product
introductions that may affect the profitability or viability of companies in an
industry. In addition, at times, such industry or sector may be out of favor and
underperform other industries or the market as a whole.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying
Index, and incurs costs in buying and selling securities,
especially when rebalancing the Fund’s securities holdings to reflect changes in
the composition of the Underlying Index. In addition, the performance of the
Fund and the Underlying Index may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Index resulting from
legal restrictions, costs or liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied
from year to year and by showing how the Fund’s average annual total returns
compared with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 20.80%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
17.77% (2nd Quarter 2009) |
|
(14.01)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from
those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(10.42 |
)% |
|
|
5.14 |
% |
|
|
13.74 |
% |
Return After Taxes on
Distributions |
|
|
(10.68 |
)% |
|
|
4.85 |
% |
|
|
13.50 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(5.96 |
)% |
|
|
3.99 |
% |
|
|
11.58 |
% |
NASDAQ US BuyBack AchieversTM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(9.92 |
)% |
|
|
5.80 |
% |
|
|
14.52 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account; in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PZD |
|
Invesco CleantechTM ETF |
Summary Information
Investment Objective
The Invesco CleantechTM ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of The Cleantech
IndexTM (the “Underlying
Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.18% |
|
Total Annual Fund Operating
Expenses |
|
|
0.68% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$69 |
|
$218 |
|
$379 |
|
$847 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 21% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities (including American depositary receipts (“ADRs”) and global
depositary receipts (“GDRs”)) that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Cleantech Indices LLC (“Cleantech” or the “Index Provider”)
identifies securities for inclusion in the Underlying Index, which is designed
to track the performance of publicly traded clean technology (or “cleantech”)
companies. Cleantech considers a company to be a cleantech company when it
derives at least 50% of its revenues or operating profits from cleantech
businesses, which are defined as businesses that provide knowledge-based
products or services that add economic value by reducing cost and raising
productivity and/or product performance, while reducing the consumption of
resources and the negative impact on the environment and public health. The
Underlying Index focuses on companies that are leaders in the innovation and
commercial deployment of cleantech products/services
across a broad range of industries, including, but not limited to,
clean energy, energy efficiency and transmission, clean water, advanced
materials, eco-friendly agriculture and nutrition, transportation, manufacturing
efficiency, recycling and pollution prevention/remediation.
As of June 30, 2019, the Underlying Index was composed of 51
securities with market capitalizations ranging from approximately $186 million
to $52 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the cleantech sector
and industrials sector. The Fund’s portfolio holdings, and the extent to which
it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR and GDR Risk. ADRs are certificates that evidence
ownership of shares of a foreign issuer and are alternatives to purchasing
directly underlying foreign securities in their national markets and currencies.
GDRs are certificates issued by an international bank that generally are traded
and denominated in the currencies of countries other than the home country of
the issuer of the underlying shares. ADRs and GDRs may be subject to certain of
the risks associated with direct investments in the securities of foreign
companies, such as currency, political, economic and market risks, because their
values depend on the performance of the non-dollar denominated underlying
foreign securities. Moreover, ADRs and GDRs may not track the price of the
underlying foreign securities on which they are based, and their value may
change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that
APs exit the business or are unable to proceed with creation
and/or redemption orders with respect to the Fund and no other AP is able to
step forward to create or redeem Creation Units (as defined below), this may
result in a significantly diminished trading market for Shares, and Shares may
be more likely to trade at a premium or discount to the Fund’s net asset value
(“NAV”) and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Foreign Investment Risk. The Fund’s exposure to
foreign securities involves risks beyond those associated with domestic
securities. In general, foreign companies often are subject to less stringent
requirements regarding accounting, auditing, financial reporting and
record-keeping than are U.S. companies, and therefore, not all material
information regarding these companies will be available. The value of foreign
securities may also fluctuate due to adverse political and economic developments
and currency fluctuations, and these securities may have less liquidity and more
volatility than domestic securities.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based
risks, any of which may adversely affect the companies in which the Fund
invests, may include, but are not limited to, legislative or regulatory changes,
adverse market conditions and/or increased competition within the industry or
industry group. In addition, at times, such industry or industry group may be
out of favor and underperform other industries, industry groups or the market as
a whole.
Cleantech Sector Risk. There are risks in investing in the
cleantech sector, including the risks of focusing investments in the water,
energy and environmental sectors. Adverse developments in the water, energy and
environmental sectors may significantly affect the value of the Shares.
Companies involved in the water sector are subject to tax and price fluctuations
and competition. Securities of companies in the energy sector are subject to
swift price and supply fluctuations caused by events relating to international
politics, the success of project development and tax and other governmental
regulatory policies. Weak demand for the companies’ products or services or for
energy products and services in general, as well as negative developments in
these other areas, may adversely affect the Fund’s performance. The cleantech
sector is an emerging growth industry, and therefore such companies may be more
volatile.
Industrials Sector Risk. Changes in government regulation,
world events and economic conditions may adversely affect companies in the
industrials sector. In addition, these companies are at risk for environmental
and product liability damage claims. Also, commodity price volatility, changes
in exchange rates, imposition of import controls, increased competition,
depletion of resources, technological developments and labor relations could
adversely affect the companies in this sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 23.68%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
28.40% (2nd Quarter 2009) |
|
(27.06)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(12.35 |
)% |
|
|
3.97 |
% |
|
|
8.39 |
% |
Return After Taxes on
Distributions |
|
|
(12.46 |
)% |
|
|
3.77 |
% |
|
|
8.22 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(7.21 |
)% |
|
|
3.07 |
% |
|
|
6.85 |
% |
The Cleantech IndexTM (reflects no
deduction for fees, expenses or taxes) |
|
|
(11.73 |
)% |
|
|
4.66 |
% |
|
|
9.23 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2013 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
February 2015 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account; in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the
intermediary more knowledgeable about exchange traded products,
such as the Fund, as well as for marketing, education or other initiatives
related to the sale or promotion of Fund shares. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson or financial adviser to recommend the Fund over another
investment. Ask your salesperson or financial adviser or visit your financial
intermediary’s web-site for more information.
|
|
|
PFM |
|
Invesco Dividend AchieversTM
ETF |
Summary Information
Investment Objective
The Invesco Dividend AchieversTM ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the NASDAQ US Broad
Dividend AchieversTM
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.14% |
|
Total Annual Fund Operating
Expenses |
|
|
0.54% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$55 |
|
$173 |
|
$302 |
|
$677 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 13% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index. Strictly in accordance with
its guidelines and mandated procedures, Nasdaq, Inc. (“Nasdaq” or the “Index
Provider”) includes common stock in the Underlying Index pursuant to a
proprietary selection methodology that identifies a universe of “Dividend
AchieversTM.” To qualify
for the universe of “Dividend AchieversTM,” an issuer must have
increased its annual regular cash dividend payments for at least each of its
last ten or more calendar or fiscal years.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising its Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Dividend Paying Security Risk. Securities that pay high
dividends as a group can fall out of favor with the market, causing such
companies to underperform companies that do not pay high dividends. Also,
changes in the dividend policies of the companies in which the Fund invests and
the capital resources available for such companies’ dividend payments may
adversely affect the Fund.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in
production costs, that negatively impact other companies in the
same region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 17.14%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
13.65% (3rd Quarter 2009) |
|
(16.53)% (1st Quarter 2009) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(4.40 |
)% |
|
|
6.72 |
% |
|
|
10.38 |
% |
Return After Taxes on
Distributions |
|
|
(4.90 |
)% |
|
|
6.17 |
% |
|
|
9.89 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(2.24 |
)% |
|
|
5.22 |
% |
|
|
8.54 |
% |
NASDAQ US Broad Dividend AchieversTM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(3.94 |
)% |
|
|
7.30 |
% |
|
|
11.01 |
% |
Russell 3000® Value
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(8.58 |
)% |
|
|
5.77 |
% |
|
|
11.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
DJD |
|
Invesco Dow Jones Industrial
Average Dividend ETF |
Summary Information
Investment Objective
The Invesco Dow Jones Industrial Average Dividend ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the Dow
Jones Industrial Average Yield Weighted (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees(1) |
|
|
0.07% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.07% |
|
(1) |
Management fees have been restated to
reflect current fees. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$7 |
|
$23 |
|
$40 |
|
$90 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the portfolio turnover rate of the Fund was 20% of the average value of
the portfolio.
Principal Investment Strategies
The Fund will generally invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
The Underlying Index is designed to provide exposure to
dividend-paying equity securities of companies included in the Dow Jones
Industrial Average™, which is a price-weighted index of 30 U.S. companies that
meet certain size, listing and liquidity requirements. The Underlying Index
includes all constituents of the Dow Jones Industrial AverageTM that pay dividends. The
Underlying Index is calculated using a yield-weighted methodology that weights
all dividend-paying constituents of the Dow Jones Industrial Average™ by their
twelve-month dividend yield over the prior twelve months.
Underlying Index constituents must be a part of the Dow Jones Industrial
Average™.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Dividend Paying Security Risk. Securities that pay high
dividends as a group can fall out of favor with the market, causing such
companies to underperform companies that do not pay high dividends. Also,
changes in the dividend policies of the companies in which the Fund invests and
the capital resources available for such companies’ dividend payments may
adversely affect the Fund.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or
its industry. Such general economic conditions include changes in interest
rates, periods of market turbulence or instability, or general and prolonged
periods of economic decline and cyclical change. It is possible that a drop in
the stock market may depress the price of most or all of the common stocks that
the Fund holds. In addition, equity risk includes the risk that investor
sentiment toward one or more industries will become negative, resulting in those
investors exiting their investments in those industries, which could cause a
reduction of the value of companies in those industries more broadly. The value
of a company’s common stock may fall solely because of factors, such as an
increase in production costs, that negatively impact other companies in the same
region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security can be more volatile than the market as
a whole and can perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption
in the creation/redemption process of the Fund. Any of these
factors may lead to the Shares trading at a premium or discount to the Fund’s
NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim Dow Jones Industrial Average Dividend ETF (the “Predecessor Fund”) as
a result of the reorganization of the Predecessor Fund into the Fund, which was
consummated after the close of business on April 6, 2018. Accordingly, the
performance information shown below for periods ending on or prior to
April 6, 2018 is that of the Predecessor Fund. Updated performance
information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
8.86% (3rd Quarter 2018) |
|
(7.55)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 13.35%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
Since Inception (12/16/15) |
|
Return Before Taxes |
|
|
0.11 |
% |
|
|
12.28 |
% |
Return After Taxes on
Distributions |
|
|
(0.51 |
)% |
|
|
11.16 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
0.51 |
% |
|
|
9.15 |
% |
Dow Jones Industrial Average Yield
Weighted (reflects no deduction for fees, expenses or taxes) |
|
|
0.25 |
% |
|
|
12.62 |
% |
Dow Jones Industrial Average
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(3.48 |
)% |
|
|
12.08 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery
of a basket of securities. However, the Fund also reserves the right to permit
or require Creation Units to be issued in exchange for cash. Except when
aggregated in Creation Units, the Shares are not redeemable securities of the
Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PYZ |
|
Invesco DWA Basic Materials
Momentum ETF |
Summary Information
Investment Objective
The Invesco DWA Basic Materials Momentum ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Dorsey Wright® Basic Materials Technical
Leaders Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.26% |
|
Total Annual Fund Operating
Expenses |
|
|
0.76% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.16% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$210 |
|
$390 |
|
$911 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 89% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the basic materials sector that have
powerful relative strength or “momentum” characteristics. Dorsey
Wright selects these securities from approximately 2,000 of the largest
constituents by market capitalization within the NASDAQ US Benchmark Index, a
market capitalization-weighted index designed to track the performance of the
U.S. equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the basic materials sector, as determined by the Index Provider, for inclusion
in the Underlying Index. Companies in the basic materials sector are principally
engaged in the business of producing raw materials, including paper or wood
products, chemicals, construction materials, and mining and metals.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 47 securities. The Index Provider weights each security by
its momentum score, with higher-scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise
concentrate its investments in securities of issuers in any one
industry or group of industries. As of April 30, 2019, the Fund had
significant exposure to the basic materials sector. The Fund’s portfolio
holdings, and the extent to which it concentrates its investments, are likely to
change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers located in a single industry or industry group. As a result, the Fund
will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Basic Materials Sector Risk. Changes in world events,
political, environmental and economic conditions, energy conservation,
environmental policies, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations may adversely affect the companies engaged in the production and
distribution of basic materials.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying
Index, and incurs costs in buying and selling securities, especially when
rebalancing the Fund’s securities holdings to reflect changes in the composition
of the Underlying Index. In addition, the performance of the Fund and the
Underlying Index may vary due to asset valuation differences and differences
between the Fund’s portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 13.71%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
24.95% (2nd Quarter 2009) |
|
(28.84)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(23.32 |
)% |
|
|
1.96 |
% |
|
|
12.12 |
% |
Return After Taxes on
Distributions |
|
|
(23.50 |
)% |
|
|
1.72 |
% |
|
|
11.84 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(13.63 |
)% |
|
|
1.51 |
% |
|
|
10.14 |
% |
Dorsey Wright® Basic Materials
Technical Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(22.82 |
)% |
|
|
2.57 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Basic Materials
Technical Leaders Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(22.82 |
)% |
|
|
2.62 |
% |
|
|
13.00 |
% |
S&P 500® Materials
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(14.70 |
)% |
|
|
3.84 |
% |
|
|
11.07 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Basic Materials Sector
IntellidexSM Index
to the DWA Basic Materials Technical LeadersTM Index. Effective
July 1, 2015, DWA Basic Materials Technical LeadersTM Index changed its
name to Dorsey Wright® Basic Materials
Technical Leaders Index. Prior to the commencement date of March 18,
2013, performance for the Underlying Index is not available.
|
(2) |
The “Blended-Dorsey Wright® Basic Materials
Technical Leaders Index” reflects the performance of the Dynamic Basic
Materials Sector IntellidexSM Index, the former
underlying index, prior to February 19, 2014, and the Dorsey
Wright® Basic
Materials Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PEZ |
|
Invesco DWA Consumer Cyclicals
Momentum ETF |
Summary Information
Investment Objective
The Invesco DWA Consumer Cyclicals Momentum ETF (the “Fund”) seeks
to track the investment results (before fees and expenses) of the Dorsey
Wright® Consumer
Cyclicals Technical Leaders Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.30% |
|
Total Annual Fund Operating
Expenses |
|
|
0.80% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.20% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$214 |
|
$404 |
|
$952 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 136% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the consumer discretionary (or
cyclicals) sector that have powerful relative strength or “momentum”
characteristics. Dorsey Wright selects these securities from approximately
2,000 of the largest constituents by market capitalization within the NASDAQ US
Benchmark Index, a market capitalization-weighted index designed to track the
performance of the U.S. equity market. “Relative strength” is an investing
technique that seeks to determine the strongest performing securities by
measuring certain factors, such as a security’s relative performance against the
overall market or a security’s relative strength value, which is derived by
comparing the rate of increase of the security’s price as compared to that of a
benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the consumer discretionary sector, as determined by the Index Provider, for
inclusion in the Underlying Index. Companies in the consumer discretionary
sector are principally engaged in the businesses of providing consumer goods and
services that are cyclical in nature, including retail, automotive, leisure and
recreation, media and home construction and furnishing.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 39 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only
to the extent that the Underlying Index reflects a concentration
in that industry or group of industries. The Fund will not otherwise concentrate
its investments in securities of issuers in any one industry or group of
industries. As of April 30, 2019, the Fund had significant exposure to the
consumer discretionary (or cyclicals) sector. The Fund’s portfolio holdings, and
the extent to which it concentrates its investments, are likely to change over
time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make
anticipated dividend payments, may depress the value of common
stock.
Index Risk. Unlike many investment companies, the Fund
does not utilize an investing strategy that seeks returns in excess of its
Underlying Index. Therefore, the Fund would not necessarily buy or sell a
security unless that security is added or removed, respectively, from its
Underlying Index, even if that security generally is underperforming.
Industry Concentration Risk. In following its
methodology, the Underlying Index will be concentrated to a significant degree
in securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Consumer Discretionary Sector Risk. Companies engaged in
the consumer discretionary sector are affected by fluctuations in supply and
demand and changes in consumer preferences, social trends and marketing
campaigns. Changes in discretionary consumer spending as a result of world
events, political and economic conditions, commodity price volatility, changes
in exchange rates, imposition of import controls, increased competition,
depletion of resources and labor relations also may adversely affect these
companies.
Issuer-Specific Changes Risk. The value of an
individual security or particular type of security may be more volatile than the
market as a whole and may perform differently from the value of the market as a
whole.
Market Risk. Securities in the Underlying Index are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market
trading risks, including the potential lack of an active market for the Shares,
losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the
Shares trading at a premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor
and therefore, the investment performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match
the return of the Underlying Index for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Index, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Index. In addition, the performance of the Fund and the Underlying
Index may vary due to asset valuation differences and differences between the
Fund’s portfolio and the Underlying Index resulting from legal restrictions,
costs or liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 18.56%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
17.07% (1st Quarter 2012) |
|
(21.91)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(6.30 |
)% |
|
|
3.02 |
% |
|
|
12.15 |
% |
Return After Taxes on
Distributions |
|
|
(6.39 |
)% |
|
|
2.90 |
% |
|
|
12.02 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(3.67 |
)% |
|
|
2.33 |
% |
|
|
10.17 |
% |
Dorsey Wright® Consumer Cyclicals
Technical Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(5.96 |
)% |
|
|
4.44 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Consumer Cyclicals
Technical Leaders Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(5.96 |
)% |
|
|
3.56 |
% |
|
|
12.86 |
% |
S&P 500® Consumer
Discretionary Index (reflects no deduction for fees, expenses or
taxes) |
|
|
0.83 |
% |
|
|
9.69 |
% |
|
|
18.35 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Consumer Discretionary
Sector IntellidexSM
Index to the DWA Consumer Cyclicals Technical LeadersTM Index. Prior to the
commencement date of March 18, 2013, performance for the Underlying
Index is not available. |
(2) |
The “Blended-Dorsey Wright® Consumer Cyclicals
Technical Leaders Index” reflects the performance of the Dynamic Consumer
Discretionary Sector IntellidexSM Index, the former
underlying index, prior to February 19, 2014, and the Dorsey
Wright® Consumer
Cyclicals Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PSL |
|
Invesco DWA Consumer Staples
Momentum ETF |
Summary Information
Investment Objective
The Invesco DWA Consumer Staples Momentum ETF (the “Fund”) seeks
to track the investment results (before fees and expenses) of the Dorsey
Wright® Consumer Staples
Technical Leaders Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.21% |
|
Total Annual Fund Operating
Expenses |
|
|
0.71% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.11% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$204 |
|
$373 |
|
$861 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 118% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the consumer staples sector that have
powerful relative strength or “momentum” characteristics. Dorsey
Wright selects these securities from approximately 2,000 of the largest
constituents by market capitalization within the NASDAQ US Benchmark Index, a
market capitalization-weighted index designed to track the performance of the
U.S. equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the consumer staples sector, as determined by the Index Provider, for inclusion
in the Underlying Index. Companies in the consumer staples sector are
principally engaged in the businesses of providing consumer goods and services
that have non-cyclical characteristics, including tobacco, textiles, food and
beverages, and non-discretionary retail goods and services.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 35 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in
that industry or group of industries. The Fund will not otherwise
concentrate its investments in securities of issuers in any one industry or
group of industries. As of April 30, 2019, the Fund had significant
exposure to the consumer staples sector. The Fund’s portfolio holdings, and the
extent to which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund
does not utilize an investing strategy that seeks returns in excess of its
Underlying Index. Therefore, the Fund would not necessarily buy or sell a
security unless that security is added or removed, respectively, from its
Underlying Index, even if that security generally is underperforming.
Industry Concentration Risk. In following its
methodology, the Underlying Index will be concentrated to a significant degree
in securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Consumer Staples Sector Risk. Changes in the worldwide
economy, consumer spending, competition, demographics and consumer preferences,
exploration and production spending may adversely affect companies in the
consumer staples sector. Companies in this sector also are affected by changes
in government regulation, world events and economic conditions, as well as
natural and man-made disasters and political, social or labor unrest that affect
production and distribution of consumer staple products.
Issuer-Specific Changes Risk. The value of an
individual security or particular type of security may be more volatile than the
market as a whole and may perform differently from the value of the market as a
whole.
Market Risk. Securities in the Underlying Index are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market
trading risks, including the potential lack of an active market for the Shares,
losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the
Shares trading at a premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match
the return of the Underlying Index for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Index, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Index. In addition, the performance of the Fund and the Underlying
Index may vary due to asset valuation differences and differences between the
Fund’s portfolio and the Underlying Index resulting from legal restrictions,
costs or liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 10.02%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
16.59% (2nd Quarter 2009) |
|
(10.20)% (1st Quarter 2009) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
1.52 |
% |
|
|
9.34 |
% |
|
|
13.65 |
% |
Return After Taxes on
Distributions |
|
|
1.34 |
% |
|
|
9.06 |
% |
|
|
13.34 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
1.03 |
% |
|
|
7.36 |
% |
|
|
11.46 |
% |
Dorsey Wright® Consumer Staples
Technical Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
2.10 |
% |
|
|
9.82 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Consumer Staples
Technical Leaders Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
2.10 |
% |
|
|
10.00 |
% |
|
|
14.39 |
% |
S&P 500® Consumer Staples
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(8.38 |
)% |
|
|
6.26 |
% |
|
|
10.96 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Consumer Staples Sector
IntellidexSM Index
to the DWA Consumer Staples Technical LeadersTM Index. Effective
July 1, 2015, DWA Consumer Staples Technical LeadersTM Index changed its
name to Dorsey Wright® Consumer Staples
Technical Leaders Index. Prior to the commencement date of March 18,
2013, performance for the Underlying Index is not available.
|
(2) |
The “Blended-Dorsey Wright® Consumer Staples
Technical Leaders Index” reflects the performance of the Dynamic Consumer
Staples Sector IntellidexSM Index, the former
underlying index, prior to February 19, 2014, and the Dorsey
Wright® Consumer
Staples Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PXI |
|
Invesco DWA Energy Momentum
ETF |
Summary Information
Investment Objective
The Invesco DWA Energy Momentum ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the Dorsey Wright® Energy Technical Leaders
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.25% |
|
Total Annual Fund Operating
Expenses |
|
|
0.75% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.15% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$209 |
|
$387 |
|
$901 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 113% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the energy sector that have powerful
relative strength or “momentum” characteristics. Dorsey Wright selects
these securities from approximately 2,000 of the largest constituents by market
capitalization within the NASDAQ US Benchmark Index, a market
capitalization-weighted index designed to track the performance of the U.S.
equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the energy sector, as determined by the Index Provider, for inclusion in the
Underlying Index. Companies in the energy sector are principally engaged in the
business of producing, distributing or servicing energy-related products,
including oil and gas exploration and production, refining, oil services,
pipeline, and solar, wind and other non-oil based energy.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 38 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in
that industry or group of industries. The Fund will not otherwise
concentrate its investments in securities of issuers in any one industry or
group of industries. As of April 30, 2019, the Fund had significant
exposure to the energy sector. The Fund’s portfolio holdings, and the extent to
which it concentrates its investments, are likely to change over
time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Energy Sector Risk. Changes in worldwide energy prices,
exploration and production spending may adversely affect companies in the energy
sector. In addition, changes in government regulation, world events and economic
conditions can affect these companies. These companies also are at risk of civil
liability from accidents resulting in injury, loss of life or property,
pollution or other environmental damage claims and risk of loss from terrorism
and natural disasters. Commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources,
development of alternative energy sources, technological developments and labor
relations also could affect companies in this sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may
be periods when the momentum style of investing is out of favor
and therefore, the investment performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 5.80%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
29.88% (2nd Quarter 2009) |
|
(35.23)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(27.35 |
)% |
|
|
(11.60 |
)% |
|
|
5.00 |
% |
Return After Taxes on
Distributions |
|
|
(27.48 |
)% |
|
|
(11.81 |
)% |
|
|
4.80 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(16.06 |
)% |
|
|
(8.21 |
)% |
|
|
4.09 |
% |
Dorsey Wright® Energy Technical
Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(26.94 |
)% |
|
|
(10.69 |
)% |
|
|
N/A |
|
Blended-Dorsey Wright® Energy Technical
Leaders Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(26.94 |
)% |
|
|
(11.10 |
)% |
|
|
5.60 |
% |
S&P 500® Energy
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(18.10 |
)% |
|
|
(5.56 |
)% |
|
|
3.50 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Energy Sector
IntellidexSM Index to the DWA
Energy Technical LeadersTM Index. Effective
July 1, 2015, DWA Energy Technical LeadersTM Index changed its
name to Dorsey Wright® Energy Technical
Leaders Index. Prior to the commencement date of March 18, 2013,
performance for the Underlying Index is not available.
|
(2) |
The “Blended-Dorsey Wright® Energy Technical
Leaders Index” reflects performance of the Dynamic Energy Sector
IntellidexSM Index,
the former underlying index, prior to February 19, 2014, and the
Dorsey Wright®
Energy Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PFI |
|
Invesco DWA Financial Momentum
ETF |
Summary Information
Investment Objective
The Invesco DWA Financial Momentum ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the Dorsey Wright® Financials Technical Leaders
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.29% |
|
Total Annual Fund Operating
Expenses |
|
|
0.79% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.19% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$213 |
|
$400 |
|
$942 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 132% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the financials sector that have
powerful relative strength or “momentum” characteristics. Dorsey
Wright selects these securities from approximately 2,000 of the largest
constituents by market capitalization within the NASDAQ US Benchmark Index, a
market capitalization-weighted index designed to track the performance of the
U.S. equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the financials sector, as determined by the Index Provider, for inclusion in the
Underlying Index. Companies in the financials sector are principally engaged in
the business of providing services and products, including banking, investment
services, insurance and real estate finance services.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 42 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise
concentrate its investments in securities of issuers in any one
industry or group of industries. As of April 30, 2019, the Fund had
significant exposure to the financials sector. The Fund’s portfolio holdings,
and the extent to which it concentrates its investments, are likely to change
over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund
does not utilize an investing strategy that seeks returns in excess of its
Underlying Index. Therefore, the Fund would not necessarily buy or sell a
security unless that security is added or removed, respectively, from its
Underlying Index, even if that security generally is underperforming.
Industry Concentration Risk. In following its
methodology, the Underlying Index will be concentrated to a significant degree
in securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Issuer-Specific Changes Risk. The value of an
individual security or particular type of security may be more volatile than the
market as a whole and may perform differently from the value of the market as a
whole.
Market Risk. Securities in the Underlying Index are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market
trading risks, including the potential lack of an active market for the Shares,
losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the
Shares trading at a premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may
be periods when the momentum style of investing is out of favor
and therefore, the investment performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match
the return of the Underlying Index for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Index, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Index. In addition, the performance of the Fund and the Underlying
Index may vary due to asset valuation differences and differences between the
Fund’s portfolio and the Underlying Index resulting from legal restrictions,
costs or liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 30.41%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
16.82% (4th Quarter 2011) |
|
(23.14)% (1st Quarter 2009) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(16.66 |
)% |
|
|
0.99 |
% |
|
|
6.25 |
% |
Return After Taxes on
Distributions |
|
|
(17.00 |
)% |
|
|
0.63 |
% |
|
|
5.94 |
% |
Return After Taxes on Distributions and Sale of
Fund Shares |
|
|
(9.56 |
)% |
|
|
0.75 |
% |
|
|
5.03 |
% |
Dorsey Wright® Financials Technical
Leaders Index(1)
(reflects no deduction for fees, expenses or
taxes) |
|
|
(16.16 |
)% |
|
|
1.96 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Financials Technical
Leaders Index(2)
(reflects no deduction for fees, expenses or
taxes) |
|
|
(16.16 |
)% |
|
|
1.64 |
% |
|
|
7.05 |
% |
S&P 500® Financials
Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
(13.03 |
)% |
|
|
8.16 |
% |
|
|
10.92 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Financial Sector
IntellidexSM Index to the DWA
Financials Technical LeadersTM Index. Effective
July 1, 2015, DWA Financials Technical LeadersTM Index changed its
name to Dorsey Wright® Financials Technical
Leaders Index. Prior to the commencement date of March 18, 2013,
performance for the Underlying Index is not available.
|
(2) |
The “Blended-Dorsey Wright® Financials Technical
Leaders Index” reflects the performance of the Dynamic Financial Sector
IntellidexSM Index,
the former underlying index, prior to February 19, 2014, and the
Dorsey Wright®
Financials Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PTH |
|
Invesco DWA Healthcare
Momentum ETF |
Summary Information
Investment Objective
The Invesco DWA Healthcare Momentum ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Dorsey Wright® Healthcare Technical Leaders
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.19% |
|
Total Annual Fund Operating
Expenses |
|
|
0.69% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.09% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$202 |
|
$366 |
|
$841 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 166% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the healthcare sector that have
powerful relative strength or “momentum” characteristics. Dorsey
Wright selects these securities from approximately 2,000 of the largest
constituents by market capitalization within the NASDAQ US Benchmark Index, a
market capitalization-weighted index designed to track the performance of the
U.S. equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the healthcare sector, as determined by the Index Provider, for inclusion in the
Underlying Index. Companies in the healthcare sector are principally engaged in
the business of providing healthcare-related products and services, including
biotechnology, pharmaceuticals, medical technology and supplies, and facilities.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 46 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in
that industry or group of industries. The Fund will not otherwise
concentrate its investments in securities of issuers in any one industry or
group of industries. As of April 30, 2019, the Fund had significant
exposure to the health care sector. The Fund’s portfolio holdings, and the
extent to which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Health Care Sector Risk. Factors such as extensive
government regulation, restrictions on government reimbursement for medical
expenses, rising costs of medical products, services and facilities, pricing
pressure, an increased emphasis on outpatient services, limited number of
products, industry innovation, costs associated with obtaining and protecting
patents, product liability and other claims, changes in technologies and other
market developments can affect companies in the health care sector.
Issuer-Specific Changes Risk. The value of an
individual security or particular type of security may be more volatile than the
market as a whole and may perform differently from the value of the market as a
whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market
trading risks, including the potential lack of an active market for the Shares,
losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the
Shares trading at a premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The year-to-date total return for the six months ended
June 30, 2019 was 23.34%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
17.89% (3rd Quarter 2016) |
|
(27.55)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(0.86 |
)% |
|
|
8.56 |
% |
|
|
14.03 |
% |
Return After Taxes on
Distributions |
|
|
(0.86 |
)% |
|
|
8.56 |
% |
|
|
14.00 |
% |
Return After Taxes on Distributions and Sale of
Fund Shares |
|
|
(0.51 |
)% |
|
|
6.76 |
% |
|
|
11.86 |
% |
Dorsey Wright® Healthcare Technical
Leaders Index(1)
(reflects no deduction for fees, expenses or
taxes) |
|
|
(0.25 |
)% |
|
|
10.60 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Healthcare Technical
Leaders Index(2)
(reflects no deduction for fees, expenses or
taxes) |
|
|
(0.25 |
)% |
|
|
9.26 |
% |
|
|
14.83 |
% |
S&P 500® Health Care
Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
6.47 |
% |
|
|
11.12 |
% |
|
|
14.65 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Healthcare Sector
IntellidexSM Index to the DWA
Healthcare Technical LeadersTM Index. Effective
July 1, 2015, DWA Healthcare Technical LeadersTM Index changed its
name to Dorsey Wright® Healthcare Technical
Leaders Index. Prior to the commencement date of March 18, 2013,
performance for the Underlying Index is not available.
|
(2) |
The Blended—Dorsey Wright® Healthcare Technical
Leaders Index reflects the performance of the Dynamic Healthcare Sector
IntellidexSM Index,
the former underlying index, prior to February 19, 2014, and the
Dorsey Wright®
Healthcare Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PRN |
|
Invesco DWA Industrials Momentum
ETF |
Summary Information
Investment Objective
The Invesco DWA Industrials Momentum ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Dorsey Wright® Industrials Technical
Leaders Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
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|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
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|
Management Fees |
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|
0.50% |
|
Other Expenses |
|
|
0.14% |
|
Total Annual Fund Operating
Expenses |
|
|
0.64% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.04% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
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|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$197 |
|
$349 |
|
$791 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 104% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the industrials sector that have
powerful relative strength or “momentum” characteristics. Dorsey
Wright selects these securities from approximately 2,000 of the largest
constituents by market capitalization within the NASDAQ US Benchmark Index, a
market capitalization-weighted index designed to track the performance of the
U.S. equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the industrials sector, as determined by the Index Provider, for inclusion in
the Underlying Index. Companies in the industrials sector are principally
engaged in the business of providing industrial products and services, including
engineering, heavy machinery, construction, electrical equipment, aerospace and
defense and general manufacturing products and services.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 40 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in
that industry or group of industries. The Fund will not otherwise
concentrate its investments in securities of issuers in any one industry or
group of industries. As of April 30, 2019, the Fund had significant
exposure to the industrials sector. The Fund’s portfolio holdings, and the
extent to which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Industrials Sector Risk. Changes in government regulation,
world events and economic conditions may adversely affect companies in the
industrials sector. In addition, these companies are at risk for environmental
and product liability damage claims. Also, commodity price volatility, changes
in exchange rates, imposition of import controls, increased competition,
depletion of resources, technological developments and labor relations could
adversely affect the companies in this sector.
Issuer-Specific Changes Risk. The value of an
individual security or particular type of security may be more volatile than the
market as a whole and may perform differently from the value of the market as a
whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market
trading risks, including the potential lack of an active market for the Shares,
losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the
Shares trading at a premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 29.90%.
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|
Best Quarter |
|
Worst Quarter |
21.71% (2nd Quarter 2009) |
|
(24.78)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
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1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(15.54 |
)% |
|
|
1.89 |
% |
|
|
11.03 |
% |
Return After Taxes on
Distributions |
|
|
(15.60 |
)% |
|
|
1.78 |
% |
|
|
10.88 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(9.16 |
)% |
|
|
1.45 |
% |
|
|
9.18 |
% |
Dorsey Wright® Industrials Technical
Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(15.03 |
)% |
|
|
2.60 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Industrials Technical
Leaders Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(15.03 |
)% |
|
|
2.55 |
% |
|
|
11.94 |
% |
S&P 500® Industrials
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(13.29 |
)% |
|
|
5.95 |
% |
|
|
12.68 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Industrials Sector
IntellidexSM Index to the DWA
Industrials Technical LeadersTM Index. Effective
July 1, 2015, DWA Industrials Technical LeadersTM Index changed its
name to Dorsey Wright® Industrials Technical
Leaders Index. Prior to the commencement date of March 18, 2013,
performance for the Underlying Index is not available.
|
(2) |
The Blended-Dorsey Wright® Industrials Technical
Leaders Index reflects the performance of the Dynamic Industrials Sector
IntellidexSM Index,
the former underlying index, prior to February 19, 2014, and the
Dorsey Wright®
Industrials Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
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|
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|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
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|
PDP |
|
Invesco DWA Momentum
ETF |
Summary Information
Investment Objective
The Invesco DWA Momentum ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Dorsey Wright® Technical Leaders Index (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.12% |
|
Total Annual Fund Operating
Expenses |
|
|
0.62% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$63 |
|
$199 |
|
$346 |
|
$774 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 82% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of approximately 100 securities from an eligible universe of approximately 1,000
securities of the largest constituents by market capitalization within the
NASDAQ US Benchmark Index, a market capitalization-weighted index designed to
track the performance of the U.S. equity market. Dorsey Wright selects
securities for the Underlying Index pursuant to a proprietary selection
methodology that is designed to identify companies that demonstrate powerful
relative strength characteristics. “Relative strength” is an investing technique
that seeks to determine the
strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market over a set
period, or a security’s relative strength value, which is derived by comparing
the rate of increase of the security’s price as compared to that of a benchmark
index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark index.
After giving each eligible security a momentum score, the Index
Provider selects approximately 100 securities with the highest momentum scores
from the universe of eligible securities for inclusion in the Underlying Index.
The Index Provider weights each security by its momentum score,
with higher scoring securities representing a greater weight in the Underlying
Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the information
technology sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited
number of APs may be able to do. In addition, to the extent that
APs exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or
regulatory approval, intense competition, product compatibility,
consumer preferences, corporate capital expenditure, rapid obsolescence,
competition from alternative technologies, and research and development of new
products may significantly affect the market value of securities of issuers in
the information technology sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization Company Risk. Investing in securities of
mid-capitalization companies involves greater risk than customarily is
associated with investing in larger, more established companies. These
companies’ securities may be more volatile and less liquid than those of more
established companies, and may have returns that vary, sometimes significantly,
from the overall securities market. Mid-capitalization companies tend to have
inexperienced management as well as limited product and market diversification
and financial resources. Often mid-capitalization companies and the industries
in which they focus are still evolving and, as a result, they may be more
sensitive to changing market conditions.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total
returns (before and after taxes). The bar chart and table provide
an indication of the risks of investing in the Fund by showing how the Fund’s
total returns have varied from year to year and by showing how the Fund’s
average annual total returns compared with a broad measure of market performance
and additional indexes with characteristics relevant to the Fund. The Fund’s
performance reflects fee waivers, if any, absent which performance would have
been lower. Although the information shown in the bar chart and the table gives
you some idea of the risks involved in investing in the Fund, the Fund’s past
performance (before and after taxes) is not necessarily indicative of how the
Fund will perform in the future. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 24.49%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
22.37% (3rd Quarter 2009) |
|
(18.58)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(5.89 |
)% |
|
|
6.15 |
% |
|
|
13.13 |
% |
Return After Taxes on
Distributions |
|
|
(5.92 |
)% |
|
|
6.06 |
% |
|
|
13.04 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(3.46 |
)% |
|
|
4.80 |
% |
|
|
11.05 |
% |
Dorsey Wright® Technical Leaders
Index (reflects no deduction for fees, expenses
or taxes) |
|
|
(5.35 |
)% |
|
|
6.83 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Technical Leaders
Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(5.35 |
)% |
|
|
6.83 |
% |
|
|
13.35 |
% |
Russell 3000® Growth
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(2.12 |
)% |
|
|
9.99 |
% |
|
|
15.15 |
% |
(1) |
The “Blended-Dorsey Wright® Technical Leaders
Index” is composed of price only return (which reflects no dividends paid
by the component companies of the index) prior to December 31, 2013
and total return (which reflects dividends paid by the component of the
companies of the index) thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
DWAQ |
|
Invesco DWA NASDAQ Momentum
ETF |
Summary Information
Investment Objective
The Invesco DWA NASDAQ Momentum ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the Dorsey Wright® NASDAQ Technical Leaders
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.27% |
|
Total Annual Fund Operating
Expenses |
|
|
0.77% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.17% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
taxes, Acquired Fund Fees and Expenses, if applicable, and extraordinary
expenses) from exceeding 0.60% of the Fund’s average daily net assets per
year (the “Expense Cap”) until at least August 31, 2021, and neither
the Adviser nor the Fund can discontinue the agreement prior to its
expiration. The expenses borne by the Adviser are not subject to recapture
by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that retail
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$211 |
|
$393 |
|
$921 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 156% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of approximately 100 securities from an eligible universe of approximately 1,000
of the largest capitalization companies whose securities are included within the
NASDAQ US Benchmark Index, except US-listed American depositary receipts
(“ADRs”) or foreign securities that trade on The Nasdaq Stock Market. Dorsey
Wright selects securities for the Underlying Index pursuant to a
proprietary selection methodology that is designed to identify companies that
demonstrate powerful relative strength characteristics. “Relative strength” is
an investing technique that seeks to determine the strongest performing
securities by measuring certain factors, such as a security’s relative
performance against the overall market over a set period, or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score for each security within the universe of
eligible securities. In general, momentum is the tendency of an investment to
exhibit persistence in its relative performance; a “momentum” style of investing
emphasizes investing in securities that have had better recent performance
compared to other securities. The momentum score for each security included in
the Underlying Index is based on upward price movements of the security as
compared to a representative benchmark index.
After giving each eligible security a momentum score, the Index
Provider selects approximately 100 securities with the highest momentum scores
from the universe of eligible securities for inclusion in the Underlying Index.
The Index Provider weights each security by its momentum score, with higher
scoring securities representing a greater weight in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the healthcare sector
and information technology sector. The Fund’s portfolio holdings, and the extent
to which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR Risk. ADRs are certificates that evidence ownership of
shares of a foreign issuer and are alternatives to purchasing directly
underlying foreign securities in their national markets and currencies. However,
ADRs may be subject to certain of the risks associated with direct investments
in the securities of foreign companies. Moreover, ADRs may not track the price
of the underlying foreign securities on which they are based, and their value
may change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Healthcare Sector Risk. Factors such as extensive
government regulation, restrictions on government reimbursement for medical
expenses, rising costs of medical products, services and facilities, pricing
pressure, an increased emphasis on outpatient services, limited number of
products, industry innovation, costs associated with obtaining and protecting
patents, product liability and other claims, changes in technologies and other
market developments can affect companies in the health care sector.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than
the market as a whole, or that the returns on securities that
previously have exhibited price momentum are less than returns on other styles
of investing. Momentum can turn quickly, and stocks that previously have
exhibited high momentum may not experience continued positive momentum. In
addition, there may be periods when the momentum style of investing is out of
favor and therefore, the investment performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 34.04%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
14.17% (3rd Quarter 2009) |
|
(24.42)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(13.46 |
)% |
|
|
5.05 |
% |
|
|
10.43 |
% |
Return After Taxes on
Distributions |
|
|
(13.46 |
)% |
|
|
5.04 |
% |
|
|
10.38 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(7.97 |
)% |
|
|
3.94 |
% |
|
|
8.65 |
% |
Dorsey Wright® NASDAQ
Technical Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(12.89 |
)% |
|
|
5.27 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® NASDAQ Technical
Leaders Index(2)
(reflects no deduction for fees, expenses or
taxes) |
|
|
(12.89 |
)% |
|
|
5.73 |
% |
|
|
11.19 |
% |
NASDAQ Composite Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(2.84 |
)% |
|
|
10.97 |
% |
|
|
16.76 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic OTC IntellidexSM Index to the
Dorsey Wright®
NASDAQ Technical Leaders Index. Prior to the commencement date of
December 31, 2010, performance for the Underlying Index is not
available. |
(2) |
The “Blended-Dorsey Wright® NASDAQ Technical
Leaders Index” reflects performance of the Dynamic OTC IntellidexSM Index, the former
underlying index, prior to February 19, 2014 and the Dorsey
Wright® NASDAQ
Technical Leaders Index thereafter. |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PTF |
|
Invesco DWA Technology
Momentum ETF |
Summary Information
Investment Objective
The Invesco DWA Technology Momentum ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Dorsey Wright® Technology Technical Leaders
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.22% |
|
Total Annual Fund Operating
Expenses |
|
|
0.72% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.12% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$205 |
|
$376 |
|
$871 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 133% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the technology sector that have
powerful relative strength or “momentum” characteristics. Dorsey
Wright selects these securities from approximately 2,000 of the largest
constituents by market capitalization within the NASDAQ US Benchmark Index, a
market capitalization-weighted index designed to track the performance of the
U.S. equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on intermediate and long-term
upward price movements of the security as compared to a representative benchmark
and other eligible securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the technology sector, as determined by the Index Provider, for inclusion in the
Underlying Index. Companies in the technology sector are principally engaged in
the business of providing technology-related products and services, including
computer hardware and software, Internet, electronics and semiconductors, and
wireless communication technologies.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 39 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in
that industry or group of industries. The Fund will not otherwise
concentrate its investments in securities of issuers in any one industry or
group of industries. As of April 30, 2019, the Fund had significant
exposure to the information technology sector. The Fund’s portfolio holdings,
and the extent to which it concentrates its investments, are likely to change
over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund
does not utilize an investing strategy that seeks returns in excess of its
Underlying Index. Therefore, the Fund would not necessarily buy or sell a
security unless that security is added or removed, respectively, from its
Underlying Index, even if that security generally is underperforming.
Industry Concentration Risk. In following its
methodology, the Underlying Index will be concentrated to a significant degree
in securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an
individual security or particular type of security may be more volatile than the
market as a whole and may perform differently from the value of the market as a
whole.
Market Risk. Securities in the Underlying Index are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market
trading risks, including the potential lack of an active market for the Shares,
losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the
Shares trading at a premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match
the return of the Underlying Index for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Index, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Index. In addition, the performance of the Fund and the Underlying
Index may vary due to asset valuation differences and differences between the
Fund’s portfolio and the Underlying Index resulting from legal restrictions,
costs or liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 37.81%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
18.83% (1st Quarter 2012) |
|
(21.58)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
0.98 |
% |
|
|
8.58 |
% |
|
|
12.90 |
% |
Return After Taxes on
Distributions |
|
|
0.97 |
% |
|
|
8.53 |
% |
|
|
12.86 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
0.60 |
% |
|
|
6.77 |
% |
|
|
10.85 |
% |
Dorsey Wright® Technology Technical
Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
1.67 |
% |
|
|
8.98 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Technology Technical
Leaders Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
1.67 |
% |
|
|
9.21 |
% |
|
|
13.67 |
% |
S&P 500® Information
Technology Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(0.29 |
)% |
|
|
14.93 |
% |
|
|
18.36 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Technology Sector
IntellidexSM Index to the DWA
Technology Technical LeadersTM Index. Effective
July 1, 2015, DWA Technology Technical LeadersTM Index changed its
name to Dorsey Wright® Technology Technical
Leaders Index. Prior to the commencement date of March 18, 2013,
performance for the Underlying Index is not available.
|
(2) |
The “Blended-Dorsey Wright® Technology Technical
Leaders Index” reflects the performance of the Dynamic Technology Sector
IntellidexSM Index,
the former underlying index, prior to February 19, 2014, and the
Dorsey Wright®
Technology Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PUI |
|
Invesco DWA Utilities Momentum
ETF |
Summary Information
Investment Objective
The Invesco DWA Utilities Momentum ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the Dorsey Wright® Utilities Technical Leaders
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.23% |
|
Total Annual Fund Operating
Expenses |
|
|
0.73% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.13% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.60% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.60% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$207 |
|
$380 |
|
$881 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 49% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the
“Index Provider”) compiles and maintains the Underlying Index, which is composed
of at least 30 securities of companies in the utilities sector that have
powerful relative strength or “momentum” characteristics. Dorsey
Wright selects these securities from approximately 2,000 of the largest
constituents by market capitalization within the NASDAQ US Benchmark Index, a
market capitalization-weighted index designed to track the performance of the
U.S. equity market. “Relative strength” is an investing technique that seeks to
determine the strongest performing securities by measuring certain factors, such
as a security’s relative performance against the overall market or a security’s
relative strength value, which is derived by comparing the rate of increase of
the security’s price as compared to that of a benchmark index.
The Index Provider uses a proprietary methodology to analyze the
relative strength of each security within the universe of eligible securities
and determine a “momentum” score. In general, momentum is the tendency of an
investment to exhibit persistence in its relative performance; a “momentum”
style of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to a representative benchmark and other eligible
securities within the universe.
After giving each eligible security a momentum score, the Index
Provider selects at least 30 securities with the highest momentum scores from
the utilities sector, as determined by the Index Provider, for inclusion in the
Underlying Index. Companies in the utilities sector are principally engaged in
providing energy, water, natural gas or telecommunications services. These
companies may include companies that generate and supply electricity, including
electricity wholesalers; distribute natural gas to customers; provide water to
customers, as well as deal with associated wastewater; and provide land line
telephone services.
The total number of securities in the Underlying Index may vary
depending on the capitalization characteristics of the securities that qualify
for inclusion in the Underlying Index. As of June 30, 2019, the Underlying
Index consisted of 30 securities. The Index Provider weights each security by
its momentum score, with higher scoring securities representing a greater weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to the weightings
of the securities in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries
only to the extent that the Underlying Index reflects a concentration in that
industry or group of industries. The Fund will not otherwise concentrate its
investments in securities of issuers in any one industry or group of industries.
As of April 30, 2019, the Fund had significant exposure to the utilities
sector. The Fund’s portfolio holdings, and the extent to which it concentrates
its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make
anticipated dividend payments, may depress the value of common
stock.
Index Risk. Unlike many investment companies, the Fund
does not utilize an investing strategy that seeks returns in excess of its
Underlying Index. Therefore, the Fund would not necessarily buy or sell a
security unless that security is added or removed, respectively, from its
Underlying Index, even if that security generally is underperforming.
Industry Concentration Risk. In following its
methodology, the Underlying Index will be concentrated to a significant degree
in securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Utilities Sector Risk. Companies in the utilities
sector are subject to a variety of factors that may adversely affect their
business or operations, including high interest costs associated with capital
construction and improvement programs; difficulty in raising adequate capital in
periods of high inflation and unsettled capital markets; governmental regulation
of rates the issuer can charge to customers; costs associated with compliance
with environmental and other regulations; effects of economic slowdowns and
surplus capacity; increased competition; and potential losses resulting from a
developing deregulatory environment.
Issuer-Specific Changes Risk. The value of an
individual security or particular type of security may be more volatile than the
market as a whole and may perform differently from the value of the market as a
whole.
Market Risk. Securities in the Underlying Index are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market
trading risks, including the potential lack of an active market for the Shares,
losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the
Shares trading at a premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be
periods when the momentum style of investing is out of favor and therefore, the
investment performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match
the return of the Underlying Index for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Index, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Index. In addition, the performance of the Fund and the Underlying
Index may vary due to asset valuation differences and differences between the
Fund’s portfolio and the Underlying Index resulting from legal restrictions,
costs or liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 13.49%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
14.37% (1st Quarter 2016) |
|
(13.70)% (1st Quarter 2009) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
6.11 |
% |
|
|
9.86 |
% |
|
|
9.80 |
% |
Return After Taxes on
Distributions |
|
|
5.61 |
% |
|
|
9.17 |
% |
|
|
9.16 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
3.93 |
% |
|
|
7.72 |
% |
|
|
7.97 |
% |
Dorsey Wright® Utilities Technical
Leaders Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
6.72 |
% |
|
|
11.10 |
% |
|
|
N/A |
|
Blended-Dorsey Wright® Utilities Technical
Leaders Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
6.72 |
% |
|
|
10.51 |
% |
|
|
10.60 |
% |
S&P 500® Utilities
Index (reflects no deduction for fees, expenses or taxes) |
|
|
4.11 |
% |
|
|
10.74 |
% |
|
|
10.46 |
% |
(1) |
Effective February 19, 2014, the
Fund changed its underlying index from the Dynamic Utilities
IntellidexSM Index to the DWA
Utilities Technical LeadersTM Index. Effective
July 1, 2015, DWA Utilities Technical LeadersTM Index changed its
name to Dorsey Wright® Utilities Technical
Leaders Index. Prior to the commencement date of March 18, 2013,
performance for the Underlying Index is not available.
|
(2) |
The “Blended-Dorsey Wright® Utilities Technical
Leaders Index” reflects the performance of the Dynamic Utilities Sector
IntellidexSM Index,
the former underlying index, prior to February 19, 2014, and the
Dorsey Wright®
Utilities Technical Leaders Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PBE |
|
Invesco Dynamic Biotechnology
& Genome ETF |
Summary Information
Investment Objective
The Invesco Dynamic Biotechnology & Genome ETF (the
“Fund”) seeks to track the investment results (before fees and expenses) of the
Dynamic Biotech & Genome IntellidexSM Index (the “Underlying
Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.07% |
|
Total Annual Fund Operating
Expenses |
|
|
0.57% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$58 |
|
$183 |
|
$318 |
|
$714 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 117% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. biotechnology and genome companies. 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, biopharmaceutical companies that actively participate
in the research and development, animal testing and partial human testing
phases of drug development, typically using biotechnological techniques that
required the use of living organisms, cells
and/or components of cells; outsourced services companies that
utilize drug delivery technologies in the development of therapeutics for the
biopharmaceutical industry or provide biopharmaceutical companies with novel
biological targets and drug leads; and scientific products such as
bio-analytical instruments, reagents, and chemicals.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the biotechnology and
genome industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes
in general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or its industry.
Such general economic conditions include changes in interest rates, periods of
market turbulence or instability, or general and prolonged periods of economic
decline and cyclical change. It is possible that a drop in the stock market may
depress the price of most or all of the common stocks that the Fund holds. In
addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Biotechnology and Genome Industry Risk. The biotechnology
and genome industry can be significantly affected by patent considerations,
including the termination of patent protections for products, intense
competition both domestically and internationally, rapid technological change
and obsolescence, government regulation and expensive insurance costs due to the
risk of product liability lawsuits. In addition, the biotechnology and genome
industry is an emerging growth industry, and therefore biotechnology and genome
companies may be thinly capitalized and more volatile than companies with
greater capitalizations. Biotechnology and genome companies must contend with
high development costs, which may be exacerbated by the
inability to raise prices to cover costs because of managed care
pressure, government regulation or price controls.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small-and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they
focus are still evolving and, as a result, they may be more
sensitive to changing market conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 13.28%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
21.89% (3rd Quarter 2009) |
|
(24.27)% (1st Quarter 2016) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
0.24 |
% |
|
|
5.62 |
% |
|
|
13.50 |
% |
Return After Taxes on
Distributions |
|
|
0.24 |
% |
|
|
5.43 |
% |
|
|
13.39 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
0.14 |
% |
|
|
4.33 |
% |
|
|
11.35 |
% |
Dynamic Biotechnology & Genome
IntellidexSM
Index (reflects no deduction for fees, expenses or taxes) |
|
|
0.55 |
% |
|
|
5.53 |
% |
|
|
13.92 |
% |
S&P Composite 1500® Biotech
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(5.29 |
)% |
|
|
6.70 |
% |
|
|
14.90 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PKB |
|
Invesco
Dynamic Building & Construction
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Building & Construction ETF (the
“Fund”) seeks to track the investment results (before fees and expenses) of the
Dynamic Building & Construction IntellidexSM Index (the “Underlying
Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.10% |
|
Total Annual Fund Operating
Expenses |
|
|
0.60% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$192 |
|
$335 |
|
$750 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 148% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. building and construction companies. 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the building and
construction industry. The Fund’s portfolio holdings, and the extent to
which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds.
In addition, equity risk includes the risk that investor sentiment
toward one or more industries will become negative, resulting in those investors
exiting their investments in those industries, which could cause a reduction of
the value of companies in those industries more broadly. The value of a
company’s common stock may fall solely because of factors, such as an increase
in production costs, that negatively impact other companies in the same region,
industry or sector of the market. A company’s common stock also may decline
significantly in price over a short period of time due to factors specific to
that company, including decisions made by its management or lower demand for the
company’s products or services. For example, an adverse event, such as an
unfavorable earnings report or the failure to make anticipated dividend
payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Building and Construction Industry Risk. Companies in the
building and construction industry are affected by supply and demand both for
their specific products or services and for industrial sector products in
general. The building and construction industry also may be significantly
affected by changes in government spending, zoning laws, economic conditions,
interest rates, taxation, real estate values and overbuilding. The products of
companies that operate in the building and construction industry may face
obsolescence due to rapid technological developments and frequent new product
introduction. In addition, government regulation, world events and economic
conditions affect the performance of companies in this industry.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline
in value of the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by
showing how the Fund’s average annual total returns compared with
a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 30.11%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
20.81% (4th Quarter 2011) |
|
(24.71)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(30.88 |
)% |
|
|
1.52 |
% |
|
|
8.18 |
% |
Return After Taxes on
Distributions |
|
|
(30.96 |
)% |
|
|
1.46 |
% |
|
|
8.00 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(18.21 |
)% |
|
|
1.17 |
% |
|
|
6.65 |
% |
Dynamic Building &
Construction IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(30.43 |
)% |
|
|
2.20 |
% |
|
|
8.99 |
% |
S&P Composite 1500®
Construction & Engineering Index (reflects no deduction for
fees, expenses or taxes) |
|
|
(26.35 |
)% |
|
|
(3.63 |
)% |
|
|
3.07 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PXE |
|
Invesco Dynamic Energy
Exploration & Production ETF |
Summary Information
Investment Objective
The Invesco Dynamic Energy Exploration & Production ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the Dynamic Energy Exploration & Production IntellidexSM Index (the “Underlying
Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.14% |
|
Total Annual Fund Operating
Expenses |
|
|
0.64% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.01% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.63% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$64 |
|
$203 |
|
$355 |
|
$796 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 110% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. companies involved in the exploration and production of natural
resources used to produce energy. These companies are engaged principally in
exploration, extraction and production of crude oil and natural gas from
land-based or offshore wells. These companies may 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the energy exploration
and production industry. The Fund’s portfolio holdings, and the extent to
which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/
or redemption orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as defined below), this
may result in a significantly diminished trading market for Shares, and Shares
may be more likely to trade at a premium or discount to the Fund’s net asset
value (“NAV”) and to face trading halts and/or delisting. Investments in
non-U.S. securities, which may have lower trading volumes, may increase this
risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Energy Exploration and Production Industry Risk. Companies
in the energy exploration and production industry are subject to extensive
government regulation, which may increase the
cost of business and limit these companies’ earnings. In addition,
these companies are at risk of civil liability from accidents resulting in
injury or loss of life or property, pollution or other environmental damage
claims and risk of loss from terrorism and natural disasters. Companies in this
industry could be adversely affected by levels and volatility of global energy
prices, commodity price volatility, changes in exchange rates and interest
rates, imposition of import controls, increased competition, capital
expenditures on exploration and production, depletion of resources, development
of alternative energy sources and energy conservation efforts, technological
developments and labor relations.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind
creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small-and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 0.26%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
27.96% (2nd Quarter 2018) |
|
(36.16)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(23.17 |
)% |
|
|
(10.33 |
)% |
|
|
4.41 |
% |
Return After Taxes on
Distributions |
|
|
(23.36 |
)% |
|
|
(11.08 |
)% |
|
|
3.85 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(13.53 |
)% |
|
|
(7.48 |
)% |
|
|
3.55 |
% |
Dynamic Energy Exploration &
Production IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(22.59 |
)% |
|
|
(9.88 |
)% |
|
|
5.05 |
% |
S&P Composite 1500® Oil & Gas
Exploration & Production Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
(21.06 |
)% |
|
|
(11.33 |
)% |
|
|
(0.90 |
)% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the
intermediary more knowledgeable about exchange traded products,
such as the Fund, as well as for marketing, education or other initiatives
related to the sale or promotion of Fund shares. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson or financial adviser to recommend the Fund over another
investment. Ask your salesperson or financial adviser or visit your financial
intermediary’s web-site for more information.
|
|
|
PBJ |
|
Invesco Dynamic Food &
Beverage ETF |
Summary Information
Investment Objective
The Invesco Dynamic Food & Beverage ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the Dynamic
Food & Beverage IntellidexSM Index (the “Underlying
Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.15% |
|
Total Annual Fund Operating
Expenses |
|
|
0.65% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.02% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.63% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$64 |
|
$204 |
|
$358 |
|
$807 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 122% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. food and beverage companies. 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the food and beverage
industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be
required to post collateral on certain trades on an agency basis
(i.e., on behalf of other market participants), which only a limited number of
APs may be able to do. In addition, to the extent that APs exit the business or
are unable to proceed with creation and/or redemption orders with respect to the
Fund and no other AP is able to step forward to create or redeem Creation Units
(as defined below), this may result in a significantly diminished trading market
for Shares, and Shares may be more likely to trade at a premium or discount to
the Fund’s net asset value (“NAV”) and to face trading halts and/or delisting.
Investments in non-U.S. securities, which may have lower trading volumes, may
increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Food and Beverage Industry Risk. The food and beverage
industry is highly competitive and can be significantly affected by demographic
and product trends, competitive pricing, food fads, marketing campaigns,
environmental factors, government regulation, adverse changes in general
economic conditions, evolving consumer preferences, nutritional and
health-related concerns, federal, state and local food inspection and processing
controls, consumer product liability claims, consumer boycotts, risks of product
tampering and the availability and expense of liability insurance.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 12.84%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
17.65% (1st Quarter 2013) |
|
(10.82)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(10.78 |
)% |
|
|
3.77 |
% |
|
|
10.01 |
% |
Return After Taxes on
Distributions |
|
|
(11.06 |
)% |
|
|
3.47 |
% |
|
|
9.73 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.16 |
)% |
|
|
2.93 |
% |
|
|
8.28 |
% |
Dynamic Food & Beverage
IntellidexSM
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(10.39 |
)% |
|
|
4.41 |
% |
|
|
10.75 |
% |
S&P Composite 1500® Food
Beverage & Tobacco Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(14.52 |
)% |
|
|
6.58 |
% |
|
|
12.45 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the
intermediary more knowledgeable about exchange traded products,
such as the Fund, as well as for marketing, education or other initiatives
related to the sale or promotion of Fund shares. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson or financial adviser to recommend the Fund over another
investment. Ask your salesperson or financial adviser or visit your financial
intermediary’s web-site for more information.
|
|
|
PWB |
|
Invesco Dynamic Large Cap Growth
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Large Cap Growth ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Dynamic Large Cap
Growth IntellidexSM Index
(the “Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.05% |
|
Total Annual Fund Operating
Expenses |
|
|
0.55% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$56 |
|
$176 |
|
$307 |
|
$689 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 181% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of
large-capitalization U.S. growth stocks that the Intellidex Provider includes
principally on the basis of their capital appreciation potential. The Intellidex
Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded
on the New York Stock Exchange (“NYSE”), NYSE American and The Nasdaq Stock
Market (“NASDAQ”) for investment potential using a proprietary ICE Data
Intellidex model.
As of June 30, 2019, the Underlying Intellidex was composed
of 50 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the health care
sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in
production costs, that negatively impact other companies in the
same region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Growth Risk. The market values of “growth” securities may
be more volatile than other types of investments. The returns on “growth”
securities may or may not move in tandem with the returns on other styles of
investing or the overall stock market. Thus, the value of the Fund’s investments
will vary and at times may be lower than that of other types of investments.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Health Care Sector Risk. Factors such as extensive
government regulation, restrictions on government reimbursement for medical
expenses, rising costs of medical products, services and facilities, pricing
pressure, an increased emphasis on outpatient services, limited number of
products, industry innovation, costs associated with obtaining and protecting
patents, product liability and other claims, changes in technologies and other
market developments can affect companies in the health care sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 17.17%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
15.49% (1st Quarter 2012) |
|
(16.78)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
1.06 |
% |
|
|
10.69 |
% |
|
|
15.28 |
% |
Return After Taxes on
Distributions |
|
|
0.84 |
% |
|
|
10.50 |
% |
|
|
15.12 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
0.80 |
% |
|
|
8.48 |
% |
|
|
12.97 |
% |
Dynamic Large Cap Growth IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
1.64 |
% |
|
|
11.36 |
% |
|
|
16.01 |
% |
Russell 1000® Growth
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(1.51 |
)% |
|
|
10.40 |
% |
|
|
15.29 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PWV |
|
Invesco Dynamic Large Cap Value
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Large Cap Value ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Dynamic Large Cap
Value IntellidexSM Index
(the “Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.05% |
|
Total Annual Fund Operating
Expenses |
|
|
0.55% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$56 |
|
$176 |
|
$307 |
|
$689 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 189% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of
large-capitalization U.S. value stocks that the Intellidex Provider includes
principally on the basis of their capital appreciation potential. The Intellidex
Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded
on the New York Stock Exchange (“NYSE”), NYSE American and The Nasdaq Stock
Market (“NASDAQ”) for investment potential using a proprietary ICE Data
Intellidex model.
As of June 30, 2019, the Underlying Intellidex was composed
of 50 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short
period of time due to factors specific to that company, including
decisions made by its management or lower demand for the company’s products or
services. For example, an adverse event, such as an unfavorable earnings report
or the failure to make anticipated dividend payments, may depress the value of
common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Intellidex concentrates in the
securities of issuers in a particular industry or industry group, the Fund will
also concentrate its investments to approximately the same extent. By
concentrating its investments in an industry or industry group, the Fund may
face more risks than if it were diversified broadly over numerous industries or
industry groups. Such industry-based risks, any of which may adversely affect
the companies in which the Fund invests, may include, but are not limited to,
legislative or regulatory changes, adverse market conditions and/or increased
competition within the industry or industry group. In addition, at times, such
industry or industry group may be out of favor and underperform other
industries, industry groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Value Risk. Value securities are subject to the risk
that the valuations never improve or that the returns on value securities are
less than returns on other styles of investing or the overall stock market.
Thus, the value of the Fund’s investments will vary and, at times, may be lower
than that of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 14.42%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
14.96% (2nd Quarter 2009) |
|
(13.79)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from
those shown, and after-tax returns shown are not relevant to investors who hold
Shares through tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(13.93 |
)% |
|
|
5.04 |
% |
|
|
10.96 |
% |
Return After Taxes on
Distributions |
|
|
(14.37 |
)% |
|
|
4.51 |
% |
|
|
10.48 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(7.89 |
)% |
|
|
3.91 |
% |
|
|
9.08 |
% |
Dynamic Large Cap Value IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(13.43 |
)% |
|
|
5.68 |
% |
|
|
11.69 |
% |
Russell 1000® Value
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(8.27 |
)% |
|
|
5.95 |
% |
|
|
11.18 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are jointly
and primarily responsible for the day-to-day management of the Fund’s portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PEJ |
|
Invesco Dynamic Leisure and
Entertainment ETF |
Summary Information
Investment Objective
The Invesco Dynamic Leisure and Entertainment ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the Dynamic
Leisure & Entertainment IntellidexSM Index (the “Underlying
Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.13% |
|
Total Annual Fund Operating
Expenses |
|
|
0.63% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$64 |
|
$202 |
|
$351 |
|
$786 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 207% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. leisure and entertainment companies. 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the leisure and
entertainment industries. The Fund’s portfolio holdings, and the extent to
which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds.
In addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Leisure and Entertainment Industries Risk. Companies
engaged in the design, production, or distribution of goods or services for the
leisure and entertainment industries (including hospitality industry companies
such as airlines, 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) may become obsolete quickly. Additionally, several factors can
significantly affect the leisure and entertainment industries, including the
performance of the overall economy, changing consumer tastes and discretionary
income levels, intense competition, technological developments and government
regulation.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide
an indication of the risks of investing in the Fund by showing how
the Fund’s total returns have varied from year to year and by showing how the
Fund’s average annual total returns compared with a broad measure of market
performance and an additional index with characteristics relevant to the Fund.
The Fund’s performance reflects fee waivers, if any, absent which performance
would have been lower. Although the information shown in the bar chart and the
table gives you some idea of the risks involved in investing in the Fund, the
Fund’s past performance (before and after taxes) is not necessarily indicative
of how the Fund will perform in the future. Updated performance information is
available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 9.11%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
28.08% (2nd Quarter 2009) |
|
(17.74)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(8.94 |
)% |
|
|
3.85 |
% |
|
|
16.27 |
% |
Return After Taxes on
Distributions |
|
|
(9.09 |
)% |
|
|
3.69 |
% |
|
|
16.12 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(5.16 |
)% |
|
|
2.98 |
% |
|
|
13.90 |
% |
Dynamic Leisure &
Entertainment IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(8.40 |
)% |
|
|
4.59 |
% |
|
|
17.22 |
% |
S&P Composite 1500® Hotels,
Restaurants & Leisure Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(2.29 |
)% |
|
|
11.00 |
% |
|
|
16.86 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PWC |
|
Invesco Dynamic Market
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Market ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Dynamic Market
IntellidexSM Index (the
“Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.09% |
|
Total Annual Fund Operating
Expenses |
|
|
0.59% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$60 |
|
$189 |
|
$329 |
|
$738 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 240% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”),
compiles and maintains the Underlying Intellidex, which, as of June 30,
2019, was composed of 100 U.S. stocks that ICE Data included pursuant to a
proprietary selection methodology. Stocks are selected from the top of each
sector and size category in a manner designed to produce an index with sector
and size dispersion similar to the overall broad market.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Intellidex concentrates in the
securities of issuers in a particular industry or industry group, the Fund will
also concentrate its investments to approximately the same extent. By
concentrating its investments in an industry or industry group, the Fund may
face more risks than if it were diversified broadly over numerous industries or
industry groups. Such industry-based risks, any of which may adversely affect
the companies in which the Fund invests, may include, but are not limited to,
legislative or regulatory changes, adverse market conditions and/or increased
competition within the industry or industry group. In addition, at times, such
industry or industry group may be out of favor and underperform other
industries, industry groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover
rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 12.02%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
14.68% (1st Quarter 2013) |
|
(22.65)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such
as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(5.86 |
)% |
|
|
6.62 |
% |
|
|
11.89 |
% |
Return After Taxes on
Distributions |
|
|
(6.10 |
)% |
|
|
6.28 |
% |
|
|
11.60 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(3.18 |
)% |
|
|
5.16 |
% |
|
|
9.91 |
% |
Dynamic Market IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(5.23 |
)% |
|
|
7.34 |
% |
|
|
12.67 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or
its related companies may pay the intermediary for certain
Fund-related activities, including those that are designed to make the
intermediary more knowledgeable about exchange traded products, such as the
Fund, as well as for marketing, education or other initiatives related to the
sale or promotion of Fund shares. These payments may create a conflict of
interest by influencing the broker-dealer or other intermediary and your
salesperson or financial adviser to recommend the Fund over another investment.
Ask your salesperson or financial adviser or visit your financial intermediary’s
web-site for more information.
|
|
|
PBS |
|
Invesco Dynamic Media
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Media ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Dynamic Media
IntellidexSM Index (the
“Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.17% |
|
Total Annual Fund Operating
Expenses |
|
|
0.67% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.04% |
|
Total Annual Operating Expenses After
Fee Waivers and Expense Assumption |
|
|
0.63% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$64 |
|
$206 |
|
$365 |
|
$827 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 103% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. media companies. These companies are principally engaged 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the media
industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a
premium or discount to the Fund’s net asset value (“NAV”) and to
face trading halts and/or delisting. Investments in non-U.S. securities, which
may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Media Industry Risk. Companies engaged in design,
production or distribution of goods or services for the media industry
(including television or radio broadcasting or manufacturing, publishing,
recordings and musical instruments, motion pictures and photography) may become
obsolete quickly. Media companies are subject to risks that include cyclicality
of revenues and earnings, a decrease in the
discretionary income of targeted individuals, changing consumer
tastes and interests, fierce competition in the industry and the potential for
increased government regulation. Media company revenues largely are dependent on
advertising spending. A weakening general economy or a shift from online to
other forms of advertising may lead to a reduction in discretionary spending on
online advertising. Additionally, competitive pressures and government
regulation can significantly affect companies in the media industry.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 16.82%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
29.39% (2nd Quarter 2009) |
|
(22.23)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
2.34 |
% |
|
|
1.95 |
% |
|
|
15.34 |
% |
Return After Taxes on
Distributions |
|
|
2.13 |
% |
|
|
1.80 |
% |
|
|
15.21 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
1.55 |
% |
|
|
1.49 |
% |
|
|
13.05 |
% |
Dynamic Media IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
2.86 |
% |
|
|
2.63 |
% |
|
|
16.28 |
% |
S&P Composite 1500® Media
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(6.96 |
)% |
|
|
4.59 |
% |
|
|
16.85 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded
products, such as the Fund, as well as for marketing, education or
other initiatives related to the sale or promotion of Fund shares. These
payments may create a conflict of interest by influencing the broker-dealer or
other intermediary and your salesperson or financial adviser to recommend the
Fund over another investment. Ask your salesperson or financial adviser or visit
your financial intermediary’s web-site for more information.
|
|
|
PXQ |
|
Invesco Dynamic Networking
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Networking ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Dynamic Networking
IntellidexSM Index (the
“Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.14% |
|
Total Annual Fund Operating
Expenses |
|
|
0.64% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.01% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.63% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$64 |
|
$203 |
|
$355 |
|
$796 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 98% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. networking companies. These companies are principally engaged 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the networking
industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active
trading market for the Shares. This risk may be heightened to the
extent that securities held by the Fund are traded outside a collateralized
settlement system. In that case, APs may be required to post collateral on
certain trades on an agency basis (i.e., on behalf of other market
participants), which only a limited number of APs may be able to do. In
addition, to the extent that APs exit the business or are unable to proceed with
creation and/or redemption orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as defined below), this
may result in a significantly diminished trading market for Shares, and Shares
may be more likely to trade at a premium or discount to the Fund’s net asset
value (“NAV”) and to face trading halts and/or delisting. Investments in
non-U.S. securities, which may have lower trading volumes, may increase this
risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at
times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Networking Industry Risk. The networking industry is
evolving rapidly and can be significantly affected by corporate capital
expenditure trends, competitive pressures such as the ability to attract and
retain skilled employees and obsolescence due to rapid technological innovation
or changing consumer preferences. Further, many networking companies rely on a
combination of patents, copyrights, trademarks and trade secret laws to
establish and protect their proprietary rights in their products and
technologies. There can be no assurance that the steps taken by networking
companies to protect their proprietary rights will be adequate to prevent
misappropriation of their technology or that competitors will not independently
develop technologies that are substantially equivalent or superior to such
companies’ technology.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more
volatile and less liquid than those of more established companies.
These securities may have returns that vary, sometimes significantly, from the
overall securities market. Often small- and mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 21.49%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
35.60% (2nd Quarter 2009) |
|
(26.50)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
6.36 |
% |
|
|
9.46 |
% |
|
|
16.32 |
% |
Return After Taxes on
Distributions |
|
|
6.06 |
% |
|
|
9.34 |
% |
|
|
16.22 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
3.99 |
% |
|
|
7.49 |
% |
|
|
13.94 |
% |
Dynamic Networking IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
6.76 |
% |
|
|
9.92 |
% |
|
|
17.00 |
% |
S&P Composite 1500® Communications
Equipment Index (reflects no deduction for fees, expenses or
taxes) |
|
|
12.57 |
% |
|
|
10.60 |
% |
|
|
12.21 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded
products, such as the Fund, as well as for marketing, education or
other initiatives related to the sale or promotion of Fund shares. These
payments may create a conflict of interest by influencing the broker-dealer or
other intermediary and your salesperson or financial adviser to recommend the
Fund over another investment. Ask your salesperson or financial adviser or visit
your financial intermediary’s web-site for more information.
|
|
|
PXJ |
|
Invesco Dynamic Oil &
Gas Services ETF |
Summary Information
Investment Objective
The Invesco Dynamic Oil & Gas Services ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the Dynamic
Oil Services IntellidexSM
Index (the “Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.33% |
|
Total Annual Fund Operating
Expenses |
|
|
0.83% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.20% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.63% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$64 |
|
$224 |
|
$420 |
|
$987 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 81% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. companies that assist in the production, processing and
distribution of oil and gas. The Underlying Intellidex may include companies
that are 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the energy sector and
the oil and gas services industry. The Fund’s portfolio holdings, and the
extent to which it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that
APs exit the business or are unable to proceed with creation
and/or redemption orders with respect to the Fund and no other AP is able to
step forward to create or redeem Creation Units (as defined below), this may
result in a significantly diminished trading market for Shares, and Shares may
be more likely to trade at a premium or discount to the Fund’s net asset value
(“NAV”) and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Energy Sector Risk. Changes in worldwide energy prices,
exploration and production spending may adversely affect
companies in the energy sector. In addition, changes in government
regulation, world events and economic conditions can affect these companies.
Also, these companies are at risk of civil liability from accidents resulting in
injury, loss of life or property, pollution or other environmental damage claims
and risk of loss from terrorism and natural disasters. Commodity price
volatility, changes in exchange rates, imposition of import controls, increased
competition, depletion of resources, development of alternative energy sources,
technological developments and labor relations also could affect companies in
this sector.
Oil and Gas Services Industry Risk. The profitability of
companies in the oil and gas services industry may be affected adversely by
changes in worldwide energy prices, exploration and production spending. These
companies may also be affected by world events in the regions in which they
operate (e.g., expropriation, nationalization, confiscation of assets and
property or the imposition of restrictions on foreign investments and
repatriation of capital, military coups, social unrest, violence or labor
unrest). Companies in the oil and gas services industry may have significant
capital investments in, or engage in transactions involving, emerging market
countries, which may heighten these risks.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small
number of issuers to have a greater impact on the Fund’s
performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 6.99%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
32.80% (2nd Quarter 2009) |
|
(43.29)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(39.76 |
)% |
|
|
(24.92 |
)% |
|
|
(5.63 |
)% |
Return After Taxes on
Distributions |
|
|
(39.85 |
)% |
|
|
(25.19 |
)% |
|
|
(5.82 |
)% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(23.41 |
)% |
|
|
(15.79 |
)% |
|
|
(3.82 |
)% |
Dynamic Oil Services IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(39.41 |
)% |
|
|
(24.45 |
)% |
|
|
(5.00 |
)% |
S&P Composite 1500® Energy
Equipment & Services Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(41.85 |
)% |
|
|
(16.61 |
)% |
|
|
0.32 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded
products, such as the Fund, as well as for marketing, education or
other initiatives related to the sale or promotion of Fund shares. These
payments may create a conflict of interest by influencing the broker-dealer or
other intermediary and your salesperson or financial adviser to recommend the
Fund over another investment. Ask your salesperson or financial adviser or visit
your financial intermediary’s web-site for more information.
|
|
|
PJP |
|
Invesco Dynamic Pharmaceuticals
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Pharmaceuticals ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Dynamic
Pharmaceutical IntellidexSM Index (the “Underlying
Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.06% |
|
Total Annual Fund Operating
Expenses |
|
|
0.56% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$57 |
|
$179 |
|
$313 |
|
$701 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 81% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. pharmaceutical companies. These companies are engaged principally
in the research, development, manufacture, sale or distribution of
pharmaceuticals and drugs of all types. In accordance with the Underlying
Intellidex methodology, the various types of companies may include
companies from the following segments of the pharmaceutical industry:
• |
|
Big Pharmaceutical: Large,
vertically integrated drug companies that actively participate in all
major phases of the drug development process, including research and
development, animal and human testing, manufacturing and
sales and marketing. |
• |
|
Specialty Pharmaceutical:
Midsize, often vertically integrated drug companies specializing in one or
two therapeutic areas using both traditional chemical techniques and
biotechnological techniques (involving living organisms, cells, and/or
components of cells) to develop drugs. |
• |
|
Generic Pharmaceutical:
Generally midsize to small non-vertically integrated drug companies that
actively participate only in the manufacturing and sometimes
sales and marketing of patent-expired drugs.
|
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the pharmaceuticals
industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited
number of APs may be able to do. In addition, to the extent that
APs exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Pharmaceuticals Industry Risk. Government approval of
products and services, government regulation and reimbursement rates, product
liability claims, patent expirations and protection and intense competition can
significantly affect the pharmaceuticals industry.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how
the Fund’s total returns have varied from year to year and by
showing how the Fund’s average annual total returns compared with a broad
measure of market performance and an additional index with characteristics
relevant to the Fund. The Fund’s performance reflects fee waivers, if any,
absent which performance would have been lower. Although the information shown
in the bar chart and the table gives you some idea of the risks involved in
investing in the Fund, the Fund’s past performance (before and after taxes) is
not necessarily indicative of how the Fund will perform in the future. Updated
performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was (3.25)%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
16.63% (3rd Quarter 2010) |
|
(15.08)% (3rd Quarter 2015) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(1.70 |
)% |
|
|
5.42 |
% |
|
|
16.29 |
% |
Return After Taxes on
Distributions |
|
|
(1.96 |
)% |
|
|
4.73 |
% |
|
|
15.81 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(0.83 |
)% |
|
|
4.08 |
% |
|
|
13.80 |
% |
Dynamic Pharmaceutical IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(1.01 |
)% |
|
|
6.01 |
% |
|
|
17.00 |
% |
S&P Composite 1500® Pharmaceuticals
Index (reflects no deduction for fees, expenses or taxes) |
|
|
7.84 |
% |
|
|
9.18 |
% |
|
|
13.22 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PMR |
|
Invesco Dynamic Retail
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Retail ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Dynamic Retail
IntellidexSM Index (the
“Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
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|
Annual Fund Operating Expenses |
|
|
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.74% |
|
Total Annual Fund Operating
Expenses |
|
|
1.24% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.61% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.63% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
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|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$64 |
|
$269 |
|
$560 |
|
$1,389 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 148% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. retailers. 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the retail
industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as
defined below), this may result in a significantly diminished
trading market for Shares, and Shares may be more likely to trade at a premium
or discount to the Fund’s net asset value (“NAV”) and to face trading halts
and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Retail Industry Risk. The retail industry may be affected
by the performance of the domestic and international economy, interest rates,
competition and consumer confidence. The success of companies in the retail
industry depends heavily on disposable household income and consumer spending,
and changes in demographics and consumer preferences can affect
the success of retail products. The success of retail products may be strongly
affected by fads, marketing campaigns and other factors affecting supply and
demand. In addition, the retail industry is subject to severe competition.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities
two times during the course of a year. A high portfolio turnover rate (such as
100% or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small-and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies.
These securities may have returns that vary, sometimes
significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 8.58%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
18.12% (4th Quarter 2014) |
|
(16.96)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
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1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(7.83 |
)% |
|
|
0.34 |
% |
|
|
11.92 |
% |
Return After Taxes on
Distributions |
|
|
(8.08 |
)% |
|
|
0.10 |
% |
|
|
11.68 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.42 |
)% |
|
|
0.27 |
% |
|
|
9.98 |
% |
Dynamic Retail IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(7.19 |
)% |
|
|
0.96 |
% |
|
|
12.70 |
% |
S&P Composite 1500® Retailing
Index (reflects no deduction for fees, expenses or taxes) |
|
|
12.08 |
% |
|
|
15.32 |
% |
|
|
22.63 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
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Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded
products, such as the Fund, as well as for marketing, education or
other initiatives related to the sale or promotion of Fund shares. These
payments may create a conflict of interest by influencing the broker-dealer or
other intermediary and your salesperson or financial adviser to recommend the
Fund over another investment. Ask your salesperson or financial adviser or visit
your financial intermediary’s web-site for more information.
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PSI |
|
Invesco Dynamic Semiconductors
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Semiconductors ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the Dynamic Semiconductor
IntellidexSM Index (the
“Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.08% |
|
Total Annual Fund Operating
Expenses |
|
|
0.58% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
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|
|
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|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$59 |
|
$186 |
|
$324 |
|
$726 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 98% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. semiconductor companies. 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 29 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the semiconductors
industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds.
In addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Semiconductors Industry Risk. Competitive pressures,
intense competition, aggressive pricing, technological developments, changing
demand, research and development costs, availability and price of components and
product obsolescence can significantly affect companies operating in the
semiconductors industry.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these
factors may lead to the Shares trading at a premium or discount to
the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 22.60%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
24.42% (4th Quarter 2010) |
|
(28.63)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(11.19 |
)% |
|
|
19.55 |
% |
|
|
17.78 |
% |
Return After Taxes on
Distributions |
|
|
(11.35 |
)% |
|
|
19.33 |
% |
|
|
17.63 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.49 |
)% |
|
|
15.93 |
% |
|
|
15.25 |
% |
Dynamic Semiconductor IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(10.61 |
)% |
|
|
20.44 |
% |
|
|
18.66 |
% |
S&P Composite 1500® Semiconductor
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(6.29 |
)% |
|
|
17.77 |
% |
|
|
18.46 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PSJ |
|
Invesco Dynamic Software
ETF |
Summary Information
Investment Objective
The Invesco Dynamic Software ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Dynamic Software
IntellidexSM Index (the
“Underlying Intellidex”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.08% |
|
Total Annual Fund Operating
Expenses |
|
|
0.58% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$59 |
|
$186 |
|
$324 |
|
$726 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 157% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Intellidex.
Strictly in accordance with its guidelines and mandated
procedures, ICE Data Indices, LLC (“ICE Data” or the “Intellidex Provider”)
compiles and maintains the Underlying Intellidex, which is composed of common
stocks of U.S. software companies. These companies 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.
As of June 30, 2019, the Underlying Intellidex was composed
of 30 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Intellidex, meaning that the Fund generally invests in all
of the securities comprising the Underlying Intellidex in proportion to their
weightings in the Underlying Intellidex.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Intellidex reflects a concentration in that industry
or group of industries. The Fund will not otherwise concentrate its investments
in securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the software
industry. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds.
In addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Intellidex. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from its Underlying
Intellidex, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Intellidex will be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. As a
result, the Fund will also concentrate its investments in such industry or
industry group to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund faces more risks than if
it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Software Industry Risk. Technological developments,
fixed-rate pricing and the ability to attract and retain skilled employees can
significantly affect companies operating in the software industry. Changing
domestic and international demand, research and development costs and product
obsolescence can affect the profitability of software companies. Software
company stocks may experience substantial fluctuations in market price.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Intellidex are
subject to market fluctuations. You should anticipate that the value of the
Shares will decline, more or less, in correlation with any decline in value of
the securities in the Underlying Intellidex.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the
Shares, losses from trading in secondary markets, and disruption
in the creation/redemption process of the Fund. Any of these factors may lead to
the Shares trading at a premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Intellidex for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying Intellidex, and
incurs costs in buying and selling securities, especially when rebalancing the
Fund’s securities holdings to reflect changes in the composition of the
Underlying Intellidex. In addition, the performance of the Fund and the
Underlying Intellidex may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Intellidex. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Small-and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information
shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 29.56%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
20.10% (2nd Quarter 2009) |
|
(18.27)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
16.63 |
% |
|
|
15.47 |
% |
|
|
18.74 |
% |
Return After Taxes on
Distributions |
|
|
16.63 |
% |
|
|
15.46 |
% |
|
|
18.74 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
9.84 |
% |
|
|
12.50 |
% |
|
|
16.19 |
% |
Dynamic Software IntellidexSM Index (reflects no
deduction for fees, expenses or taxes) |
|
|
17.43 |
% |
|
|
16.29 |
% |
|
|
19.55 |
% |
S&P Composite 1500® Software &
Services Index (reflects no deduction for fees, expenses or
taxes) |
|
|
4.02 |
% |
|
|
15.16 |
% |
|
|
18.88 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because Shares will trade at market prices rather than NAV, Shares may
trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a
discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PGF |
|
Invesco Financial Preferred
ETF |
Summary Information
Investment Objective
The Invesco Financial Preferred ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the Wells Fargo® Hybrid and Preferred
Securities Financial Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.12% |
|
Total Annual Fund Operating
Expenses |
|
|
0.62% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$63 |
|
$199 |
|
$346 |
|
$774 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 21% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Wells Fargo Securities, LLC (together with Wells Fargo &
Company, the “Index Provider”) uses a proprietary methodology to select
securities for the Underlying Index, which is a market capitalization weighted
index designed to track the performance of preferred securities and securities
that the Index Provider believes are functionally equivalent to preferred
securities, including, but not limited to, depositary preferred securities,
perpetual subordinated debt and certain capital securities. The Underlying Index
is composed of preferred and equivalent securities with either fixed or fixed to
floating rate dividends or coupons, issued by financial institutions that have
received an industry sector classification of “financial” from the Bloomberg
Professional Service® and
that are traded in the U.S. market.
In general, preferred stock is a class of equity security that
pays distributions to preferred stockholders. Preferred stockholders have
priority over common stockholders in the payment of specified dividends, such
that preferred stockholders receive dividends before any dividends are paid to
common stockholders. In addition, preferred stock takes precedence over common
stock in receiving proceeds from an issuer in the event of the issuer’s
liquidation, but is generally junior to debt, including senior and subordinated
debt.
The Underlying Index may include fixed or variable rate
securities, meaning that dividends and coupons (as applicable) may be paid
either on a fixed rate or a floating rate percentage of the fixed par value at
which the preferred stock or other securities are issued. Floating rate
preferred securities are securities that pay interest at rates that adjust
whenever a specified benchmark interest rate (e.g., the LIBOR or a T-Bill rate)
changes, float at a fixed margin above a generally recognized base lending rate,
or are reset or re-determined on specified dates (such as the last day of a
month or calendar quarter). Preferred stocks often have a liquidation value that
equals the original purchase price of the stock at the time of issuance.
As of June 30, 2019, the Underlying Index contained 96
securities with market capitalizations ranging from approximately $254 million
to $2 billion.
The Fund does not purchase all of the securities in the Underlying
Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve
its investment objective.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a
collateralized settlement system. In that case, APs may be
required to post collateral on certain trades on an agency basis (i.e., on
behalf of other market participants), which only a limited number of APs may be
able to do. In addition, to the extent that APs exit the business or are unable
to proceed with creation and/or redemption orders with respect to the Fund and
no other AP is able to step forward to create or redeem Creation Units (as
defined below), this may result in a significantly diminished trading market for
Shares, and Shares may be more likely to trade at a premium or discount to the
Fund’s net asset value (“NAV”) and to face trading halts and/or delisting.
Investments in non-U.S. securities, which may have lower trading volumes, may
increase this risk.
Foreign Financial Institution Risk. Certain of the
companies that comprise the Underlying Index, while traded on U.S. exchanges,
may be issued by foreign financial institutions. Therefore, the Fund may be
subject to the risks of investing in securities issued by foreign companies.
High Yield Securities Risk. High yield securities typically
involve greater risk and are less liquid than higher grade issues. Changes in
general economic conditions, changes in the financial condition of the issuers
and changes in interest rates may adversely impact the ability of issuers of
high yield securities to make timely payments of interest and principal.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been
affected by increased competition, which could adversely affect the
profitability or viability of such companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. The Fund’s use of a representative sampling approach may cause the Fund
not to be as well-correlated with the return of the Underlying Index as would be
the case if the Fund purchased all of the securities in the Underlying Index in
the proportions represented in the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Preferred Securities Risk. There are special risks
associated with investing in preferred securities. Preferred securities may
include provisions that permit the issuer, in its discretion, to defer or omit
distributions for a certain period of time. If the Fund owns a security that is
deferring or omitting its distributions, the Fund may be required to report the
distribution on its tax returns, even though it may not have received any
income. Further, preferred securities may lose substantial value due to the
omission or deferment of dividend payments. Preferred securities may be less
liquid than many other securities, such as common stocks, and generally offer no
voting rights with respect to the issuer. Preferred securities also may be
subordinated to bonds or other debt instruments in an issuer’s capital
structure, subjecting them to a greater risk of non-payment than more senior
securities.
Sampling Risk. The Fund’s use of a representative sampling
approach may result in its holding a smaller number of securities than are in
the Underlying Index. As a result, an adverse development respecting an issuer
of securities held by the Fund could result in a greater decline in NAV than
would be the case if the Fund held all of the securities in the Underlying
Index. To the extent the assets in the Fund are smaller, these risks will be
greater.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Variable- and Floating-Rate Securities Risk. Although
variable- and floating-rate instruments are less sensitive to interest rate risk
than fixed-rate securities, they are subject to credit risk and default risk,
which could impair their value. Variable- and floating-rate securities also may
be subject to liquidity risk, meaning that there may be limitations on the
Fund’s ability to sell the securities at any given time. Securities with
floating or variable interest rates may decline in value if their coupon rates
do not reset as high, or as quickly, as comparable market interest rates, and
generally carry lower yields than fixed notes of the same maturity. Due to these
securities’ variable- or floating-rate features, there can be no guarantee that
they will pay a certain level of a dividend, and such securities generally will
pay lower levels of income in a falling interest rate environment.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 8.84%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
58.35% (2nd Quarter 2009) |
|
(24.68)% (1st Quarter 2009) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(2.72 |
)% |
|
|
6.29 |
% |
|
|
10.08 |
% |
Return After Taxes on
Distributions |
|
|
(3.98 |
)% |
|
|
4.87 |
% |
|
|
8.67 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(0.68 |
)% |
|
|
4.83 |
% |
|
|
8.26 |
% |
Wells Fargo® Hybrid and Preferred
Securities Financial Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(2.09 |
)% |
|
|
6.68 |
% |
|
|
10.89 |
% |
S&P U.S. Preferred Stock
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(4.25 |
)% |
|
|
5.08 |
% |
|
|
9.60 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Jeffrey W. Kernagis |
|
Senior Portfolio Manager of the
Adviser |
|
September 2007 |
Gary Jones |
|
Portfolio Manager of the
Adviser |
|
August 2013 |
Tom Boska |
|
Portfolio Manager of the
Adviser |
|
August 2019 |
Richard Ose |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PRF |
|
Invesco FTSE RAFI US 1000
ETF |
Summary Information
Investment Objective
The Invesco FTSE RAFI US 1000 ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the FTSE RAFI™ US 1000 Index
(the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses |
|
|
0.11% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.01% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.39% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.39% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$40 |
|
$126 |
|
$222 |
|
$503 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 10% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
common stocks that comprise the Underlying Index. The Underlying Index is
composed of 1,000 common stocks that FTSE International Limited and Research
Affiliates LLC (“FTSE” and “RA”, respectively, and collectively, the “Index
Provider”), strictly in accordance with their guidelines and mandated
procedures, include to track the performance of the largest U.S. companies based
on the following four fundamental measures: book value, cash flow, sales and
dividends.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising its Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical
change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 15.93%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
28.15% (2nd Quarter 2009) |
|
(15.87)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(8.57 |
)% |
|
|
6.25 |
% |
|
|
13.68 |
% |
Return After Taxes on
Distributions |
|
|
(9.02 |
)% |
|
|
5.75 |
% |
|
|
13.23 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.71 |
)% |
|
|
4.86 |
% |
|
|
11.49 |
% |
FTSE RAFI™ US 1000 Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(8.26 |
)% |
|
|
6.64 |
% |
|
|
14.09 |
% |
Russell 1000® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.78 |
)% |
|
|
8.21 |
% |
|
|
13.28 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
February 2015 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the
intermediary more knowledgeable about exchange traded products,
such as the Fund, as well as for marketing, education or other initiatives
related to the sale or promotion of Fund shares. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson or financial adviser to recommend the Fund over another
investment. Ask your salesperson or financial adviser or visit your financial
intermediary’s web-site for more information.
|
|
|
PRFZ |
|
Invesco FTSE RAFI US 1500
Small-Mid ETF |
Summary Information
Investment Objective
The Invesco FTSE RAFI US 1500 Small-Mid ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the FTSE RAFI™ US Mid
Small 1500 Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses |
|
|
0.11% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.01% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.39% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.39% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$40 |
|
$126 |
|
$222 |
|
$503 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 24% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
The Underlying Index is composed of 1,500 common stocks that FTSE
International Limited and Research Affiliates LLC (“FTSE” and “RA”,
respectively, and collectively, the “Index Provider”), strictly in accordance
with their guidelines and mandated procedures, include to track the performance
of small- and medium-sized U.S. companies based on the following four
fundamental measures of firm size: book value, cash flow, sales and dividends.
The Fund generally invests in all of the securities comprising its Underlying
Index in proportion to their weightings in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its
industry. Such general economic conditions include changes in
interest rates, periods of market turbulence or instability, or general and
prolonged periods of economic decline and cyclical change. It is possible that a
drop in the stock market may depress the price of most or all of the common
stocks that the Fund holds. In addition, equity risk includes the risk that
investor sentiment toward one or more industries will become negative, resulting
in those investors exiting their investments in those industries, which could
cause a reduction of the value of companies in those industries more broadly.
The value of a company’s common stock may fall solely because of factors, such
as an increase in production costs, that negatively impact other companies in
the same region, industry or sector of the market. A company’s common stock also
may decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these
factors may lead to the Shares trading at a premium or discount to
the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 13.05%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
36.73% (2nd Quarter 2009) |
|
(22.51)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(11.41 |
)% |
|
|
4.36 |
% |
|
|
14.68 |
% |
Return After Taxes on
Distributions |
|
|
(11.69 |
)% |
|
|
4.04 |
% |
|
|
14.39 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.57 |
)% |
|
|
3.36 |
% |
|
|
12.41 |
% |
FTSE RAFI™ US Mid Small 1500
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(11.19 |
)% |
|
|
4.59 |
% |
|
|
14.86 |
% |
Russell 2000® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(11.01 |
)% |
|
|
4.41 |
% |
|
|
11.97 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
February 2015 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PSP |
|
Invesco Global Listed Private
Equity ETF |
Summary Information
Investment Objective
The Invesco Global Listed Private Equity ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Red Rocks Global
Listed Private Equity Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.16% |
|
Acquired Fund Fees and Expenses(1) |
|
|
1.14% |
|
Total Annual Fund Operating
Expenses |
|
|
1.80% |
|
Fee Waivers and Expense Assumption(2) |
|
|
0.02% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
1.78% |
|
(1) |
Acquired Fund Fees and Expenses are
indirect fees and expenses that the Fund incurs from investing in the
shares of other investment companies. Please note that the amount of Total
Annual Fund Operating Expenses shown in the above table may differ from
the ratio of expenses to average net assets included in the “Financial
Highlights” section of this Prospectus, which reflects the operating
expenses of the Fund and does not include indirect expenses such as
Acquired Fund Fees and Expenses. |
(2) |
Through August 31, 2021, Invesco
Capital Management LLC (the “Adviser”) has agreed to waive a portion of
the Fund’s management fee in an amount equal to 100% of the net advisory
fees an affiliate of the Adviser receives that are attributable to certain
of the Fund’s investments in money market funds managed by that affiliate.
This waiver will have the effect of reducing the Acquired Fund Fees and
Expenses that are indirectly borne by the Fund. The Adviser cannot
discontinue this waiver prior to its expiration.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$181 |
|
$562 |
|
$971 |
|
$2,113 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 64% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
securities (including American depositary receipts (“ADRs”) and global
depositary receipts (“GDRs”)) that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Red Rocks Capital LLC (“Red Rocks” or the “Index Provider”) compiles
and maintains the Underlying Index, which is composed of securities, ADRs and
GDRs of 40 to 75 private equity companies, including business development
companies (“BDCs”), master limited partnerships (“MLPs”) and other vehicles that
are listed on a nationally recognized exchange, all of whose principal
businesses are to invest in, lend capital to, or provide services to privately
held companies (collectively, “listed private equity companies”).
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index. The Fund may enter into various swap transactions,
including total return swaps, to simulate full investment in the Underlying
Index or to manage cash flows.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR and GDR Risk. ADRs are certificates that evidence
ownership of shares of a foreign issuer and are alternatives to purchasing the
underlying foreign securities directly in their national markets and currencies.
GDRs are certificates issued by an international bank that generally are traded
and denominated in the currencies of countries other than the home country of
the issuer of the underlying shares. ADRs and GDRs may be subject to certain of
the risks associated with direct investments in the securities of foreign
companies, such as currency, political, economic and market risks, because their
values depend on the performance of the non-dollar denominated underlying
foreign securities. Moreover, ADRs and GDRs may not track the price of the
underlying foreign securities on which they are based, and their value may
change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption
transactions directly with the Fund. The Fund has a limited number
of institutions that may act as APs and such APs have no obligation to submit
creation or redemption orders. Consequently, there is no assurance that APs will
establish or maintain an active trading market for the Shares. This risk may be
heightened to the extent that securities held by the Fund are traded outside a
collateralized settlement system. In that case, APs may be required to post
collateral on certain trades on an agency basis (i.e., on behalf of other market
participants), which only a limited number of APs may be able to do. In
addition, to the extent that APs exit the business or are unable to proceed with
creation and/or redemption orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as defined below), this
may result in a significantly diminished trading market for Shares, and Shares
may be more likely to trade at a premium or discount to the Fund’s net asset
value (“NAV”) and to face trading halts and/or delisting. Investments in
non-U.S. securities, which may have lower trading volumes, may increase this
risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Foreign Investment Risk. Investments in the securities of
non-U.S. issuers involve risks beyond those associated with investments in U.S.
securities. Foreign securities may have relatively low market liquidity, greater
market volatility, decreased publicly available information, and less reliable
financial information about issuers, and inconsistent and potentially less
stringent accounting, auditing and financial reporting requirements and
standards of practice comparable to those applicable to domestic issuers.
Foreign securities also are subject to the risks of expropriation,
nationalization, political instability or other adverse political or economic
developments and the difficulty of enforcing obligations in other countries.
Investments in foreign securities also may be subject to dividend withholding or
confiscatory taxes, currency blockage and/or transfer restrictions and higher
transactional costs. As the Fund will invest in securities denominated in
foreign
currencies, fluctuations in the value of the U.S. dollar relative
to the values of other currencies may adversely affect investments in foreign
securities and may negatively impact the Fund’s returns.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Investments in BDCs Risk. The Investment Company Act of
1940, as amended (the “1940 Act”), imposes certain restraints upon the
operations of a BDC. For example, BDCs are required to invest at least 70% of
their total assets primarily in securities of private companies or thinly traded
U.S. public companies, cash, cash equivalents, U.S. government securities and
high quality debt investments that mature in one year or less. Additionally, a
BDC may incur indebtedness only in amounts such that the BDC’s asset coverage
equals at least 200% after such incurrence. These limitations on asset mix and
leverage may prohibit the way that the BDC raises capital. BDCs generally invest
in less mature
private companies, which involve greater risk than well
established, publicly-traded companies.
Listed Private Equity Companies Risk. There are certain
risks inherent in investing in listed private equity companies, which encompass
financial institutions or vehicles whose principal business is to invest in and
lend capital to or provide services to privately held companies. Generally,
little public information exists for private and thinly traded companies, and
there is a risk that investors may not be able to make a fully informed
investment decision. The Fund is also subject to the underlying risks which
affect the listed private equity companies in which the financial institutions
or vehicles held by the Fund invest. Listed private equity companies are subject
to various risks depending on their underlying investments, which include
additional liquidity risk, industry risk, foreign security risk, currency risk,
valuation risk and credit risk. Listed private equity companies may have
relatively concentrated investment portfolios, consisting of a relatively small
number of holdings, which may be adversely impacted by the poor performance of a
small number of investments. By investing in companies in the capital markets
whose business is to lend money, there is a risk that the issuer may default on
its payments or declare bankruptcy.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Master Limited Partnership Risk. An MLP is an entity that
is classified as a partnership under the Internal Revenue Code of 1986, as
amended (the “Internal Revenue Code”), and whose partnership interests or
“units” are traded on securities exchanges like shares of corporate stock.
Investments in MLPs units are subject to certain risks inherent in a partnership
structure, including (i) tax risks, (ii) the limited ability to elect
or remove management or the general partner or managing member,
(iii) limited voting rights and (iv) conflicts of interest between the
general partner or managing member and its affiliates and the limited partners
or members. Securities issued by MLPs may experience limited trading volumes and
may be relatively illiquid or volatile at times. As partnerships, MLPs may be
subject to less regulation (and less protection for investors) than corporations
under state laws, and may be subject to state taxation in certain jurisdictions,
which may reduce the amount of income an MLP pays to its investors.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the
performance of the Fund and the Underlying Index may vary due to
asset valuation differences and differences between the Fund’s portfolio and the
Underlying Index resulting from legal restrictions, costs or liquidity
constraints.
Restrictions on Investments Risk. A significant portion of
the Underlying Index is composed of BDCs or other investment companies. The Fund
may not acquire greater than 3% of the total outstanding shares of such
companies, as required by the 1940 Act, unless such purchases are made in
accordance with exemptive relief pertaining to the Fund permitting such
investments. If the Fund is unable to rely on its exemptive relief, this
limitation could inhibit the Fund’s ability to purchase certain of the
securities in the Underlying Index in the proportions represented in the
Underlying Index. In these circumstances, the Fund would be required to use
sampling techniques, which could increase the risk of tracking error.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Swap Agreements Risk. Swaps are highly specialized
instruments that require investment techniques and risk analyses different from
those associated with stocks, bonds, and other traditional investments. The use
of swap agreements entails certain risks that may be different from, or possibly
greater than, the risks associated with investing directly in the reference
instrument that underlies the swap agreement. Swaps typically include a certain
amount of embedded leverage and, as such, are subject to leveraging risk. Swaps
also are subject to liquidity risk and counterparty risk and also may be
difficult to value. A swap agreement can increase or decrease the volatility of
the Fund’s investments and its NAV. The value of swaps, like many other
derivatives, may move in unexpected ways and may result in losses for the Fund.
Adverse changes in the value or level of an underlying asset can result in gains
or losses that are substantially greater than the amount invested in the swap
itself. Certain swaps have the potential for unlimited loss, regardless of the
size of the initial investment.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past
performance (before and after taxes) is not necessarily indicative of how the
Fund will perform in the future. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 20.58%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
34.74% (2nd Quarter 2009) |
|
(26.68)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(14.92 |
)% |
|
|
2.55 |
% |
|
|
10.09 |
% |
Return After Taxes on
Distributions |
|
|
(16.19 |
)% |
|
|
0.66 |
% |
|
|
8.02 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(7.96 |
)% |
|
|
1.58 |
% |
|
|
7.63 |
% |
Red Rocks Global Listed Private Equity
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(14.53 |
)% |
|
|
3.36 |
% |
|
|
12.95 |
% |
Blended-Red Rocks Global Listed Private
Equity Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(14.53 |
)% |
|
|
3.36 |
% |
|
|
12.53 |
% |
MSCI EAFE® Index
(Net) (reflects invested dividends net of withholding taxes, but
reflects no deduction for fees, expenses or other taxes) |
|
|
(13.79 |
)% |
|
|
0.53 |
% |
|
|
6.32 |
% |
MSCI All Country World Index (Net)(2) (reflects
invested dividends net of withholding taxes, but reflects no deduction for
fees, expenses or other taxes) |
|
|
(9.41 |
)% |
|
|
4.26 |
% |
|
|
9.46 |
% |
(1) |
The Blended-Red Rocks Global Listed
Private Equity Index reflects the performance of the Red Rocks Capital
Listed Private Equity Index, the former underlying index, prior to
September 30, 2009 and the Red Rocks Global Listed Private Equity
Index thereafter. |
(2) |
The Fund has elected to use the MSCI All
Country World Index to represent its broad-based index rather than the
MSCI EAFE® Index
because the MSCI All Country World Index more closely reflects the types
of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the
Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
February 2015 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
February 2015 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PGJ |
|
Invesco Golden Dragon China
ETF |
Summary Information
Investment Objective
The Invesco Golden Dragon China ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the NASDAQ Golden Dragon
China Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.20% |
|
Total Annual Fund Operating
Expenses |
|
|
0.70% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$72 |
|
$224 |
|
$390 |
|
$871 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 36% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) compiles and
maintains the Underlying Index, which is composed of securities of U.S.
exchange-listed companies that are headquartered or incorporated in the People’s
Republic of China. The Underlying Index is designed to seek to provide access to
the unique economic opportunities taking place in China while still providing
investors with the transparency offered with U.S exchange-listed securities.
Securities in the Underlying Index may include common stocks, ordinary shares,
American depositary receipts (“ADRs”), shares of beneficial interest or limited
partnership interests.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund has significant exposure to the consumer
discretionary sector and the communication services sector. The Fund’s portfolio
holdings, and the extent to which it concentrates its investments, are likely to
change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR Risk. ADRs are certificates that evidence ownership of
shares of a foreign issuer and are alternatives to purchasing directly
underlying foreign securities in their national markets and currencies. However,
ADRs may be subject to certain of the risks associated with direct investments
in the securities of foreign companies. Moreover, ADRs may not track the price
of the underlying foreign securities on which they are based, and their value
may change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
China Exposure Risk. The value of securities of Chinese
companies is likely to be more volatile than that of other issuers. The economy
of China differs, often unfavorably, from the U.S. economy in such respects as
structure, general development, government involvement, wealth distribution,
rate of inflation, growth rate, allocation of resources and capital
reinvestment. The Chinese central government historically has exercised
substantial control over virtually every sector of the Chinese economy through
administrative regulation and/or state ownership. Actions of the Chinese
government authorities continue to have a substantial effect on economic
conditions in China. Investment and trading restrictions may impact the
availability, liquidity, and pricing of certain securities for
non-Chinese investors.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at
times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Consumer Discretionary Sector Risk. Companies engaged in
the consumer discretionary sector are affected by fluctuations in supply and
demand and changes in consumer preferences, social trends and marketing
campaigns. Changes in consumer spending as a result of world events, political
and economic conditions, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations also may adversely affect these companies.
Communication Services Sector Risk. The value of the
securities of communication services companies are particularly vulnerable to
rapid advancements in technology, the innovation of competitors, rapid product
obsolescence, and government regulation and competition, both domestically and
internationally. Additionally, fluctuating domestic and international demand,
shifting demographics and often unpredictable changes in consumer tastes can
drastically affect a communication services company’s profitability. While all
companies may be susceptible to network security breaches, certain companies in
the communication services sector may be particular targets of hacking and
potential theft of proprietary or consumer information or disruptions in
service, which could have a material adverse effect on their businesses.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price
than would occur in a diversified fund. This may increase the Fund’s volatility
and cause the performance of a relatively small number of issuers to have a
greater impact on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 18.54%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
41.95% (2nd Quarter 2009) |
|
(25.75)% (3rd Quarter 2011 ) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such
as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(29.16 |
)% |
|
|
1.95 |
% |
|
|
9.15 |
% |
Return After Taxes on
Distributions |
|
|
(29.21 |
)% |
|
|
1.59 |
% |
|
|
8.85 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(17.23 |
)% |
|
|
1.42 |
% |
|
|
7.50 |
% |
NASDAQ Golden Dragon
China Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(28.84 |
)% |
|
|
2.24 |
% |
|
|
9.61 |
% |
FTSE China 50 Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(11.51 |
)% |
|
|
4.51 |
% |
|
|
6.88 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
February 2015 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PEY |
|
Invesco High Yield
Equity Dividend AchieversTM ETF |
Summary Information
Investment Objective
The Invesco High Yield Equity Dividend AchieversTM ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the NASDAQ US
Dividend AchieversTM 50
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.13% |
|
Total Annual Fund Operating
Expenses |
|
|
0.53% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$54 |
|
$170 |
|
$296 |
|
$665 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 50% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) includes common
stocks in the Underlying Index that have a consistent record of dividend
increases, principally on the basis of dividend yield and consistent growth in
dividends. The Underlying Index is composed of the 50 issuers with the highest
modified dividend yield chosen from the NASDAQ US Broad Dividend AchieversTM Index. To qualify for
inclusion in the Underlying Index, an issuer must have increased its annual
regular cash dividend payments for each of its last ten or more calendar or
fiscal years, and must have a minimum market capitalization of $1 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Dividend Paying Security Risk. Securities that pay high
dividends as a group can fall out of favor with the market, causing such
companies to underperform companies that do not pay high dividends. Also,
changes in the dividend policies of the companies in which the Fund invests and
the capital resources available for such companies’ dividend payments may
adversely affect the Fund.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in
those investors exiting their investments in those industries,
which could cause a reduction of the value of companies in those industries more
broadly. The value of a company’s common stock may fall solely because of
factors, such as an increase in production costs, that negatively impact other
companies in the same region, industry or sector of the market. A company’s
common stock also may decline significantly in price over a short period of time
due to factors specific to that company, including decisions made by its
management or lower demand for the company’s products or services. For example,
an adverse event, such as an unfavorable earnings report or the failure to make
anticipated dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes
in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 16.55%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
26.66% (3rd Quarter 2009) |
|
(30.52)% (1st Quarter 2009) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from
those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(7.36 |
)% |
|
|
9.84 |
% |
|
|
11.68 |
% |
Return After Taxes on
Distributions |
|
|
(8.22 |
)% |
|
|
8.91 |
% |
|
|
10.83 |
% |
Return After Taxes on Distributions and Sale of
Fund Shares |
|
|
(3.65 |
)% |
|
|
7.71 |
% |
|
|
9.59 |
% |
NASDAQ US Dividend AchieversTM 50 Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(6.98 |
)% |
|
|
10.39 |
% |
|
|
12.24 |
% |
Dow Jones U.S. Select Dividend
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(5.94 |
)% |
|
|
8.49 |
% |
|
|
12.26 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
NFO |
|
Invesco Insider Sentiment
ETF |
Summary Information
Investment Objective
The Invesco Insider Sentiment ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Nasdaq US Insider Sentiment
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.19% |
|
Total Annual Fund Operating
Expenses |
|
|
0.69% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.03% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.66% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
sub-licensing fees, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”)
through at least August 31, 2021 and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser up
to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses are equal to the Total Annual Fund
Operating Expenses After Fee Waivers and Expense Assumption for the first two
years and the Total Annual Fund Operating Expenses thereafter. This example does
not include the brokerage commissions that investors may pay to buy and sell
Shares. Although your actual costs may be higher or lower, your costs, based on
these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$67 |
|
$215 |
|
$378 |
|
$853 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 116% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index, as well as depositary
receipts representing common stocks included in the Underlying Index (or
underlying securities representing depositary receipts included in the
Underlying Index).
Strictly in accordance with its guidelines and mandated
procedures, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) compiles and
maintains the Underlying Index, which is composed of U.S. companies that the
Index Provider has selected based on a company’s corporate insider buying
trends. The companies eligible for the Underlying Index are derived from its
starting universe, the Nasdaq US Large Mid Cap Index, which is designed to track
the performance of mid- to large-capitalization U.S. companies. The Index
Provider selects securities for the Underlying Index using a rules-based
selection criteria designed to increase the Underlying Index’s exposure,
relative to the starting universe, to securities that reflect favorable
corporate insider buying trends by considering the following factors:
|
• |
|
Insider Buying
Trends. Increases in average shares of a company held by corporate
insiders are evaluated by calculating the average shares held by corporate
insiders over a trailing 12-month period and comparing that average to the
average number of shares held by corporate insiders over a 13 to 24-month
period. |
|
• |
|
Momentum. Momentum is
calculated based on each company’s one-month, three-month, six-month,
nine-month and twelve-month returns. |
|
• |
|
Volatility.
Volatility reflects the degree of fluctuation in a company’s share price
and it is calculated based on a company’s trailing one-year share price
fluctuation. |
Eligible securities are ranked based on the above three factors
and the top 100 ranking securities are selected for inclusion in the Underlying
Index.
The Fund may invest directly in one or more underlying securities
represented by depositary receipts included in the Underlying Index under the
following limited circumstances: (a) when market conditions result in the
underlying security providing improved liquidity relative to the depositary
receipt; (b) when a depositary receipt is trading at a significantly different
price than its underlying security; or (c) the timing of trade executions is
improved due to the local market in which an underlying security is traded being
open at different times than the market in which the security’s corresponding
depositary receipt is traded.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries
only to the extent that the Underlying Index reflects a concentration in that
industry or group of industries. The Fund will not otherwise concentrate its
investments in securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR and GDR Risk. ADRs are certificates that evidence
ownership of shares of a foreign issuer and are alternatives to purchasing the
underlying foreign securities directly in their national markets and currencies.
GDRs are certificates issued by an international bank that generally are traded
and denominated in the currencies of countries other than the home country of
the issuer of the underlying shares. ADRs and GDRs may be subject to certain of
the risks associated with direct investments in the securities of foreign
companies, such as currency, political, economic and market risks, because their
values depend on the performance of the non-dollar denominated underlying
foreign securities. Moreover, ADRs and GDRs may not track the price of the
underlying foreign securities on which they are based, and their value may
change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds.
In addition, equity risk includes the risk that investor sentiment
toward one or more industries will become negative, resulting in those investors
exiting their investments in those industries, which could cause a reduction of
the value of companies in those industries more broadly. The value of a
company’s common stock may fall solely because of factors, such as an increase
in production costs, that negatively impact other companies in the same region,
industry or sector of the market. A company’s common stock also may decline
significantly in price over a short period of time due to factors specific to
that company, including decisions made by its management or lower demand for the
company’s products or services. For example, an adverse event, such as an
unfavorable earnings report or the failure to make anticipated dividend
payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization Company Risk. Investing in
securities of mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid
than those of more established companies, and may have returns that vary,
sometimes significantly, from the overall securities market. Mid-capitalization
companies tend to have inexperienced management as well as limited product and
market diversification and financial resources. Often mid-capitalization
companies and the industries in which they focus are still evolving and, as a
result, they may be more sensitive to changing market conditions.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gains
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future.
The Fund is the successor to the investment performance of the
Guggenheim Insider Sentiment ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the
Fund, which was consummated after the close of business on
April 6, 2018. Accordingly, the performance information shown below for
periods ending on or prior to April 6, 2018 is that of the Predecessor
Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
33.40% (2nd Quarter 2009) |
|
(23.50)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 21.86%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(7.35 |
)% |
|
|
5.37 |
% |
|
|
13.80 |
% |
Return After Taxes on
Distributions |
|
|
(7.59 |
)% |
|
|
4.77 |
% |
|
|
13.23 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.20 |
)% |
|
|
3.91 |
% |
|
|
11.34 |
% |
Nasdaq US Insider Sentiment Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(6.80 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended-Nasdaq US Insider Sentiment
Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(6.80 |
)% |
|
|
5.97 |
% |
|
|
14.49 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
(1) |
Prior to the commencement date of
September 26, 2016, performance for the Underlying Index is not
available. |
(2) |
The Blended-Nasdaq US Insider Sentiment
Index reflects the performance of the Sabrient Insider Sentiment Index,
the former underlying index, prior to October 24, 2016, and the
Nasdaq US Insider Sentiment Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PID |
|
Invesco International
Dividend AchieversTM
ETF |
Summary Information
Investment Objective
The Invesco International Dividend AchieversTM ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the NASDAQ
International Dividend AchieversTM Index (the “Underlying
Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.14% |
|
Total Annual Fund Operating
Expenses |
|
|
0.54% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$55 |
|
$173 |
|
$302 |
|
$677 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 47% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) includes
dividend-paying common stocks and other securities in the Underlying Index
pursuant to a proprietary selection methodology that identifies companies that
have increased their aggregate annual regular cash dividend payments
consistently for at least each of the last five consecutive years. The
Underlying Index is composed of Global Depositary Receipts (“GDRs”) and American
Depositary Receipts (“ADRs”) that are listed on the London Stock Exchange
(“LSE”) or the London International Exchange, in addition to ADRs and non-U.S.
common or ordinary stocks traded on the New York Stock Exchange (“NYSE”), The
Nasdaq Stock Market (“Nasdaq”), Cboe Exchange (“Cboe”) or NYSE American.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR and GDR Risk. ADRs are certificates that evidence
ownership of shares of a foreign issuer and are alternatives to purchasing the
underlying foreign securities directly in their national markets and currencies.
GDRs are certificates issued by an international bank that generally are traded
and denominated in the currencies of countries other than the home country of
the issuer of the underlying shares. ADRs and GDRs may be subject to certain of
the risks associated with direct investments in the securities of foreign
companies, such as currency, political, economic and market risks, because their
values depend on the performance of the non-dollar denominated underlying
foreign securities. Moreover, ADRs and GDRs may not track the price of the
underlying foreign securities on which they are based, and their value may
change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Canada Exposure Risk. Because the Fund invests a
significant portion of its assets in companies that are domiciled in Canada, the
Fund is particularly sensitive to political, economic and social
conditions in that country. The Canadian economy is especially
dependent on the demand for, and supply of, natural resources, and the Canadian
market is relatively concentrated in issuers involved in the production and
distribution of natural resources, particularly the production of metals. Any
adverse events that affect Canada’s major industries may have a negative impact
on the overall Canadian economy and the Shares.
Dividend Paying Security Risk. Securities that pay high
dividends as a group can fall out of favor with the market, causing such
companies to underperform companies that do not pay high dividends. Also,
changes in the dividend policies of the companies in which the Fund invests and
the capital resources available for such companies’ dividend payments may
adversely affect the Fund.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Foreign Investment Risk. Investments in the securities of
non-U.S. issuers involve risks beyond those associated with investments in U.S.
securities. Foreign securities may have relatively low market liquidity, greater
market volatility, decreased publicly available information, and less reliable
financial information about issuers, and inconsistent and potentially less
stringent accounting, auditing and financial reporting requirements and
standards of practice comparable to those applicable to domestic issuers.
Foreign securities also are subject to the risks of expropriation,
nationalization, political instability or other adverse political or economic
developments and the difficulty of enforcing obligations in other countries.
Investments in foreign securities also may be subject to dividend withholding or
confiscatory taxes, currency blockage and/or transfer restrictions and higher
transactional costs. As the Fund will invest in securities denominated in
foreign currencies, fluctuations in the value of the U.S. dollar relative to the
values of other currencies may adversely affect investments in foreign
securities and may negatively impact the Fund’s returns.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they
focus are still evolving and, as a result, they may be more
sensitive to changing market conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 17.70%.
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|
|
|
Best Quarter |
|
Worst Quarter |
30.69% (2nd Quarter 2009) |
|
(16.40)% (1st Quarter 2009) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
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1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
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(11.08 |
)% |
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|
(1.43 |
)% |
|
|
6.53 |
% |
Return After Taxes on
Distributions |
|
|
(11.92 |
)% |
|
|
(2.31 |
)% |
|
|
5.88 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.05 |
)% |
|
|
(1.08 |
)% |
|
|
5.43 |
% |
NASDAQ International Dividend
AchieversTM Index
(Net) (reflects invested dividends net of withholding taxes, but
reflects no deduction for fees, expenses or other taxes) |
|
|
(10.81 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended-NASDAQ International Dividend
AchieversTM Index
(Net)(1) (reflects
invested dividends net of withholding taxes, but reflects no deduction for
fees, expenses or other taxes) |
|
|
(10.81 |
)% |
|
|
(1.16 |
)% |
|
|
7.05 |
% |
MSCI EAFE® Index
(Net) (reflects invested dividends net of withholding taxes, but
reflects no deduction for fees, expenses or other taxes) |
|
|
(13.79 |
)% |
|
|
0.53 |
% |
|
|
6.32 |
% |
(1) |
The Blended-NASDAQ International
Dividend Achievers Index is composed of gross total returns (which reflect
invested dividends that are not net of withholding taxes) prior to
March 9, 2015 and net returns (which reflect invested dividends that
are net of withholding taxes) thereafter.
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Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
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|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
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PNQI |
|
Invesco NASDAQ Internet
ETF |
Summary Information
Investment Objective
The Invesco NASDAQ Internet ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the NASDAQ Internet IndexSM (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
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|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.60% |
|
Other Expenses |
|
|
0.00% |
|
Acquired Fund Fees and Expenses(1) |
|
|
0.02% |
|
Total Annual Fund Operating
Expenses |
|
|
0.62% |
|
(1) |
Acquired Fund Fees and Expenses are
indirect fees and expenses that the Fund incurs from investing in the
shares of other investment companies. Please note that the amount of Total
Annual Fund Operating Expenses shown in the above table may differ from
the ratio of expenses to average net assets included in the “Financial
Highlights” section of this Prospectus, which reflects the operating
expenses of the Fund and does not include indirect expenses such as
Acquired Fund Fees and Expenses. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
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|
|
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|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$63 |
|
$199 |
|
$346 |
|
$774 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 20% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) compiles the
Underlying Index, which is designed to track the performance of the largest and
most liquid U.S.-listed companies engaged in Internet-related businesses that
are listed on the New York Stock Exchange (“NYSE”), NYSE American, Cboe Exchange
(“Cboe”) or The Nasdaq Stock Market (“Nasdaq”).
Companies in the Underlying Index include Internet software and
services companies involved in Internet-related services, including Internet
access providers, Internet search engines, web hosting, website design and
e-commerce. The Underlying Index may include common stocks, ordinary shares,
American depositary receipts (“ADRs”), shares of beneficial interest or limited
partnership interests and tracking stocks. As of June 30, 2019, the
Underlying Index included 85 constituents.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its investments
(i.e., invest 25% or more of the value of its total assets) in securities of
issuers in any one industry or group of industries only to the extent that the
Underlying Index reflects a concentration in that industry or group of
industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund has significant exposure to the internet and
direct marketing retail industry and consumer discretionary and communication
services sectors. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR Risk. ADRs are certificates that evidence ownership of
shares of a foreign issuer and are alternatives to purchasing directly
underlying foreign securities in their national markets and currencies. ADRs may
be subject to certain of the risks associated with direct investments in the
securities of foreign companies, such as currency, political, economic and
market risks. Moreover, ADRs may not track the price of the underlying foreign
securities on which they are based, and their value may change materially at
times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation
and/or redemption orders with respect to the Fund and no other AP
is able to step forward to create or redeem Creation Units (as defined below),
this may result in a significantly diminished trading market for Shares, and
Shares may be more likely to trade at a premium or discount to the Fund’s net
asset value (“NAV”) and to face trading halts and/or delisting. Investments in
non-U.S. securities, which may have lower trading volumes, may increase this
risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Communication Services Sector Risk. The value of the
securities of communication services companies are particularly vulnerable to
rapid advancements in technology,
the innovation of competitors, rapid product obsolescence, and
government regulation and competition, both domestically and internationally.
Additionally, fluctuating domestic and international demand, shifting
demographics and often unpredictable changes in consumer tastes can drastically
affect a communication services company’s profitability. While all companies may
be susceptible to network security breaches, certain companies in the
communication services sector may be particular targets of hacking and potential
theft of proprietary or consumer information or disruptions in service, which
could have a material adverse effect on their businesses.
Consumer Discretionary Sector Risk. Companies engaged in
the consumer discretionary sector are affected by fluctuations in supply and
demand and changes in consumer preferences, social trends and marketing
campaigns. Changes in consumer spending as a result of world events, political
and economic conditions, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations also may adversely affect these companies.
Internet and Direct Marketing Retail Industry Risk.
Companies in the internet and direct marketing retail industry provide
retail services primarily on the Internet, through mail order and TV home
shopping retailers, and rely heavily on consumer spending. Prices of securities
of companies in this industry may fluctuate widely due to general economic
conditions, consumer spending and the availability of disposable income,
changing consumer tastes and preferences and consumer demographics. Legislative
or regulatory changes and increased government supervision also may affect
companies in this industry.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future. Updated
performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 24.74%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
28.40% (3rd Quarter 2010) |
|
(18.47)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and
do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor’s tax situation and may differ from
those shown, and after-tax returns shown are not relevant to investors who hold
Shares through tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts.
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|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(5.02 |
)% |
|
|
10.00 |
% |
|
|
23.12 |
% |
Return After Taxes on
Distributions |
|
|
(5.02 |
)% |
|
|
10.00 |
% |
|
|
23.12 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(2.97 |
)% |
|
|
7.94 |
% |
|
|
20.28 |
% |
NASDAQ Internet IndexSM (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.51 |
)% |
|
|
10.60 |
% |
|
|
23.81 |
% |
NASDAQ-100® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
0.04 |
% |
|
|
13.34 |
% |
|
|
19.29 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2008 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RYJ |
|
Invesco Raymond James SB-1 Equity
ETF |
Summary Information
Investment Objective
The Invesco Raymond James SB-1 Equity ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Raymond James
SB-1 Equity Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.75% |
|
Other Expenses |
|
|
0.00% |
|
Acquired Fund Fees and Expenses(1) |
|
|
0.07% |
|
Total Annual Fund Operating
Expenses |
|
|
0.82% |
|
(1) |
Acquired Fund Fees and Expenses are
indirect fees and expenses that the Fund incurs from investing in the
shares of other investment companies. Please note that the amount of Total
Annual Fund Operating Expenses shown in the above table may differ from
the ratio of expenses to average net assets included in the “Financial
Highlights” section of this Prospectus, which reflects the operating
expenses of the Fund and does not include indirect expenses such as
Acquired Fund Fees and Expenses. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$84 |
|
$262 |
|
$455 |
|
$1,014 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the fiscal year ended
August 31, 2018, the portfolio turnover rate of the Guggenheim Raymond
James SB-1 Equity ETF (the “Predecessor Fund”) and the Fund was 82% of the
average value of the portfolio. During the fiscal period September 1, 2018
to April 30, 2019, the portfolio turnover rate of the Fund was 65% of the
average value of the portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Raymond James Research Services, LLC (the “Index Provider”)
compiles, maintains, and calculates the Underlying Index, which is comprised of
U.S.-listed equity securities that are rated Strong Buy 1 (“SB-1”) by an
affiliate of the Index Provider (together, the affiliate and the Index Provider
are referred to as “Raymond James”). SB-1 is Raymond James’ highest rating for a
security and generally indicates Raymond James’ expectation that the security
will achieve certain total return targets in the short-term.
The Underlying Index includes equity securities of all market
capitalizations, including common stocks, sponsored American depositary receipts
(“ADRs”), real estate investment trusts (“REITs”), master limited partnerships
(“MLPs”) and business development companies (“BDCs”) that are rated SB-1 by
Raymond James. As of June 30, 2019, the Underlying Index was composed of
160 securities.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR Risk. ADRs are certificates that evidence ownership of
shares of a foreign issuer and are alternatives to purchasing the underlying
foreign securities directly in their national markets and currencies. ADRs may
be subject to certain of the risks associated with direct investments in the
securities of foreign companies, such as currency, political, economic and
market risks, because their values depend on the performance of the non-dollar
denominated underlying foreign securities. Moreover, ADRs may not track the
price of the underlying foreign securities on which they are based, and their
value may change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only
authorized participants (“APs”) may engage in creation or redemption
transactions directly with the Fund. The Fund has a limited number of
institutions that may act as APs and such APs have no obligation to submit
creation or redemption orders. Consequently, there is no assurance that APs will
establish or maintain an active
trading market for the Shares. This risk may be heightened to the
extent that securities held by the Fund are traded outside a collateralized
settlement system. In that case, APs may be required to post collateral on
certain trades on an agency basis (i.e., on behalf of other market
participants), which only a limited number of APs may be able to do. In
addition, to the extent that APs exit the business or are unable to proceed with
creation and/or redemption orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as defined below), this
may result in a significantly diminished trading market for Shares, and Shares
may be more likely to trade at a premium or discount to the Fund’s net asset
value (“NAV”) and to face trading halts and/or delisting. Investments in
non-U.S. securities, which may have lower trading volumes, may increase this
risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased
competition within the industry or industry group. In addition, at times, such
industry or industry group may be out of favor and underperform other
industries, industry groups or the market as a whole.
Investments in BDCs Risk. The 1940 Act imposes certain
restraints upon the operations of a BDC. For example, BDCs are required to
invest at least 70% of their total assets primarily in securities of private
companies or thinly traded U.S. public companies, cash, cash equivalents, U.S.
government securities and high quality debt investments that mature in one year
or less. Additionally, a BDC may incur indebtedness only in amounts such that
the BDC’s asset coverage equals at least 200% after such incurrence. These
limitations on asset mix and leverage may prohibit the way that the BDC raises
capital. BDCs generally invest in less mature private companies, which involve
greater risk than well established, publicly-traded companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Master Limited Partnership Risk. An MLP is an entity that
is classified as a partnership under the Internal Revenue Code of 1986, as
amended (the “Internal Revenue Code”), and whose partnership interests or
“units” are traded on securities exchanges like shares of corporate stock.
Investments in MLPs units are subject to certain risks inherent in a partnership
structure, including (i) tax risks, (ii) the limited ability to elect or remove
management or the general partner or managing member, (iii) limited voting
rights and (iv) conflicts of interest between the general partner or managing
member and its affiliates and the limited partners or members. Securities issued
by MLPs may experience limited trading volumes and may be relatively illiquid or
volatile at times. As partnerships, MLPs may be subject to less regulation (and
less protection for investors) than corporations under state laws, and may be
subject to state taxation in certain jurisdictions, which may reduce the amount
of income an MLP pays to its investors.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due
to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
REIT Risk. Although the Fund will not invest in real estate
directly, the REITs in which the Fund invests are subject to risks inherent in
the direct ownership of real estate. These risks include, but are not limited
to, a possible lack of mortgage funds and associated interest rate risks,
overbuilding, property vacancies, increases in property taxes and operating
expenses, changes in zoning laws, losses due to environmental damages and
changes in neighborhood values and appeal to purchasers. In addition, REITs may
have expenses, including advisory and administration expenses, and the Fund and
its shareholders will incur its pro rata share of the underlying expenses.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Predecessor Fund as a result of the reorganization of the Predecessor Fund into
the Fund, which was consummated after the close of business on May 18,
2018. Accordingly, the performance information shown below for periods ending on
or prior to May 18, 2018 is that of the Predecessor Fund. Updated
performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
25.61% (2nd Quarter 2009) |
|
(23.39)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 22.91%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(14.52 |
)% |
|
|
2.58 |
% |
|
|
13.78 |
% |
Return After Taxes on
Distributions |
|
|
(14.83 |
)% |
|
|
2.27 |
% |
|
|
13.57 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(8.41 |
)% |
|
|
1.87 |
% |
|
|
11.54 |
% |
Raymond James SB-1 Equity Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
(13.95 |
)% |
|
|
3.26 |
% |
|
|
14.50 |
% |
S&P MidCap 400® Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
(11.08 |
)% |
|
|
6.03 |
% |
|
|
13.68 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
May 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
May 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
May 2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
EQWL |
|
Invesco S&P 100 Equal Weight
ETF
(formerly, Invesco Russell Top 200 Equal Weight
ETF) |
Summary Information
Investment Objective
The Invesco S&P 100 Equal Weight ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the S&P 100® Equal Weight Index (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.25% |
|
Other Expenses(1) |
|
|
0.15% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Fee Waivers and Expense Assumption(2) |
|
|
0.15% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.25% |
|
(1) |
Other Expenses have been restated to
reflect current expenses. |
(2) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.25% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$26 |
|
$97 |
|
$193 |
|
$475 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 24% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is an
equal-weighted version of the S&P 100® Index. Unlike the S&P
100® Index, which employs
a market capitalization weighted methodology, the Underlying Index assigns each
component security the same weight.
As of June 30, 2019, the Underlying Index was comprised of
101 constituents that ranged in market capitalization from approximately
$1.02 trillion to $33.87 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes
in general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or its industry.
Such general economic conditions include changes in interest rates, periods of
market turbulence or instability, or general and prolonged periods of economic
decline and cyclical change. It is possible that a drop in the stock market may
depress the price of most or all of the common stocks that the Fund holds. In
addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the
Shares, losses from trading in secondary markets, and disruption
in the creation/redemption process of the Fund. Any of these factors may lead to
the Shares trading at a premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 17.30%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
12.73% (1st Quarter 2013) |
|
(12.42)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(5.68 |
)% |
|
|
8.27 |
% |
|
|
12.41 |
% |
Return After Taxes on
Distributions |
|
|
(6.14 |
)% |
|
|
7.78 |
% |
|
|
11.98 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(2.99 |
)% |
|
|
6.47 |
% |
|
|
10.34 |
% |
S&P 100® Equal Weight Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(6.33 |
)% |
|
|
7.58 |
% |
|
|
N/A |
|
Blended-S&P 100® Equal Weight Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(5.46 |
)% |
|
|
8.59 |
% |
|
|
12.89 |
% |
Russell 1000® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.78 |
)% |
|
|
8.21 |
% |
|
|
13.28 |
% |
S&P 100® Index(3) (reflects no
deduction for fees, expenses or taxes) |
|
|
(3.87 |
)% |
|
|
8.61 |
% |
|
|
12.49 |
% |
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell
Top 200® Equal
Weight Index to the S&P 100® Equal Weight Index.
Prior to the commencement date of August 25, 2009, performance for
the Underlying Index is not available. |
(2) |
The “Blended-S&P 100® Equal Weight Index”
reflects the performance of the Dynamic Large Cap IntellidexSM Index, a former
underlying index, prior to June 16, 2011, followed by the performance
of the RAFI®
Fundamental Large Core Index, a former underlying index, from
June 16, 2011 through May 22, 2015, and the Russell Top 200® Equal Weight Index,
the most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended S&P 100® Equal Weight Index”
will include the performance of the Underlying Index for periods beginning
June 22, 2019. |
(3) |
The Fund has elected to change its
broad-based index from the Russell 1000® Index to the S&P
100® Index because
the S&P 100®
Index more closely reflects the types of securities in which the Fund
invests. |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading
on NYSE Arca, Inc. and because the Shares will trade at market
prices rather than NAV, Shares may trade at prices greater than NAV (at a
premium), at NAV, or less than NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PBP |
|
Invesco S&P 500 BuyWrite
ETF |
Summary Information
Investment Objective
The Invesco S&P 500 BuyWrite ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the CBOE S&P 500
BuyWrite IndexSM (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees(1) |
|
|
0.49% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.49% |
|
(1) |
Management Fees have been restated to
reflect current fees. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$50 |
|
$157 |
|
$274 |
|
$616 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 15% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index and will write (sell) call
options thereon.
Strictly in accordance with its guidelines and mandated
procedures, the Chicago Board Options Exchange, Incorporated (the “CBOE” or the
“Index Provider”) compiles, calculates and maintains the Underlying Index, which
is a total return benchmark index that is designed to track the performance of a
hypothetical “buy-write” strategy on the S&P 500® Index. The Underlying Index
is based on (1) buying an S&P 500 stock index portfolio, and (2) “writing”
(or selling) the near-term S&P 500® Index “covered” call option,
generally on the third Friday of each month. A “buy-write,” also called a
covered call, generally is considered an investment strategy in which an
investor buys a stock or
basket of stocks, and sells call options that correspond to the
stock or basket of stocks. In return for a premium, the Fund gives the right to
the purchaser of the option written by the Fund to receive a cash payment equal
to the difference between the value of the S&P 500® Index and the exercise
price, if the value on the expiration date is above the exercise price. In
addition, covered call options partially hedge against a decline in the price of
the securities on which they are written to the extent of the premium the Fund
receives. The Fund will write options that are traded on national securities
exchanges.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical
change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
U.S. Federal Income Tax Risk. Due to its investment
strategy and certain federal income tax elections it intends to make, the Fund
expects to account for gains or losses on its investments on a daily
mark-to-market basis for federal income tax purposes. Generally, the
mark-to-market gains and losses from the stock positions will be compared with
the mark-to-market gains or losses from the call options on a daily basis. To
the extent that there is more gain or loss from the stock positions, the Fund
will have short term capital gain, which generally is taxed like ordinary
income, or short-term capital loss. To the extent there is more gain or loss
from the call options, such gain will be treated for federal tax purposes as 60%
long term capital gain or loss and 40% short term capital gain. As a result of
its investment strategy, the Fund will not be able to designate a portion of its
dividends as being eligible for lower rates of tax in the hands of non-corporate
shareholders (dividends that are commonly referred to as “qualified
dividend income”) or as being eligible for the dividends received deduction when
received by certain corporate shareholders. For these reasons, a significant
portion of income received from the Fund may be subject to tax at greater rates
than would apply if the Fund were engaged in a different investment strategy.
You should consult your tax advisors as to the tax consequences of acquiring,
owning and disposing of shares in the Fund.
Writing Covered Call Options Risk. By writing covered call
options in return for the receipt of premiums, the Fund will give up the
opportunity to benefit from potential increases in the value of the holdings in
the S&P 500 Index above the exercise prices of the written options, but will
continue to bear the risk of declines in the value of the holdings in the
S&P 500 Index. The premiums received from the options may not be sufficient
to offset any losses sustained from the volatility of the underlying stocks over
time. In addition, the Fund’s ability to sell the underlying securities will be
limited while the option is in effect unless the Fund extinguishes the option
position through the purchase of an offsetting identical option prior to the
expiration of the written option. Exchanges may suspend the trading of options
in volatile markets. If trading is suspended, the Fund may be unable to write
options at times that may be desirable or advantageous to the Fund to do so.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by
showing how the Fund’s average annual total returns compared with
a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future. Updated
performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 10.04%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
15.92% (4th
Quarter 2011) |
|
(11.32)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(5.26 |
)% |
|
|
4.32 |
% |
|
|
7.11 |
% |
Return After Taxes on
Distributions |
|
|
(6.10 |
)% |
|
|
2.13 |
% |
|
|
4.82 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(2.98 |
)% |
|
|
2.36 |
% |
|
|
4.65 |
% |
CBOE S&P 500 BuyWrite IndexSM (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.77 |
)% |
|
|
5.08 |
% |
|
|
7.96 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
December 2007 |
David Hemming |
|
Senior Portfolio Manager of the
Adviser, Commodities and Alternatives |
|
September 2016 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
October 2013 |
Theodore Samulowitz |
|
Portfolio Manager of the
Adviser |
|
August 2013 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RSP |
|
Invesco S&P 500® Equal Weight
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight ETF (the
“Fund”) seeks to track the investment results (before fees and expenses) of the
S&P 500® Equal Weight
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.20% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.20% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$20 |
|
$64 |
|
$113 |
|
$255 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 19% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which
consists of all of the components of the S&P 500® Index. The Underlying Index
is an equal-weighted version of the S&P 500® Index. Unlike the S&P
500® Index, which employs
a market capitalization weighted methodology, the Underlying Index assigns each
component security the same weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock
may fall solely because of factors, such as an increase in
production costs, that negatively impact other companies in the same region,
industry or sector of the market. A company’s common stock also may decline
significantly in price over a short period of time due to factors specific to
that company, including decisions made by its management or lower demand for the
company’s products or services. For example, an adverse event, such as an
unfavorable earnings report or the failure to make anticipated dividend
payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight ETF (the “Predecessor Fund”) as a result of the reorganization of
the Predecessor Fund into the Fund, which was consummated after the close of
business on April 6, 2018. Accordingly, the performance information shown
below for periods ending on or prior to April 6, 2018 is that of the
Predecessor Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
24.68% (2nd Quarter 2009) |
|
(17.88)% (3rd Quarter 2011 ) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 19.10%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such
as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(7.81 |
)% |
|
|
6.79 |
% |
|
|
14.46 |
% |
Return After Taxes on
Distributions |
|
|
(8.24 |
)% |
|
|
6.11 |
% |
|
|
13.79 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.34 |
)% |
|
|
5.02 |
% |
|
|
11.87 |
% |
S&P 500® Equal Weight
Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
(7.64 |
)% |
|
|
7.14 |
% |
|
|
14.95 |
% |
S&P 500® Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or
its related companies may pay the intermediary for certain
Fund-related activities, including those that are designed to make the
intermediary more knowledgeable about exchange traded products, such as the
Fund, as well as for marketing, education or other initiatives related to the
sale or promotion of Fund shares. These payments may create a conflict of
interest by influencing the broker-dealer or other intermediary and your
salesperson or financial adviser to recommend the Fund over another investment.
Ask your salesperson or financial adviser or visit your financial intermediary’s
web-site for more information.
|
|
|
EWCO |
|
Invesco S&P 500® Equal Weight
Communication Services ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Communication
Services ETF (the “Fund”) seeks to track the investment results (before fees and
expenses) of the S&P 500® Equal Weight Communication
Services Plus Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses(1) |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
(1) |
Other Expenses are based on estimated
amounts for the current fiscal year. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the fiscal period
November 5, 2018 (commencement of operations) through April 30, 2019,
the portfolio turnover rate of the Fund was 10% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Communication Services Plus
Index (the “Parent Index”), an index that contains the common stocks of all
companies included in the S&P 500® Index that are classified as
members of the communication services sector, as defined according to the Global
Industry Classification Standard (“GICS”). The communication services sector
includes
companies that facilitate communication or offer related content
and information through various types of media and is comprised of companies
from the following industries: diversified telecommunications services; wireless
telecommunication services; media; entertainment; and interactive
media & services.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
In the event there are fewer than 22 securities eligible for
inclusion in the Underlying Index at a quarterly rebalance, the Underlying Index
will be supplemented with the largest communication services companies in the
S&P MidCap 400® Index
based on float-adjusted market capitalization until the 22 security minimum is
reached. Any supplementary companies that are added to the Underlying Index will
remain in the Underlying Index until the next quarterly rebalance. As of
June 30, 2019, the Underlying Index included 26 companies.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the communication
services sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/
or redemption orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as defined below), this
may result in a significantly diminished trading market for Shares, and Shares
may be more likely to trade at a premium or discount to the Fund’s net asset
value (“NAV”) and to face trading halts and/or delisting. Investments in
non-U.S. securities, which may have lower trading volumes, may increase this
risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Communication Services Sector Risk. The value of the
securities of communication services companies are particularly vulnerable to
rapid advancements in technology,
the innovation of competitors, rapid product obsolescence, and
government regulation and competition, both domestically and internationally.
Additionally, fluctuating domestic and international demand, shifting
demographics and often unpredictable changes in consumer tastes can drastically
affect a communication services company’s profitability. While all companies may
be susceptible to network security breaches, certain companies in the
communication services sector may be particular targets of hacking and potential
theft of proprietary or consumer information or disruptions in service, which
could have a material adverse effect on their businesses.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The Fund commenced operations on November 5, 2018 and
therefore does not yet have a full calendar year of performance history. Once
the Fund has a full calendar year of performance information, the Fund will
present total return information. The Fund’s performance information is also
accessible on the Fund’s website at www.invesco.com/ETFs and provides some
indication of the risks of investing in the Fund.
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio
Management of the Adviser and Vice President of
the Trust |
|
November 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
November 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
November
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”), or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s website for more information.
|
|
|
RCD |
|
Invesco S&P 500® Equal Weight Consumer
Discretionary ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Consumer
Discretionary ETF (the “Fund”) seeks to track the investment results (before
fees and expenses) of the S&P 500® Equal Weight Consumer
Discretionary Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 30% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Consumer Discretionary Index
(the “Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the consumer discretionary sector, as defined according to the Global
Industry Classification Standard (“GICS”). The consumer discretionary sector
includes a manufacturing segment, composed of automotive, household durable
goods, leisure equipment and textiles and
apparel, and a services segment, composed of hotels, restaurants
and other leisure facilities, media production and services, and consumer
retailing and services.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the consumer
discretionary sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or
its industry. Such general economic conditions include changes in interest
rates, periods of market turbulence or instability, or general and prolonged
periods of economic decline and cyclical change. It is possible that a drop in
the stock market may depress the price of most or all of the common stocks that
the Fund holds. In addition, equity risk includes the risk that investor
sentiment toward one or more industries will become negative, resulting in those
investors exiting their investments in those industries, which could cause a
reduction of the value of companies in those industries more broadly. The value
of a company’s common stock may fall solely because of factors, such as an
increase in production costs, that negatively impact other companies in the same
region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Consumer Discretionary Sector Risk. Companies engaged in
the consumer discretionary sector are affected by fluctuations in supply and
demand and changes in consumer preferences, social trends and marketing
campaigns. Changes in consumer spending as a result of world events, political
and economic conditions, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations also may adversely affect these companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Consumer Discretionary ETF (the “Predecessor Fund”) as a result of
the reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
30.52% (3rd Quarter 2009) |
|
(16.27)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 17.42%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(8.48 |
)% |
|
|
3.69 |
% |
|
|
16.33 |
% |
Return After Taxes on
Distributions |
|
|
(8.81 |
)% |
|
|
3.15 |
% |
|
|
15.77 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.74 |
)% |
|
|
2.64 |
% |
|
|
13.65 |
% |
S&P 500® Equal Weight
Consumer Discretionary Index (reflects no deduction for fees, expenses
or taxes) |
|
|
(8.16 |
)% |
|
|
4.09 |
% |
|
|
16.81 |
% |
S&P 500® Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RHS |
|
Invesco S&P 500® Equal Weight Consumer
Staples ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Consumer
Staples ETF (the “Fund”) seeks to track the investment results (before fees and
expenses) of the S&P 500® Equal Weight Consumer
Staples Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 19% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Consumer Staples Index (the
“Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the consumer staples sector, as defined according to the Global
Industry Classification Standard (“GICS”). The consumer staples sector includes
manufacturers and distributors
of food, beverages and tobacco, producers of non-durable household
goods and personal products, food and drug retailing companies and consumer
super centers.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the consumer staples
sector. The Fund’s portfolio holdings, and the extent to which it concentrates
its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or
its industry. Such general economic conditions include changes in interest
rates, periods of market turbulence or instability, or general and prolonged
periods of economic decline and cyclical change. It is possible that a drop in
the stock market may depress the price of most or all of the common stocks that
the Fund holds. In addition, equity risk includes the risk that investor
sentiment toward one or more industries will become negative, resulting in those
investors exiting their investments in those industries, which could cause a
reduction of the value of companies in those industries more broadly. The value
of a company’s common stock may fall solely because of factors, such as an
increase in production costs, that negatively impact other companies in the same
region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Consumer Staples Sector Risk. Changes in the worldwide
economy, consumer spending, competition, demographics and consumer preferences,
exploration and production spending may adversely affect companies in the
consumer staples sector. Companies in this sector also are affected by changes
in government regulation, world events and economic conditions, as well as
natural and man-made disasters and political, social or labor unrest that affect
production and distribution of consumer staple products.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Consumer Staples ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
17.16%
(1st Quarter 2013) |
|
(8.51)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 16.28%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(10.71 |
)% |
|
|
7.31 |
% |
|
|
13.56 |
% |
Return After Taxes on
Distributions |
|
|
(11.20 |
)% |
|
|
6.51 |
% |
|
|
12.70 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(5.96 |
)% |
|
|
5.41 |
% |
|
|
10.95 |
% |
S&P 500® Equal Weight
Consumer Staples Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(10.42 |
)% |
|
|
7.77 |
% |
|
|
14.15 |
% |
S&P 500® Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RYE |
|
Invesco S&P 500® Equal Weight Energy
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Energy ETF (the
“Fund”) seeks to track the investment results (before fees and expenses) of the
S&P 500® Equal Weight
Energy Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 31% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Energy Index (the “Parent
Index”), an index that contains the common stocks of all companies included in
the S&P 500® Index
that are classified as members of the energy sector, as defined according to the
Global Industry Classification Standard (“GICS”). The energy sector includes
companies operating in the exploration and production, refining and marketing,
and storage and transportation of oil and gas and coal and consumable fuels, as
well as companies that offer oil and gas equipment and services.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the energy sector. The
Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or
general and prolonged periods of economic decline and cyclical
change. It is possible that a drop in the stock market may depress the price of
most or all of the common stocks that the Fund holds. In addition, equity risk
includes the risk that investor sentiment toward one or more industries will
become negative, resulting in those investors exiting their investments in those
industries, which could cause a reduction of the value of companies in those
industries more broadly. The value of a company’s common stock may fall solely
because of factors, such as an increase in production costs, that negatively
impact other companies in the same region, industry or sector of the market. A
company’s common stock also may decline significantly in price over a short
period of time due to factors specific to that company, including decisions made
by its management or lower demand for the company’s products or services. For
example, an adverse event, such as an unfavorable earnings report or the failure
to make anticipated dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Energy Sector Risk. Changes in worldwide energy prices,
exploration and production spending may adversely affect companies in the energy
sector. Changes in government regulation, world events and economic conditions
also affect these companies, particularly in the countries where companies are
located or do business. In addition, these companies are at risk of civil
liability from accidents resulting in injury, loss of life or property,
pollution or other environmental damage claims and risk of loss from terrorism
and natural disasters. Commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources,
development of alternative energy sources, technological developments and labor
relations also could affect companies in this sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Energy ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
23.59% (4th Quarter 2010) |
|
(30.00)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 13.69%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(24.46 |
)% |
|
|
(10.02 |
)% |
|
|
3.64 |
% |
Return After Taxes on
Distributions |
|
|
(24.77 |
)% |
|
|
(10.71 |
)% |
|
|
3.07 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(14.16 |
)% |
|
|
(7.39 |
)% |
|
|
2.70 |
% |
S&P 500® Equal Weight Energy
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(24.21 |
)% |
|
|
(9.76 |
)% |
|
|
4.11 |
% |
S&P 500® Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RYF |
|
Invesco S&P 500® Equal Weight
Financials ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Financials ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the S&P 500® Equal
Weight Financials Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 17% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Financials Index (the
“Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the financials sector, as defined according to the Global Industry
Classification Standard (“GICS”). The financials sector includes companies
involved in banking, thrifts and mortgage finance, specialized finance, consumer
finance, asset management and custody banks, investment banking
and brokerage and insurance, as well as financial exchanges and
data and mortgage real estate investment trusts.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its
industry. Such general economic conditions include changes in
interest rates, periods of market turbulence or instability, or general and
prolonged periods of economic decline and cyclical change. It is possible that a
drop in the stock market may depress the price of most or all of the common
stocks that the Fund holds. In addition, equity risk includes the risk that
investor sentiment toward one or more industries will become negative, resulting
in those investors exiting their investments in those industries, which could
cause a reduction of the value of companies in those industries more broadly.
The value of a company’s common stock may fall solely because of factors, such
as an increase in production costs, that negatively impact other companies in
the same region, industry or sector of the market. A company’s common stock also
may decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Financials ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
40.11% (2nd Quarter 2009) |
|
(26.87)% (1st Quarter 2009) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 20.59%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(15.62 |
)% |
|
|
7.35 |
% |
|
|
13.18 |
% |
Return After Taxes on
Distributions |
|
|
(16.07 |
)% |
|
|
3.72 |
% |
|
|
10.89 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(8.86 |
)% |
|
|
3.97 |
% |
|
|
9.80 |
% |
S&P 500® Equal Weight
Financials Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(15.30 |
)% |
|
|
7.90 |
% |
|
|
13.86 |
% |
S&P 500® Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RYH |
|
Invesco S&P 500® Equal Weight Health
Care ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Health Care ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the S&P 500® Equal
Weight Health Care Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 23% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Health Care Index (the
“Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the health care sector, as defined according to the Global Industry
Classification Standard (“GICS”). The health care sector includes health care
providers and services, companies that manufacture and distribute health care
equipment and supplies, health care technology
companies and companies involved in the research, development,
production and marketing of pharmaceuticals and biotechnology products.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the health care
sector. The Fund’s portfolio holdings, and the extent to which it concentrates
its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes
in general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or its industry.
Such general economic conditions include changes in interest rates, periods of
market turbulence or instability, or general and prolonged periods of economic
decline and cyclical change. It is possible that a drop in the stock market may
depress the price of most or all of the common stocks that the Fund holds. In
addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Health Care Sector Risk. Factors such as extensive
government regulation, restrictions on government reimbursement for medical
expenses, rising costs of medical products, services and facilities, pricing
pressure, an increased emphasis on outpatient services, limited number of
products, industry innovation, costs associated with obtaining and protecting
patents, product liability and other claims, changes in technologies and other
market developments can affect companies in the health care sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Health Care ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
16.64% (2nd Quarter 2009) |
|
(14.69)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 14.44%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(0.32 |
)% |
|
|
10.53 |
% |
|
|
16.43 |
% |
Return After Taxes on
Distributions |
|
|
(0.46 |
)% |
|
|
10.32 |
% |
|
|
16.17 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(0.12 |
)% |
|
|
8.27 |
% |
|
|
13.89 |
% |
S&P 500® Equal Weight Health
Care Index (reflects no deduction for fees, expenses or
taxes) |
|
|
0.07 |
% |
|
|
11.00 |
% |
|
|
17.02 |
% |
S&P 500® Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RGI |
|
Invesco S&P 500® Equal Weight
Industrials ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Industrials ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the S&P 500® Equal
Weight Industrials Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 28% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Industrials Index (the
“Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the industrials sector, as defined according to the Global Industry
Classification Standard (“GICS”). The industrials sector includes manufacturers
and distributors of capital goods such as aerospace and defense, building
projects, electrical equipment and machinery, companies that offer
construction and engineering services, providers of commercial and
professional services including printing, environmental and facilities services,
office services and supplies, security and alarm services, human resource and
employment services, research and consulting services and providers of
transportation services.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the industrials
sector. The Fund’s portfolio holdings, and the extent to which it concentrates
its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes
in general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or its industry.
Such general economic conditions include changes in interest rates, periods of
market turbulence or instability, or general and prolonged periods of economic
decline and cyclical change. It is possible that a drop in the stock market may
depress the price of most or all of the common stocks that the Fund holds. In
addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Industrials Sector Risk. Changes in government regulation,
world events and economic conditions may adversely affect companies in the
industrials sector. In addition, these companies are at risk for environmental
and product liability damage claims. Also, commodity price volatility, changes
in exchange rates, imposition of import controls, increased competition,
depletion of resources, technological developments and labor relations could
adversely affect the companies in this sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Industrials ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
22.77% (2nd Quarter 2009) |
|
(21.50)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 22.69%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(12.99 |
)% |
|
|
6.21 |
% |
|
|
13.34 |
% |
Return After Taxes on
Distributions |
|
|
(13.28 |
)% |
|
|
5.65 |
% |
|
|
12.69 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(7.47 |
)% |
|
|
4.61 |
% |
|
|
10.86 |
% |
S&P 500® Equal Weight
Industrials Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(12.65 |
)% |
|
|
6.65 |
% |
|
|
13.92 |
% |
S&P 500® Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RTM |
|
Invesco S&P 500® Equal Weight Materials
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Materials ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the S&P 500® Equal
Weight Materials Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 23% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Materials Index (the “Parent
Index”), an index that contains the common stocks of all companies included in
the S&P 500® Index
that are classified as members of the materials sector, as defined according to
the Global Industry Classification Standard (“GICS”). The materials sector
includes companies that manufacture chemicals, construction materials, glass,
paper, forest products and related packaging products, and metals, minerals and
mining companies, including producers of steel.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the basic materials
sector. The Fund’s portfolio holdings, and the extent to which it concentrates
its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in
interest rates, periods of market turbulence or instability, or
general and prolonged periods of economic decline and cyclical change. It is
possible that a drop in the stock market may depress the price of most or all of
the common stocks that the Fund holds. In addition, equity risk includes the
risk that investor sentiment toward one or more industries will become negative,
resulting in those investors exiting their investments in those industries,
which could cause a reduction of the value of companies in those industries more
broadly. The value of a company’s common stock may fall solely because of
factors, such as an increase in production costs, that negatively impact other
companies in the same region, industry or sector of the market. A company’s
common stock also may decline significantly in price over a short period of time
due to factors specific to that company, including decisions made by its
management or lower demand for the company’s products or services. For example,
an adverse event, such as an unfavorable earnings report or the failure to make
anticipated dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Basic Materials Sector Risk. Changes in world events,
political, environmental and economic conditions, energy conservation,
environmental policies, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations may adversely affect the companies engaged in the production and
distribution of basic materials.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Materials ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
37.59% (2nd Quarter 2009) |
|
(25.38)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 17.11%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(14.52 |
)% |
|
|
5.06 |
% |
|
|
13.37 |
% |
Return After Taxes on
Distributions |
|
|
(14.88 |
)% |
|
|
4.44 |
% |
|
|
12.65 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(8.33 |
)% |
|
|
3.68 |
% |
|
|
10.87 |
% |
S&P 500® Equal Weight Materials
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(14.21 |
)% |
|
|
5.54 |
% |
|
|
13.97 |
% |
S&P 500® Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery
of a basket of securities. However, the Fund also reserves the right to permit
or require Creation Units to be issued in exchange for cash. Except when
aggregated in Creation Units, the Shares are not redeemable securities of the
Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
EWRE |
|
Invesco S&P 500® Equal Weight Real
Estate ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Real Estate ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the S&P 500® Equal
Weight Real Estate Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 14% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Real Estate Index (the
“Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the real estate sector, as defined according to the Global Industry
Classification Standard (“GICS”). The real estate sector includes companies
operating in real estate development and operation, offering real estate related
services and equity real estate investment trusts.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the real estate
sector. The Fund’s portfolio holdings, and the extent to which it concentrates
its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds.
In addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Real Estate Sector Risk. The real estate sector contains
companies operating in real estate development and operation, as well as
companies related to the real estate sector, including real estate investment
trusts (“REITs”). Investments in securities of these companies are subject to
risks such as: fluctuations in the value of the underlying properties; defaults
by borrowers or tenants; market saturation; changes in general and local
economic conditions; decreases in market rates for rents; changes in the
availability, cost and terms of mortgage funds; increased competition, property
taxes, capital expenditures, or operating expenses; and other economic,
political or regulatory occurrences, including the impact of changes in
environmental laws. The real estate sector is particularly sensitive to economic
downturns and changes to interest rates.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
REIT Risk. Although the Fund will not invest in real
estate directly, the REITs in which the Fund invests are subject to risks
inherent in the direct ownership of real estate. These risks include, but are
not limited to, a possible lack of mortgage funds and associated interest rate
risks, overbuilding, property vacancies, increases in property taxes and
operating expenses, changes in zoning laws, losses due to environmental damages
and changes in neighborhood values and appeal to purchasers. In addition, REITs
may have expenses, including advisory and administration expenses, and the Fund
and its shareholders will incur its pro rata share of the underlying expenses.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Real Estate ETF (the
“Predecessor Fund”) as a result of the reorganization of the
Predecessor Fund into the Fund, which was consummated after the close of
business on April 6, 2018. Accordingly, the performance information shown
below for periods ending on or prior to April 6, 2018 is that of the
Predecessor Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
7.03% (2nd Quarter 2018) |
|
(6.26)% (1st Quarter 2018) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 17.65%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
Since Inception (08/13/15) |
|
Return Before Taxes |
|
|
(3.90 |
)% |
|
|
3.40 |
% |
Return After Taxes on
Distributions |
|
|
(5.01 |
)% |
|
|
2.29 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(2.26 |
)% |
|
|
2.15 |
% |
S&P 500® Equal Weight Real
Estate Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(3.59 |
)% |
|
|
3.76 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
7.83 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RYT |
|
Invesco S&P 500® Equal Weight
Technology ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Technology ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the S&P 500® Equal
Weight Information Technology Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 27% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Information Technology Index
(the “Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the information technology services sector, as defined according to
the Global Industry Classification Standard (“GICS”). The information technology
sector includes companies that offer software and information technology
services, manufacturers and distributors of
technology hardware and equipment such as communications
equipment, cellular phones, computers and peripherals, electronic equipment and
related instruments and semiconductors.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the information
technology sector. The Fund’s portfolio holdings, and the extent to which
it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or
its industry. Such general economic conditions include changes in interest
rates, periods of market turbulence or instability, or general and prolonged
periods of economic decline and cyclical change. It is possible that a drop in
the stock market may depress the price of most or all of the common stocks that
the Fund holds. In addition, equity risk includes the risk that investor
sentiment toward one or more industries will become negative, resulting in those
investors exiting their investments in those industries, which could cause a
reduction of the value of companies in those industries more broadly. The value
of a company’s common stock may fall solely because of factors, such as an
increase in production costs, that negatively impact other companies in the same
region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Technology ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
22.18% (3rd Quarter 2009) |
|
(18.30)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 26.62%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(0.59 |
)% |
|
|
14.07 |
% |
|
|
18.91 |
% |
Return After Taxes on
Distributions |
|
|
(0.79 |
)% |
|
|
13.57 |
% |
|
|
18.51 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(0.17 |
)% |
|
|
11.06 |
% |
|
|
16.08 |
% |
S&P 500® Equal Weight
Information Technology Index (reflects no deduction for fees, expenses
or taxes) |
|
|
(0.17 |
)% |
|
|
14.56 |
% |
|
|
19.51 |
% |
S&P 500® Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RYU |
|
Invesco S&P 500® Equal Weight Utilities
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Equal Weight Utilities ETF
(the “Fund”) seeks to track the investment results (before fees and expenses) of
the S&P 500® Equal
Weight Utilities Plus Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 27% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of all of the components of the S&P 500® Utilities Plus Index (the
“Parent Index”), an index that contains the common stocks of all companies
included in the S&P 500® Index that are classified as
members of the utilities sector, as defined according to the Global Industry
Classification Standard (“GICS”). The utilities sector includes utility
companies such as electric, gas and water utilities, independent power producers
and energy traders and companies that engage in generation and distribution of
electricity using renewable sources.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
In the event there are fewer than 22 securities eligible for
inclusion in the Underlying Index at a quarterly rebalance, the Underlying Index
will be supplemented with the largest utilities companies in the S&P MidCap
400 Index based on float-adjusted market capitalization until the 22 security
minimum is reached. Any supplementary companies that are added to the Underlying
Index will remain in the Underlying Index until at least the next quarterly
rebalance. As of June 30, 2019, the Underlying Index included 28 companies.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the utilities sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase
this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Utilities Sector Risk. Companies in the utilities sector
are subject to a variety of factors that may adversely affect their business or
operations, including high interest costs associated with capital construction
and improvement programs; difficulty in raising adequate capital in periods of
high inflation and unsettled capital markets; governmental regulation of rates
the issuer can charge to customers; costs associated with compliance with
environmental and other regulations; effects of economic slowdowns and surplus
capacity; increased competition; and potential losses resulting
from a developing deregulatory environment.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Equal Weight Utilities ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or
prior to April 6, 2018 is that of the Predecessor Fund.
Updated performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
15.63% (1st Quarter 2016) |
|
(8.01)% (1st Quarter 2009) |
The Fund’s year-to-date total return for the six months ended June
30, 2019 was 12.73%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
6.96 |
% |
|
|
10.58 |
% |
|
|
12.01 |
% |
Return After Taxes on
Distributions |
|
|
6.13 |
% |
|
|
9.16 |
% |
|
|
10.52 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
4.63 |
% |
|
|
7.72 |
% |
|
|
9.16 |
% |
S&P 500® Equal Weight
Utilities Plus Index (reflects no deduction for fees, expenses or
taxes) |
|
|
7.37 |
% |
|
|
11.05 |
% |
|
|
12.53 |
% |
S&P 500® Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
SPGP |
|
Invesco S&P 500 GARP
ETF
(formerly, Invesco Russell Top 200 Pure Growth
ETF) |
Summary Information
Investment Objective
The Invesco S&P 500 GARP ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the S&P 500® GARP Index (the “Underlying
Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses(1) |
|
|
0.06% |
|
Total Annual Fund Operating
Expenses |
|
|
0.35% |
|
(1) |
Other Expenses have been restated to
reflect current expenses. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$36 |
|
$113 |
|
$197 |
|
$443 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 17% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
designed to track the performance of approximately 75 growth stocks in the
S&P 500® Index that
exhibit quality characteristics and have attractive valuation.
In selecting constituent securities for the Underlying Index, the
Index Provider first identifies stocks that exhibit growth characteristics by
calculating the growth score for each stock in the S&P 500® Index. A stock’s growth
score is the average of its: (i) three-year earnings per share (“EPS”)
growth, calculated as a company’s three-year EPS
compound annual growth rate and (ii) three-year sales per
share (“SPS”) growth, calculated as a company’s three-year SPS compound annual
growth rate. After adjusting for outliers, the stocks are ranked by growth score
and the top 150 stocks remain eligible for inclusion in the Underlying Index.
The Index Provider then calculates a quality/value composite score
for each of the remaining 150 stocks. A stock’s quality/value composite score is
the average of its: (i) financial leverage ratio, calculated as a company’s
latest total debt divided by its book value; (ii) return on equity,
calculated as a company’s trailing 12-month EPS divided by its latest book value
per share; and (iii) earnings-to-price ratio, calculated as a company’s
trailing 12-month EPS divided by its price. In accordance with the Underlying
Index methodology, the stocks are ranked by quality/value composite score and
the top 75 stocks are included in the Underlying Index.
The Underlying Index components are weighted by growth score and
no security will have a weight below 0.05% or above 5%. Additionally, each
sector will be subject to a maximum weight of 40%.
As of June 30, 2019, the Underlying Index was comprised of
77 constituents that ranged in market capitalization from approximately
$463.69 billion to $5.42 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as
defined below), this may result in a significantly diminished trading market for
Shares, and Shares may be more likely to trade at a premium or discount to the
Fund’s net asset value (“NAV”) and to face trading halts and/or delisting.
Investments in non-U.S. securities, which may have lower trading volumes, may
increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Growth Risk. The market values of growth securities may be
more volatile than other types of investments. The returns on growth securities
may or may not move in tandem with the returns on other styles of investing or
the overall stock market. Growth securities typically invest a high portion of
their earnings back into their business and may lack the dividend yield that
could cushion their decline in a market downturn. Thus, the value of the Fund’s
investments will vary and at times may be lower than that of other types of
investments.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of
which may adversely affect the companies in which the Fund
invests, may include, but are not limited to, legislative or regulatory changes,
adverse market conditions and/or increased competition within the industry or
industry group. In addition, at times, such industry or industry group may be
out of favor and underperform other industries, industry groups or the market as
a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Value Risk. Value securities are subject to the risk that
valuations never improve or that the returns on value securities are less than
returns on other styles of investing or the overall stock market. Thus, the
value of the Fund’s investments will vary and at times may be lower or higher
than that of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 23.33%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
14.19% (1st Quarter 2012) |
|
(15.61)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception (06/16/2011) |
|
Return Before Taxes |
|
|
1.81% |
|
|
|
11.12% |
|
|
|
13.33% |
|
Return After Taxes on
Distributions |
|
|
1.59% |
|
|
|
10.84% |
|
|
|
12.97% |
|
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
1.24% |
|
|
|
8.81% |
|
|
|
10.88% |
|
S&P 500® GARP Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Blended-S&P 500® GARP Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
2.14% |
|
|
|
11.55% |
|
|
|
13.76% |
|
Russell 1000® Growth
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(1.51 |
)% |
|
|
10.40% |
|
|
|
13.19% |
|
S&P 500® Index(3) (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49% |
|
|
|
11.79% |
|
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell Top
200® Pure Growth
Index to the S&P 500® GARP Index. Prior to
the commencement date of February 25, 2019, performance for the Underlying
Index is not available. |
(2) |
The “Blended-S&P 500® GARP Index” reflects
the performance of the RAFI® Fundamental Large
Growth Index, a former underlying index, from June 16, 2011 through
May 22, 2015, and the Russell Top 200® Pure Growth Index, the
most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended-S&P 500® GARP Index” will
include the performance of the Underlying Index for periods beginning
June 22, 2019. |
(3) |
The Fund has elected to change its
broad-based index from the Russell 1000® Growth Index to the
S&P 500® Index
because the S&P 500® Index more closely
reflects the types of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
Since Inception |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
Since Inception |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RPG |
|
Invesco S&P 500® Pure Growth
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Pure Growth ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
500® Pure Growth Index
(the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.35% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.35% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$36 |
|
$113 |
|
$197 |
|
$443 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 64% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of a subset of securities from the S&P 500® Index (the “Parent Index”)
that exhibit strong growth characteristics as measured using the following three
factors: three-year sales per share growth, the three-year ratio of earnings per
share change to price per share, and momentum (the 12-month percentage change in price). The
securities in the Parent
Index are each assigned a “growth score” based on those three factors and
are then ranked based on their scores. The top one-third of
securities based on growth score are included in the Underlying
Index and are weighted so securities demonstrating the most growth
characteristics have proportionally greater weights.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not
required to meet certain diversification requirements under the Investment
Company Act of 1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in
those investors exiting their investments in those industries,
which could cause a reduction of the value of companies in those industries more
broadly. The value of a company’s common stock may fall solely because of
factors, such as an increase in production costs, that negatively impact other
companies in the same region, industry or sector of the market. A company’s
common stock also may decline significantly in price over a short period of time
due to factors specific to that company, including decisions made by its
management or lower demand for the company’s products or services. For example,
an adverse event, such as an unfavorable earnings report or the failure to make
anticipated dividend payments, may depress the value of common stock.
Growth Risk. The market values of growth securities may be
more volatile than other types of investments. The returns on growth securities
may or may not move in tandem with the returns on other styles of investing or
the overall stock market. Growth securities typically invest a high portion of
their earnings back into their business and may lack the dividend yield that
could cushion their decline in a market downturn. Thus, the value of the Fund’s
investments will vary and at times may be lower than that of other types of
investments.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the
Shares, losses from trading in secondary markets, and disruption
in the creation/redemption process of the Fund. Any of these factors may lead to
the Shares trading at a premium or discount to the Fund’s NAV.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund
Risk. Because the Fund is non-diversified and can invest a greater
portion of its assets in securities of individual issuers than a diversified
fund, changes in the market value of a single investment could cause greater
fluctuations in Share price than would occur in a diversified fund. This may
increase the Fund’s volatility and cause the performance of a relatively small
number of issuers to have a greater impact on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Pure Growth ETF (the “Predecessor Fund”) as a result of the reorganization of
the Predecessor Fund into the Fund, which was consummated after the close of
business on April 6, 2018. Accordingly, the performance information shown
below for periods ending on or prior to April 6, 2018 is that of the
Predecessor Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
21.83% (2nd Quarter 2009) |
|
(17.05)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 20.38%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(4.58 |
)% |
|
|
7.84 |
% |
|
|
16.50 |
% |
Return After Taxes on
Distributions |
|
|
(4.68 |
)% |
|
|
7.59 |
% |
|
|
16.24 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(2.63 |
)% |
|
|
6.05 |
% |
|
|
13.96 |
% |
S&P 500® Pure Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
(4.22 |
)% |
|
|
8.24 |
% |
|
|
16.95 |
% |
S&P 500® Growth
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(0.01 |
)% |
|
|
10.55 |
% |
|
|
14.81 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management
LLC (the “Adviser”).
Portfolio Managers. The following individuals
are responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April 2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery
of a basket of securities. However, the Fund also reserves the right to permit
or require Creation Units to be issued in exchange for cash. Except when
aggregated in Creation Units, the Shares are not redeemable securities of the
Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RPV |
|
Invesco S&P 500® Pure Value
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Pure Value ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
500® Pure Value Index
(the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.35% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.35% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$36 |
|
$113 |
|
$197 |
|
$443 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 37% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P & DJI” or the
“Index Provider”) compiles, maintains and calculates the Underlying Index, which
is composed of a subset of securities from the S&P 500® Index (the “Parent Index”)
that exhibit strong value characteristics as measured using the following three
factors: book value to price ratio, earnings to price ratio, and sales to price
ratio. The securities in the Parent Index are each assigned a “value score”
based on those three factors and are then ranked based on their scores. The top
one-third of securities based on value
score are included in the Underlying Index and are weighted so securities
demonstrating the most value characteristics have proportionally greater
weights.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not
required to meet certain diversification requirements under the Investment
Company Act of 1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in
those investors exiting their investments in those industries,
which could cause a reduction of the value of companies in those industries more
broadly. The value of a company’s common stock may fall solely because of
factors, such as an increase in production costs, that negatively impact other
companies in the same region, industry or sector of the market. A company’s
common stock also may decline significantly in price over a short period of time
due to factors specific to that company, including decisions made by its
management or lower demand for the company’s products or services. For example,
an adverse event, such as an unfavorable earnings report or the failure to make
anticipated dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund
Risk. Because the Fund is non-diversified and can invest a greater
portion of its assets in securities of individual issuers than a diversified
fund, changes in the market value of a single investment could cause greater
fluctuations in Share price than would occur in a diversified fund. This may
increase the Fund’s volatility and cause the performance of a relatively small
number of issuers to have a greater impact on the Fund’s performance.
Value Risk. Value securities are subject to the risk that
valuations never improve or that the returns on value securities are less than
returns on other styles of investing or the overall stock market. Thus, the
value of the Fund’s investments will vary and at times may be lower or higher
than that of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Pure Value ETF (the “Predecessor Fund”) as a result of the reorganization of the
Predecessor Fund into the Fund, which was consummated after the close of
business on April 6, 2018. Accordingly, the performance information shown
below for periods ending on or prior to April 6, 2018 is that of the
Predecessor Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
44.34% (2nd Quarter 2009) |
|
(25.10)% (1st Quarter 2009) |
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 15.86%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(12.26 |
)% |
|
|
4.76 |
% |
|
|
15.81 |
% |
Return After Taxes on
Distributions |
|
|
(12.73 |
)% |
|
|
3.95 |
% |
|
|
15.00 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.87 |
)% |
|
|
3.37 |
% |
|
|
13.02 |
% |
S&P 500® Pure Value Index
(reflects no deduction for fees, expenses or taxes) |
|
|
(12.00 |
)% |
|
|
5.11 |
% |
|
|
16.28 |
% |
S&P 500® Value
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(8.95 |
)% |
|
|
6.06 |
% |
|
|
11.21 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management
LLC (the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
SPHQ |
|
Invesco S&P 500® Quality
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Quality ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
500® Quality Index* (the
“Underlying Index”).
* |
Standard & Poor’s® and S&P® are registered
trademarks of Standard & Poor’s Financial Services LLC
(“Standard & Poor’s”) and have been licensed for use by Invesco
Capital Management LLC (the “Adviser”). The Fund is not sponsored,
endorsed, sold or promoted by Standard & Poor’s or its
Affiliates, and Standard & Poor’s and its Affiliates make no
representation, warranty or condition regarding the advisability of
buying, selling or holding shares of the Fund.
|
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees(1) |
|
|
0.15% |
|
Other Expenses |
|
|
0.04% |
|
Total Annual Fund Operating
Expenses |
|
|
0.19% |
|
Fee Waivers and Expense Assumption(2) |
|
|
0.04% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.15% |
|
(1) |
Management Fees have been restated to
reflect current fees. |
(2) |
The Adviser has agreed to waive fees
and/or pay Fund expenses to the extent necessary to prevent the operating
expenses of the Fund (excluding interest expenses, brokerage commissions
and other trading expenses, offering costs, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.15%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$15 |
|
$53 |
|
$99 |
|
$234 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund
Operating Expenses or in the example, may affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 73% of the average value of its portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of a subset of securities from the S&P 500® Index that have high
“quality,” as determined by the Index Provider based on the following three
fundamental measures: return on equity, accruals ratio and financial leverage
ratio. Return-on-equity is calculated as the company’s trailing 12-month earnings per share divided by the
company’s latest book value per share. Accruals ratio is computed using the
change of the company’s net operating assets over the last year divided by the
company’s average net operating assets over the last two years. Financial
leverage is calculated as the company’s latest total debt divided by the
company’s book value.
In selecting constituent securities for the Underlying Index, the
Index Provider calculates the quality score of each security in the S&P
500® Index and then
selects the 100 stocks with the highest quality score for inclusion in the
Underlying Index. The Index Provider weights each component stock of the
Underlying Index by the total of its quality score multiplied by its market
capitalization in the eligible universe.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the information
technology sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently,
there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased
competition within the industry or industry group. In addition, at
times, such industry or industry group may be out of favor and underperform
other industries, industry groups or the market as a whole.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 19.98%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
12.18% (3rd Quarter 2010) |
|
(14.77)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(6.98 |
)% |
|
|
8.35 |
% |
|
|
12.45 |
% |
Return After Taxes on
Distributions |
|
|
(7.37 |
)% |
|
|
7.88 |
% |
|
|
12.08 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(3.83 |
)% |
|
|
6.54 |
% |
|
|
10.40 |
% |
S&P 500® Quality Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(6.79 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended—S&P 500® Quality Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(6.79 |
)% |
|
|
8.65 |
% |
|
|
12.77 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
(1) |
Effective March 21, 2016, the Fund
changed its underlying index from the S&P 500® High Quality Rankings
Index to the S&P 500® Quality Index. Prior
to the commencement date of July 8, 2014, performance for the
Underlying Index is not available. |
(2) |
The Blended-S&P 500® Quality Index reflects
the performance of the Value Line Timeliness Select Index, a former
underlying index, prior to June 30, 2010, followed by the S&P
500® High Quality
Rankings Index, the most recent underlying index, from June 30, 2010
to March 18, 2016, and the S&P 500® Quality Index
thereafter. |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
XLG |
|
Invesco S&P 500® Top 50
ETF |
Summary Information
Investment Objective
The Invesco S&P 500® Top 50 ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
500® Top 50 Index (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.20% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.20% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$20 |
|
$64 |
|
$113 |
|
$255 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 8% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which
consists of the 50 largest members of the S&P 500® Index by float-adjusted
market capitalization. The Underlying Index’s components are weighted by
float-adjusted market capitalization.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not
required to meet certain diversification requirements under the Investment
Company Act of 1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the information
technology sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the
same region, industry or sector of the market. A company’s common
stock also may decline significantly in price over a short period of time due to
factors specific to that company, including decisions made by its management or
lower demand for the company’s products or services. For example, an adverse
event, such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying
Index, and incurs costs in buying and selling securities,
especially when rebalancing the Fund’s securities holdings to reflect changes in
the composition of the Underlying Index. In addition, the performance of the
Fund and the Underlying Index may vary due to asset valuation differences and
differences between the Fund’s portfolio and the Underlying Index resulting from
legal restrictions, costs or liquidity constraints.
Non-Diversified Fund
Risk. Because the Fund is non-diversified and can invest a greater
portion of its assets in securities of individual issuers than a diversified
fund, changes in the market value of a single investment could cause greater
fluctuations in Share price than would occur in a diversified fund. This may
increase the Fund’s volatility and cause the performance of a relatively small
number of issuers to have a greater impact on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P 500®
Top 50 ETF (the “Predecessor Fund”) as a result of the reorganization of the
Predecessor Fund into the Fund, which was consummated after the close of
business on April 6, 2018. Accordingly, the performance information shown
below for periods ending on or prior to April 6, 2018 is that of the
Predecessor Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
13.84% (2nd Quarter 2009) |
|
(13.55)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 17.89%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(3.48 |
)% |
|
|
8.90 |
% |
|
|
12.03 |
% |
Return After Taxes on
Distributions |
|
|
(3.90 |
)% |
|
|
8.03 |
% |
|
|
11.12 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(1.71 |
)% |
|
|
6.62 |
% |
|
|
9.53 |
% |
S&P 500® Top 50 Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(3.35 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended S&P 500® Top 50 Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(3.35 |
)% |
|
|
9.12 |
% |
|
|
12.26 |
% |
S&P 100® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(3.87 |
)% |
|
|
8.61 |
% |
|
|
12.49 |
% |
(1) |
Prior to the commencement date of
November 30, 2015, performance for the Underlying Index is not
available. |
(2) |
The Blended S&P 500® Top 50 Index reflects
the performance of the Russell Top 50® Mega Cap Index, the
former underlying index, prior to January 26, 2016, and the S&P
500® Top 50 Index
thereafter. |
Management of the Fund
Investment Adviser. Invesco Capital Management
LLC (the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market
prices rather than NAV, Shares may trade at prices greater than
NAV (at a premium), at NAV, or less than NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
SPVM |
|
Invesco S&P 500 Value with
Momentum ETF
(formerly, Invesco Russell Top 200 Pure Value ETF) |
Summary Information
Investment Objective
The Invesco S&P 500 Value with Momentum ETF (the “Fund”) seeks
to track the investment results (before fees and expenses) of the S&P
500® High Momentum Value
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses(1) |
|
|
0.10% |
|
Total Annual Fund Operating
Expenses |
|
|
0.39% |
|
(1) |
Other Expenses have been restated to
reflect current expenses. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$40 |
|
$125 |
|
$219 |
|
$493 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 32% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
designed to track the performance of approximately 100 stocks in the S&P
500® Index (the “Parent
Index”) that have the highest “value” and “momentum” scores. In general, a value
stock tends to trade at a lower price relative to its company’s fundamentals and
thus may be considered undervalued by investors and
momentum is the tendency of an investment to exhibit persistence
in its relative performance. A “momentum style” of investing emphasizes
investing in securities that have had better recent performance compared to
other securities.
In selecting constituent securities for the Underlying Index, the
Index Provider first calculates the value score of each stock in the Parent
Index by evaluating each stock’s: (i) book value-to-price ratio, calculated using
the company’s latest book value per share divided by its price; (ii) earnings-to-price ratio,
calculated using the company’s trailing 12-month earnings per share divided by its
price; and (iii) sales-to-price ratio,
calculated using the company’s trailing 12-month sales per share divided by its
price.
After ranking the constituent securities by value score, the Index
Provider selects the 200 highest-ranking securities and calculates a momentum
score for each security. A security’s momentum score is based on upward price
movements of the security as compared to other eligible securities within the
remaining constituent universe. After ranking the remaining constituent universe
by momentum score, the 100 highest-ranking securities are included in the
Underlying Index and weighted by value score.
As of June 30, 2019, the Underlying Index was comprised of
100 constituents that ranged in market capitalization from approximately
$522.88 billion to $4.70 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited
number of APs may be able to do. In addition, to the extent that
APs exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Financials Sector Risk. The Fund may be susceptible
to adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Value Risk. Value securities are subject to the risk that
valuations never improve or that the returns on value securities are less than
returns on other styles of investing or the overall stock market. Thus, the
value of the Fund’s investments will vary and at times may be lower or higher
than that of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 19.05%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
12.83% (1st Quarter 2013) |
|
(11.52)% (4th Quarter 2018) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception (06/16/2011) |
|
Return Before Taxes |
|
|
(8.59 |
)% |
|
|
6.21 |
% |
|
|
10.17 |
% |
Return After Taxes on
Distributions |
|
|
(9.21 |
)% |
|
|
5.60 |
% |
|
|
9.55 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.59 |
)% |
|
|
4.82 |
% |
|
|
8.17 |
% |
S&P 500® High Momentum Value
Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(12.05 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended- S&P 500® High Momentum Value
Index(2)
(reflects no deduction for fees, expenses or taxes) |
|
|
(8.26 |
)% |
|
|
6.62 |
% |
|
|
10.59 |
% |
Russell 1000® Value
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(8.27 |
)% |
|
|
5.95 |
% |
|
|
9.94 |
% |
S&P 500® Index(3) (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
11.79 |
% |
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell
Top 200® Pure Value
Index to the S&P 500® High Momentum Value
Index. Prior to the commencement date of March 6, 2017, performance
for the Underlying Index is not available.
|
(2) |
The “Blended-S&P 500® High Momentum Value
Index” reflects the performance of the RAFI® Fundamental Large
Value Index, a former underlying index, from June 16, 2011 through
May 22, 2015, and the Russell Top 200® Pure Value Index, the
most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended-S&P 500® High Momentum Value
Index” will include the performance of the Underlying Index for periods
beginning June 22, 2019. |
(3) |
The Fund has elected to change its
broad-based index from the Russell 1000® Value Index to the
S&P 500® Index
because the S&P 500® Index more closely
reflects the types of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
Since Inception |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
Since Inception |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange
for cash. Except when aggregated in Creation Units, the Shares are
not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
EWMC |
|
Invesco S&P MidCap 400® Equal Weight
ETF |
Summary Information
Investment Objective
The Invesco S&P MidCap 400® Equal Weight ETF (the
“Fund”) seeks to track the investment results (before fees and expenses) of the
S&P MidCap 400® Equal
Weight Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 30% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which
consists of all of the components of the S&P MidCap 400® Index (the “Parent Index”),
a broad-based index of approximately 400 securities that measures the mid-cap segment of the U.S. equity market.
Such components include common stock of companies listed on certain U.S.
exchanges and also may include equity interests in real estate investment trusts
(“REITs”). As of June 30, 2019, the Underlying Index included securities of
companies with capitalizations ranging from $769.41 million to
$14.02 billion.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Underlying Index assigns each component security the same
weight.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not
required to meet certain diversification requirements under the Investment
Company Act of 1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment
toward one or more industries will become negative, resulting in
those investors exiting their investments in those industries, which could cause
a reduction of the value of companies in those industries more broadly. The
value of a company’s common stock may fall solely because of factors, such as an
increase in production costs, that negatively impact other companies in the same
region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization
Company Risk. Investing in securities of mid-capitalization companies involves greater
risk than customarily is associated with investing in larger, more established
companies. These companies’ securities may be more volatile and
less liquid than those of more established companies, and may have
returns that vary, sometimes significantly, from the overall securities market.
Mid-capitalization companies tend to
have inexperienced management as well as limited product and market
diversification and financial resources. Often mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund
Risk. Because the Fund is non-diversified and can invest a greater
portion of its assets in securities of individual issuers than a diversified
fund, changes in the market value of a single investment could cause greater
fluctuations in Share price than would occur in a diversified fund. This may
increase the Fund’s volatility and cause the performance of a relatively small
number of issuers to have a greater impact on the Fund’s performance.
REIT Risk. Although the Fund will not invest in real estate
directly, the REITs in which the Fund invests are subject to risks inherent in
the direct ownership of real estate. These risks include, but are not limited
to, a possible lack of mortgage funds and associated interest rate risks,
overbuilding, property vacancies, increases in property taxes and operating
expenses, changes in zoning laws, losses due to environmental damages and
changes in neighborhood values and appeal to purchasers. In addition, REITs may
have expenses, including advisory and administration expenses, and the Fund and
its shareholders will incur its pro rata share of the underlying expenses.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P MidCap 400® Equal Weight ETF (the
“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund
into the Fund, which was consummated after the close of business on
April 6, 2018. Accordingly, the
performance information shown below for periods ending on or prior
to April 6, 2018 is that of the Predecessor Fund. Updated performance
information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
13.03% (1st Quarter 2013) |
|
(19.27)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 16.77%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception (12/03/10) |
|
Return Before Taxes |
|
|
(12.26 |
)% |
|
|
4.92 |
% |
|
|
9.34 |
% |
Return After Taxes on
Distributions |
|
|
(12.56 |
)% |
|
|
4.40 |
% |
|
|
8.77 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(7.04 |
)% |
|
|
3.61 |
% |
|
|
7.30 |
% |
S&P MidCap 400® Equal Weight Index
(reflects no deduction for fees, expenses or taxes) |
|
|
(11.94 |
)% |
|
|
5.12 |
% |
|
|
9.29 |
% |
Blended S&P MidCap 400® Equal Weight Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(11.94 |
)% |
|
|
5.37 |
% |
|
|
9.80 |
% |
S&P MidCap 400® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(11.08 |
)% |
|
|
6.03 |
% |
|
|
9.77 |
% |
(1) |
The Blended S&P MidCap 400® Equal Weight Index
reflects the performance of the Russell MidCap® Equal Weight Index,
the former underlying index, prior to January 26, 2016, and the
S&P MidCap 400®
Equal Weight Index thereafter. |
Management of the Fund
Investment Adviser. Invesco Capital Management
LLC (the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RFG |
|
Invesco S&P MidCap 400® Pure Growth
ETF |
Summary Information
Investment Objective
The Invesco S&P MidCap 400® Pure Growth ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
MidCap 400® Pure Growth
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.35% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.35% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$36 |
|
$113 |
|
$197 |
|
$443 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 86% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of a subset of securities from the S&P MidCap 400® Index (the “Parent Index”)
that exhibit strong growth characteristics, as measured using the following
three factors: three-year sales per share growth, three-year ratio of earnings
per share change to price per share, and momentum (the 12-month percentage change in price). The
securities in the Parent Index are each assigned a “growth score” based on those
three factors and are then ranked based on their scores. The top one-third of
securities based on growth score are included in the Underlying
Index and are weighted so securities demonstrating the most growth
characteristics have proportionally greater weights. As of June 30, 2019,
the Underlying Index included securities of companies with a capitalizations
range of $769.41 million to $14.02 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not
required to meet certain diversification requirements under the Investment
Company Act of 1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds.
In addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Growth Risk. The market values of growth securities may be
more volatile than other types of investments. The returns on growth securities
may or may not move in tandem with the returns on other styles of investing or
the overall stock market. Growth securities typically invest a high portion of
their earnings back into their business and may lack the dividend yield that
could cushion their decline in a market downturn. Thus, the value of the Fund’s
investments will vary and at times may be lower than that of other types of
investments.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization
Company Risk. Investing in securities of mid-capitalization companies involves greater
risk than customarily is associated with investing in larger, more established
companies. These companies’ securities may be more volatile and less liquid than
those of more established companies, and may have returns that vary, sometimes
significantly, from the overall securities market. Mid-capitalization companies tend to have
inexperienced management as well as limited product and market diversification
and financial resources. Often mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund
Risk. Because the Fund is non-diversified and can invest a greater
portion of its assets in securities of individual issuers than a diversified
fund, changes in the market value of a single investment could cause greater
fluctuations in Share price than would occur in a diversified fund. This may
increase the Fund’s volatility and cause the performance of a relatively small
number of issuers to have a greater impact on the Fund’s performance.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some
idea of the risks involved in investing in the Fund, the Fund’s
past performance (before and after taxes) is not necessarily indicative of how
the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P MidCap 400® Pure Growth ETF (the
“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund
into the Fund, which was consummated after the close of business on
April 6, 2018. Accordingly, the performance information shown below for
periods ending on or prior to April 6, 2018 is that of the Predecessor
Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
27.02% (2nd Quarter 2009) |
|
(20.09)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 12.85%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(13.77 |
)% |
|
|
1.99 |
% |
|
|
14.24 |
% |
Return After Taxes on
Distributions |
|
|
(13.93 |
)% |
|
|
1.77 |
% |
|
|
14.04 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(8.06 |
)% |
|
|
1.45 |
% |
|
|
11.96 |
% |
S&P MidCap 400® Pure Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
(13.42 |
)% |
|
|
2.35 |
% |
|
|
14.61 |
% |
S&P MidCap 400® Growth
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(10.34 |
)% |
|
|
6.25 |
% |
|
|
14.42 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management
LLC (the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
RFV |
|
Invesco S&P MidCap 400® Pure Value
ETF |
Summary Information
Investment Objective
The Invesco S&P MidCap 400® Pure Value ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
MidCap 400® Pure Value
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.35% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.35% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$36 |
|
$113 |
|
$197 |
|
$443 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 57% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of a subset of securities from the S&P MidCap 400® Index (the “Parent Index”)
that exhibit strong value characteristics, as measured using the following three
factors: book value to price ratio, earnings to price ratio, and sales to price
ratio. The securities in the Parent Index are each assigned a “value score”
based on those three factors and are then ranked based on their scores. The top
one-third of securities based on value
score are included in the Underlying Index and are weighted so securities
demonstrating the most value characteristics have proportionally
greater weights. As of June 30, 2019, the Underlying Index included
securities of companies with capitalizations ranging from $933.17 million
to $9.83 billion, are weighted so securities demonstrating the most value
characteristics have proportionally greater weights.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not
required to meet certain diversification requirements under the Investment
Company Act of 1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the consumer
discretionary sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its
industry. Such general economic conditions include changes in
interest rates, periods of market turbulence or instability, or general and
prolonged periods of economic decline and cyclical change. It is possible that a
drop in the stock market may depress the price of most or all of the common
stocks that the Fund holds. In addition, equity risk includes the risk that
investor sentiment toward one or more industries will become negative, resulting
in those investors exiting their investments in those industries, which could
cause a reduction of the value of companies in those industries more broadly.
The value of a company’s common stock may fall solely because of factors, such
as an increase in production costs, that negatively impact other companies in
the same region, industry or sector of the market. A company’s common stock also
may decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Consumer Discretionary Sector Risk. Companies engaged in
the consumer discretionary sector are affected by fluctuations in supply and
demand and changes in consumer preferences, social trends and marketing
campaigns. Changes in consumer spending as a result of world events, political
and economic conditions, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations also may adversely affect these companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization
Company Risk. Investing in securities of mid-capitalization companies involves greater
risk than customarily is associated with investing in larger, more established
companies. These companies’ securities may be more volatile and less liquid than
those of more established companies, and may have returns that vary, sometimes
significantly, from the overall securities market. Mid-capitalization companies tend to have
inexperienced management as well as limited product and market diversification
and financial resources. Often mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund
Risk. Because the Fund is non-diversified and can invest a greater
portion of its assets in securities of individual issuers than a diversified
fund, changes in the market value of a single investment could cause greater
fluctuations in Share price than would occur in a diversified fund. This may
increase the Fund’s volatility and cause the performance of a relatively small
number of issuers to have a greater impact on the Fund’s performance.
Value Risk. Value securities are subject to
the risk that valuations never improve or that the returns on value securities
are less than returns on other styles of investing or the overall stock market.
Thus, the value of the Fund’s investments will vary and at times may be lower or
higher than that of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the
information shown in the bar chart and the table gives you some
idea of the risks involved in investing in the Fund, the Fund’s past performance
(before and after taxes) is not necessarily indicative of how the Fund will
perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P MidCap 400® Pure Value ETF (the
“Predecessor Fund) as a result of the reorganization of the Predecessor Fund
into the Fund, which was consummated after the close of business on
April 6, 2018. Accordingly, the performance information shown below for
periods ending on or prior to April 6, 2018 is that of the Predecessor
Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
39.27% (2nd Quarter 2009) |
|
(21.73)% (1st Quarter 2009) |
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 19.30%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(17.94 |
)% |
|
|
3.56 |
% |
|
|
13.66 |
% |
Return After Taxes on
Distributions |
|
|
(18.18 |
)% |
|
|
3.02 |
% |
|
|
13.04 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(10.42 |
)% |
|
|
2.53 |
% |
|
|
11.18 |
% |
S&P MidCap 400® Pure Value Index
(reflects no deduction for fees, expenses or taxes) |
|
|
(17.72 |
)% |
|
|
3.90 |
% |
|
|
14.11 |
% |
S&P MidCap 400® Value
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(11.88 |
)% |
|
|
5.56 |
% |
|
|
12.82 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial
adviser to recommend the Fund over another investment. Ask your salesperson or
financial adviser or visit your financial intermediary’s web-site for more information.
|
|
|
XMMO |
|
Invesco S&P MidCap Momentum
ETF
(formerly, Invesco Russell Midcap Pure Growth
ETF) |
Summary Information
Investment Objective
The Invesco S&P MidCap Momentum ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the S&P MidCap
400® Momentum Index (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses(1) |
|
|
0.10% |
|
Total Annual Fund Operating
Expenses |
|
|
0.39% |
|
(1) |
Other Expenses have been restated to
reflect current expenses. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$40 |
|
$125 |
|
$219 |
|
$493 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 30% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of constituents of the S&P MidCap 400® Index (the “Parent Index”)
that have the highest “momentum score.” In general, momentum is the tendency of
an investment to exhibit persistence in its relative performance; a “momentum
style” of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum
score for each security included in the Underlying Index is based on upward
price movements of the security as compared to other eligible securities within
the Parent Index.
In selecting constituent securities for the Underlying Index, the
Index Provider first calculates the momentum score of each stock in the Parent
Index by evaluating the percentage change in the stock’s price over the last 12
months, excluding the most recent month, and applying an adjustment based on the
security’s volatility over that period. Approximately 80 of the securities with
the highest momentum score are included in the Underlying Index. The Underlying
Index uses a modified market capitalization-weighted strategy and weights
securities by multiplying each security’s market capitalization and momentum
score.
As of June 30, 2019, the Underlying Index was comprised of
78 constituents that ranged in market capitalization from approximately
$14.20 billion to $1.74 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. The Fund’s
portfolio holdings, and the extent to which it concentrates its investments, are
likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to
face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization
Company Risk. Investing in securities of mid-capitalization companies involves greater
risk than customarily is associated with investing in larger, more established
companies. These companies’ securities may be more volatile and less liquid than
those of more established companies, and may have returns that vary, sometimes
significantly, from the overall securities market. Mid-capitalization companies tend to have
inexperienced management as well as limited product and market diversification
and financial resources. Often mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past
performance (before and after taxes) is not necessarily indicative
of how the Fund will perform in the future. Updated performance information is
available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 30.26%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
17.26% (4th Quarter 2010) |
|
(19.90)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
6.82 |
% |
|
|
9.77 |
% |
|
|
13.38 |
% |
Return After Taxes on
Distributions |
|
|
6.77 |
% |
|
|
9.64 |
% |
|
|
13.25 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
4.07 |
% |
|
|
7.72 |
% |
|
|
11.25 |
% |
S&P MidCap 400® Momentum Index(1). (reflects no
deduction for fees, expenses or taxes) |
|
|
(9.85 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended-S&P MidCap 400® Momentum Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
7.16 |
% |
|
|
10.17 |
% |
|
|
13.91 |
% |
Russell Midcap® Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
(4.75 |
)% |
|
|
7.42 |
% |
|
|
15.12 |
% |
S&P MidCap 400® Index(3).
(reflects no deduction for fees, expenses or
taxes) |
|
|
(11.08 |
)% |
|
|
6.03 |
% |
|
|
13.68 |
% |
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell
Midcap® Pure Growth
Index to the S&P MidCap 400® Momentum Index. Prior
to the commencement date of November 13, 2017, performance for the
Underlying Index is not available. |
(2) |
The “Blended-S&P MidCap 400® Momentum Index”
reflects the performance of the Dynamic Mid Cap Growth IntellidexSM Index, a former
underlying index, prior to June 16, 2011, followed by the performance
of the RAFI®
Fundamental Mid Growth Index, a former underlying index, from
June 16, 2011 through May 22, 2015, and the Russell Midcap® Pure Growth Index, the
most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended-S&P MidCap 400® Momentum Index” will
|
|
include the performance
of the Underlying Index for periods beginning June 22, 2019.
|
(3) |
The Fund has elected to change its
broad-based index from the Russell Midcap® Growth Index to the
S&P MidCap 400®
Index because the S&P MidCap 400® Index more closely
reflects the types of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
XMHQ |
|
Invesco S&P MidCap Quality
ETF
(formerly, Invesco Russell Midcap Equal Weight
ETF) |
Summary Information
Investment Objective
The Invesco S&P MidCap Quality ETF (the “Fund”) seeks to track
the investment results (before fees and expenses) of the S&P MidCap 400® Quality Index (the
“Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.25% |
|
Other Expenses |
|
|
0.36% |
|
Total Annual Fund Operating
Expenses |
|
|
0.61% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.36% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.25% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.25% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$26 |
|
$121 |
|
$267 |
|
$691 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 30% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) first calculates the quality score of each security in the S&P
MidCap 400® Index (the
“Parent Index”). Each component stock’s quality score is based on a composite of
the following three equally-weighted factors: (1) return-on-equity (calculated
as the company’s trailing 12-month
earnings per share divided by the company’s latest book value per share);
(2) accruals ratio (computed using the change of the company’s net
operating assets over the last year divided by the company’s average net
operating assets over the last two years); and (3) financial leverage ratio
(calculated as the company’s latest total debt divided by the company’s book
value). Based on this criteria, S&P DJI selects the 80 stocks from the
Parent Index with the highest quality score for inclusion in the Underlying
Index.
S&P DJI weights each component stock of the Underlying Index
by the total of its quality score multiplied by its market capitalization.
As of June 30, 2019, the Underlying Index was comprised of
80 constituents that ranged in market capitalization from approximately
$13.03 billion to $1.35 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/
or redemption orders with respect to the Fund and no other AP is
able to step forward to create or redeem Creation Units (as defined below), this
may result in a significantly diminished trading market for Shares, and Shares
may be more likely to trade at a premium or discount to the Fund’s net asset
value (“NAV”) and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization
Company Risk. Investing in securities of mid-capitalization companies involves greater
risk than customarily is associated with investing in larger, more established
companies. These companies’ securities may be more volatile and less liquid than
those of more established companies, and may have returns that vary, sometimes
significantly, from the overall securities market. Mid-capitalization companies tend to have
inexperienced management as well as limited product and market diversification
and financial resources. Often mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 18.00%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
16.57% (3rd Quarter 2009) |
|
(17.86)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(9.73 |
)% |
|
|
5.11 |
% |
|
|
11.66 |
% |
Return After Taxes on
Distributions |
|
|
(10.04 |
)% |
|
|
4.77 |
% |
|
|
11.38 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(5.50 |
)% |
|
|
3.97 |
% |
|
|
9.72 |
% |
S&P MidCap 400® Quality Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(11.55 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended-S&P MidCap 400® Quality Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(9.54 |
)% |
|
|
5.38 |
% |
|
|
12.15 |
% |
Russell Midcap® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(9.06 |
)% |
|
|
6.26 |
% |
|
|
14.03 |
% |
S&P MidCap 400® Index(3)
(reflects no deduction for fees, expenses or
taxes) |
|
|
(11.08 |
)% |
|
|
6.03 |
% |
|
|
13.68 |
% |
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell
Midcap® Equal
Weight Index to the S&P MidCap 400® Quality Index. Prior
to the commencement date of November 13, 2017, performance for the
Underlying Index is not available. |
(2) |
The “Blended-S&P MidCap 400® Quality Index”
reflects the performance of the Dynamic Mid Cap IntellidexSM Index, a former
underlying index, prior to June 16, 2011, followed by the performance
of the RAFI®
Fundamental Mid Core Index, a former underlying index, from June 16,
2011 through May 22, 2015, and the Russell Midcap® Equal Weight Index,
the most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended-S&P MidCap 400® Quality Index” will
include the performance of the Underlying Index for periods beginning
June 22, 2019. |
(3) |
The Fund has elected to change its
broad-based index from the Russell Midcap® Index to the S&P
MidCap 400® Index
because the S&P MidCap 400® Index more closely
reflects the types of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began
Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
XMVM |
|
Invesco S&P MidCap Value
with Momentum ETF
(formerly, Invesco Russell Midcap Pure Value
ETF) |
Summary Information
Investment Objective
The Invesco S&P MidCap Value with Momentum ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
MidCap 400® High Momentum
Value Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses |
|
|
0.19% |
|
Total Annual Fund Operating
Expenses |
|
|
0.48% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.09% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.39% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.39% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$40 |
|
$135 |
|
$250 |
|
$586 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year the Fund’s portfolio turnover rate was 49% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
designed to track the performance of approximately 80 stocks in the S&P
MidCap 400® Index (the
“Parent Index”) that have the highest “value” and “momentum” scores. In general,
a value stock tends to trade at a lower price relative to its company’s
fundamentals and thus may be considered undervalued by investors and momentum is
the tendency of an investment to exhibit persistence in its relative
performance. A “momentum style” of investing emphasizes investing in securities
that have had better recent performance compared to other securities.
In selecting constituent securities for the Underlying Index, the
Index Provider first calculates the value score of each stock in the Parent
Index by averaging each stock’s: (i) book value-to-price ratio, calculated using
the company’s latest book value per share divided by its price; (ii) earnings-to-price ratio,
calculated using the company’s trailing 12-month earnings per share divided by its
price; and (iii) sales-to-price ratio,
calculated using the company’s trailing 12-month sales per share divided by its
price.
The Index Provider selects the 160 securities with the
highest-ranking value scores and calculates a momentum score for each security.
A security’s momentum score is based on upward price movements of the security
as compared to other eligible securities within the remaining constituent
universe. The Index Provider then ranks the 160 remaining securities by momentum
score and selects the 80 highest-ranking securities for inclusion in the
Underlying Index. The component securities are weighted by value score.
As of June 30, 2019, the Underlying Index was comprised of
80 constituents that ranged in market capitalization from approximately
$9.83 billion to $769.41 million.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower
trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its
investments to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund may face more risks than
if it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Mid-Capitalization
Company Risk. Investing in securities of mid-capitalization companies involves greater
risk than customarily is associated with investing in larger, more established
companies. These companies’ securities may be more volatile and less liquid than
those of more established companies, and may have returns that vary, sometimes
significantly, from the overall securities market. Mid-capitalization companies tend to have
inexperienced management as well as limited product and market diversification
and financial resources. Often mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying Index for
a number of reasons. For example, the Fund incurs operating expenses not
applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund’s securities holdings to
reflect changes in the composition of the Underlying Index. In addition, the
performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Value Risk. Value securities are subject to the risk that
valuations never improve or that the returns on value securities are less than
returns on other styles of investing or the overall stock market. Thus, the
value of the Fund’s investments will vary and at times may be lower or higher
than that of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six
months ended June 30, 2019 was 20.57%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
18.56% (2nd Quarter 2009) |
|
(20.54)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the
table below are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend
on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to
investors who hold Shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(9.67 |
)% |
|
|
4.47 |
% |
|
|
11.49 |
% |
Return After Taxes on
Distributions |
|
|
(10.30 |
)% |
|
|
3.88 |
% |
|
|
11.02 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(5.33 |
)% |
|
|
3.44 |
% |
|
|
9.54 |
% |
S&P MidCap 400® High Momentum Value
Index(1)
(reflects no deduction for fees, expenses or taxes) |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Blended-S&P MidCap 400® High Momentum Value
Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(9.36 |
)% |
|
|
4.85 |
% |
|
|
12.05 |
% |
Russell Midcap Value® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(12.29 |
)% |
|
|
5.44 |
% |
|
|
13.03 |
% |
S&P MidCap 400® Index(3)
(reflects no deduction for fees, expenses or
taxes) |
|
|
(11.08 |
)% |
|
|
6.03 |
% |
|
|
13.68 |
% |
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell
Midcap® Pure Value
Index to the S&P MidCap 400® High Momentum Value
Index. Prior to the commencement date of February 19, 2019,
performance for the Underlying Index is not available.
|
(2) |
The “Blended- S&P MidCap 400® High Momentum Value
Index” reflects the performance of the Dynamic Mid Cap Value
IntellidexSM Index,
a former underlying index, prior to June 16, 2011, followed by the
performance of the RAFI® Fundamental Mid Value
Index, a former underlying index, from June 16, 2011 through
May 22, 2015, and the Russell Midcap® Pure Value Index, the
most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended- S&P MidCap 400® High Momentum Value
Index” will include the performance of the Underlying Index for periods
beginning June 22, 2019. |
(3) |
The Fund has elected to change its
broad-based index from the Russell Midcap Value® Index to the S&P
MidCap 400® Index
because the S&P MidCap 400® Index more closely
reflects the types of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a
401(k) plan or an individual retirement account, in which case your
distributions may be taxed as ordinary income when withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
EWSC |
|
Invesco S&P SmallCap 600® Equal Weight
ETF |
Summary Information
Investment Objective
The Invesco S&P SmallCap 600® Equal Weight ETF (the
“Fund”) seeks to track the investment results (before fees and expenses) of the
S&P SmallCap 600®
Equal Weight Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.40% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.40% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$41 |
|
$128 |
|
$224 |
|
$505 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 34% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which
consists of all of the components of the S&P SmallCap 600® Index (the “Parent Index”),
a broad-based index of approximately 600 securities that measures the small-cap
segment of the U.S. equity market. Such components include common stock of
companies listed on certain U.S. exchanges, and also may include equity
interests in real estate investment trusts (“REITs”).
As of June 30, 2019, the Underlying Index included securities
of companies with market capitalizations ranging from $32 million to
$4.43 billion.
The Underlying Index is an equal-weighted version of the Parent
Index. Unlike the Parent Index, which employs a market capitalization weighted
methodology, the Index Provider assigns each component security the same weight
in the Underlying Index.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in
interest rates, periods of market turbulence or instability, or
general and prolonged periods of economic decline and cyclical change. It is
possible that a drop in the stock market may depress the price of most or all of
the common stocks that the Fund holds. In addition, equity risk includes the
risk that investor sentiment toward one or more industries will become negative,
resulting in those investors exiting their investments in those industries,
which could cause a reduction of the value of companies in those industries more
broadly. The value of a company’s common stock may fall solely because of
factors, such as an increase in production costs, that negatively impact other
companies in the same region, industry or sector of the market. A company’s
common stock also may decline significantly in price over a short period of time
due to factors specific to that company, including decisions made by its
management or lower demand for the company’s products or services. For example,
an adverse event, such as an unfavorable earnings report or the failure to make
anticipated dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
REIT Risk. REITs are securities that invest substantially
all of their assets in real estate, trade like stocks and may qualify for
special tax considerations. In addition to the risks pertaining to real estate
investments more generally, such as declining property values or rising interest
rates, REITs are subject to additional risks. The value of a REIT can depend on
the structure of and cash flow generated by the REIT. REITs whose investments
are concentrated in a limited number or type of properties, investments or
narrow geographic area are subject to the risks affecting those properties or
areas to a greater extent than a REIT with less concentrated investments.
Further, failure of a company to qualify as a REIT under federal tax law may
have adverse consequences to the REIT’s shareholders. In addition, REITs may
have expenses, including advisory and administration expenses, and a REIT’s
shareholders will incur a proportionate share of those expenses.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past
performance (before and after taxes) is not necessarily indicative
of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P SmallCap 600® Equal Weight ETF (the
“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund
into the Fund, which was consummated after the close of business on
April 6, 2018. Accordingly, the performance information shown below for
periods ending on or prior to April 6, 2018 is that of the Predecessor
Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
14.89% (4th Quarter 2011) |
|
(22.67)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 11.93%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception (12/03/10) |
|
Return Before Taxes |
|
|
(10.56 |
)% |
|
|
2.14 |
% |
|
|
7.07 |
% |
Return After Taxes on
Distributions |
|
|
(10.83 |
)% |
|
|
1.74 |
% |
|
|
6.64 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.04 |
)% |
|
|
1.48 |
% |
|
|
5.46 |
% |
S&P SmallCap 600® Equal Weight
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(10.26 |
)% |
|
|
4.63 |
% |
|
|
10.10 |
% |
Blended-S&P SmallCap 600® Equal Weight Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(10.26 |
)% |
|
|
2.50 |
% |
|
|
7.54 |
% |
S&P SmallCap 600® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(8.48 |
)% |
|
|
6.34 |
% |
|
|
11.10 |
% |
(1) |
The Blended-S&P SmallCap 600® Equal Weight Index
reflects the performance of the Russell 2000® Equal Weight Index,
the former underlying index, prior to January 26, 2016 and the
S&P SmallCap 600® Equal Weight Index
thereafter. |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial
adviser to recommend the Fund over another investment. Ask your salesperson or
financial adviser or visit your financial intermediary’s web-site for more
information.
|
|
|
RZG |
|
Invesco S&P SmallCap 600® Pure Growth
ETF |
Summary Information
Investment Objective
The Invesco S&P SmallCap 600® Pure Growth ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
SmallCap 600® Pure Growth
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.35% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.35% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$36 |
|
$113 |
|
$197 |
|
$443 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 71% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of a subset of securities from the S&P SmallCap 600® Index (the “Parent Index”)
that exhibit strong growth characteristics, as measured using the following
three factors: three-year sales per share growth, three-year ratio of earnings
per share change to price per share, and momentum (the 12-month percentage
change in price). The securities in the Parent Index are each assigned a “growth
score” based on those three factors and are then ranked based on their scores.
The top one-third
of securities based on growth score are included in the Underlying
Index and are weighted so securities demonstrating the most growth
characteristics have proportionally greater weights.
As of June 30, 2019, the Underlying Index included securities
of companies with market capitalizations ranging from $120.5 million to
$4.31 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical
change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Growth Risk. The market values of “growth” securities may
be more volatile than other types of investments. The returns on “growth”
securities may or may not move in tandem with the returns on other styles of
investing or the overall stock market. Thus, the value of the Fund’s investments
will vary and at times may be lower than that of other types of investments.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past performance (before and after taxes) is not
necessarily indicative of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P SmallCap 600® Pure Growth ETF (the
“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund
into the Fund, which was consummated after the close of business on
April 6, 2018. Accordingly, the performance information shown below for
periods ending on or prior to April 6, 2018 is that of the Predecessor
Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
29.48% (2nd Quarter 2009) |
|
(22.06)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 7.16%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(7.74 |
)% |
|
|
6.06 |
% |
|
|
14.89 |
% |
Return After Taxes on
Distributions |
|
|
(7.84 |
)% |
|
|
5.83 |
% |
|
|
14.69 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(4.52 |
)% |
|
|
4.63 |
% |
|
|
12.54 |
% |
S&P SmallCap 600® Pure Growth
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(7.46 |
)% |
|
|
6.36 |
% |
|
|
15.23 |
% |
S&P SmallCap 600® Growth
Index
(reflects no deduction for fees, expenses or
taxes) |
|
|
(4.05 |
)% |
|
|
7.51 |
% |
|
|
14.86 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial
adviser to recommend the Fund over another investment. Ask your salesperson or
financial adviser or visit your financial intermediary’s web-site for more
information.
|
|
|
RZV |
|
Invesco S&P SmallCap 600® Pure Value
ETF |
Summary Information
Investment Objective
The Invesco S&P SmallCap 600® Pure Value ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
SmallCap 600® Pure Value
Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.35% |
|
Other Expenses |
|
|
0.00% |
|
Total Annual Fund Operating
Expenses |
|
|
0.35% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$36 |
|
$113 |
|
$197 |
|
$443 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 52% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the Index Provider”)
compiles, maintains and calculates the Underlying Index, which is composed of a
subset of securities from the S&P SmallCap 600® Index (the “Parent Index”)
that exhibit strong value characteristics, as measured using the following three
factors: book value to price ratio, earnings to price ratio, and sales to price
ratio. The securities in the Parent Index are each assigned a “value score”
based on those three factors and are then ranked based on their scores. The top
one-third of securities based on value score are included in the Underlying
Index and are weighted
so securities demonstrating the most value characteristics have
proportionally greater weights.
As of June 30, 2019, the Underlying Index included securities
of companies with market capitalizations ranging from $32 million to
$3.1 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and, therefore, is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the consumer
discretionary sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in
interest rates, periods of market turbulence or instability, or
general and prolonged periods of economic decline and cyclical change. It is
possible that a drop in the stock market may depress the price of most or all of
the common stocks that the Fund holds. In addition, equity risk includes the
risk that investor sentiment toward one or more industries will become negative,
resulting in those investors exiting their investments in those industries,
which could cause a reduction of the value of companies in those industries more
broadly. The value of a company’s common stock may fall solely because of
factors, such as an increase in production costs, that negatively impact other
companies in the same region, industry or sector of the market. A company’s
common stock also may decline significantly in price over a short period of time
due to factors specific to that company, including decisions made by its
management or lower demand for the company’s products or services. For example,
an adverse event, such as an unfavorable earnings report or the failure to make
anticipated dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Consumer Discretionary Sector Risk. Companies engaged in
the consumer discretionary sector are affected by fluctuations in supply and
demand and changes in consumer preferences, social trends and marketing
campaigns. Changes in consumer spending as a result of world events, political
and economic conditions, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations also may adversely affect these companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Value Risk. Value securities are subject to the risk that
the valuations never improve or that the returns on value securities are less
than returns on other styles of investing or the overall stock market. Thus, the
value of the Fund’s investments will vary and, at times, may be lower than that
of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. Although the information shown in the bar
chart and the table gives you some idea of the risks involved in investing in
the Fund, the Fund’s past
performance (before and after taxes) is not necessarily indicative
of how the Fund will perform in the future.
The Fund is the successor to the investment performance of the
Guggenheim S&P SmallCap 600® Pure Value ETF (the
“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund
into the Fund, which was consummated after the close of business on
April 6, 2018. Accordingly, the performance information shown below for
periods ending on or prior to April 6, 2018 is that of the Predecessor
Fund. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
75.37% (2nd Quarter 2009) |
|
(24.47)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 8.97%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(19.52 |
)% |
|
|
(0.46 |
)% |
|
|
13.01 |
% |
Return After Taxes on
Distributions |
|
|
(19.86 |
)% |
|
|
(0.84 |
)% |
|
|
12.60 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(11.27 |
)% |
|
|
(0.46 |
)% |
|
|
10.75 |
% |
S&P SmallCap 600® Pure Value
Index
(reflects no deduction for fees,
expenses or taxes) |
|
|
(19.28 |
)% |
|
|
(0.16 |
)% |
|
|
13.12 |
% |
S&P SmallCap 600® Value
Index
(reflects no deduction for fees,
expenses or taxes) |
|
|
(12.64 |
)% |
|
|
5.13 |
% |
|
|
12.37 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial
adviser to recommend the Fund over another investment. Ask your salesperson or
financial adviser or visit your financial intermediary’s web-site for more
information.
|
|
|
XSMO |
|
Invesco S&P SmallCap
Momentum ETF
(formerly, Invesco Russell 2000 Pure Growth
ETF) |
Summary Information
Investment Objective
The Invesco S&P SmallCap Momentum ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the S&P SmallCap
600 Momentum Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses(1) |
|
|
0.13% |
|
Total Annual Fund Operating
Expenses |
|
|
0.42% |
|
Fee Waivers and Expense Assumption(2) |
|
|
0.03% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.39% |
|
(1) |
“Other Expenses” have been restated to
reflect current expenses. |
(2) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.39% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$40 |
|
$129 |
|
$229 |
|
$524 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was
44% of the average value of its portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
composed of constituents of the S&P SmallCap 600® Index (the “Parent Index”)
that have the highest “momentum score.” In general, momentum is the tendency of
an investment to exhibit persistence in its relative performance; a “momentum
style” of investing emphasizes investing in securities that have had better
recent performance compared to other securities. The momentum score for each
security included in the Underlying Index is based on upward price movements of
the security as compared to other eligible securities within the Parent Index.
In selecting constituent securities for the Underlying Index, the
Index Provider first calculates the momentum score of each stock in the Parent
Index by evaluating the percentage change in the stock’s price over the last 12
months, excluding the most recent month, and applying an adjustment based on the
security’s volatility over that period. Approximately 120 of the securities with
the highest momentum score are included in the Underlying Index. The Underlying
Index uses a modified market capitalization-weighted strategy and weights
securities by multiplying each security’s market capitalization and momentum
score.
As of June 30, 2019, the Underlying Index was comprised of 112
constituents with market capitalizations ranging from $4.3 billion to $204
million.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the health care
sector. The Fund’s portfolio holdings, and the extent to which it concentrates
its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited
number of institutions that may act as APs and such APs have no
obligation to submit creation or redemption orders. Consequently, there is no
assurance that APs will establish or maintain an active trading market for the
Shares. This risk may be heightened to the extent that securities held by the
Fund are traded outside a collateralized settlement system. In that case, APs
may be required to post collateral on certain trades on an agency basis (i.e.,
on behalf of other market participants), which only a limited number of APs may
be able to do. In addition, to the extent that APs exit the business or are
unable to proceed with creation and/or redemption orders with respect to the
Fund and no other AP is able to step forward to create or redeem Creation Units
(as defined below), this may result in a significantly diminished trading market
for Shares, and Shares may be more likely to trade at a premium or discount to
the Fund’s net asset value (“NAV”) and to face trading halts and/or delisting.
Investments in non-U.S. securities, which may have lower trading volumes, may
increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its
methodology, the Underlying Index from time to time may be concentrated to a
significant degree in securities of issuers operating in a single industry or
industry group. To the extent that the Underlying Index concentrates in the
securities of issuers in a particular industry or industry group, the Fund will
also concentrate its investments to approximately the same extent. By
concentrating its investments in an industry or industry group, the Fund may
face more risks than if it were diversified broadly over numerous
industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Health Care Sector Risk. Factors such as extensive
government regulation, restrictions on government reimbursement for medical
expenses, rising costs of medical products, services and facilities, pricing
pressure, an increased emphasis on outpatient services, limited number of
products, industry innovation, costs associated with obtaining and protecting
patents, product liability and other claims, changes in technologies and other
market developments can affect companies in the health care sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more
established companies. These companies’ securities may be more
volatile and less liquid than those of more established companies. These
securities may have returns that vary, sometimes significantly, from the overall
securities market. Often small- and mid-capitalization companies and the
industries in which they focus are still evolving and, as a result, they may be
more sensitive to changing market conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
18.01% (4th Quarter 2010) |
|
(22.33)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 21.34%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(2.88 |
)% |
|
|
6.14 |
% |
|
|
11.68 |
% |
Return After Taxes on
Distributions |
|
|
(3.04 |
)% |
|
|
5.99 |
% |
|
|
11.55 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(1.62 |
)% |
|
|
4.78 |
% |
|
|
9.74 |
% |
S&P SmallCap 600® Momentum
Index(1) (reflects no deduction for fees,
expenses or taxes) |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Blended-S&P SmallCap 600® Momentum Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(2.94 |
)% |
|
|
6.27 |
% |
|
|
12.16 |
% |
Russell 2000® Growth
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(9.31 |
)% |
|
|
5.13 |
% |
|
|
13.52 |
% |
S&P SmallCap 600® Index(3) (reflects no
deduction for fees, expenses or taxes) |
|
|
(8.48 |
)% |
|
|
6.34 |
% |
|
|
13.61 |
% |
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell
2000® Pure Growth
Index to the S&P SmallCap 600 Momentum Index. Prior to the
commencement date of January 4, 2018, performance for the Underlying
Index is not available. |
(2) |
The “Blended-S&P SmallCap 600® Momentum Index”
reflects the performance of the Dynamic Small Cap Growth IntellidexSM Index, a former
underlying index prior to June 16, 2011, followed by the performance
of the RAFI®
Fundamental Small Growth Index, a former underlying index, from
June 16, 2011 through May 22, 2015, and the Russell 2000® Pure Growth Index, the
most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended S&P SmallCap 600® Momentum Index” will
include the performance of the Underlying Index for periods beginning
June 22, 2019. |
(3) |
The Fund has elected to change its
broad-based index from the Russell 2000® Growth Index to the
S&P SmallCap 600® Index because the
S&P SmallCap 600® Index more closely
reflects the types of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
XSVM |
|
Invesco S&P SmallCap Value
with Momentum ETF
(formerly, Invesco Russell 2000 Pure Value
ETF) |
Summary Information
Investment Objective
The Invesco S&P SmallCap Value with Momentum ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the S&P
SmallCap 600 High Momentum Value Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.29% |
|
Other Expenses |
|
|
0.15% |
|
Total Annual Fund Operating
Expenses |
|
|
0.44% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.05% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.39% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding 0.39% of the Fund’s average daily
net assets per year (the “Expense Cap”) until at least August 31,
2021, and neither the Adviser nor the Fund can discontinue the agreement
prior to its expiration. The fees waived and/or expenses borne by the
Adviser are subject to recapture by the Adviser for up to three years from
the date the fees were waived or the expenses were incurred, but no
recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect
at the time the fees and/or expenses subject to recapture were waived
and/or borne by the Adviser. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$40 |
|
$131 |
|
$236 |
|
$545 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was
52% of the average value of its portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles, maintains and calculates the Underlying Index, which is
designed to track the performance of approximately 120 stocks in the S&P
SmallCap 600® Index (the
“Parent Index”) that have the highest “value” and “momentum” scores. In general,
a value stock tends to trade at a lower price relative to its issuer’s
fundamentals and thus may be considered undervalued by investors and momentum is
the tendency of an investment to exhibit persistence in its relative
performance. A “momentum style” of investing emphasizes investing in securities
that have had better recent performance compared to other securities.
In selecting constituent securities for the Underlying Index, the
Index Provider first calculates the value score of each stock in the Parent
Index by averaging each stock’s: (i) book value-to-price ratio, calculated
using the company’s latest book value per share divided by its price;
(ii) earnings-to-price ratio, calculated using the company’s trailing
12-month earnings per share divided by its price; and (iii) sales-to-price
ratio, calculated using the company’s trailing 12-month sales per share divided
by its price.
The Index Provider selects the 240 securities with the highest
ranking value scores and calculates a momentum score for each security. A
security’s momentum score is based on upward price movements of the security as
compared to other eligible securities within the remaining constituent universe.
The Index Provider then ranks the 240 securities by momentum score and selects
the 120 highest-ranking securities for inclusion in the Underlying Index. The
component securities are weighted by value score.
As of June 30, 2019, the Underlying Index was comprised of 120
constituents with market capitalizations ranging from $3.10 billion to $94.5
million.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S. securities,
which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a
significant degree in securities of issuers operating in a single
industry or industry group. To the extent that the Underlying Index concentrates
in the securities of issuers in a particular industry or industry group, the
Fund will also concentrate its investments to approximately the same extent. By
concentrating its investments in an industry or industry group, the Fund may
face more risks than if it were diversified broadly over numerous industries or
industry groups. Such industry-based risks, any of which may adversely affect
the companies in which the Fund invests, may include, but are not limited to,
legislative or regulatory changes, adverse market conditions and/or increased
competition within the industry or industry group. In addition, at times, such
industry or industry group may be out of favor and underperform other
industries, industry groups or the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Momentum Investing Risk. The momentum style of investing is
subject to the risk that the securities may be more volatile than the market as
a whole, or that the returns on securities that previously have exhibited price
momentum are less than returns on other styles of investing. Momentum can turn
quickly, and stocks that previously have exhibited high momentum may not
experience continued positive momentum. In addition, there may be periods when
the momentum style of investing is out of favor and therefore, the investment
performance of the Fund may suffer.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the
Fund incurs operating expenses not applicable to the Underlying
Index, and incurs costs in buying and selling securities, especially when
rebalancing the Fund’s securities holdings to reflect changes in the composition
of the Underlying Index. In addition, the performance of the Fund and the
Underlying Index may vary due to asset valuation differences and differences
between the Fund’s portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Value Risk. Value securities are subject to the risk that
valuations never improve or that the returns on value securities are less than
returns on other styles of investing or the overall stock market. Thus, the
value of the Fund’s investments will vary and at times may be lower or higher
than that of other types of investments.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
17.58% (4th Quarter 2011) |
|
(23.17)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 11.68%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(11.82 |
)% |
|
|
3.41 |
% |
|
|
11.29 |
% |
Return After Taxes on
Distributions |
|
|
(12.38 |
)% |
|
|
2.83 |
% |
|
|
10.86 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(6.68 |
)% |
|
|
2.57 |
% |
|
|
9.36 |
% |
S&P SmallCap 600 High Momentum
Value Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Blended-S&P SmallCap 600 High
Momentum Value Index
(2) (reflects no deduction for fees, expenses or taxes) |
|
|
(11.66 |
)% |
|
|
3.66 |
% |
|
|
11.74 |
% |
Russell 2000® Value
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(12.86 |
)% |
|
|
3.61 |
% |
|
|
10.40 |
% |
S&P SmallCap 600® Index(3) (reflects no
deduction for fees, expenses or taxes) |
|
|
(8.48 |
)% |
|
|
6.34 |
% |
|
|
13.61 |
% |
(1) |
Effective after the close of business on
June 21, 2019, the Fund changed its underlying index from the Russell
2000® Pure Value
Index to the S&P SmallCap 600 High Momentum Value Index. Prior to the
commencement date of February 19, 2019, performance for the
Underlying Index is not available. |
(2) |
The “Blended-S&P SmallCap 600 High
Momentum Value Index” reflects the performance of the Dynamic Small Cap
Value IntellidexSM
Index, a former underlying index, prior to June 16, 2011, followed by
the performance of the RAFI® Fundamental Small
Value Index, a former underlying index, from June 16, 2011 through
May 22, 2015, and the Russell 2000® Pure Value Index, the
most recent former underlying index, from May 23, 2015 through
December 31, 2018. The “Blended S&P SmallCap 600 High Momentum
Value Index” will include the performance of the Underlying Index for
periods beginning June 22, 2019. |
(3) |
The Fund has elected to change its
broad-based index from the Russell 2000® Value Index to the
S&P SmallCap 600® Index because the
S&P SmallCap 600® Index more closely
reflects the types of securities in which the Fund invests.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August
2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
CSD |
|
Invesco S&P Spin-Off
ETF |
Summary Information
Investment Objective
The Invesco S&P Spin-Off ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the S&P U.S. Spin-Off Index
(the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.12% |
|
Total Annual Fund Operating
Expenses |
|
|
0.62% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$63 |
|
$199 |
|
$346 |
|
$774 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 49% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index
Provider”) compiles and maintains the Underlying Index, which is designed to
measure the performance of U.S. companies that have been spun off from a parent
company within the past four years. The Underlying Index is comprised of equity
securities of U.S. companies added to the S&P U.S. BMI, a country sub-index
of the S&P Global BMI, that have been spun off and have a float-adjusted
market capitalization of at least $1 billion. The Index Provider defines a
spin-off company as any company resulting from one of the following events:
• |
|
Spin-off. A spin-off occurs when a
company divests a subsidiary or division to create a new, independent
company. |
• |
|
Carve-out. The sale
by a parent company of a minority stake in a subsidiary to public
shareholders. |
• |
|
Split-off. The
distribution of shares of a subsidiary company by its parent company to
parent company shareholders that elect to redeem their shares in the
parent company in return for shares of the subsidiary company.
|
As of June 30, 2019, the Underlying Index was comprised of
48 securities with market capitalizations ranging from $115 million to
$134.5 billion.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or
its industry. Such general economic conditions include changes in interest
rates, periods of market turbulence or instability, or general and prolonged
periods of economic decline and cyclical change. It is possible that a drop in
the stock market may depress the price of most or all of the common stocks that
the Fund holds. In addition, equity risk includes the risk that investor
sentiment toward one or more industries will become negative, resulting in those
investors exiting their investments in those industries, which could cause a
reduction of the value of companies in those industries more broadly. The value
of a company’s common stock may fall solely because of factors, such as an
increase in production costs, that negatively impact other companies in the same
region, industry or sector of the market. A company’s common stock also may
decline significantly in price over a short period of time due to factors
specific to that company, including decisions made by its management or lower
demand for the company’s products or services. For example, an adverse event,
such as an unfavorable earnings report or the failure to make anticipated
dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or industry group, the Fund may face more risks
than if it were diversified broadly over numerous industries or industry groups.
Such industry-based risks, any of which may adversely affect the companies in
which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition
within the industry or industry group. In addition, at times, such industry or
industry group may be out of favor and underperform other industries, industry
groups or the market as a whole.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption
in the creation/redemption process of the Fund. Any of these
factors may lead to the Shares trading at a premium or discount to the Fund’s
NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future.
The Fund is the successor to the investment performance of the
Guggenheim S&P Spin-Off ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
26.85% (3rd Quarter 2009) |
|
(22.12)% (4th Quarter 2018) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 17.82%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(17.83 |
)% |
|
|
0.30 |
% |
|
|
15.06 |
% |
Return After Taxes on
Distributions |
|
|
(18.07 |
)% |
|
|
(0.32 |
)% |
|
|
14.58 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(10.46 |
)% |
|
|
(0.04 |
)% |
|
|
12.54 |
% |
S&P U.S. Spin-Off Index(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(17.32 |
)% |
|
|
N/A |
|
|
|
N/A |
|
Blended-S&P U.S. Spin-Off Index(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(17.32 |
)% |
|
|
0.76 |
% |
|
|
15.76 |
% |
Russell Midcap® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(9.06 |
)% |
|
|
6.26 |
% |
|
|
14.03 |
% |
(1) |
Prior to the commencement date of March
25, 2015, performance information for the Underlying Index is not
available. |
(2) |
The Blended-S&P U.S. Spin-Off Index
reflects the performance of the Beacon Spin-Off Index, the former
underlying index, prior to May 20, 2016, and the Underlying Index
thereafter. |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
PHO |
|
Invesco Water Resources
ETF |
Summary Information
Investment Objective
The Invesco Water Resources ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the NASDAQ OMX US Water
IndexSM (the “Underlying
Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.10% |
|
Total Annual Fund Operating
Expenses |
|
|
0.60% |
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$61 |
|
$192 |
|
$335 |
|
$750 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 31% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated procedures
Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) compiles the Underlying Index,
which seeks to track the performance of U.S. exchange-listed companies that
create products designed to conserve and purify water for homes, businesses and
industries. The Underlying Index may include common stocks, ordinary shares,
American depositary receipts (“ADRs”), shares of beneficial interest and
tracking stocks.
As of June 30, 2019, the Underlying Index was composed of 35
securities of companies with market capitalizations ranging from $1.1 million to
$134.2 million.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the water industry and
the industrials sector. The Fund’s portfolio holdings, and the extent to which
it concentrates its investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR Risk. ADRs are certificates that evidence ownership of
shares of a foreign issuer and are alternatives to purchasing directly
underlying foreign securities in their national markets and currencies. However,
ADRs may be subject to certain of the risks associated with direct investments
in the securities of foreign companies. Moreover, ADRs may not track the price
of the underlying foreign securities on which they are based, and their value
may change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes
in general economic conditions that impact the market as a whole,
as well as factors that directly relate to a specific company or its industry.
Such general economic conditions include changes in interest rates, periods of
market turbulence or instability, or general and prolonged periods of economic
decline and cyclical change. It is possible that a drop in the stock market may
depress the price of most or all of the common stocks that the Fund holds. In
addition, equity risk includes the risk that investor sentiment toward one or
more industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Foreign Securities Risk. The Fund’s exposure to foreign
securities involves risks beyond those associated with domestic securities. In
general, foreign companies often are subject to less stringent requirements
regarding accounting, auditing, financial reporting and record-keeping than are
U.S. companies, and therefore, not all material information regarding these
companies will be available. The value of foreign securities may also fluctuate
due to adverse political and economic developments and currency fluctuations,
and these securities may have less liquidity and more volatility than domestic
securities.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Water Industry Risk. Adverse developments in the water
industry may significantly affect the value of the Shares of the Fund. Companies
involved in the water industry are
subject to environmental considerations, taxes, government
regulation, price and supply fluctuations, competition and water conservation.
Industrials Sector Risk. Changes in government regulation,
world events and economic conditions may adversely affect companies in the
industrials sector. In addition, these companies are at risk for environmental
and product liability damage claims. Also, commodity price volatility, changes
in exchange rates, imposition of import controls, increased competition,
depletion of resources, technological developments and labor relations could
adversely affect the companies in this sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied
from year to year and by showing how the Fund’s average annual total returns
compared with a broad measure of market performance and additional indexes with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future. Updated performance information is available online at
www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 26.45%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
22.20% (2nd Quarter 2009) |
|
(22.23)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(6.26 |
)% |
|
|
2.03 |
% |
|
|
7.53 |
% |
Return After Taxes on
Distributions |
|
|
(6.36 |
)% |
|
|
1.91 |
% |
|
|
7.40 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(3.63 |
)% |
|
|
1.56 |
% |
|
|
6.12 |
% |
NASDAQ OMX US Water IndexSM(1) (reflects no
deduction for fees, expenses or taxes) |
|
|
(5.76 |
)% |
|
|
2.65 |
% |
|
|
N/A |
|
Blended—NASDAQ OMX US Water IndexSM(2) (reflects no
deduction for fees, expenses or taxes) |
|
|
(5.76 |
)% |
|
|
2.65 |
% |
|
|
8.28 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
(1) |
Prior to the commencement date of
July 27, 2011, performance for the Underlying Index is not available.
|
(2) |
The “Blended—NASDAQ OMX US Water
IndexSM” reflects
the performance of the Palisades Water Index, the former underlying index,
prior to March 1, 2012 and the Underlying Index thereafter.
|
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on The Nasdaq
Stock Market and because the Shares will trade at market prices rather than NAV,
Shares may trade at prices greater than NAV (at a premium), at NAV, or less than
NAV (at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another
investment. Ask your salesperson or financial adviser or visit
your financial intermediary’s web-site for more information.
|
|
|
PBW |
|
Invesco WilderHill Clean Energy
ETF |
Summary Information
Investment Objective
The Invesco WilderHill Clean Energy ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the WilderHill Clean
Energy Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.21% |
|
Total Annual Fund Operating
Expenses |
|
|
0.71% |
|
Fee Waivers and Expense Assumption(1) |
|
|
0.01% |
|
Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption |
|
|
0.70% |
|
(1) |
Invesco Capital Management LLC (the
“Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent
necessary to prevent the operating expenses of the Fund (excluding
interest expenses, brokerage commissions and other trading expenses,
offering costs, sub-licensing fees, taxes, Acquired Fund Fees and
Expenses, if applicable, and extraordinary expenses) from exceeding 0.60%
of the Fund’s average daily net assets per year (the “Expense Cap”) until
at least August 31, 2021, and neither the Adviser nor the Fund can
discontinue the agreement prior to its expiration. The fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for
up to three years from the date the fees were waived or the expenses were
incurred, but no recapture payment will be made by the Fund if it would
result in the Fund exceeding (i) the Expense Cap or (ii) the
expense cap in effect at the time the fees and/or expenses subject to
recapture were waived and/or borne by the Adviser.
|
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds. This example assumes that
you invest $10,000 in the Fund for the time periods indicated and then sell all
of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses are
equal to the Total Annual Fund Operating Expenses After Fee Waivers and Expense
Assumption in the first two years and the Total Annual Fund Operating Expenses
thereafter. This example does not include the brokerage commissions that
investors may pay to buy and sell Shares. Although your actual costs may be
higher or lower, your costs, based on these assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$72 |
|
$225 |
|
$393 |
|
$881 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 40% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, WilderShares (the “Index Provider”) compiles and maintains the
Underlying Index, which is composed of stocks of publicly traded companies in
the United States that are engaged in the business of the advancement of
cleaner energy and conservation. Stocks are included in the Underlying Index
based on the Index Provider’s evaluation that such companies will substantially
benefit from a societal transition toward the use of cleaner energy and
conservation.
As of June 30, 2019, the Underlying Index was composed of
38 stocks.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
Concentration Policy. The Fund will concentrate its
investments (i.e., invest 25% or more of the value of its total assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the clean energy
industry and information technology sector. The Fund’s portfolio holdings, and
the extent to which it concentrates its investments, are likely to change over
time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index will be concentrated to a significant degree in securities
of issuers operating in a single industry or industry group. As a result, the
Fund will also concentrate its investments in such industry or industry group to
approximately the same extent. By concentrating its investments in an industry
or industry group, the Fund faces more risks than if it were diversified broadly
over numerous industries or industry groups. Such industry-based risks, any of
which may adversely affect the companies in which the Fund invests, may include,
but are not limited to, legislative or regulatory changes, adverse market
conditions and/or increased competition within the industry or industry group.
In addition, at times, such industry or industry group may be out of favor and
underperform other industries, industry groups or the market as a whole.
Clean Energy Industry Risk. The risks of investing in the
clean energy industry include the risks of focusing investments in the water,
energy and environmental sectors, and adverse developments in these sectors may
significantly affect the value of the Shares. Securities of companies in the
clean energy industry are subject to swift price and supply fluctuations caused
by events relating to international politics, the success of project development
and tax and other governmental regulatory policies. Weak demand for the
companies’ products or services or for clean energy products and services in
general, as well as negative developments in these other areas, may adversely
affect the Fund’s
performance. Obsolescence of existing technology, short product
cycles, falling prices and profits, competition from new market entrants and
general economic conditions can significantly affect the clean energy industry.
The clean energy industry is an emerging growth industry, and therefore such
companies may be more volatile.
Information Technology Sector Risk. Factors such as the
failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, product compatibility, consumer preferences, corporate
capital expenditure, rapid obsolescence, competition from alternative
technologies, and research and development of new products may significantly
affect the market value of securities of issuers in the information technology
sector.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how
the Fund’s total returns have varied from year to year and by
showing how the Fund’s average annual total returns compared with a broad
measure of market performance and an additional index with characteristics
relevant to the Fund. The Fund’s performance reflects fee waivers, if any,
absent which performance would have been lower. Although the information shown
in the bar chart and the table gives you some idea of the risks involved in
investing in the Fund, the Fund’s past performance (before and after taxes) is
not necessarily indicative of how the Fund will perform in the future. Updated
performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 39.61%.
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
30.56% (2nd Quarter
2009) |
|
(38.74)% (3rd Quarter 2011) |
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(13.71 |
)% |
|
|
(5.84 |
)% |
|
|
(5.01 |
)% |
Return After Taxes on
Distributions |
|
|
(14.24 |
)% |
|
|
(6.54 |
)% |
|
|
(5.58 |
)% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(7.96 |
)% |
|
|
(4.53 |
)% |
|
|
(3.72 |
)% |
WilderHill Clean Energy
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(14.58 |
)% |
|
|
(7.10 |
)% |
|
|
(5.80 |
)% |
NASDAQ Composite Index (Price
Only) (reflects no deduction for fees, expenses or taxes, and reflects
no dividends paid by the component companies of the index) |
|
|
(3.88 |
)% |
|
|
9.70 |
% |
|
|
15.45 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC (the
“Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with
Adviser/Trust |
|
Date Began Managing the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
June 2007 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
August 2008 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
August 2014 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
CZA |
|
Invesco Zacks Mid-Cap
ETF |
Summary Information
Investment Objective
The Invesco Zacks Mid-Cap ETF (the “Fund”) seeks to track the
investment results (before fees and expenses) of the Zacks Mid-Cap Core Index
(the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.20% |
|
Acquired Fund Fees and Expenses(1) |
|
|
0.06% |
|
Total Annual Fund Operating
Expenses |
|
|
0.76% |
|
(1) |
“Acquired Fund Fees and Expenses” are
indirect fees and expenses that the Fund incurs from investing in the
shares of other investment companies. Please note that the amount of Total
Annual Fund Operating Expenses shown in the above table may differ from
the ratio of expenses to average net assets included in the “Financial
Highlights” section of this Prospectus, which reflects the operating
expenses of the Fund and does not include indirect expenses such as
Acquired Fund Fees and Expenses. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$78 |
|
$243 |
|
$422 |
|
$942 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 170% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index, as well as American
depositary receipts (“ADRs”) that represent securities in the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Zacks Investment Research, Inc. (“Zacks” or the “Index Provider”)
compiles and maintains the Underlying
Index, which is composed of 100 securities that Zacks selects from
a universe of mid-capitalization securities including common stocks, master
limited partnerships (“MLPs”), ADRs, real estate investment trusts (“REITs”) and
business development companies (“BDCs”). The depositary receipts included in the
Underlying Index may be sponsored or unsponsored. Zacks seeks to identify
companies with potentially superior risk-return profiles by using a proprietary
strategy that evaluates stocks on multiple factors, including their high
long-term earnings growth rate, price-earnings ratio and short interest.
As of June 30, 2019, the Underlying Index included securities
of companies with market capitalizations ranging from from $4 billion to
$26 billion.
The Fund may invest directly in one or more underlying securities
represented by depositary receipts included in the Underlying Index under the
following limited circumstances: (a) when market conditions result in the
underlying security providing improved liquidity relative to the depositary
receipt; (b) when a depositary receipt is trading at a significantly
different price than its underlying security; or (c) the timing of trade
executions is improved due to the local market in which an underlying security
is traded being open at different times than the market in which the security’s
corresponding depositary receipt is traded.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR Risk. ADRs are certificates that evidence ownership of
shares of a foreign issuer and are alternatives to purchasing directly
underlying foreign securities in their national markets and currencies. However,
ADRs may be subject to certain of the risks associated with direct investments
in the securities of foreign companies. Moreover, ADRs may not track the price
of the underlying foreign securities on which they are based, and their
value may change materially at times when U.S. markets are not
open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single
industry or industry group. To the extent that the Underlying
Index concentrates in the securities of issuers in a particular industry or
industry group, the Fund will also concentrate its investments to approximately
the same extent. By concentrating its investments in an industry or industry
group, the Fund may face more risks than if it were diversified broadly over
numerous industries or industry groups. Such industry-based risks, any of which
may adversely affect the companies in which the Fund invests, may include, but
are not limited to, legislative or regulatory changes, adverse market conditions
and/or increased competition within the industry or industry group. In addition,
at times, such industry or industry group may be out of favor and underperform
other industries, industry groups or the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Investments in BDCs Risk. Investments in BDCs may be
subject to certain inherent risks. BDCs, generally invest in less mature private
companies, which involve greater risk than well-established, publicly-traded
companies. The 1940 Act imposes certain restraints upon the operations of a BDC
and these limitations may prohibit the way that the BDC raises capital.
Investment Companies Risk. Investing in other investment
companies subjects the Fund to those risks affecting the investment company,
including the possibility that the value of the underlying securities held by
the investment company could decrease or the portfolio becomes illiquid.
Moreover, the Fund will pay indirectly a proportional share of the fees and
expenses of the investment companies in which it invests. Investments
exchange-traded funds are subject to, among other risks, the risk that the
fund’s shares may trade at a discount or premium relative to the NAV of its
shares and the listing exchange may halt trading of the fund’s shares.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the
Shares, losses from trading in secondary markets, and disruption
in the creation/redemption process of the Fund. Any of these factors may lead to
the Shares trading at a premium or discount to the Fund’s NAV.
Master Limited Partnership Risk. An MLP is an entity that
is classified as a partnership under the Internal Revenue Code of 1986, as
amended (the “Internal Revenue Code”), and whose partnership interests or
“units” are traded on securities exchanges like shares of corporate stock.
Investments in MLPs units are subject to certain risks inherent in a partnership
structure, including (i) tax risks, (ii) the limited ability to elect
or remove management or the general partner or managing member,
(iii) limited voting rights and (iv) conflicts of interest between the
general partner or managing member and its affiliates and the limited partners
or members. Securities issued by MLPs may experience limited trading volumes and
may be relatively illiquid or volatile at times. As partnerships, MLPs may be
subject to less regulation (and less protection for investors) than corporations
under state laws, and may be subject to state taxation in certain jurisdictions,
which may reduce the amount of income an MLP pays to its investors.
Mid-Capitalization Company Risk. Investing in securities of
mid-capitalization companies involves greater risk than customarily is
associated with investing in larger, more established companies. These
companies’ securities may be more volatile and less liquid than those of more
established companies, and may have returns that vary, sometimes significantly,
from the overall securities market. Mid-capitalization companies tend to have
inexperienced management as well as limited product and market diversification
and financial resources. Often mid-capitalization companies and the industries
in which they focus are still evolving and, as a result, they may be more
sensitive to changing market conditions.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high
portfolio turnover rate (such as 100% or more) could result in
high brokerage costs for the Fund. While a high portfolio turnover rate can
result in an increase in taxable capital gain distributions to the Fund’s
shareholders, the Fund will seek to utilize the in-kind creation and redemption
mechanism (described below) to minimize realization of capital gains to the
extent possible.
REIT Risk. REITs are securities that invest substantially
all of their assets in real estate, trade like stocks and may qualify for
special tax considerations. In addition to the risks pertaining to real estate
investments more generally, such as declining property values or rising interest
rates, REITs are subject to additional risks. The value of a REIT can depend on
the structure of and cash flow generated by the REIT. REITs whose investments
are concentrated in a limited number or type of properties, investments or
narrow geographic area are subject to the risks affecting those properties or
areas to a greater extent than a REIT with less concentrated investments.
Further, failure of a company to qualify as a REIT under federal tax law may
have adverse consequences to the REIT’s shareholders. In addition, REITs may
have expenses, including advisory and administration expenses, and a REIT’s
shareholders will incur a proportionate share of those expenses.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future.
The Fund is the successor to the investment performance of the
Guggenheim Mid-Cap Core ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
21.08% (2nd Quarter 2009) |
|
(18.34)% (3rd Quarter 2011) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 21.31%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(8.76 |
)% |
|
|
6.70 |
% |
|
|
14.83 |
% |
Return After Taxes on
Distributions |
|
|
(9.05 |
)% |
|
|
6.17 |
% |
|
|
14.40 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(5.00 |
)% |
|
|
5.01 |
% |
|
|
12.36 |
% |
Zacks Mid-Cap Core Index (reflects
no deduction for fees, expenses or taxes) |
|
|
(8.16 |
)% |
|
|
7.39 |
% |
|
|
15.66 |
% |
Russell Midcap® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(9.06 |
)% |
|
|
6.26 |
% |
|
|
14.03 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is
called a “Creation Unit”) or multiples thereof (“Creation Unit
Aggregations”), generally in exchange for the deposit or delivery of a basket of
securities. However, the Fund also reserves the right to permit or require
Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
|
|
|
CVY |
|
Invesco Zacks Multi-Asset Income
ETF |
Summary Information
Investment Objective
The Invesco Zacks Multi-Asset Income ETF (the “Fund”) seeks to
track the investment results (before fees and expenses) of the Zacks Multi-Asset
Income Index (the “Underlying Index”).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund (“Shares”). Investors may pay brokerage
commissions on their purchases and sales of Shares, which are not reflected in
the table or the example below.
|
|
|
|
|
Annual Fund Operating Expenses |
|
(expenses that you pay
each year as a percentage of the value of your investment) |
|
|
|
Management Fees |
|
|
0.50% |
|
Other Expenses |
|
|
0.21% |
|
Acquired Fund Fees and Expenses(1) |
|
|
0.26% |
|
Total Annual Fund Operating
Expenses |
|
|
0.97% |
|
(1) |
“Acquired Fund Fees and Expenses” are
indirect fees and expenses that the Fund incurs from investing in the
shares of other investment companies. Please note that the amount of Total
Annual Fund Operating Expenses shown in the above table may differ from
the ratio of expenses to average net assets included in the “Financial
Highlights” section of this Prospectus, which reflects the operating
expenses of the Fund and does not include indirect expenses such as
Acquired Fund Fees and Expenses. |
Example
This example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the
time periods indicated and then sell all of your Shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. This example does not
include the brokerage commissions that investors may pay to buy and sell Shares.
Although your actual costs may be higher or lower, your costs, based on these
assumptions, would be:
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
$99 |
|
$309 |
|
$536 |
|
$1,190 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it
purchases and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate will cause the Fund to incur additional transaction
costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, may affect the Fund’s performance. During the most recent fiscal
year, the Fund’s portfolio turnover rate was 196% of the average value of its
portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in
the securities that comprise the Underlying Index, as well as American
depositary receipts (“ADRs”) that represent securities in the Underlying Index.
Strictly in accordance with its guidelines and mandated
procedures, Zacks Investment Research, Inc. (“Zacks” or the “Index Provider”)
compiles and maintains the Underlying Index, which is composed of securities
that Zacks selects from a universe of domestic and international companies
listed on major U.S. exchanges. Zacks seeks to identify companies with
potentially high income and superior risk-return profiles by using a proprietary
strategy that evaluates stocks on multiple factors, including dividend yield and
risk adjusted return. The securities comprising the Underlying Index include
stocks of large, medium, and small-sized companies and may include U.S. listed
common stocks paying dividends, ADRs, real estate investment trusts (“REITs”),
master limited partnerships (“MLPs”), closed-end funds and traditional preferred
stocks.
The Fund may invest directly in one or more underlying securities
represented by depositary receipts included in the Underlying Index under the
following limited circumstances: (a) when market conditions result in the
underlying security providing improved liquidity relative to the depositary
receipt; (b) when a depositary receipt is trading at a significantly
different price than its underlying security; or (c) the timing of trade
executions is improved due to the local market in which an underlying security
is traded being open at different times than the market in which the security’s
corresponding depositary receipt is traded.
The Fund employs a “full replication” methodology in seeking to
track the Underlying Index, meaning that the Fund generally invests in all of
the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The Fund is “non-diversified” and therefore is not required to
meet certain diversification requirements under the Investment Company Act of
1940, as amended (the “1940 Act”).
Concentration Policy. The Fund will concentrate its
investments (i.e., invest more than 25% of the value of its net assets) in
securities of issuers in any one industry or group of industries only to the
extent that the Underlying Index reflects a concentration in that industry or
group of industries. The Fund will not otherwise concentrate its investments in
securities of issuers in any one industry or group of industries. As of
April 30, 2019, the Fund had significant exposure to the financials sector.
The Fund’s portfolio holdings, and the extent to which it concentrates its
investments, are likely to change over time.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
The Shares will change in value, and you could lose money by
investing in the Fund. The Fund may not achieve its investment objective.
ADR Risk. ADRs are certificates that evidence ownership of
shares of a foreign issuer and are alternatives to purchasing underlying foreign
securities directly in their national markets and currencies. However, ADRs may
be subject to certain of the risks associated with direct investments in the
securities of foreign companies. Moreover, ADRs may not track the price of the
underlying foreign securities on which they are based, and their value may
change materially at times when U.S. markets are not open for trading.
Authorized Participant Concentration Risk. Only authorized
participants (“APs”) may engage in creation or redemption transactions directly
with the Fund. The Fund has a limited number of institutions that may act as APs
and such APs have no obligation to submit creation or redemption orders.
Consequently, there is no assurance that APs will establish or maintain an
active trading market for the Shares. This risk may be heightened to the extent
that securities held by the Fund are traded outside a collateralized settlement
system. In that case, APs may be required to post collateral on certain trades
on an agency basis (i.e., on behalf of other market participants), which only a
limited number of APs may be able to do. In addition, to the extent that APs
exit the business or are unable to proceed with creation and/or redemption
orders with respect to the Fund and no other AP is able to step forward to
create or redeem Creation Units (as defined below), this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to the Fund’s net asset value (“NAV”)
and to face trading halts and/or delisting. Investments in non-U.S.
securities, which may have lower trading volumes, may increase this risk.
Equity Risk. Equity risk is the risk that the value of
equity securities, including common stocks, may fall due to both changes in
general economic conditions that impact the market as a whole, as well as
factors that directly relate to a specific company or its industry. Such general
economic conditions include changes in interest rates, periods of market
turbulence or instability, or general and prolonged periods of economic decline
and cyclical change. It is possible that a drop in the stock market may depress
the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward one or more
industries will become negative, resulting in those investors exiting their
investments in those industries, which could cause a reduction of the value of
companies in those industries more broadly. The value of a company’s common
stock may fall solely because of factors, such as an increase in production
costs, that negatively impact other companies in the same region, industry or
sector of the market. A company’s common stock also may decline significantly in
price over a short period of time due to factors specific to that company,
including decisions made by its management or lower demand for the company’s
products or services. For example, an adverse event, such as an unfavorable
earnings report or the failure to make anticipated dividend payments, may
depress the value of common stock.
Index Risk. Unlike many investment companies, the Fund does
not utilize an investing strategy that seeks returns in excess of its Underlying
Index. Therefore, the Fund would not necessarily buy or sell a security unless
that security is added or removed, respectively, from its Underlying Index, even
if that security generally is underperforming.
Industry Concentration Risk. In following its methodology,
the Underlying Index from time to time may be concentrated to a significant
degree in securities of issuers operating in a single industry or industry
group. To the extent that the Underlying Index concentrates in the securities of
issuers in a particular industry or industry group, the Fund will also
concentrate its
investments to approximately the same extent. By concentrating its
investments in an industry or industry group, the Fund may face more risks than
if it were diversified broadly over numerous industries or industry groups. Such
industry-based risks, any of which may adversely affect the companies in which
the Fund invests, may include, but are not limited to, legislative or regulatory
changes, adverse market conditions and/or increased competition within the
industry or industry group. In addition, at times, such industry or industry
group may be out of favor and underperform other industries, industry groups or
the market as a whole.
Financials Sector Risk. The Fund may be susceptible to
adverse economic or regulatory occurrences affecting the financial services
sector. Financial services companies are subject to extensive government
regulation and, as a result, their profitability may be affected by new
regulations or regulatory interpretations. Unstable interest rates can have a
disproportionate effect on the financial services sector and financial services
companies whose securities the Fund may purchase may themselves have
concentrated portfolios, which makes them vulnerable to economic conditions that
affect that sector. Financial services companies have also been affected by
increased competition, which could adversely affect the profitability or
viability of such companies.
Investment Companies Risk. Investing in other investment
companies subjects the Fund to those risks affecting the investment company,
including the possibility that the value of the underlying securities held by
the investment company could decrease or the portfolio becomes illiquid.
Moreover, the Fund will pay indirectly a proportional share of the fees and
expenses of the investment companies in which it invests. Investments in
exchange-traded funds are subject to, among other risks, the risk that the
fund’s shares may trade at a discount or premium relative to the NAV of its
shares and the listing exchange may halt trading of the fund’s shares.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than the market as
a whole and may perform differently from the value of the market as a whole.
Market Risk. Securities in the Underlying Index are subject
to market fluctuations. You should anticipate that the value of the Shares will
decline, more or less, in correlation with any decline in value of the
securities in the Underlying Index.
Market Trading Risk. The Fund faces numerous market trading
risks, including the potential lack of an active market for the Shares, losses
from trading in secondary markets, and disruption in the creation/redemption
process of the Fund. Any of these factors may lead to the Shares trading at a
premium or discount to the Fund’s NAV.
Master Limited Partnership Risk. An MLP is an entity that
is classified as a partnership under the Internal Revenue Code of 1986, as
amended (the “Internal Revenue Code”), and whose partnership interests or
“units” are traded on securities exchanges like shares of corporate stock.
Investments in MLPs units are
subject to certain risks inherent in a partnership structure,
including (i) tax risks, (ii) the limited ability to elect or remove
management or the general partner or managing member, (iii) limited voting
rights and (iv) conflicts of interest between the general partner or
managing member and its affiliates and the limited partners or members.
Securities issued by MLPs may experience limited trading volumes and may be
relatively illiquid or volatile at times. As partnerships, MLPs may be subject
to less regulation (and less protection for investors) than corporations under
state laws, and may be subject to state taxation in certain jurisdictions, which
may reduce the amount of income an MLP pays to its investors.
Non-Correlation Risk. The Fund’s return may not match the
return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs
costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may
vary due to asset valuation differences and differences between the Fund’s
portfolio and the Underlying Index resulting from legal restrictions, costs or
liquidity constraints.
Non-Diversified Fund Risk. Because the Fund is
non-diversified and can invest a greater portion of its assets in securities of
individual issuers than a diversified fund, changes in the market value of a
single investment could cause greater fluctuations in Share price than would
occur in a diversified fund. This may increase the Fund’s volatility and cause
the performance of a relatively small number of issuers to have a greater impact
on the Fund’s performance.
Portfolio Turnover Risk. The Fund may engage in frequent
trading of its portfolio securities in connection with the rebalancing or
adjustment of the Underlying Index. A portfolio turnover rate of 200%, for
example, is equivalent to the Fund buying and selling all of its securities two
times during the course of a year. A high portfolio turnover rate (such as 100%
or more) could result in high brokerage costs for the Fund. While a high
portfolio turnover rate can result in an increase in taxable capital gain
distributions to the Fund’s shareholders, the Fund will seek to utilize the
in-kind creation and redemption mechanism (described below) to minimize
realization of capital gains to the extent possible.
Preferred Securities Risk. There are special risks
associated with investing in preferred securities. Preferred securities may
include provisions that permit the issuer, in its discretion, to defer or omit
distributions for a certain period of time. If the Fund owns a security that is
deferring or omitting its distributions, the Fund may be required to report the
distribution on its tax returns, even though it may not have received any
income. Further, preferred securities may lose substantial value due to the
omission or deferment of dividend payments.
REIT Risk. REITs are securities that invest substantially
all of their assets in real estate, trade like stocks and may qualify for
special tax considerations. In addition to the risks pertaining to real estate
investments more generally, such as declining property values or rising interest
rates, REITs are subject to additional risks. The
value of a REIT can depend on the structure of and cash flow
generated by the REIT. REITs whose investments are concentrated in a limited
number or type of properties, investments or narrow geographic area are subject
to the risks affecting those properties or areas to a greater extent than a REIT
with less concentrated investments. Further, failure of a company to qualify as
a REIT under federal tax law may have adverse consequences to the REIT’s
shareholders. In addition, REITs may have expenses, including advisory and
administration expenses, and a REIT’s shareholders will incur a proportionate
share of those expenses.
Small- and Mid-Capitalization Company Risk. Investing in
securities of small- and mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market. Often small- and
mid-capitalization companies and the industries in which they focus are still
evolving and, as a result, they may be more sensitive to changing market
conditions.
Performance
The bar chart below shows how the Fund has performed. The table
below the bar chart shows the Fund’s average annual total returns (before and
after taxes). The bar chart and table provide an indication of the risks of
investing in the Fund by showing how the Fund’s total returns have varied from
year to year and by showing how the Fund’s average annual total returns compared
with a broad measure of market performance and an additional index with
characteristics relevant to the Fund. The Fund’s performance reflects fee
waivers, if any, absent which performance would have been lower. Although the
information shown in the bar chart and the table gives you some idea of the
risks involved in investing in the Fund, the Fund’s past performance (before and
after taxes) is not necessarily indicative of how the Fund will perform in the
future.
The Fund is the successor to the investment performance of the
Guggenheim Multi-Asset Income ETF (the “Predecessor Fund”) as a result of the
reorganization of the Predecessor Fund into the Fund, which was consummated
after the close of business on April 6, 2018. Accordingly, the performance
information shown below for periods ending on or prior to April 6, 2018 is
that of the Predecessor Fund. Updated performance information is available
online at www.invesco.com/ETFs. Updated performance information is available
online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
|
|
|
|
|
Best Quarter |
|
Worst Quarter |
37.17% (2nd Quarter 2009) |
|
(13.93)% (1st Quarter 2009) |
The Fund’s year-to-date total return for the six months ended
June 30, 2019 was 17.07%.
Average Annual Total Returns for the Periods Ended
December 31, 2018
After-tax returns in the table below are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold Shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return Before Taxes |
|
|
(10.42 |
)% |
|
|
(0.23 |
)% |
|
|
9.79 |
% |
Return After Taxes on
Distributions |
|
|
(11.42 |
)% |
|
|
(2.15 |
)% |
|
|
7.62 |
% |
Return After Taxes on Distributions and Sale of Fund
Shares |
|
|
(5.63 |
)% |
|
|
(0.96 |
)% |
|
|
7.01 |
% |
Zacks Multi-Asset Income
Index (reflects no deduction for fees, expenses or taxes) |
|
|
(9.89 |
)% |
|
|
0.38 |
% |
|
|
10.69 |
% |
S&P 500® Index (reflects no
deduction for fees, expenses or taxes) |
|
|
(4.38 |
)% |
|
|
8.49 |
% |
|
|
13.12 |
% |
Management of the Fund
Investment Adviser. Invesco Capital Management LLC
(the “Adviser”).
Portfolio Managers. The following individuals are
responsible jointly and primarily for the day-to-day management of the Fund’s
portfolio:
|
|
|
|
|
|
|
|
Name |
|
Title with Adviser/Trust |
|
Date Began
Managing
the Fund |
Peter Hubbard |
|
Director of Portfolio Management of
the Adviser and Vice President of the Trust |
|
April 2018 |
Michael Jeanette |
|
Senior Portfolio Manager of the
Adviser |
|
April 2018 |
Tony Seisser |
|
Portfolio Manager of the
Adviser |
|
April
2018 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only
in large blocks of 50,000 Shares (each block of Shares is called a “Creation
Unit”) or multiples thereof (“Creation Unit Aggregations”), generally in
exchange for the deposit or delivery of a basket of securities. However, the
Fund also reserves the right to permit or require Creation Units to be issued in
exchange for cash. Except when aggregated in Creation Units, the Shares are not
redeemable securities of the Fund.
Individual Shares may be purchased and sold only on a national
securities exchange through brokers. Shares are listed for trading on NYSE Arca,
Inc. and because the Shares will trade at market prices rather than NAV, Shares
may trade at prices greater than NAV (at a premium), at NAV, or less than NAV
(at a discount).
Tax Information
The Fund’s distributions generally are taxed as ordinary income,
capital gains or some combination of both, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when
withdrawn from such account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund’s distributor or its related
companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable
about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson or financial adviser to
recommend the Fund over another investment. Ask your salesperson or financial
adviser or visit your financial intermediary’s web-site for more information.
Additional Information About the Funds’
Strategies and Risks
Principal Investment Strategies
Each Fund generally will invest at least 90% of its total assets
in components of its respective Underlying Index or Underlying Intellidex Index
(“Underlying Intellidex”). Each Fund operates as an index fund and is not
actively managed. Each Fund uses an “indexing” investment approach to seek to
track the investment results, before fees and expenses, of its Underlying Index
or Underlying Intellidex. The Adviser seeks correlation over time of 0.95 or
better between a Fund’s performance and the performance of its Underlying Index
or Underlying Intellidex; a figure of 1.00 would represent perfect correlation.
Another means of evaluating the relationship between the returns of a Fund and
its Underlying Index or Underlying Intellidex is to assess the “tracking error”
between the two. Tracking error means the variation between a Fund’s annual
return and the return of its Underlying Index or Underlying Intellidex,
expressed in terms of standard deviation. Each Fund seeks to have a tracking
error of less than 5%, measured on a monthly basis over a one-year period by
taking the standard deviation of the difference in the Fund’s returns versus the
Underlying Index’s or Underlying Intellidex’s returns. Because each Fund uses an
indexing approach to try to achieve its investment objective, each Fund does not
take temporary defensive positions during periods of adverse market, economic or
other conditions.
Each Fund (except Invesco Financial Preferred ETF) employs a full
replication methodology in seeking to track its Underlying Index or Underlying
Intellidex, meaning that it generally invests in all of the securities
comprising its respective Underlying Index or Underlying Intellidex in
proportion to the weightings of the securities in the respective Underlying
Index or Underlying Intellidex. However, under various circumstances, it may not
be possible or practicable to purchase all of those securities in those same
weightings. In those circumstances, a Fund may purchase a sample of securities
in its respective Underlying Index or Underlying Intellidex.
A “sampling” methodology means that the Adviser uses a
quantitative analysis to select securities from an Underlying Index or
Underlying Intellidex universe to obtain a representative sample of securities
that have, in the aggregate, investment characteristics similar to the
Underlying Index or Underlying Intellidex, respectively, in terms of key risk
factors, performance attributes and other characteristics. These include
industry weightings, market capitalization, return variability, earnings
valuation, yield and other financial characteristics of securities. When
employing a sampling methodology, the Adviser bases the quantity of holdings in
a Fund on a number of factors, including asset size of the Fund, and generally
expects the Fund to hold less than the total number of securities in its
Underlying Index or Underlying Intellidex. However, the Adviser reserves the
right to invest a Fund in as many securities as it believes necessary to achieve
the Fund’s investment objective.
Because of the practical difficulties and expense of purchasing
all of its securities in its Underlying Index, Invesco Financial Preferred ETF
utilizes a sampling methodology to seek to achieve its investment objective.
There also may be instances in which the Adviser may choose to
(i) overweight a security in an Underlying Index or Underlying Intellidex,
(ii) purchase securities not contained in an Underlying Index or Underlying
Intellidex that the Adviser believes are appropriate to substitute for certain
securities in that Underlying Index or Underlying Intellidex, or
(iii) utilize various combinations of other available investment techniques
in seeking to track an Underlying Index or Underlying Intellidex.
Each Fund may sell securities included in an Underlying Index or
Underlying Intellidex in anticipation of their removal from the Underlying Index
or Underlying Intellidex, or purchase securities not included in an Underlying
Index or Underlying Intellidex in anticipation of their addition to the
Underlying Index or Underlying Intellidex.
Additional information about the construction of each Fund’s
Underlying Index or Underlying Intellidex is set forth below in alphabetical
order by index name.
CBOE S&P 500 BuyWrite IndexSM (Invesco S&P 500
BuyWrite ETF)
The CBOE S&P 500 BuyWrite IndexSM measures the total rate of
return of an S&P 500®
Index covered call strategy. This strategy consists of holding a long position
indexed to the S&P 500® Index (the “Reference
Index”) and selling a succession of covered call options, each with an exercise
price at or above the prevailing price level of the S&P 500® Index. The Underlying Index
provides a benchmark measure of the total return performance of this
hypothetical strategy. The Underlying Index reinvests dividends paid on the
component stocks underlying the S&P 500® Index and the dollar value
of option premiums received from covered call options.
The Underlying Index is rebalanced quarterly. The Underlying Index
assumes that the call options are written (sold) on the third Friday of
each month and expire in the next calendar month after they are written. These
options are exchange-traded and the strike price of each option will generally
be the closest strike price above the last value of the Reference Index before
11 a.m. Eastern time. The Underlying Index assumes that the call options are
held until their expiration and settled in cash against the Special Opening
Quotation (or SOQ ticker “SET”) of the Reference Index. The Underlying Index
then assumes new one-month call options are written. The day on which the
settlement of expiring call options written by the Fund is determined and
the new one month call options are written (sold) is called the “roll date.”
CBOE calculates the Underlying Index in real-time every 15 seconds during each
trading day, excluding the roll date. On the roll date, CBOE will not calculate
the Underlying Index until such time during such day as CBOE
(a) completes procedures to determine the price of the new call option and
a corresponding value of the S&P 500® Index and (b) CBOE
incorporates the price of the new call and the corresponding value of the
S&P 500® Index into
its Underlying Index calculation system. Generally, CBOE anticipates that the
Underlying Index will be calculated in real-time every 15 seconds on the
roll date beginning at 2 p.m., Eastern time. The Fund is rebalanced in
accordance with the Underlying Index.
The Cleantech IndexTM (Invesco CleantechTM ETF)
The Cleantech IndexTM seeks to track the
performance of cleantech companies. The Underlying Index is a modified
equally-weighted index that considers a company to be a cleantech company it if
meets the following eligibility criteria:
(a) |
Derives at least 50% of revenues or
operating profits from cleantech businesses.
|
(b) |
Has a total market capitalization of at
least $200 million during the preceding three months or since the
equity was listed (whichever period is longer).
|
(c) |
Has a three-month average free float market
capitalization of at least $150 million.
|
(d) |
Maintains a listing on a securities
exchange (securities traded on the bulletin board or over-the-counter are
excluded from the Underlying Index). |
(e) |
Maintains an average daily trading volume
of at least $200,000 during the three-month period prior to determination
date (exclusive of the five days during and after an initial public
offering). Cleantech may count aggregated trading volume for securities
that trade on multiple exchanges. If the trading history is less than
three months, then the trading history to date will be used—exclusive of
the first five days after an initial exchange listing and any secondary
share offering greater than 5% of the floated share count prior to the
offering. |
Pursuant to a proprietary methodology, Cleantech further screens
companies that meet the initial eligibility criteria. These screens include, but
are not limited to, profitability and earnings quality, revenue growth and
quality, business strategy, sector leadership and strategic/competitive
position, sector and geographic representation, intellectual property and
innovation, impact on the environment, management quality, financial strength,
existing litigation and governance issues.
In general, the Underlying Index equally weights its component
securities within several bands based upon their market capitalization. In
computing the Underlying Index, pursuant to its proprietary rules-based
methodology, Cleantech reduces the weightings of securities with lower average
daily dollar trading volumes, securities of issuers that have yet to achieve
positive annual operating profits and securities of companies with free float
market capitalization below certain thresholds. In determining the weighting of
securities in the Underlying Index, Cleantech may also consider several key
variables, including: market capitalization, dollar-weighted trading volume and
relative liquidity, sector growth and availability of qualified companies.
The Underlying Index is rebalanced quarterly after market close on
the next to last trading day in March, June, September and December. To remain
in the Underlying Index, as of each quarterly rebalance a company must:
(a) |
Maintain a 30-day average floated market
capitalization of at least $100 million. |
(b) |
Have a market capitalization of at least
$100 million. |
(c) |
Maintain a 60-day average daily trading
volume of at least $200,000. |
(d) |
Meet the proprietary screening criteria
discussed above. |
Upon rebalancing, no individual security may account for more than
a 6% weight of the Underlying Index and securities of issuers that have yet to
achieve positive annual operating earnings may not, in the aggregate, account
for more than 8% of the weight of the Underlying Index. Cleantech may, at any
time, and from time to time, change the number of components composing the
Underlying Index based on changing industry conditions or in the event of
certain types of corporate actions, substitute component securities.
The Fund is rebalanced in accordance with the Underlying Index.
General Underlying Index Information for the DWA Sector
Momentum ETFs (Invesco DWA Basic Materials Momentum ETF, Invesco DWA Consumer
Cyclicals Momentum ETF, Invesco DWA Consumer Staples Momentum ETF, Invesco DWA
Energy Momentum ETF, Invesco DWA Financial Momentum ETF, Invesco DWA Healthcare
Momentum ETF, Invesco DWA Industrials Momentum ETF, Invesco DWA Technology
Momentum ETF and Invesco DWA Utilities Momentum ETF)
Each Underlying Index of a DWA Sector Momentum ETF is a modified
equal-weight index that includes securities within a specific sector that
demonstrate powerful relative strength characteristics. Such securities are
selected for each Underlying Index pursuant to Dorsey Wright’s proprietary
methodology, which emphasizes a security’s momentum and takes into account,
among other factors, the performance of each of the companies in the eligible
universe as compared to benchmark indices.
The Index Provider selects components from an eligible universe of
securities that trade on U.S. exchanges. Eligible securities must (i) be
one of the 2,000 largest constituents by market capitalization within the NASDAQ
US Benchmark Index, (ii) have a minimum three-month average daily dollar
trading volume of $1 million, (iii) be classified within the specific
sector named in the Underlying Index by Dorsey Wright’s proprietary industry
classification system, and (iv) be common stocks or real estate investment
trusts (“REITs”).
The Index Provider assigns a relative strength score to each
eligible security based on the security’s upward price movements relative to a
representative market benchmark index. The Index Provider ranks the eligible
securities within each sector by their relative strength score, selects at least
30 securities with the greatest scores in each sector for inclusion in the
applicable Underlying Index and then weights each component security based on
its relative strength score. Securities with higher scores receive larger
weights.
Each Underlying Index is rebalanced quarterly after the close of
the last trading day in March, June, September and December. At each rebalance,
the Index Provider ensures that all securities with weights greater than 5% of
an Underlying Index, in the aggregate, do not exceed 25% of the weight of the
Underlying Index. Component securities that cease to remain eligible for
inclusion in an Underlying Index are removed and are not replaced until the next
quarterly rebalance. Each DWA Sector Momentum ETF is rebalanced and reweighted
in accordance with its respective Underlying Index.
Dorsey Wright® NASDAQ Technical Leaders
Index (Invesco DWA NASDAQ Momentum ETF)
The Dorsey Wright® NASDAQ Technical Leaders
Index is a modified market capitalization weighted index that includes
securities that demonstrate powerful relative strength characteristics. Such
securities are selected for the Underlying Index pursuant to Dorsey Wright’s
proprietary methodology, which emphasizes a security’s momentum and takes into
account, among other factors, the performance of each of the companies in the
eligible universe as compared to benchmark indices.
The Index Provider selects components from an eligible universe of
approximately 1,000 of the largest capitalization companies whose securities are
included within the NASDAQ US Benchmark Index, except American Depositary
Receipts (“ADRs”) and trade on the Nasdaq. Eligible securities must also have a
minimum three-month average daily dollar trading volume of $1 million and
be common stocks, REITs or ADRs.
The Index Provider assigns a relative strength score to each
eligible security based on the security’s upward price movements relative to a
representative market benchmark index. The Index Provider then ranks the
eligible securities by their relative strength score, selects approximately 100
securities with the greatest scores for inclusion in the Underlying Index and
then weights each component security based on its relative strength score.
Securities with higher scores receive larger weights.
The Underlying Index is rebalanced quarterly after the close of
the last trading day in March, June, September and December. At each rebalance,
the Index Provider ensures that all securities with weights greater than 5% of
the Underlying Index, in the aggregate, do not exceed 25% of the weight of the
Underlying Index. Component securities that cease to remain eligible for
inclusion in the Underlying Index are removed and are not replaced until the
next quarterly rebalance. The Fund is rebalanced and reweighted in accordance
with the Underlying Index.
Dorsey Wright® Technical Leaders Index
(Invesco DWA Momentum ETF)
The Dorsey Wright® Technical Leaders Index is a
modified equal-weight index that includes securities that demonstrate powerful
relative strength characteristics. Such securities are selected for the
Underlying Index pursuant to Dorsey Wright’s proprietary methodology, which
emphasizes a security’s momentum and takes into account, among other factors,
the performance of each of the companies in the eligible universe as compared to
benchmark indices.
The Index Provider selects components from an eligible universe of
securities that trade on U.S. exchanges. Eligible securities must be one of the
1,000 largest securities by market capitalization within the NASDAQ US Benchmark
Index and have a minimum three-month average daily dollar trading volume of
$1 million and be common stocks or REITs.
The Index Provider assigns a relative strength score to each
eligible security based on the security’s upward price movements relative to a
representative market benchmark index. The Index
Provider then ranks the eligible securities by their relative
strength score, selects approximately 100 securities with the greatest scores
for inclusion in the Underlying Index and then weights each component security
based on its relative strength score. Securities with higher scores receive
larger weights.
The Underlying Index is rebalanced quarterly after the close of
the last trading day in March, June, September and December. At each rebalance,
the Index Provider ensures that all securities with weights greater than 5% of
the Underlying Index, in the aggregate, do not exceed 25% of the weight of the
Underlying Index. Component securities that cease to remain eligible for
inclusion in the Underlying Index are removed and are not replaced until the
next quarterly rebalance. The Fund is rebalanced and reweighted in accordance
with the Underlying Index.
Dow Jones Industrial Average Yield Weighted (Invesco Dow
Jones Industrial Average Dividend ETF)
The Dow Jones Industrial Average Yield Weighted was developed by
S&P DJI. The Underlying Index is designed to provide exposure to
dividend-paying equity securities of companies included in the Dow Jones
Industrial Average™, which is a price-weighted index of 30 U.S. companies. The
Dow Jones Industrial Average™ selects components from an eligible universe of
securities included within the S&P 500® Index, excluding companies
classified in the utilities sector or transportation industry In addition, the
following criteria typically are used to select securities for the Dow Jones
Industrial Average™: (a) the company has an excellent reputation in its
field; (b) the company has demonstrated sustained growth; (c) there is
wide interest among investors; (d) companies should be incorporated and
headquartered in the U.S.; and (e) a plurality of the companies’ revenues
should be derived from the U.S. Maintaining adequate sector representation
within the index is also a consideration in the selection process for the Dow
Jones Industrial Average™. The Underlying Index is calculated using a
yield-weighted methodology that weights all dividend-paying constituents of the
Dow Jones Industrial Average™ by their twelve-month dividend yield defined as a
stock’s annual dividend (not including any special dividends) divided by its
price.
The Underlying Index is rebalanced semi-annually and any changes
are effective after the close of trading on the third Friday in March and
September. The reference dates are the last trading days of February and August.
Between semi-annual rebalances, any constituent security that is
removed from the Dow Jones Industrial Average™ will be simultaneously removed
from the Underlying Index. If a constituent security eliminates its dividend,
the security will be removed from the Underlying Index after the close of
trading on the subsequent third Friday of March, June, September or December. No
additions are made to the Underlying Index between rebalances, except in the
case of a spin-off.
The Fund is rebalanced in accordance with the Underlying Index.
General Information about the Invesco Dynamic Industry ETFs
(Invesco Dynamic Biotechnology & Genome ETF, Invesco Dynamic
Building & Construction ETF, Invesco Dynamic
Energy Exploration & Production ETF, Invesco
Dynamic Food & Beverage ETF, Invesco Dynamic Leisure and Entertainment
ETF, Invesco Dynamic Media ETF, Invesco Dynamic Networking ETF, Invesco Dynamic
Oil & Gas Services ETF, Invesco Dynamic Pharmaceuticals ETF, Invesco
Dynamic Retail ETF, Invesco Dynamic Semiconductors ETF and Invesco Dynamic
Software ETF)
Each Underlying Index for an Invesco Dynamic Industry ETF is
composed of stocks of 30 U.S. companies involved in a specific industry.
For each Underlying Index, ICE Data evaluates stocks from the
2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE
American and Nasdaq. ICE Data ranks the stocks for investment potential based on
a score (“Model Score”) developed from a proprietary ICE Data Intellidex model.
ICE Data defines the universe of companies eligible for each Underlying
Intellidex using the FactSet Revere Hierarchy provided by Factset Research
Systems Inc. to help identify those companies that have significant operations
in a specified industry group (each, an “Industry Group Universe”). ICE Data
further divides stocks within each Industry Group Universe into two market
capitalization groups, larger and smaller (the “Sub-Groups”). The Index Provider
splits stocks in each Industry Group Universe into quintiles based on market
capitalization. Larger stocks are defined by inclusion in the top quintile and
smaller stocks are included in the bottom quintile. Within each Industry Group
Universe, ICE Data identifies a defined number of the top-ranked larger and
smaller stocks for inclusion in an Underlying Intellidex and equally weights the
included stocks within their Sub-Groups. The Intellidex Provider predetermines
the number of stocks included from each Industry Group Universe as follows:
(a) |
An Underlying Intellidex includes 30 stocks
from its applicable Industry Group Universe based on their Model Scores as
follows: |
|
i. |
ICE Data includes eight of the top-ranked
relatively larger stocks, which collectively receive 40% of the total
Underlying Intellidex weight (each larger stock receives on average 5%).
The eight component stocks with the best Model Scores in the Sub-Group are
included. |
|
ii. |
ICE Data includes 22 of the top-ranked
relatively smaller stocks, which collectively receive 60% of the total
Underlying Intellidex weight (each smaller stock receives on average
2.73%). The 22 component stocks with the best Model Scores in the
Sub-Group are included. |
(b) |
In the event that an Industry Group
Universe consists of less than 50 stocks at the time of a quarterly
review, ICE Data includes the 30 component stocks with the best Model
Scores in the applicable Industry Group Universe, and determines the
weighting for the 30 stocks as follows: |
|
i. |
ICE Data includes the eight largest stocks
by market capitalization, which collectively receive 40% of the total
Underlying Intellidex weight (each of the eight largest stocks receives on
average 5%). |
|
ii. |
ICE Data includes 22 of the top-ranked
relatively smaller stocks, which collectively receive 60% of the total
Underlying Intellidex weight (each of the 22 smaller stocks receives on
average 2.73%). |
The Intellidex Provider rebalances each Underlying Intellidex
quarterly after the close of trading on the second business day following the
last Friday of February, May, August and November. Each Invesco Dynamic Industry
ETF is rebalanced in accordance with its respective Underlying Intellidex.
Dynamic Large Cap Growth IntellidexSM Index (Invesco Dynamic
Large Cap Growth ETF)
The Dynamic Large Cap Growth IntellidexSM Index is composed of 50
large capitalization U.S. growth stocks that, strictly in accordance with its
guidelines and mandated procedures, ICE Data includes principally on the basis
of their investment potential. ICE Data ranks the 2,000 largest U.S. stocks (by
market capitalization) traded on the NYSE, NYSE American and Nasdaq for
investment potential based on a score (“Model Score”) developed from a
proprietary ICE Data Intellidex model. ICE Data then divides the universe of
companies into groups based on size, style and sub-size in the following manner:
(a) |
ICE Data segregates the universe of stocks
into three size groups: large cap, mid cap and small cap. ICE Data
considers the 250 largest stocks by market capitalization to be large cap,
the next 750 largest to be mid cap and it considers the remaining 1,000
stocks to be small cap. |
(b) |
ICE Data divides large cap stocks into
growth stocks and value stocks. ICE Data bases a stock’s characterization
as growth or value on a multi-factor methodology. ICE Data then divides
the large cap growth universe into two sub-groups based on market
capitalization and selects stocks for inclusion in the Underlying
Intellidex as follows: |
|
(i) |
ICE Data selects 15 stocks with the best
Model Scores in the large market capitalization sub-group for inclusion in
the Underlying Intellidex, except that any component stock which is
currently included in the Underlying Intellidex is not removed unless its
Model Score falls below that of the 18th ranked stock in the
sub-group. Each of these 15 stocks receive on average 3.3% of the weight
of the Underlying Intellidex. |
|
(ii) |
ICE Data selects 35 stocks with the best
Model Scores in the smaller market capitalization sub-group for inclusion
in the Underlying Intellidex, except that any component stock that is
currently included in the Underlying Intellidex is not removed unless its
Model Score falls below that of the 42nd ranked stock in the
sub-group. Each of these 35 stocks receive on average 1.4% of the weight
of the Underlying Intellidex |
The Intellidex Provider rebalances the Underlying Intellidex
quarterly after the close of trading on the second business day following the
last Friday of February, May, August and November. The Fund is rebalanced in
accordance with the Underlying Intellidex.
Dynamic Large Cap Value IntellidexSM Index (Invesco Dynamic
Large Cap Value ETF)
The Dynamic Large Cap Value IntellidexSM Index is composed of 50
large capitalization U.S. value stocks that, strictly in accordance with its
guidelines and mandated procedures, ICE Data includes principally on the basis
of their investment potential. ICE
Data ranks the 2,000 largest U.S. stocks (by market
capitalization) traded on the NYSE, NYSE American and Nasdaq for investment
potential based on a score (“Model Score”) developed from a proprietary ICE Data
Intellidex model. The Intellidex Provider then divides the universe of companies
into groups based on size, style and sub-size in the following manner:
(a) |
ICE Data segregates the universe of stocks
into three size groups: large cap, mid cap and small cap. ICE Data
considers the 250 largest stocks by market capitalization to be large cap,
it considers the next 750 largest to be mid cap and it considers the
remaining 1,000 stocks to be small cap. |
(b) |
ICE Data divides large cap stocks into
growth stocks and value stocks. ICE Data bases a stock’s characterization
as growth or value on a multi-factor methodology. ICE Data then divides
the large cap value universe into two sub-groups based on market
capitalization and selects stocks for inclusion in the Underlying
Intellidex as follows: |
|
(i) |
ICE Data selects 15 stocks with the best
Model Scores in the large market capitalization sub-group for inclusion in
the Underlying Intellidex, except that any component stock which is
currently included in the Underlying Intellidex is not removed unless its
Model Score falls below that of the 18th ranked stock in the
sub-group. Each of these 15 stocks receive on average 3.3% of the weight
of the Underlying Intellidex. |
|
(ii) |
ICE Data selects 35 stocks with the best
Model Scores in the small market capitalization sub-group for inclusion in
the Underlying Intellidex, except that any component stock that is
currently included in the Underlying Intellidex is not removed unless its
Model Score falls below that of the 42nd ranked stock in the
sub-group. Each of these 35 stocks receive on average 1.4% of the weight
of the Underlying Intellidex. |
The Intellidex Provider rebalances the Underlying Intellidex
quarterly after the close of trading on the second business day following the
last Friday of February, May, August and November. The Fund is rebalanced in
accordance with the Underlying Intellidex.
Dynamic Market IntellidexSM Index (Invesco Dynamic
Market ETF)
The Dynamic Market IntellidexSM Index employs a selection
methodology designed to identify and select companies from the U.S. marketplace
based on ICE Data’s proprietary quantitative method. The Underlying Intellidex
uses market-like sector weightings and tiered market-capitalization groupings to
select stocks from the top of each sector and size category in a manner designed
to produce an index with sector and size dispersion similar to the overall U.S.
stock market while avoiding high mega cap concentrations found in
capitalization-weighted indices. The Intellidex Provider ranks the 2,000 largest
U.S. stocks (by market capitalization) traded on the NYSE, NYSE American and
NASDAQ for investment potential based on a score (“Model Score”) developed from
a proprietary ICE Data Intellidex model. ICE Data ranks companies quarterly,
based on a variety of criteria, including price momentum, earnings momentum,
quality, management action, and value factors, and then sorts them based on
their
cumulative score on the above criteria. The Intellidex Provider
then selects 100 companies from the top of each sector and size category in the
following manner:
(a) |
ICE Data divides the universe of eligible
stocks into 10 economic sectors. Each sector is weighted in relation
to its capitalization contribution within the broad U.S. stock market.
|
(b) |
ICE Data divides stocks within each sector
into two market-capitalization groupings: large and mid/small.
|
(c) |
ICE Data selects a defined number of the
top ranked large and mid/small stocks within each sector. ICE Data weights
the two size groupings so that larger companies receive greater Underlying
Intellidex representation than the mid/small companies consistent with the
overall market. |
(d) |
ICE Data weights the Underlying Index
constituents equally within their sector and size groupings.
|
The Intellidex Provider rebalances the Underlying Intellidex after
the close of trading on the second business day following the last Friday of
February, May, August and November. The Fund is rebalanced in accordance with
the Underlying Intellidex.
FTSE RAFITM US 1000 Index (Invesco FTSE
RAFI US 1000 ETF)
The FTSE RAFITM US 1000 Index is designed
to track the performance of the 1,000 common stocks of large-sized U.S.
companies based on the following four fundamental measures: book value, cash
flow, sales and dividends (as described further below).
RA identifies large-sized U.S. companies by calculating an overall
weight (a “fundamental value”) for each security by equally weighting each of
the following four fundamental measures:
• |
|
Book value as of the review
date; |
• |
|
Cash flow averaged over the
prior five years; |
• |
|
Sales averaged over the
prior five years; and |
• |
|
Total dividend distributions
averaged over the prior five years. |
The Underlying Index includes the securities with the top 1,000
fundamental value rankings.
The Index Provider makes share adjustments to reflect a split,
reverse split or stock dividend on the action’s effective date. Such changes do
not require an adjustment to the divisor and the Index Provider processes such
changes automatically. For changes in a company’s shares outstanding due to an
acquisition or spin-off, the Index Provider makes an adjustment to the
Underlying Index at the open on the effective date of the corporate action. Each
security is weighted proportionate to its fundamental value score. The
Underlying Index is rebalanced annually, after the close of trading on the third
Friday of March. In addition to the annual rebalance, quarterly reviews of the
Underlying Index in June, September and December may result in constituent
deletions. The Fund is rebalanced in accordance with the Underlying Index.
For purposes of calculating the value of the Underlying Index, the
Index Provider applies dividend payments to the Underlying Index
on the ex-dividend date. In the event of an acquisition between
two companies included in the Underlying Index, the Index Provider will continue
to include the common shares of the acquiring issuer in the Underlying Index.
The enlarged company will remain a constituent in the index with its FTSE RAFI
adjustment factor recalculated. In the event of an acquisition between a company
in the Underlying Index and a company not in the Underlying Index, the Index
Provider will continue to include the common shares of the surviving issuer in
the Underlying Index with its FTSE RAFI factor adjusted to take into account the
terms of the acquisition. If the event involved cash only, the constituent will
be deleted and the non-constituent will not be added.
Of the corporate events described previously, only an acquisition
between a constituent company and non-constituent company is treated as market
capitalization neutral, meaning the weight of a constituent does not change due
to corporate events; thus, the RAFI fundamental value remains in effect.
FTSE RAFITM US Mid Small 1500 Index
(Invesco FTSE RAFI US 1500 Small-Mid ETF)
The FTSE RAFITM US Mid Small 1500
Index is designed to track the performance of the 1,500 common stocks of small-
and medium-sized U.S. companies based on the following four fundamental
measures: book value, cash flow, sales and dividends (as described further
below).
RA identifies small- and medium-sized U.S. companies by
calculating an overall weight (a “fundamental value”) for each security by
equally weighting each of the following four fundamental measures:
• |
|
Book value as of the review
date; |
• |
|
Cash flow averaged over the
prior five years; |
• |
|
Sales averaged over the
prior five years; and |
• |
|
Total dividend distributions
averaged over the prior five years. |
The Underlying Index includes the 1,500 securities with
fundamental value rankings of 1,001 through 2,500.
The Index Provider makes share adjustments to reflect a split,
reverse split or stock dividend on the action’s effective date. Such changes do
not require an adjustment to the divisor and the Index Provider processes such
changes automatically. For changes in a company’s shares outstanding due to an
acquisition or spin-off, the Index Provider makes an adjustment to the
Underlying Index at the open on the effective date of the corporate action.
Each security is weighted proportionate to its fundamental value.
The Underlying Index rebalances annually, after the close of trading on the
third Friday of March. In addition to the annual rebalance, quarterly reviews of
the Underlying Index in June, September and December may result in constituent
deletions. The Fund is rebalanced in accordance with the Underlying Index.
For purposes of calculating the value of the Underlying Index, the
Index Provider applies dividend payments to the Underlying Index on the
ex-dividend date. In the event of an acquisition between two companies included
in the Underlying Index, the Index Provider will continue to include the common
shares of the
acquiring issuer in the Underlying Index. The enlarged company
will remain a constituent in the index with its FTSE RAFI adjustment factor
recalculated. In the event of an acquisition between a company in the Underlying
Index and a company not in the Underlying Index, the Index Provider will
continue to include the common shares of the surviving issuer in the Underlying
Index with its FTSE RAFI factor adjusted to take into account the terms of the
acquisition. If the event involved cash only, the constituent will be deleted
and the non-constituent will not be added.
Of the corporate events described previously, only an acquisition
between a constituent company and non-constituent company is treated as market
capitalization neutral, meaning the weight of a constituent does not change due
to corporate events; thus, the RAFI fundamental value remains in effect.
NASDAQ Golden Dragon China IndexSM (Invesco Golden Dragon
China ETF)
The NASDAQ Golden Dragon China IndexSM seeks to track the
performance of companies based in China (excluding Hong Kong) but that offer the
protections of being listed on a U.S.-based exchange. To be eligible for
inclusion in the NASDAQ Golden Dragon China IndexSM, a security must be: issued
by a company headquartered or incorporated in the People’s Republic of China at
the time of review, although Underlying Index constituents as of May 31,
2012 may continue to be eligible despite not meeting this criterion; listed on
Nasdaq, the NYSE, NYSE American or Cboe Exchange, have a minimum market
capitalization of $100 million; and have a minimum three-month average
daily dollar trading volume of $250,000. Nasdaq will not include securities of
issuers that have entered into a definitive agreement or other arrangement which
would likely result in the security no longer being index-eligible, issuers that
are currently in bankruptcy proceedings or issuers that have annual financial
statements with an audit opinion that is currently withdrawn. The security types
eligible for inclusion in the Underlying Index include common stocks, ordinary
shares, ADRs, shares of beneficial interest or limited partnership interests.
The Underlying Index is rebalanced quarterly in March, June,
September and December. The index-eligibility criteria are applied using market
data through the end of January, April, July and October. Securities meeting the
criteria are included in the Underlying Index. Security additions and deletions
are made effective after the close of trading on the third Friday of March,
June, September and December.
Nasdaq applies a modified market capitalization-weighting
methodology to the capitalization of each Underlying Index constituent, using
the last sale price of the security at the close of trading on the last trading
day in February, May, August and November and after applying quarterly changes
to the total shares outstanding. The changes are effective after trading on the
third Friday in March, June, September and December.
The Underlying Index employs a modified market
capitalization-weighting methodology. At each quarter, Nasdaq rebalances the
Underlying Index such that the maximum weight of any Underlying Index
constituent does not exceed 8% and no more than five securities are at that cap.
Nasdaq distributes the excess
weight of any capped security proportionally across the remaining
constituents. If, after redistribution, any of the five highest ranked
constituents are weighted below 8%, these securities are not capped. Next, any
remaining constituents in excess of 4% are capped at 4% and the excess weight is
redistributed proportionally across the remaining constituents. Nasdaq repeats
the process, if necessary, to derive the final weights.
Nasdaq makes adjustments in the price and/or constituent shares
driven by corporate events such as stock dividends, stock splits and certain
spin-offs and rights issuances are adjusted on the ex-date. If the change in
total shares outstanding arising from other corporate actions is greater than or
equal to 10.0%, Nasdaq makes the change as soon as practicable. Otherwise, if
the change in total shares outstanding is less than 10.0%, then all such changes
are accumulated and made effective at one time on a quarterly basis after the
close of trading on the third Friday in March, June, September and December,
respectively. The constituent shares are adjusted by the same percentage amount
by which the total shares outstanding have changed.
A special cash dividend announced by the listing exchange, will
result in an adjustment to the last sale price of an Underlying Index
constituent prior to market open on the ex-date for the special amount
distributed. A special dividend may also be referred to as extra, extraordinary,
non-recurring, one-time or unusual.
Ordinarily, whenever there is a change in constituent shares, a
change in a constituent or a change to the price of a constituent due to
spin-offs, rights issuances or special cash dividends, the divisor is adjusted
to ensure that there is no discontinuity in the value of the Underlying Index
constituent which might otherwise be caused by any such change. All changes are
announced in advance and are reflected in the Underlying Index prior to market
open on the Underlying Index effective date.
The Fund is rebalanced in accordance with the Underlying Index.
NASDAQ International Dividend AchieversTM Index (Invesco
International Dividend AchieversTM ETF)
The NASDAQ International Dividend AchieversTM Index is designed to track
the performance of dividend paying GDRs and ADRs that are listed on the London
Stock Exchange and the London International Exchange, in addition to ADRs and
non-U.S. common or ordinary stocks trading on the Nasdaq, NYSE, Cboe Exchange or
NYSE American.
To become eligible for inclusion in the Underlying Index, an
issuer must (i) be listed on Nasdaq, NYSE, Cboe Exchange or NYSE American;
(ii) be incorporated outside of the U.S. and not in a country of beneficial
interest; (iii) have increased its annual regular cash dividend payments
for at least each of the last five consecutive years; (iv) have a minimum
three-month average daily trading volume of $1 million; (v) must be
issued by a company that has not entered into a definitive agreement or other
arrangement that likely would result in the security no longer being eligible
for inclusion in the Underlying Index; and (vi) may not be currently in
bankruptcy. A GDR must be listed on the London Stock Exchange or the London
International Exchange and meet the above criteria, except exchange listing.
The Underlying Index is rebalanced annually after the close of
trading on the third Friday in March using market data through the end of
December and reweighted on a quarterly basis after the close of trading on the
third Friday in March, June, September and December, using a dividend yield
weighted methodology that incorporates the trailing 12-month dividend yield of
each issuer as compared to the dividend yield of all issuers in the Underlying
Index as of the last trading day in February, May, August and November. At each
reweighting, no single issuer may exceed 4% of the Underlying Index, and Nasdaq
will redistribute the excess amounts proportionately from larger issuers until
no issuer’s weight exceeds 4% of the Underlying Index. Additionally, if at any
time an issuer becomes ineligible for inclusion in the Underlying Index, Nasdaq
will remove the issuer and will not replace it.
In between the reweight and rebalance dates, the weights of each
issuer will float within the Underlying Index, meaning, for example, that
an issuer may exceed 4% of the Underlying Index during these periods.
Nasdaq generally will make adjustments arising from stock
dividends and stock splits on the evening prior to the effective date. In the
case of certain spin-offs or rights issuances, Nasdaq adjusts the price of the
issuer’s securities. A special cash dividend will result in an adjustment to the
last sale price of an issuer’s shares prior to market-open on the ex-date for
the special amount distributed.
The Fund is rebalanced and reweighted in accordance with the
Underlying Index.
NASDAQ Internet IndexSM (Invesco NASDAQ Internet
ETF)
The NASDAQ Internet IndexSM is a modified market
capitalization weighted index designed to track the performance of the largest
and most liquid U.S.-listed companies that are engaged in Internet-related
businesses and that are listed on one of the four major U.S. stock exchanges. To
be eligible for inclusion in the Underlying Index, a security:
|
• |
|
must be listed on Nasdaq,
the NYSE, NYSE American or Cboe Exchange; |
|
• |
|
must be classified, as
Nasdaq reasonably determines, as a company whose primary business includes
Internet related services including, but not limited to, Internet
software, Internet access providers, Internet search engines, web hosting,
website design or internet retail commerce; |
|
• |
|
must have a minimum market
capitalization of $200 million; |
|
• |
|
must have a minimum
three-month average daily trading volume of 100,000 shares;
|
|
• |
|
must have a minimum closing
price of $3.00; |
|
• |
|
must be issued by a company
that has not entered into a definitive agreement or other arrangement that
likely would result in the security no longer being eligible for inclusion
in the Underlying Index; |
|
• |
|
must have been listed on a
recognized market for at least three months, however, the operating
history of a spin-off will be considered;
|
|
• |
|
may not be issued by a
company currently in bankruptcy proceedings; and
|
|
• |
|
must be issued by a company
that does not have annual financial statements with an audit opinion that
is currently withdrawn. |
The security types eligible for inclusion in the Underlying Index
include common stocks, ordinary shares, ADRs, shares of beneficial interest or
limited partnership interests and tracking stocks. Closed-end funds, ETFs,
convertible debentures, preferred stocks, rights, warrants, units and other
derivative securities are not eligible for the Underlying Index.
The Underlying Index is rebalanced annually after the close of
trading on each third Friday in March. Additionally, if at any time during the
year other than the evaluation, a security in the Underlying Index no longer
meets the eligibility criteria above, or is otherwise determined to have become
ineligible for continued inclusion in the Underlying Index, the security is
removed from the Underlying Index and is not replaced.
The Underlying Index is reweighted quarterly in February, May,
August and November. At each quarterly reweight, the weight of the
highest-ranking security is capped at 8% and Nasdaq distributes the excess
weight proportionally across the remaining constituent securities. Nasdaq will
repeat the process until no more than five Underlying Index securities are
capped at 8%. Next, Nasdaq will cap the weight at 4% for all other components
with a weight greater than 4%, and Nasdaq will distribute proportionally the
excess weight across the remaining securities to generate the final weights.
Nasdaq will reflect changes in the price and/or Underlying Index
shares driven by corporate events such as stock dividends, stock splits, certain
spin-offs and rights issuances in the Underlying Index on the ex-date. If the
change in total shares outstanding arising from other corporate actions is
greater than or equal to 10%, the change ordinarily will become effective as
soon as practicable in accordance with generally accepted Underlying Index
policies and procedures as described above. Nasdaq will ordinarily make changes
of less than 10% effective after the close of trading on the third Friday
in March, June, September and December. In each case, Nasdaq will make certain
adjustments in the calculation of the Underlying Index to ensure continuity of
the Underlying Index. The Underlying Index shares are adjusted by the same
percentage amount by which the total shares outstanding have changed. In the
case of a special cash dividend, Nasdaq will determine on an individual basis
whether to immediately reflect the dividend in the Underlying Index in
accordance with generally accepted Underlying Index policies and procedures. If
it is determined that Nasdaq will make a change, that change ordinarily will
become effective on the Underlying Index ex-date.
Ordinarily, whenever there is a change in constituent shares, a
change in Underlying Index securities, or a change to the price of an Underlying
Index constituents due to spin-offs, rights issuances, or special cash
dividends, the divisor is adjusted to ensure that there is no discontinuity in
the value of the Underlying Index constituents, which might otherwise be caused
by any such change. Nasdaq announces all changes to the Underlying Index in
advance and reflects those changes in the Underlying Index prior
to market open on the Underlying Index effective date. In administering the
Underlying Index, Nasdaq will exercise reasonable discretion as it deems
appropriate.
The Fund is rebalanced and reweighted in accordance with the
Underlying Index.
NASDAQ OMX US Water IndexSM (Invesco Water Resources
ETF)
The NASDAQ OMX US Water IndexSM is composed of U.S.
exchange-listed companies that create products designed to conserve and purify
water for homes, businesses and industries.
Securities eligible for inclusion in the Underlying Index include
common stocks, ordinary shares, ADRs, shares of beneficial interest and tracking
stocks. To be eligible for inclusion in the Underlying Index, a security also
must meet the following criteria:
• |
|
as determined by
SustainableBusiness.com LLC, the issuer of the security must be classified
as participating in the “Green Economy,” an environmental and clean energy
sector portion of the Nasdaq OMX Green Economy Global Benchmark Index,
which includes 350 securities from 13 different environmental sectors;
|
• |
|
the security must be listed
on Nasdaq, NYSE, NYSE American or Cboe Exchange;
|
• |
|
one security per issuer is
permitted; |
• |
|
the security must have a
minimum worldwide market capitalization of $50 million; and
|
• |
|
the security must have a
minimum three-month average daily dollar trading volume of $250,000.
|
The Underlying Index is a modified liquidity-weighted index. The
value of the Underlying Index equals the aggregate value of the share weights of
each of the securities in the Underlying Index multiplied by each such
security’s last sale price and divided by the divisor of the Underlying Index.
The Underlying Index is rebalanced annually in June. Additions or
deletions from the Underlying Index become effective after the close of trading
on the third Friday in June. If a security no longer meets the above eligibility
criteria, Nasdaq will remove the security from the Underlying Index and will not
replace it.
Each quarter, Nasdaq reweights the Underlying Index such that the
maximum weight of any security does not exceed 8% of the Underlying Index, while
at no time permitting more than five securities to reach that 8% cap. The excess
percentage above the cap of any such capped security is distributed
proportionally across the remaining securities. If, after redistribution, the
weightings of any of the five highest-weighted securities is below 8%, these
securities will not be capped. Any remaining securities in excess of 4% of the
Underlying Index are capped at 4%, and the excess weight is redistributed
proportionally across the remaining index securities. Nasdaq repeats the
process, if necessary, to derive final weights.
The modified liquidity-weighting methodology is applied to the
three-month average daily dollar trading volume of each
component security as of the close of trading on the last trading
day in February, May, August and November. Nasdaq calculates the weight of the
component securities by multiplying the weight of the security derived above by
the aggregate average daily dollar trading volume and dividing that value for
each security by its corresponding last sale price. The changes to the
Underlying Index are effective after trading on the third Friday in March, June,
September and December.
The Fund is rebalanced in accordance with the Underlying Index.
NASDAQ US Broad Dividend AchieversTM Index (Invesco Dividend
AchieversTM ETF)
The NASDAQ US Broad Dividend AchieversTM Index is designed to track
the performance of issuers that meet the requirements to be classified as
“Dividend AchieversTM.”
To become eligible for inclusion in the Underlying Index, an issuer must
(i) be included in the NASDAQ US Benchmark Index (other than limited
partnerships, which must trade on NASDAQ, NYSE, NYSE American or Cboe Exchange);
(ii) have raised its annual regular dividend payments for at least each of
the last ten consecutive years; and (iii) have a minimum three-month
average daily trading volume of $1 million; and (iv) may not be
currently in bankruptcy. Only one security per issuer is permitted in the
Underlying Index.
Nasdaq rebalances the Underlying Index annually in March, using
market data through the end of December. The rebalance is effective after the
close of trading on the third Friday in March. Additionally, if at any time a
constituent becomes ineligible for inclusion in the Underlying Index, Nasdaq
will remove the issuer from the Underlying Index and will not replace it. At
each month-end if a constituent suspends or decreases its dividend payment by
50% or more based on the ex-date of the last dividend, then the constituent will
be removed from the Underlying Index after the close of trading of the third
Friday of the following month. Nasdaq weights the Underlying Index constituents
according to a modified market capitalization methodology. Nasdaq will reweight
the Underlying Index on a quarterly basis, using each constituent’s closing
price on the last trading day in February, May, August and November. At the
reweight date, no single constituent may exceed 4% of the weight of the
Underlying Index. Nasdaq will redistribute the excess amounts proportionately
from larger issuers until no issuer’s weight exceeds 4% of the Underlying Index.
These reweights will become effective after the close of trading on the third
Friday in March, June, September and December.
Nasdaq generally will make share adjustments to reflect stock
splits, stock dividends and certain spin-offs and rights issuances on the date
of each such action. If the change in total shares outstanding arising from
other corporate actions is greater than or equal to 10% of the Underlying Index,
the change is made as soon as practicable. If the change of total shares
outstanding is less than 10% of the Underlying Index, then all such changes are
accumulated and made effective at one time on a quarterly basis after the close
of trading on the third Friday in March, June, September and December.
The Fund is rebalanced and reweighted in accordance with the
Underlying Index.
NASDAQ US BuyBack AchieversTM Index (Invesco BuyBack
AchieversTM ETF)
The NASDAQ US BuyBack AchieversTM Index is designed to track
the performance of issuers that meet the requirements to be classified as
“BuyBack AchieversTM.” To
become eligible for inclusion in the NASDAQ US BuyBack AchieversTM Index, an issuer must
(i) be incorporated in the United States or certain benefit-driven
incorporation countries (i.e., countries that provide tax or other benefits for
incorporation); (ii) be listed on the Nasdaq, NYSE, NYSE American or Cboe
Exchange; (iii) have effected a net reduction in shares outstanding of 5%
or more in the past 12 months; and (iv) have a minimum average daily cash
volume of $500,000 in October, November and December. The security types
eligible for inclusion in the Underlying Index include common stocks, limited
partnership interests, shares or units of beneficial interest and shares of
limited liability companies.
Strictly in accordance with its guidelines and mandated
procedures, Nasdaq weights the universe of companies according to a modified
market capitalization, using each company’s eligible shares outstanding and the
closing price at the company’s last trading day in December. No single company
may exceed 5% of the Underlying Index as of either a reconstitution or rebalance
date. Nasdaq will modify the index weight of companies with market
capitalizations that exceed 5% of the Underlying Index to equal 5% of the
Underlying Index. Nasdaq will redistribute the excess amounts from companies
whose initial market capitalizations exceeded 5% of the Underlying Index among
the remaining companies in proportion to their initial weights until no company
exceeds 5% of the Underlying Index. These modified weights become effective on
the last trading day in January.
The Underlying Index is rebalanced annually after market close on
the last trading day in January, based on a modified market capitalization
methodology using each company’s eligible shares outstanding and the closing
price on the last trading day in December. Apart from scheduled rebalances,
Nasdaq may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spin-offs. The Underlying
Index is reweighted on a quarterly basis after the close of trading on the last
day in January, April, July and October, respectively, based on a company’s most
recent shares outstanding and the closing price of the company’s stock on the
last trading day in December, March, June and September, respectively. The
Underlying Index is reweighted such that the maximum weight of any component
security does not exceed 5% of the Underlying Index. The excess weight of any
security that otherwise exceeds 5% of the Underlying Index is distributed
proportionally across the remaining component securities.
The Fund is rebalanced and reweighted in accordance with the
Underlying Index.
NASDAQ US Dividend AchieversTM 50 Index (Invesco High
Yield Equity Dividend AchieversTM ETF)
The NASDAQ US Dividend AchieversTM 50 Index is designed to
track the performance of the 50 issuers with the highest modified dividend yield
chosen from the Nasdaq US Broad Dividend AchieversTM Index. To become eligible
for inclusion in the Underlying Index, an issuer must be included in the Nasdaq
US
Broad Dividend AchieversTM Index, and the issuer of
the security must have a minimum market capitalization of $1 billion.
Securities issued by REITs and limited partnerships are ineligible for inclusion
in the Underlying Index.
Eligible securities for the Nasdaq US Broad Dividend AchieversTM Index must have, among
other things, experienced growth in dividends consistently over the last ten or
more calendar or fiscal years and have a minimum three-month average daily
dollar trading volume of $1 million.
Nasdaq ranks the universe of securities according to their
trailing 12-month dividend yield as of the last trading day in February. Nasdaq
includes the 50 highest yielding securities in the Underlying Index, as long as
no sector has more than 12 securities. In the event there are more than 12
securities in a single sector, the top 12 securities by dividend yield are
included.
The Underlying Index is rebalanced annually after the close of
trading on the third Friday in March using market data through the end of
December. The Underlying Index is reweighted on a quarterly basis after the
close of trading on the third Friday in March, June, September and December
using a modified dividend yield weighted methodology that incorporates the
trailing 12-month dividend yield of each issuer as of the last trading day in
February, May, August and November. Under the methodology: (i) no sector
can be represented by more than 12 component securities; (ii) no sector can
have a weight of more than 25% of the Underlying Index; and (iii) no single
component securities can have a weight of more than 4% of the Underlying Index.
These rebalances will become effective after the close of trading on the third
Friday in March, June, September and December. Additionally, if at any time a
component security becomes ineligible for inclusion in the Underlying Index, it
will be removed and replaced with the security that meets the eligibility
criteria with the highest dividend yield as of the last evaluation.
Nasdaq generally will make adjustments arising from stock
dividends and stock splits on the evening prior to the effective date of that
action. In the case of certain spin-offs or rights issuances, NASDAQ adjusts the
price of the issuer’s securities. A special cash dividend will result in an
adjustment to the last sale price of an issuer’s shares prior to market-open on
the ex-date for the special amount distributed.
The Fund is rebalanced and reweighted in accordance with the
Underlying Index.
Nasdaq US Insider Sentiment Index (Invesco Insider Sentiment
ETF)
The Nasdaq US Insider Sentiment Index is designed to provide
exposure to U.S. companies that Nasdaq has selected for inclusion in the
Underlying Index based on a company’s corporate insider buying trends.
Nasdaq selects securities for the Underlying Index using a
rules-based selection criteria designed to increase the Underlying Index’s
exposure, relative to the starting universe, to securities
that reflect favorable corporate insider buying trends by
considering the following factors:
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• |
|
Insider Buying Trends.
Increases in average shares of a company held by corporate insiders are
evaluated by calculating the average shares held by corporate insiders
over a trailing 12-month period and comparing that average to the average
number of shares held by corporate insiders over a 13 to 24-month period.
|
|
• |
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Momentum. Momentum is
calculated based on each company’s one-month, three-month, six-month,
nine-month and twelve-month returns. |
|
• |
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Volatility. Volatility
reflects the degree of fluctuation in a company’s share price and it is
calculated based on a company’s trailing one-year volatility.
|
Potential Underlying Index constituents include all common stocks,
ordinary shares, ADRs, GDRs, shares of beneficial interest or limited
partnership interests and tracking stocks.
To be eligible for inclusion in the Underlying Index, a security
must meet the following criteria: (i) it must be a constituent of the
Nasdaq US Large Mid Cap Index; (ii) the security must have been publicly
traded for at least 24 months; (iii) the average shares held by corporate
insiders over a trailing 12-month period must be greater than the average number
of shares held by corporate insiders over a trailing 13 to 24-month period;
(iv) the security may not be issued by an issuer currently in bankruptcy
proceedings; and (v) the issuer may not have entered into an agreement or
other arrangement that would likely result in the security no longer being
eligible for inclusion in the Underlying Index.
The Underlying Index employs an equal-dollar weighted methodology.
Each security in the eligible universe is ranked based on an equal application
of the following factors: (i) increase in average shares held by corporate
insiders; (ii) momentum; and (iii) volatility. The 100 highest-ranking
securities, subject to industry weight constraints, are selected for inclusion
in the Underlying Index. The weight of any one industry (determined based on the
Industry Classification Benchmark) is limited to 20% of the Underlying Index.
The Underlying Index is rebalanced semi-annually after the close
of trading on the third Friday in April and October using market data through
the end of March and September, respectively. Additionally, if at any time a
component security becomes ineligible for inclusion in the Underlying Index, it
is removed and is not replaced.
The Fund is rebalanced in accordance with the Underlying Index.
Raymond James SB-1 Equity Index (Invesco Raymond James SB-1
Equity ETF)
The Raymond James SB-1 Equity Index is composed of all equity
securities rated SB-1 by Raymond James with the relative weighting of each
constituent determined according to a modified equal-weighting methodology, as
described below.
Raymond James evaluates equity securities of U.S. issuers and U.S.
dollar-denominated equity securities of foreign issuers, in
each case that are traded on U.S. securities exchanges, and
assigns them one of four ratings, with SB-1 being the highest rating. A rating
of SB-1 generally indicates that Raymond James expects the security to achieve
certain total return targets and outperform the S&P 500® Index over the next six to
12 months. In the case of certain higher-yielding or more conservative equities,
a rating of SB-1 indicates that Raymond James expects such equities to achieve
total return targets over the next 12 months.
The Underlying Index will seek to include each SB-1 rated security
in equal dollar-weighted percentages relative to the total value of the entire
Underlying Index (“Equal Portfolio Weight”); however, in instances in which
there is comparatively little trading volume in a SB-1 rated security, the
security’s weight will be limited. The Index Provider will calculate the
“Average Price-Volume Amount” for each SB-1 rated security by multiplying the
average product of the closing price and its trading volume for the 60 trading
days prior to the rebalance For any SB-1 rated security that has an Average
Price-Volume Amount less than $1,000,000 per day, that security’s weight will be
reduced to a proportion of the Equal Portfolio Weight equal to the ratio of its
Average Price-Volume Amount over $1,000,000 (the “Liquidity Cap”). To the extent
that a security’s weight is limited by the Liquidity Cap, the difference between
the equal weight position and the capped position will be reallocated equally
among all other Underlying Index constituents.
The Underlying Index will be rebalanced twice per calendar month.
Apart from scheduled rebalances, the Index Provider or its agents may carry out
additional ad hoc rebalances to Underlying Index in order, for example, to
reflect corporate actions or spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
Red Rocks Global Listed Private Equity Index (Invesco Global
Listed Private Equity ETF)
The Red Rocks Global Listed Private Equity Index is composed of 40
to 75 securities, ADRs and GDRs of listed private equity companies. For a
security to be considered for inclusion in the Underlying Index, it must invest
a majority of its assets in, lend capital to, or provide services to, private
companies, or must have a stated intention to do so. The underlying assets may
be domestic or foreign and are allocated in proportion to U.S. and international
gross domestic product (“GDP”) to reflect the global nature of private equity.
Strictly in accordance with its guidelines and mandated
procedures, Red Rocks identifies the private equity companies that
will comprise the Underlying Index based upon reputation, management,
financial data, historical performance and the need for diversification within
the Underlying Index. The Underlying Index views diversification from four
different perspectives: (i) stage of investment; (ii) vintage year;
(iii) industry; and (iv) geography. Each listed private equity company
must have a six-month and 30-day minimum average daily trading volume in excess
of $250,000 and a market capitalization of at least $100 million before
inclusion in the Underlying Index.
The Underlying Index uses a modified float-adjusted market
capitalization weighting methodology. The combined weight of all
components of the Underlying Index that individually equal a 5% or
greater weighting of the Underlying Index will not, in aggregate, exceed 25% of
the Underlying Index.
The Underlying Index is rebalanced quarterly and is effective the
first business day of each calendar quarter. The Fund is rebalanced in
accordance with the Underlying Index.
General Underlying Index Information for the S&P Equal
Weight ETFs (Invesco S&P 100 Equal Weight ETF, Invesco S&P 500® Equal Weight ETF, Invesco
S&P 500® Equal Weight
Communication Services ETF, Invesco S&P 500® Equal Weight Consumer
Discretionary ETF, Invesco S&P 500® Equal Weight Consumer
Staples ETF, Invesco S&P 500® Equal Weight Energy ETF,
Invesco S&P 500®
Equal Weight Financials ETF, Invesco S&P 500® Equal Weight Health Care
ETF, Invesco S&P 500®
Equal Weight Industrials ETF, Invesco S&P 500® Equal Weight Materials ETF,
Invesco S&P 500®
Equal Weight Real Estate ETF, Invesco S&P 500® Equal Weight Technology ETF,
Invesco S&P 500®
Equal Weight Utilities ETF, Invesco S&P MidCap 400® Equal Weight ETF and Invesco
S&P SmallCap 600®
Equal Weight ETF)
The general goal of an equal weighted index is to represent the
performance of its constituents in equal proportion to one another. In
comparison, the degree to which the performance of a constituent of a market
capitalization weighted index is represented in the index is dependent on the
size of the constituent. For example, the S&P 500® Index tends to be largely
representative of a small number of its largest constituents. The equal
representation provided by an equal weighted index provides broader exposure to
the index constituents than its market capitalization weighted counterpart.
The Underlying Index of each S&P Equal Weight ETF is
rebalanced after the close of trading on the third Friday of each calendar
quarter. Constituent changes are made as and when they are made in the
corresponding parent index. The index composition of each S&P Equal Weight
Index is the same as of that of its universe index, but each company is equally
weighted rather than weighted by float-adjusted market capitalization. The
S&P 500 Equal Weight Sector Indexes are designed to measure the overall
performance of common stocks of companies in a specific sector. For those
indexes, index constituents are drawn from the S&P 500® Index based on their
classification under the Global Industry Classification Standard (GICS®).
If a security is added to, or removed from, a GICS® sector, the security will be
added to, or removed from, the respective Underlying Index simultaneously,
except that any supplementary companies added to an Underlying Index will remain
in the Underlying Index until at least the next quarterly rebalance and such
S&P Equal Weight Sector ETF will continue to hold such security until it is
removed from the Underlying Index.
Each S&P Equal Weight ETF is rebalanced in accordance with its
Underlying Index.
General Underlying Index Information for the Pure Growth
ETFs (Invesco S&P 500® Pure Growth ETF, Invesco
S&P MidCap
400®
Pure Growth ETF and Invesco S&P SmallCap 600® Pure Growth ETF)
Each of the S&P 500® Pure Growth Index, S&P
MidCap 400® Pure Growth
Index and S&P SmallCap 600® Pure Growth Index is
composed of a subset of securities from a parent index, as follows:
S&P 500® Pure Growth Index: the
S&P 500® Index, a
float-adjusted market capitalization-weighted index composed of 500 stocks
chosen by S&P DJI that generally represents the U.S. large-cap equities
market.
S&P MidCap 400® Pure Growth Index: the
S&P MidCap 400®
Index, a float- adjusted market capitalization-weighted index composed of 400
stocks chosen by S&P DJI that generally represents the U.S.
mid-capitalization equities market.
S&P SmallCap 600® Pure Growth Index: the
S&P SmallCap 600®
Index, a float-adjusted market capitalization-weighted index composed of 600
stocks chosen by S&P DJI that generally represents the U.S. small-cap
equities market.
Each Underlying Index is composed of securities that exhibit the
strongest “growth characteristics” as measured using the following three
factors: three-year sales per share growth, three-year ratio of earnings per
share change to price per share, and momentum (12-month percentage price
change). Each component security in an Underlying Index’s respective parent
index (e.g., the S&P 500® Index, the S&P MidCap
400® Index or the S&P
SmallCap 600® Index) is
assigned a “growth score” based on those three factors and are then ranked based
on their score. The securities ranked in the top one-third are included in the
respective Underlying Index. Each Underlying Index’s constituent securities are
then weighted in proportion to their overall “growth scores,” giving greatest
weight to the securities demonstrating the most growth characteristics. If a
security is removed from a parent index, it is removed from the respective
Underlying Index simultaneously.
Each Underlying Index is rebalanced annually after the close of
the third Friday in December. Each Pure Growth ETF is rebalanced in accordance
with its Underlying Index.
General Underlying Index Information for the Pure Value ETFs
(Invesco S&P 500®
Pure Value ETF, Invesco S&P MidCap 400® Pure Value ETF and Invesco
S&P SmallCap 600®
Pure Value ETF)
Each of the S&P 500® Pure Value Index, S&P
MidCap 400® Pure Value
Index and S&P SmallCap 600® Pure Value Index is composed
of a subset of securities from a parent index, as follows:
• |
|
S&P 500® Pure Value Index: the
S&P 500® Index,
a float-adjusted market capitalization- weighted index composed of 500
stocks chosen by S&P DJI that generally represents the U.S. large-cap
equities market. |
• |
|
S&P MidCap 400® Pure Value Index: the
S&P MidCap 400®
Index, a float-adjusted market capitalization-weighted index composed of
400 stocks companies chosen by S&P DJI that generally represents the
U.S. mid-capitalization equities market. |
• |
|
S&P SmallCap 600® Pure Value Index: the
S&P SmallCap 600® Index, a
float-adjusted market capitalization-weighted
|
|
|
index composed of 600 stocks chosen by S&P DJI that
generally represents the U.S. small-cap equities market.
|
Each Underlying Index is composed of securities that exhibit the
strongest “value characteristics” as measured using the following three factors:
book value to price ratio, earnings to price ratio, and sales to price ratio.
Each component security in an Underlying Index’s respective parent index (e.g.,
the S&P 500® Index,
the S&P MidCap 400®
Index or the S&P SmallCap 600® Index) is assigned a “value
score” based on those three factors and are then ranked based on their score.
The securities ranked in the top one-third are included in the respective
Underlying Index. Each Underlying Index’s constituent securities are then
weighted in proportion to their overall “value scores,” giving greatest weight
to the securities demonstrating the most value characteristics. If a security is
removed from a parent index, it is removed from the respective Underlying Index
simultaneously.
Each Underlying Index is rebalanced annually after the close of
the third Friday in December. Each Pure Value ETF is rebalanced in accordance
with its Underlying Index.
S&P 500 GARP Index (Invesco S&P 500 GARP ETF)
The S&P 500 GARP Index is composed of a subset of securities
from the S&P 500®
Index (the “Parent Index”). The Index Provider first identifies stocks that
exhibit growth characteristics by calculating the growth score for each stock in
the Parent Index. A stock’s growth score is the average of its:
(i) three-year EPS growth, calculated as a company’s three-year EPS
compound annual growth rate and (ii) three-year SPS growth, calculated as a
company’s three-year SPS compound annual growth rate. After adjusting for
outliers, the stocks are ranked by growth score and the top 150 stocks remain
eligible for inclusion in the Underlying Index.
The Index Provider then calculates a quality/value composite score
for each of the remaining 150 stocks. A stock’s quality/value composite score is
the average of its: (i) financial leverage ratio, calculated as a company’s
latest total debt divided by its book value; (ii) return on equity,
calculated as a company’s trailing 12-month EPS divided by its latest book value
per share; and (iii) earnings-to-price ratio, calculated as a company’s
trailing 12-month EPS divided by its
price.
In accordance with the Underlying Index methodology, the stocks
are ranked by quality/value composite score and the top 75 stocks are included
in the Underlying Index. A 20% buffer is applied to stocks already in the
Underlying Index as follows:
|
1. |
The top 150 stocks, based on growth score,
are ranked by their quality/value composite score. The top 60 stocks are
included in the Underlying Index. |
|
2. |
The top 90 stocks, based on quality/value
score, are included in the Underlying Index in order of their
quality/value composite score. |
|
3. |
If 75 stocks have not been selected, the
remaining stocks are included in the Underlying Index based on their
quality/value composite score until the target count is reached.
|
The Underlying Index is weighted by growth score and no security
will have a weight below 0.05% or above 5%. Additionally, each sector will be
subject to a maximum weight of 40%.
The Underlying Index is rebalanced semi-annually after market
close on the third Friday in June and December. Additions to the Underlying
Index generally occur only at the time of the semi-annual rebalance, but
constituents removed from the Parent Index are removed from the Underlying Index
simultaneously. Apart from scheduled rebalances, the Index Provider or its
agents may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spinoffs.
The Fund is rebalanced in accordance with the Underlying Index.
S&P 500 High Momentum Value Index (Invesco S&P 500
Value with Momentum ETF)
The S&P 500 High Momentum Value Index is composed of a subset
of securities from the S&P 500® (the “Parent Index”).
The Index Provider first calculates the value score of each stock
in the Parent Index by evaluating each stock’s: (i) book value-to-price
ratio, calculated using the company’s latest book value per share divided by its
price; (ii) earnings-to-price ratio, calculated using the company’s
trailing 12-month EPS divided by its price; and (iii) sales-to-price ratio,
calculated using the company’s trailing 12-month SPS divided by its price.
After ranking the constituent securities by value score, the Index
Provider selects the 200 highest-ranking securities and calculates a momentum
score for each security. A security’s momentum score is based on upward price
movements of the security as compared to other eligible securities within the
remaining constituent universe. After ranking the remaining constituent universe
by momentum score, the Index Provider selects the 100 highest-ranking
securities for inclusion in the Underlying Index. The constituent securities are
weighted by value score.
The Underlying Index is rebalanced semi-annually after market
close on the third Friday in June and December. Additions to the Underlying
Index generally occur only at the time of the semi-annual rebalance, but
constituents removed from the Parent Index are removed from the Underlying Index
simultaneously. Apart from scheduled rebalances, the Index Provider or its
agents may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
S&P 500® Quality Index (Invesco
S&P 500® Quality
ETF)
The S&P 500® Quality Index is constructed
from constituents of the S&P 500® Index that the Index
Provider identifies as being of the highest quality—that is, stocks of companies
that seek to generate higher revenue and cash flow than their counterparts
through prudent use of assets and finances. The Index Provider calculates the
quality score of each security in the S&P 500® Index based on the stock’s
return-on-equity, accruals ratio and financial leverage ratio. Return on equity
is calculated as the company’s trailing 12-month earnings per share divided by
the company’s latest book value per share. Accruals ratio is computed using the
change of the company’s net operating asset over the
last year divided by the company’s average net operating asset
over the last two years. Financial leverage is calculated as the company’s
latest total debt divided by the company’s book value. The Index Provider then
selects the 100 stocks with the highest quality score for inclusion in the
Underlying Index. The Index Provider weights each component stock of the
Underlying Index by the total of its quality score multiplied by its market
capitalization.
The Underlying Index is rebalanced twice a year after the close of
trading on the third Friday in June and December. The Fund is rebalanced in
accordance with the Underlying Index.
S&P 500® Top 50 Index (Invesco
S&P 500® Top 50 ETF)
The S&P 500® Top 50 Index consists of the
50 largest component securities of the S&P 500 Index by float-adjusted
market capitalization and are weighted by float-adjusted market capitalization.
The Underlying Index is rebalanced annually, after close of
trading on the third Friday in June and is reweighted quarterly. A buffer rule
is applied to the constituent selection process at each rebalancing as follows:
1. |
All companies ranked in the top 45 by
float-adjusted market capitalization are automatically included in the
Underlying Index. |
2. |
Next, any current constituent companies
remaining within the top 55 are selected for inclusion, in order by rank,
until the 50 company target count has been reached.
|
3. |
If the target count still has not been
reached, the highest ranking non-constituents are selected until 50
companies are included. |
The Fund is rebalanced and reweighted in accordance with the
Underlying Index.
S&P MidCap 400 High Momentum Value Index (Invesco
S&P MidCap Value with Momentum ETF)
The S&P MidCap 400 High Momentum Value Index is composed of a
subset of securities from the S&P MidCap 400® (the “Parent Index”).
The Index Provider first calculates the value score of each stock
in the Parent Index by averaging each stock’s: (i) book value-to-price
ratio, calculated using the company’s latest book value per share divided by its
price; (ii) earnings-to-price ratio, calculated using the company’s
trailing 12-month EPS divided by its price; and (iii) sales-to-price ratio,
calculated using the company’s trailing 12-month SPS divided by its price.
After ranking the constituent securities by value score, the Index
Provider selects the 160 highest-ranking securities and calculates a momentum
score for each security. A security’s momentum score is based on upward price
movements of the security as compared to other eligible securities within the
remaining constituent universe. After ranking the remaining constituent universe
by momentum score, the Index Provider selects the 80 highest-ranking securities
for inclusion in the Underlying Index. The constituent securities are weighted
by value score.
The Underlying Index is rebalanced semi-annually after market
close on the third Friday in June and December. Additions to the Underlying
Index generally occur only at the time of the semi-annual rebalance, but
constituents removed from the Parent Index are removed from the Underlying Index
simultaneously. Apart from scheduled rebalances, the Index Provider or its
agents may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spinoffs.
The Fund is rebalanced in accordance with the Underlying Index.
S&P MidCap 400 Momentum Index (Invesco S&P MidCap
Momentum ETF)
The S&P MidCap 400 Momentum Index is designed to measure the
performance of the securities with the greatest momentum within the S&P
MidCap 400® (the “Parent
Index”).
In selecting constituent securities for the Underlying Index, the
Index Provider first calculates the momentum score of each stock in the Parent
Index by evaluating the percentage change in the stock’s price over the last 12
months, excluding the most recent month, and applying an adjustment based on the
security’s volatility over that period. Approximately 80 of the securities with
the highest momentum score are included in the Underlying Index.
The Underlying Index uses a modified market capitalization
weighted strategy and weights securities by multiplying each security’s market
capitalization and momentum score.
The Underlying Index is rebalanced semi-annually after market
close on the third Friday in March and September. Additions to the Underlying
Index generally occur only at the time of the semi-annual rebalance, but
constituents removed from the Parent Index are removed from the Underlying Index
simultaneously. Apart from scheduled rebalances, the Index Provider or its
agents may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
S&P MidCap 400 Quality Index (Invesco S&P MidCap
Quality ETF)
The S&P 400® Quality Index is constructed
from constituents of the S&P 400® (the “Parent Index”) that
the Index Provider identifies as being of the highest quality—that is, stocks of
companies that seek to generate higher revenue and cash flow than their
counterparts through prudent use of assets and finances. The Index Provider
first calculates the quality score of each security in the Parent Index by
determining each component stock’s (1) return-on-equity (calculated as the
company’s trailing 12-month earnings per share divided by the company’s latest
book value per share); (2) accruals ratio (computed using the change of the
company’s net operating assets over the last year divided by the company’s
average net operating assets over the last two years); and (3) financial
leverage ratio (calculated as the company’s latest total debt divided by the
company’s book value).
The Index Provider then selects the 80 stocks with the highest
quality score for inclusion in the Underlying Index. The Index Provider weights
each component stock of the Underlying Index by the total of its quality score
multiplied by its market
capitalization. The Underlying Index is rebalanced semi-annually
after market close on the third Friday of June and December. Additions to the
Underlying Index generally occur only at the time of the semi-annual rebalance,
but constituents removed from the Parent Index are removed from the Underlying
Index simultaneously. Apart from scheduled rebalances, the Index Provider or its
agents may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
S&P SmallCap 600 High Momentum Value Index (Invesco
S&P SmallCap Value with Momentum ETF)
The S&P SmallCap 600 High Momentum Value Index is composed of
a subset of securities from the S&P SmallCap 600® (the “Parent Index”).
The Index Provider first calculates the value score of each stock
in the Parent Index by averaging each stock’s: (i) book ratio, calculated
using the company’s trailing 12-month EPS divided by its price; and
(iii) sales-to-price ratio, calculated using the company’s trailing
12-month SPS divided by its price.
After ranking the constituent securities by value score, the Index
Provider selects the 240 highest-ranking securities and calculates a momentum
score for each security. A security’s momentum score is based on upward price
movements of the security as compared to other eligible securities within the
remaining constituent universe. After ranking the remaining constituent universe
by momentum score, the Index Provider selects the 120 highest-ranking securities
for inclusion in the Underlying Index. The constituent securities are weighted
by value score.
The Underlying Index is rebalanced semi-annually after market
close on the third Friday in June and December. Additions to the Underlying
Index generally occur only at the time of the semi-annual rebalance, but
constituents removed from the Parent Index are removed from the Underlying Index
simultaneously. Apart from scheduled rebalances, the Index Provider or its
agents may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
S&P SmallCap 600 Momentum Index (Invesco S&P
SmallCap Momentum ETF)
The S&P SmallCap 600 Momentum Index is designed to measure the
performance of the securities with the greatest momentum within the S&P
SmallCap 600® (the
“Parent Index”).
In selecting constituent securities for the Underlying Index, the
Index Provider first calculates the momentum score of each stock in the Parent
Index by evaluating the percentage change in the stock’s price over the last 12
months, excluding the most recent month, and applying an adjustment based on the
security’s volatility over that period. Approximately 120 of the securities with
the highest momentum score are included in the Underlying Index.
The Underlying Index uses a modified market
capitalization-weighted strategy and weights securities by multiplying each
security’s market capitalization and momentum score.
The Underlying Index is rebalanced semi-annually after market
close on the third Friday in March and September. Additions to the Underlying
Index generally occur only at the time of the semi-annual rebalance, but
constituents removed from the Parent Index are removed from the Underlying Index
simultaneously. Apart from scheduled rebalances, the Index Provider or its
agents may carry out additional ad hoc rebalances to the Underlying Index in
order, for example, to reflect corporate actions or spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
S&P U.S. Spin-Off Index (Invesco S&P Spin-Off ETF)
The Underlying S&P U.S. Spin-Off Index is designed to measure
the performance of U.S. domiciled companies that have been spun off from larger
corporations within the past four years. Underlying Index constituents must be
constituents of the S&P U. S. BMI, a country sub-index of the S&P Global
BMI.
The Underlying Index is weighted by float-adjusted market
capitalization, subject to a maximum weight of 7.5% for any single stock. If at
the monthly rebalancing a constituent security’s weight exceeds 7.5%, its weight
is reduced to 7.5% and the excess weight is redistributed to the remaining
constituents proportionally to their float-adjusted market capitalization
weights. The process is repeated as necessary.
The Underlying Index is rebalanced monthly after the close of the
third Friday of each month. Additions to the Underlying Index are made at each
monthly rebalance after the close of trading on the third Friday of each month.
Any eligible spin-off occurring at least seven business days prior to the
rebalance date is included in the Underlying Index at the monthly rebalance. In
addition, any constituent security that is removed from the S&P U.S. BMI
will be simultaneously removed from the Underlying Index.
Constituent securities are only included in the Underlying Index
for a maximum of 48 months. A constituent security that has been included in the
Underlying Index for more than 48 months is removed at the subsequent monthly
rebalance; however, if the deletion of a constituent security would result in
the number of constituent securities of the Underlying Index being less than 20,
the deletion will be delayed until the next monthly rebalance where the
resulting number of constituent securities would be at least 20.
The Fund is rebalanced in accordance with the Underlying Index.
S&P/BNY Mellon BRIC Select DR Index (USD) (Invesco BRIC
ETF)
The S&P/BNY Mellon BRIC Select DR Index (USD) tracks the
performance of U.S. and non-U.S. exchange-listed depositary receipts in ADR or
GDR form that are listed for trading on the NYSE, NYSE American, Nasdaq or
London Stock Exchange that represent securities of companies domiciled in
Brazil, Russia, India and China, which meet certain criteria.
1. |
To be eligible for inclusion in the
Underlying Index, a security must: |
a. |
Be a member of the S&P/BNY Mellon DR
Index. |
b. |
Have free-float adjusted market
capitalization at least $250 million.
|
c. |
Have a minimum $100,000 3 month average
daily U.S. dollar trading volume on the applicable primary exchange of the
ADR or GDR. |
d. |
Have a minimum $1,000,000 3 month average
daily U.S. dollar trading volume from the U.S. composite market and the
London Stock Exchange. (Hong Kong local trading volume may be used to
satisfy this requirement for ADRs or GDRs whose local market is Hong
Kong).* |
* |
If Hong Kong trading volume is used to
satisfy the volume inclusion screen or if the ADR or GDR volume is less
than 10 basis points of the market capitalization at the time of quarterly
review, the local Hong Kong exchange listed security will be used in the
Underlying Index calculation in place of the depositary receipt.
|
The Underlying Index is market capitalization weighted, adjusted
by an index factor, to ensure that the maximum market capitalization for any
individual security does not exceed 1000 times its 3-month average daily U.S.
dollar trading volume. At the time of rebalance, no single security will have a
weight greater than 10% of the Underlying Index’s total weight. In addition, the
aggregate weight of securities with individual weights greater than 5%, will not
exceed 40% of the Underlying Index’s total weight. The Underlying Index is
rebalanced quarterly in March, June, September, and December. Apart from
scheduled rebalances, the Index Provider or its agents may carry out additional
ad hoc rebalances to the Underlying Index in order, for example, to reflect
corporate actions or spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
SPADE® Defense Index (Invesco
Aerospace & Defense ETF)
The SPADE®
Defense Index is a modified market capitalization weighted index composed of
securities of publicly traded companies. The Underlying Index seeks to measure
the performance of securities of companies in the U.S. defense, military,
homeland security and space marketplace. The Underlying Index includes
securities of companies that are involved with the development, manufacture,
operation and support of U.S. defense, military, homeland security and space
operations listed on the NYSE or quoted on Nasdaq. Strictly in accordance with
its guidelines and mandated procedures, SPADE Indexes, LLC (“SPADE Indexes”)
identifies stocks for the Underlying Index that meet the following eligibility
criteria:
(a) |
Maintain a minimum $100 million market
valuation during the 25 days preceding the initial inclusion date.
|
(b) |
Maintain a minimum $5.00 daily share price
during the 25 days preceding the initial inclusion date.
|
(c) |
Have a minimum average daily trading volume
over the preceding 25 days prior to the inclusion date of
50,000 shares. |
(d) |
Have a quarterly sales/revenue/turnover of
at least $10 million for the prior two announced quarters preceding
its inclusion. |
SPADE Indexes may at any time, and from time to time, change the
number of issues comprising the Underlying Index by adding or deleting one or
more components, or replace one or more issues contained in the Underlying Index
with one or more
substitute stocks of its choice, if in Index Provider’s discretion
such addition, deletion or substitution is necessary or appropriate to maintain
the quality and/or character of the industry groups to which the Underlying
Index relates.
SPADE Indexes calculates the Underlying Index using a modified
market capitalization weighting methodology. SPADE Indexes modifies the market
capitalization weights to conform to asset diversification rules, which it
applies in conjunction with the scheduled quarterly updates to the Underlying
Index. The weight of any component stock at the time of rebalancing may not
account for more than 10% of the total value of the Underlying Index.
In the event of a merger between two components, SPADE Indexes may
adjust the share weight of the surviving entity to account for any shares issued
in the acquisition. SPADE Indexes may substitute components or change the number
of issues included in the Underlying Index, based on changing conditions in the
industry or in the event of certain types of corporate actions, including
mergers, acquisitions, spin-offs and reorganizations. In the event of component
or share weight changes to the Underlying Index portfolio, the payment of
dividends other than ordinary cash dividends, spin-offs, rights offerings,
re-capitalizations or other corporate actions affecting a component of the
Underlying Index, SPADE Indexes may adjust the Underlying Index divisor to
ensure that there are no changes to the Underlying Index level as a result of
non-market forces. For changes in a component’s shares outstanding greater than
5% due to a merger, acquisition or spin-off, SPADE Indexes will make an
adjustment effective after the close on the effective date of the corporate
action. SPADE Indexes makes share changes less than 5% during the scheduled
quarterly updates to the Underlying Index.
Typically, the Underlying Index will remove component stocks under
the following conditions at the time of rebalancing:
(a) |
Total market capitalization falls below
$75 million for 25 consecutive trading days.
|
(b) |
No longer maintains adequate liquidity.
|
(c) |
Last-reported sale price falls below $3.00
per share. |
The above requirements notwithstanding, SPADE Indexes reserves the
authority to remove one or more component stocks at any time if it believes such
stocks no longer provide adequate representation of the sector or no longer
maintain the quality and/or character of the Underlying Index.
Changes to the Underlying Index composition and/or the component
share weights in the Underlying Index typically take effect after the close of
trading on the next to last business day of each calendar quarter month
(“Rebalance Date”). SPADE Indexes will determine and announce the components and
weights at the close of trading two days prior to the Rebalance Date. In
conjunction with the quarterly review, SPADE Indexes updates the share weights
used in the calculation of the Underlying Index based upon current shares
outstanding and prices as of the close of trading two business days prior to the
Rebalance Date. The share weight of each component in the Underlying Index
portfolio remains fixed between quarterly reviews except in the event of
certain types of corporate actions such as splits, reverse splits,
stock dividends or similar events.
SPADE Indexes calculates the Underlying Index using a modified
market capitalization weighting methodology. The weight of any component stock
at the time of a rebalance may not exceed 10% of the total value of the
Underlying Index.
The Underlying Index is rebalanced quarterly after market close on
the next to last business day in March, June, September and December. SPADE
Indexes will determine and announce the components and weights at the close of
trading two days prior to the rebalance date. Apart from scheduled rebalances,
SPADE Indexes or its agents may carry out additional ad hoc rebalances to the
Underlying Index in order, for example, to reflect corporate actions or
spin-offs.
The Fund is rebalanced in accordance with the Underlying Index.
Wells Fargo® Hybrid and Preferred
Securities Financial Index (Invesco Financial Preferred ETF)
The Wells Fargo® Hybrid and Preferred
Securities Financial Index attempts to portray a cross-section of the universe
of preferred and functionally equivalent securities issued by financial
institutions and listed on the NYSE, NYSE American, NYSE Arca or Nasdaq and that
meet certain criteria.
Eligible securities that will be included in the Underlying Index
must meet the following criteria:
(a) |
Preferred stock or securities determined to
be functionally equivalent to preferred stock that are issued exclusively
by financial institutions. |
(b) |
An industry sector classification of
“financial” from the Bloomberg Professional Service®.
|
(c) |
Rated at least “B3” by Moody’s Investors
Service, Inc. or at least “B-” by S&P Global Ratings.
|
(d) |
U.S. dollar-denominated and registered in
the U.S. |
(f) |
Perpetual with no stated or legal maturity,
although securities may be subject to redemption or call provisions.
|
(g) |
Maintain a minimum par value of
$250 million outstanding. |
(h) |
May have fixed or floating rate dividends
or coupons, provided that any income paid is “qualified dividend income”
eligible. |
(i) |
Liquidity requirements. Constituent
securities representing at least 90% of the market value of the Underlying
Index must have a minimum monthly trading volume during each of the last
six months of at least 250,000 trading units. New issue securities listed
on any of the NYSE, NYSE American, NYSE Arca or Nasdaq for less than six
months must have a minimum monthly trading volume of at least 250,000
trading units during each month following the date on which the securities
were listed. Trading volume for any period less than one month shall be
pro-rated for each day based on daily trading volume. If securities
representing 90% of the market value of the Underlying Index do not meet
the liquidity requirements set forth above, the Underlying Index
|
|
will be rebalanced by
removing the least liquid securities from the Underlying Index until the
90% liquidity requirement is satisfied. Underlying Index liquidity will be
tested and rebalancing will occur on each Monthly Rebalance Date (defined
below). |
The Underlying Index does not include trust preferred securities,
convertible preferred shares, securities subject to sinking fund provisions,
shares in closed-end funds, municipal securities, sovereign securities or
repackaged securities linked to a security, a basket of securities or an index.
The Underlying Index is calculated using a market capitalization
weighting methodology that is applied on each Monthly Rebalance Date, as further
described below. The weight of any component security may not account for more
than 20% of the value of the Underlying Index. Component securities that account
for more than 20% of the value of the Underlying Index are reduced to
individually represent 20% of the value of the Underlying Index. The aggregate
amount by which all components over 20% is reduced is redistributed
proportionately across the remaining components that represent less than 20% of
the value of the Underlying Index. After this redistribution, if any other
component exceeds 20%, the component is reduced to 20% of the value of the
Underlying Index and the redistribution is repeated. (The 20% weight limit above
applies to constituent securities, not issuers. An issuer may represent more
than 20% of the value of the Underlying Index, but a single security component
may not.) In addition, the sum of the issuers with a weight greater than 4.5%
cannot exceed 45% of the total weight of the Underlying Index. If the
aforementioned 45% cap is breached, all the issuers are ranked in descending
order of their weights and the first stock that causes the 45% limit to be
breached is identified. The weight of this issuer is then reduced either until
the rule is satisfied or it reaches 4.5%. If the issuer to be reduced has
multiple component securities included in the Underlying Index, the securities
will be reduced on a pro-rata basis determined by market capitalization. This
excess weight is proportionally redistributed to all issuers with weights below
4.5%. This process will be repeated until the 45% rule is satisfied. (The 4.5%
weight limit above applies to issuers, not constituent securities. A constituent
security may represent more than 4.5% of the Underlying Index.)
The Underlying Index is rebalanced monthly as of the close of
business on the final NYSE trading day of each month (the “Monthly Rebalance
Date”). All outstanding preferred stocks are tested for suitability based on
eligibility criteria. Preferred securities that are deemed to satisfy the
eligibility criteria for the Underlying Index are added to the Underlying Index
as component securities whereas those that are deemed to not satisfy the
eligibility criteria are excluded from the Underlying Index’s rebalance.
Rebalancing also can occur following specific events such as redemption,
tenders, green-shoes and overallotments, re-openings, rights offerings, stock
splits and suspension from trading on an exchange. These events generally will
require that the Underlying Index be adjusted contemporaneous with the event or,
at the latest, on the next Monthly Rebalance Date. The Fund is rebalanced in
accordance with the Underlying Index.
WilderHill Clean Energy Index (Invesco WilderHill Clean
Energy ETF)
The WilderHill Clean Energy Index includes companies that have a
significant exposure to clean energy, contribute to the advancement of clean
energy, including those developing and selling energy technologies and energy
management services designed to address efficiency and environmental challenges
as well as changes in fossil fuel resource abundance. Trends affecting adoption
of clean energy technologies include (but are not limited to) conventional air
pollution, carbon dioxide and other greenhouse gas pollution leading to global
warming, and risks to centralized grid or other energy infrastructure.
There is a strong bias in favor of pure play companies focused on
technologies in (i) renewable energy, including solar, wind power and
biofuels (ii) improving energy efficiency; (iii) advanced energy
storage; (iv) cleaner fuels or biofuels; or (v) innovative power
delivery, materials, energy conversion including fuel cells and related
industries. Companies in emerging clean energy fields, such as hydroelectric,
geothermal, wave, tidal, and others, will be considered with respect to carbon
content, impact upon marine and terrestrial biodiversity, and the degree to
which they advance or reflect the clean energy sector.
Strictly in accordance with its guidelines and mandated
procedures, the Underlying Index includes companies focused on the following
areas:
• |
|
Renewable Energy
Supplies-Harvesting. These are the producers of energy that is
renewably-made, or manufacturers relevant to green energy such as the
makers of turbines and rotors used for wind power, makers of solar
photovoltaic panels and suppliers of clean energy systems, and the makers
of biofuels derived from renewable vegetable crops, as examples. These
renewable methods supply desired electrical power directly where needed—or
this “green” power could be stored as a clean fuel like hydrogen. Wind,
solar, biofuels, hydro and waste-to-energy notably carry less burden of
pollution, and renewable sources allow distributed generation that makes
power closer to need. |
• |
|
Energy Storage. This
wide-ranging category includes advanced batteries and materials that hold
energy in familiar and novel ways, flywheels that make use of momentum and
spinning at high speeds to store energy, supercapacitors that build and
then release large amounts of power very quickly, and storage by
compression, hydrides or other means. Because most renewable power is not
‘firm’ meaning not always on—like solar power that works only by day, or
wind power just at windy times—joining renewable power with energy storage
systems often makes sense. |
• |
|
Cleaner Fuels. Includes various
liquid, solid and other biofuels derived from renewable sources or crops;
for instance cellulosic, sugar, algae, or other feedstock in ethanol,
biobutanol or biogasoline, as well as biomass and waste to energy. In the
future, hydrogen—a gas that is the lightest and most abundant element—may
become an ‘energy carrier’ by moving power made in one place to where it
is needed. However, there are numerous daunting technical challenges
including the lack of a hydrogen infrastructure and very high cost;
hydrogen fuel cells are in only early technical
|
|
|
development, not widely commercialized, and are still far
more costly than fossil fuels in practice. |
• |
|
Energy Conversion.
These are the devices that convert an assortment of power, or fuels, or
other inputs such as unmodulated electricity, gasoline/diesel etc. into
the more desired electrical, motive, lighting or other power/force
wherever needed. This could include complex whole conversion systems
producing useful work such as electrical vehicles and plug in hybrids, or
more singularly separate items like LEDs, and the inverters, advanced
motors and materials for conversion to an intended electrical, mechanical
power. Energy conversion is critical but also generally depends on having
cleaner fuel for inputs or on innovative technologies that convert
existing fuels more cleanly, preventing pollution.
|
• |
|
Greener Utilities.
Among utilities in the United States are several explicitly emphasizing
cleaner methods of making electric power including wind, solar, biogas,
geothermal, hydro and others that can prevent pollution, while also
ensuring greater price stability for the consumer. Unlike conventional
plants, the price of renewable energy—though still costly—is widely
declining. Should pollution such as from coal or oil be seen as more
significant, or traditional fuel supplies be constrained or interrupted
and prices rise—the alternative, independent and renewable approaches to
producing utility power to the grid can become increasingly relevant.
Nuclear power generation is notably excluded from this Index for clean
energy. |
• |
|
Power Delivery and
Conservation. Of importance in clean energy systems are the
electronics and other items needed to improve efficiency and energy
conservation in the first place, as well as capital equipment for
production or manufacture of clean energy systems. Like energy conversion
it can include devices that smooth power outputs, convert DC to AC and
match power loads to output. This sector can include inverters and
equipment for power conditioning, and in transport, power management for
hybrid, hydrogen and fuel cell vehicles. |
The Underlying Index uses a modified equal dollar weighting
methodology. No single stock may exceed 4% of the total weight of the Underlying
Index at the quarterly rebalancing. For a stock to be included in the selection
universe, WilderHill must identify a company as one that has a significant
exposure to clean energy, or contribute to the advancement of clean energy or is
important to the development of clean energy. Companies in the Underlying Index
generally (i) help prevent pollutants such as carbon dioxide, nitrous
oxide, sulfur oxide or particulates and avoid carbon or contaminants that harm
oceans, land, air or ecosystems structure, (ii) work to further renewable
energy efforts and do so in ecologically and economically sensible ways and
(iii) incorporate the precautionary principles into their pollution
prevention and clean energy efforts. Similarly, companies in the Underlying
Index generally will not have their majority interests in oil or coal, which are
the highest-carbon fuels. Large companies with interests outside clean energy
may be included if they are significant to this sector.
Market capitalization for the majority of Underlying Index stocks
is $200 million and above. To account for notable but smaller companies
sometimes significant to the clean energy field, a minority of Underlying Index
stocks may have market capitalizations between $50 million and
$200 million. Components less than $200 million are weighted at
rebalance to one-half of a percent (0.50%). To be eligible for the Underlying
Index, a stock must:
(a) |
have a three-month average market
capitalization of at least $50 million;
|
(b) |
have a three-month average closing price
above $1.00; |
(c) |
be listed on a major U.S. exchange; and
|
(d) |
reach the minimum average daily liquidity
requirements for sufficient trade volume. |
The Underlying Index is rebalanced quarterly in March, June,
September, and December. The Fund is rebalanced in accordance with the
Underlying Index.
Zacks Mid-Cap Core Index (Invesco Zacks Mid-Cap ETF)
The Zacks Mid-Cap Core Index selection methodology is designed to
identify securities with potentially superior risk-return profiles by using a
proprietary strategy that evaluates stocks on multiple factors, including their
high long-term earnings growth rate, price-earnings ratio and short interest.
The Underlying Index seeks to select a group of securities with the potential to
outperform indices such as the S&P MidCap 400 Index and other benchmark
indices on a risk-adjusted basis.
The Underlying Index constituent selection methodology utilizes
multi-factor proprietary selection rules to identify those securities that offer
the greatest potential from a risk/return perspective while maintaining industry
diversification. The approach is specifically designed to enhance investment
applications and investability.
Underlying Index components are selected based on the following
criteria:
1. |
Potential Underlying Index constituents
include all common stocks, ADRs, REITs, MLPs and BDCs listed on major
domestic exchanges. The universe is limited to the mid-capitalization
universe as defined by Zacks, which consists of those securities that rank
between the 7th percentile and 25th percentile (which as
of June 30, 2019 translated to a market capitalization range from
approximately $4 billion to $26 billion).
|
2. |
The Underlying Index is composed of the 100
highest-ranking securities. The constituents are weighted based on
relative market capitalization. The qualitative ranking methodology
primarily utilizes (a) valuation measures (such as P/E ratio),
(b) liquidity, (c) earnings growth estimates, and
(d) contrarian market indicators to target stocks with potentially
superior risk-return profiles while maintaining industry diversification.
|
The Underlying Index is rebalanced quarterly on the second
business day after the last trading day in March, June, September and December.
The Fund is rebalanced in accordance with its Underlying Index.
Zacks Multi-Asset Income Index (Invesco Zacks Multi-Asset
Income ETF)
The Zacks Multi-Asset Income Index’s selection methodology is
designed to identify companies with potentially high income and superior
risk-return profiles by using a proprietary strategy that evaluates stocks on
multiple factors, including dividend yield and market capitalization. The
objective of the Underlying Index is to select a diversified group of securities
with the potential to deliver high yield and risk-adjusted return.
The Underlying Index constituent selection methodology utilizes
multi-factor proprietary selection rules to identify those securities that offer
the greatest potential from a yield and risk/return perspective while
maintaining industry diversification. The approach is specifically designed to
enhance investment applications and investability.
1. |
Potential Underlying Index constituents
include all U.S. stocks that pay dividends, ADRs, REITs, MLPs, closed-end
funds and traditional preferred stocks. |
2. |
The Underlying Index is composed of
approximately the 125 to 150 highest-ranking securities chosen using a
rules-based quantitative ranking methodology proprietary to Zacks. Half
(50%) or more of the portfolio will consist of dividend-paying common
stocks. Closed-end funds are limited to 10% of the portfolio. Exposure to
ADRs, REITs, closed-end funds and preferred stocks is limited to a 10%
maximum per investment type. The Underlying Index may also include up to
12 MLPs. The weight of any one sector is limited to 40% of the Underlying
Index. |
3. |
Each company within each investment type is
ranked using a quantitative rules-based methodology that includes yield,
company growth, liquidity, relative value, momentum and other factors and
is sorted from highest to lowest. |
4. |
The approximately 125 to 150 constituents
are chosen and are weighted based on a proprietary method developed by
Zacks within each investment type. |
5. |
The securities comprising the portfolio are
regularly reviewed for deletion or dilution based on factors determined by
Zacks. |
The Underlying Index is reviewed and rebalanced quarterly on the
second business day after the last trading day in February, May, August and
November. The Fund is rebalanced in accordance with the Underlying Index.
Principal Risks of Investing in the Funds
The following provides additional information about certain of the
principal risks identified under “Principal Risks of Investing in the Fund” in
each Fund’s “Summary Information” section. Any of the following risks may impact
the Fund’s NAV, which could result in the Fund trading at a premium or discount
to NAV.
ADR and GDR Risk
ADRs are certificates that evidence ownership of shares of a
foreign issuer and are alternatives to purchasing directly the underlying
foreign securities in their national markets and currencies. GDRs are
certificates issued by an international bank that generally are traded and
denominated in the currencies of countries other than the home country of the
issuer of the
underlying shares. ADRs and GDRs may be subject to certain of the
risks associated with direct investments in the securities of foreign companies,
such as currency, political, economic and market risks, because their values
depend on the performance of the non-dollar denominated underlying foreign
securities. Moreover, ADRs and GDRs may not track the price of the underlying
foreign securities on which they are based, and their value may change
materially at times when U.S. markets are not open for trading.
Certain countries may limit the ability to convert ADRs into the
underlying foreign securities and vice versa, which may cause the securities of
the foreign company to trade at a discount or premium to the market price of the
related ADR. ADRs may be purchased through “sponsored” or “unsponsored”
facilities. A sponsored facility is established jointly by a depositary and the
issuer of the underlying security. A depositary may establish an unsponsored
facility without participation by the issuer of the deposited security.
Unsponsored receipts may involve higher expenses and may be less liquid. Holders
of unsponsored ADRs generally bear all the costs of such facilities, and the
depositary of an unsponsored facility frequently is under no obligation to
distribute shareholder communications received from the issuer of the deposited
security or to pass through voting rights to the holders of such receipts in
respect of the deposited securities.
GDRs can involve currency risk since, unlike ADRs, they may not be
U.S. dollar-denominated. Because a fund’s NAV is determined in U.S. dollars, the
fund’s NAV could decline if the currency of the non-U.S. market in which the
fund invests depreciates against the U.S. dollar, even if the value of the
fund’s holdings, measured in the foreign currency, increases.
Authorized Participant Concentration Risk
Only APs may engage in creation or redemption transactions
directly with a Fund. Each Fund has a limited number of institutions that may
act as APs, and such APs have no obligation to submit creation or redemption
orders. Consequently, there is no assurance that APs will establish or maintain
an active trading market for the Shares. The risk may be heightened to the
extent that securities held by a Fund are traded outside a collateralized
settlement system. In that case, APs may be required to post collateral on
certain trades on an agency basis (i.e., on behalf of other market
participants), which only a limited number of APs may be able to do. In
addition, to the extent that APs exit the business or are unable to proceed with
creation and/or redemption orders with respect to a Fund and no other AP is able
to step forward to create or redeem Creation Units, this may result in a
significantly diminished trading market for Shares, and Shares may be more
likely to trade at a premium or discount to NAV and to face trading halts and/or
delisting. Investments in non-U.S. securities, which may have lower trading
volumes, may increase this risk.
Currency Risk
Because the Fund’s NAV is determined in U.S. dollars, the Fund’s
NAV could decline if the currency of the non-U.S. market in which the Fund
invests depreciates against the U.S. dollar, even if the value of the Fund’s
holdings, measured in the foreign currency, increases. Generally, an increase in
the value of the U.S. dollar
against a foreign currency will reduce the value of a security
denominated in that foreign currency, thereby decreasing the Fund’s overall NAV.
In addition, fluctuations in the exchange values of currencies could affect the
economy or particular business operations of companies in a geographic region in
which the Fund invests, causing an adverse impact on the Fund. As a result,
investors have the potential for losses regardless of the length of time they
intend to hold Shares.
Much of the income that the Fund receives will be in foreign
currencies. However, the Fund will compute and distribute its income in U.S.
dollars, and the computation of income will be made on the date that the Fund
earns the income at the foreign exchange rates in effect on that date.
Therefore, if the values of the relevant foreign currencies fall relative to the
U.S. dollar between the earning of the income and the time at which the Fund
converts the foreign currencies to U.S. dollars, the Fund may be required to
liquidate securities in order to make distributions if the Fund has insufficient
cash in U.S. dollars to meet distribution requirements.
Furthermore, the Fund may incur costs in connection with
conversions between U.S. dollars and foreign currencies. Foreign exchange
dealers realize a profit based on the difference between the prices at which
they are buying and selling various currencies. Thus, a dealer normally will
offer to sell a foreign currency to the Fund at one rate, while offering a
lesser rate of exchange should the Fund desire immediately to resell that
currency to the dealer. The Fund will conduct its foreign currency exchange
transactions either on a spot (i.e., cash) basis at the spot rate prevailing in
the foreign currency exchange market, or through entering into forwards, futures
or options contracts to purchase or sell foreign currencies.
Dividend Paying Security Risk
As a group, securities that pay high dividends can fall out of
favor with the market, causing such companies to underperform companies that do
not pay high dividends. Also, changes in the dividend policies of the companies
in an Underlying Index or Underlying Intellidex and the capital resources
available for such companies’ dividend payments may affect a fund. In addition,
the value of dividend-paying common stocks can decline when interest rates rise,
as fixed-income investments become more attractive to investors.
Equity Risk
Equity risk is the risk that the value of equity securities,
including common stocks, will fall. The value of an equity security may fall due
to changes in general economic conditions that impact the market as a whole and
that are relatively unrelated to an issuer or its industry. These conditions
include changes in interest rates, specific periods of overall market turbulence
or instability, or general and prolonged periods of economic decline and
cyclical change. An issuer’s common stock in particular may be especially
sensitive to, and more adversely affected by, these general movements in the
stock market; it is possible that a drop in the stock market may depress the
price of most or all of the common stocks that a fund holds.
In addition, equity risk includes the risk that investor sentiment
toward one or more industries will become negative, resulting in
those investors exiting their investments in those industries,
which could cause a reduction of the value of companies in those industries more
broadly. Price changes of equity securities may occur in a particular region,
industry, or sector of the market, and as a result, the value of an issuer’s
common stock may fall solely because of factors, such as increases in production
costs, that negatively impact other companies in the same industry or in a
number of different industries.
Equity risk also includes the financial risks of a specific
company, including that the value of the company’s securities may fall as a
result of factors directly relating to that company, such as decisions made by
its management or lower demand for the company’s products or services. In
particular, the common stock of a company may decline significantly in price
over short periods of time. For example, an adverse event, such as an
unfavorable earnings report, may depress the value of common stock; similarly,
the common stock of an issuer may decline in price if the issuer fails to make
anticipated dividend payments because, among other reasons, the issuer
experiences a decline in its financial condition.
Foreign and Emerging Markets Investment Risk
Investments in foreign securities involve risks that are beyond
those associated with investments in U.S. securities, and investments in
securities of issuers in emerging market countries involve risks not often
associated with investments in securities of issuers in developed countries.
Fluctuations in the value of the U.S. dollar relative to the values of other
currencies may adversely affect investments in foreign and emerging market
securities, and foreign and emerging market securities may have relatively low
market liquidity, decreased publicly available information about issuers, and
inconsistent and potentially less stringent accounting, auditing and financial
reporting requirements and standards of practice comparable to those applicable
to issuers in developed countries.
Foreign and emerging market securities also are subject to the
risks of expropriation, nationalization or other adverse political or economic
developments and the difficulty of enforcing obligations in other countries.
Investments in foreign and emerging market securities also may be subject to
dividend withholding or confiscatory taxes, currency blockage and/or transfer
restrictions and higher transactional costs. Emerging markets are subject to
greater market volatility, lower trading volume, political and economic
instability, uncertainty regarding the existence of trading markets and more
governmental limitations on foreign investment than more developed markets. In
addition, securities in emerging markets may be subject to greater price
fluctuations than securities in more developed markets. Securities law in many
emerging market countries is relatively new and unsettled. Therefore, laws
regarding foreign investment in emerging market securities, securities
regulation, title to securities, and shareholder rights may change quickly and
unpredictably. In addition, the enforcement of systems of taxation at federal,
regional and local levels in emerging market countries may be inconsistent and
subject to sudden change. Each country has different laws specific to that
country that impact investment, which may increase the risks to which investors
are subject. Country-specific rules or legislation addressing investment-related
transactions may inhibit
or prevent certain transactions from transpiring in a particular
country.
Furthermore, foreign exchanges and broker-dealers generally are
subject to less government and exchange scrutiny and regulation than their U.S.
counterparts. Differences in clearance and settlement procedures in foreign
markets may cause delays in settlement of a fund’s trades effected in those
markets and could result in losses to a fund due to subsequent declines in the
value of the securities subject to the trades. Depositary receipts also involve
substantially identical risks to those associated with investments in foreign
securities. Additionally, the issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, have no obligation
to distribute shareholder communications to the holders of such receipts or to
pass through to them any voting rights with respect to the deposited securities.
Foreign Financial Institution Risk
Certain of the companies that comprise the Underlying Index of the
Invesco Financial Preferred ETF, while traded on U.S. exchanges, may be issued
by foreign financial institutions. Therefore, the fund may be subject to the
risks of investing in securities issued by foreign companies.
Geographic Concentration Risk
Funds that are less diversified across geographic regions or
countries are generally riskier than more geographically diversified funds. The
economies and financial markets of certain regions, including the Middle East
and Africa, can be interdependent and may all decline at the same time. A
natural or other disaster could occur in a country or geographic region in which
a Fund invests, which could affect the economy or particular business operations
of companies in that specific country or geographic region and adversely impact
a Fund’s investments in the affected region. In particular:
Brazil Exposure Risk
Brazilian issuers are subject to possible regulatory and economic
interventions by the Brazilian government, including the imposition of wage and
price controls and the limitation of imports. In addition, the market for
Brazilian securities is directly influenced by the flow of international capital
and economic and market conditions of certain countries, especially other
emerging market countries in Central and South America. The Brazilian economy
has historically been exposed to high rates of inflation and a high level of
debt, each of which may reduce and/or prevent economic growth. A rising
unemployment rate could also have the same effect. Brazil depends heavily on
international trade, and its economy is highly sensitive to fluctuations in
international commodity prices and commodity markets. Brazil’s agricultural and
mining sectors account for a large portion of its exports. Any changes in these
sectors or fluctuations in the commodity markets could have an adverse impact on
the Brazilian economy, and therefore adversely impact the performance of a Fund.
Canada Exposure Risk
Because Invesco International Dividend AchieversTM ETF invests a significant
portion of its assets in companies that are domiciled in Canada, the fund is
particularly sensitive to political, economic and social conditions in that
country. The Canadian economy is heavily dependent on relationships with certain
key trading partners. The United States is Canada’s largest trading and
investment partner, and the Canadian economy is significantly affected by
developments in the U.S. economy. Any downturn in U.S. economic activity is
likely to have an adverse impact on the Canadian economy. In addition, Canada is
a large producer and supplier of natural resources (e.g., metals, oil, natural
gas and agricultural products). The Canadian economy is especially dependent on
the demand for, and supply of, those natural resources, and the Canadian market
is relatively concentrated in issuers involved in the production and
distribution of natural resources. As a result, the Canadian economy is
sensitive to fluctuations in certain commodity prices, and any adverse events
that affect Canada’s major industries may have a negative impact on the overall
Canadian economy and the shares of the fund.
China Exposure Risk
Investments in companies located or operating in China involve
risks not associated with investments in Western nations, such as
nationalization, expropriation, or confiscation of property; difficulty in
obtaining and/or enforcing judgments; alteration or discontinuation of economic
reforms; military conflicts, either internal or with other countries; inflation,
currency fluctuations and fluctuations in inflation and interest rates that may
have negative effects on the economy and securities markets of China; and
China’s dependency on the economies of other Asian countries, many of which are
developing countries. Export growth continues to be a major driver of China’s
rapid economic growth. As a result, a reduction in spending on Chinese
products and services, the institution of additional tariffs or other trade
barriers, including as a result of heightened trade tensions between China and
the United States, or a downturn in any of the economies of China’s key trading
partners may have an adverse impact on the Chinese economy. Significant
portions of the Chinese securities markets may become rapidly illiquid, as
Chinese issuers have the ability to suspend the trading of their equity
securities and have shown a willingness to exercise that option in response to
market volatility and other events. The liquidity of Chinese securities may
shrink or disappear suddenly and without warning as a result of adverse
economic, market or political events, or adverse investor perceptions, whether
or not accurate.
Export growth continues to be a major driver of China’s rapid
economic growth. As a result, a reduction in spending on Chinese products and
services, the institution of tariffs or other trade barriers, or a downturn in
any of the economies of China’s key trading partners may have an adverse impact
on the Chinese economy. The current political climate has intensified concerns
about a potential trade war between
China and the United States, as each country has recently imposed
tariffs on the other country’s products. These actions may trigger a significant
reduction in international trade, the oversupply of certain manufactured goods,
substantial price reductions of goods and possible failure of individual
companies and/or large segments of China’s export industry, which could have a
negative impact on the Fund’s performance. Events such as these and their
consequences are difficult to predict and it is unclear whether further tariffs
may be imposed or other escalating actions may be taken in the future.
India Exposure Risk
Exposure to Indian securities involves risks in addition to those
associated with investments in securities of issuers in more developed
countries, which may adversely affect the value of a fund’s assets. Such
heightened risks include, among others, political and legal uncertainty, greater
government control over the economy, greater risk of hyperinflation, currency
fluctuations and/or currency devaluations or blockage of currency movements or
repatriation of capital invested and the risk of nationalization or
expropriation of assets. Moreover, in the past, India has experienced civil
unrest and hostilities with neighboring countries, including Pakistan, and the
Indian government has confronted separatist movements in several Indian states.
In addition, religious and border disputes persist in India. Despite measures to
ease tensions, that environment remains volatile. Escalation of tensions to
conflict, particularly a threat of deployment of nuclear weapons, could
destabilize the broader region and materially hinder the development of the
Indian economy.
The Indian government has exercised, and continues to exercise,
significant influence over many aspects of the Indian economy, and the number of
public sector enterprises in India is substantial. Accordingly, Indian
government actions in the future could have significant effect on the Indian
economy, which could affect private sector companies and a Fund, market
conditions, and prices and yields of securities in the Fund’s portfolio. In
addition, agriculture occupies a more prominent position in the Indian economy
than in the United States, and therefore the Indian economy is more susceptible
to adverse changes in weather.
Inflation in India remains at very high levels. High inflation may
lead to the adoption of corrective measures designed to moderate growth,
regulate prices of staples and other commodities and otherwise contain
inflation. Such measures could inhibit economic activity in India and adversely
affect a Fund’s investments.
Russia Exposure Risk
Exposure to Russian securities involves risks associated with
uncertain political and economic policies, short- term market volatility, poor
accounting standards, corruption and crime, an inadequate regulatory system, and
unpredictable taxation. Investments in Russia are particularly subject to the
risk that further economic sanctions may be imposed by the United States and/or
other countries. Such sanctions—which may
impact companies in many sectors, including energy, financial
services and defense, among others—may negatively impact a fund’s performance
and/or ability to achieve its investment objective. The Russian securities
market is characterized by limited volume of trading, resulting in difficulty in
obtaining accurate prices and trading and, as compared to U.S. markets, has
significant price volatility, less liquidity, a smaller market capitalization
and a smaller number of traded securities. There may be little publicly
available information about issuers. Investments in Russia may be subject to the
risk of nationalization or expropriation of assets. Oil, natural gas, metals,
and timber account for a significant portion of Russia’s exports, leaving the
country vulnerable to swings in world prices.
The United States and the European Union have imposed economic
sanctions on certain Russian individuals and entities, and either the United
States or the European Union also could institute broader sanctions. The current
sanctions, or the threat of further sanctions, may result in the decline of the
value or liquidity of Russian securities, a weakening of the ruble or other
adverse consequences to the Russian economy, any of which could negatively
impact these funds’ investments in Russian securities. These economic sanctions
also could result in the immediate freeze of Russian securities, which could
impair the ability of the funds to buy, sell, receive or deliver those
securities. Both the existing and potential future sanctions also could result
in Russia taking counter measures or retaliatory actions, which further may
impair the value or liquidity of Russian securities, and therefore may
negatively impact the funds.
Growth Risk
Growth stocks generally are priced higher than non-growth stocks,
in relation to the issuer’s earnings and other measures, because investors
believe they have greater growth potential. However, there is no guarantee that
such an issuer will realize that growth potential. In addition, the market
values of “growth” common stocks may be more volatile than other types of
investments, and therefore such stocks may be more susceptible to rapid price
swings, especially during periods of economic uncertainty or in response to
adverse news about the condition of the issuer, such as earnings
disappointments. The returns on “growth” common stocks may or may not move in
tandem with the returns on other styles of investing or the overall stock
market. “Growth” stocks may fall out of favor and trail the returns of other
styles of investing. Growth stocks also may be more adversely affected in a down
market, as growth stocks typically have little or no dividend income to absorb
the effect of adverse market conditions.
High Yield Securities (Junk Bonds) Risk
High yield securities generally offer a higher current yield than
that available from higher grade issues, but they typically involve greater
risk. High yield securities generally are rated below investment grade (and
commonly are referred to as “junk bonds”). The ability of issuers of high yield
securities to make timely payments of interest and principal may be impacted by
adverse changes in general economic conditions, changes in the financial
condition of their issuers and price fluctuations in response to changes in
interest rates. High yield securities are less
liquid than investment grade securities and may be difficult to
price or sell, particularly in times of negative sentiment toward high yield
securities. Issuers of high yield securities may have a larger amount of
outstanding debt relative to their assets than issuers of investment grade
securities have. Periods of economic downturn or rising interest rates may cause
the issuers of high yield securities to experience financial distress, which
could adversely impact their ability to make timely payments of principal and
interest and could increase the possibility of default. The market value and
liquidity of high yield securities may be impacted negatively by adverse
publicity and investor perceptions, whether or not based on fundamental
analysis, especially in a market characterized by low trade volume.
Index Risk
Unlike many investment companies that are “actively managed,” the
funds are “passive” investors and therefore do not utilize investing strategies
that seeks returns in excess of the Underlying Index or Underlying Intellidex,
as applicable. Therefore, a fund would not necessarily buy or sell a security
unless that security is added or removed, respectively, from the respective
Underlying Index or Underlying Intellidex, even if that security generally is
underperforming. If a specific security is removed from an Underlying Index or
Underlying Intellidex, a fund may be forced to sell such security at an
inopportune time or for a price lower than the security’s current market value.
An Underlying Index or Underlying Intellidex may not contain the appropriate mix
of securities for any particular economic cycle. Unlike with an actively managed
fund, the Adviser does not use defensive strategies designed to lessen the
impact of periods of market volatility or market decline. This means that, based
on certain market and economic conditions, a fund’s performance could be lower
than other types of mutual funds with investment advisers that actively manage
their portfolio assets to take advantage of market opportunities.
Industry Concentration Risk
In following its methodology, an Underlying Index or Underlying
Intellidex from time to time may be concentrated to a significant degree in
securities of issuers operating in a single industry or industry group. To the
extent that its Underlying Index or Underlying Intellidex concentrates in the
securities of issuers in a particular industry or industry group, a fund will
also concentrate its investments to approximately the same extent. By
concentrating its investments in an industry or industry group, a fund may face
more risks than if it were diversified broadly over numerous industries or
industry groups. Such industry-based risks, any of which may adversely affect
the companies in which a fund invests, may include, but are not limited to,
legislative or regulatory changes, adverse market conditions and/or increased
competition within the industry or industry group. In addition, at times, such
industry or industry group may be out of favor and underperform other
industries, industry groups or the market as a whole. Information about the
funds’ exposure to a particular industry or industry group is available in the
funds’ Annual and Semi-Annual Reports to Shareholders, as well as on required
forms filed with the SEC.
Aerospace and Defense Industry Risk
Government aerospace and defense regulation and spending policies
can significantly affect the aerospace and defense industry, as companies
involved in the aerospace and defense industry rely to a large extent on U.S.
(and other) Government demand for their products and services. There are
significant inherent risks in contracting with the U.S. Government, which could
have a material adverse effect on the business, financial condition and results
of operations of industry participants, including:
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termination by the U.S.
Government of any contract as a result of a default by industry
participants could subject them to liability for the excess costs incurred
by the U.S. Government in procuring undelivered items from another source;
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termination by the U.S.
Government of any contract for convenience generally would limit industry
participants recovery to costs already incurred or committed and limit
participants profit to work completed prior to termination;
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modification of U.S.
Government contracts due to lack of congressional funding or changes in
such funding could subject certain contracts to termination or
modification; |
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failure to comply, even
inadvertently, with the extensive and complex U.S. Government laws and
regulations applicable to certain U.S. Government contracts and the laws
governing the export of controlled products and commodities could subject
industry participants to contract termination, civil and criminal
penalties and, under certain circumstances, suspension from future U.S.
Government contracts and exporting of products for a specific period of
time; |
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results of routine U.S.
Government audits and review could, in certain circumstances, lead to
adjustments to industry contract prices, which could be significant; and
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successful bids for U.S.
Government contracts or the profitability of such contracts, if awarded,
cannot be guaranteed in the light of the competitive bidding atmosphere
under which U.S. Government contracts are awarded.
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Furthermore, because companies involved in the aerospace and
defense industry rely to a large extent on U.S. (and other) Government demand
for their products and services, those companies could be adversely impacted by
future reductions or changes in government spending. Government spending in
aerospace and defense generally is not correlated with any economic cycle, but
rather, on the cycle of general political support for this type of spending.
However, there is no assurance that future levels of aerospace and defense
spending will increase or that levels of aerospace and defense spending will not
decrease in the future.
In addition, competition within the industry, labor relations and
the price of fuel can affect the aerospace and defense
industry. Airline deregulation has substantially diminished the
U.S. Government’s role in the air transport industry while promoting an
increased level of competition. However, regulations and policies of various
domestic and foreign governments can still affect the profitability of
individual carriers as well as the entire industry.
Basic Materials Sector Risk
Companies engaged in the production and distribution of basic
materials may be adversely affected by changes in world events,
political and economic conditions, energy conservation, environmental policies,
commodity
price volatility, changes in exchange rates, increased competition
and the imposition of import controls. Production of industrial materials may
exceed demand as a result of market imbalances or economic downturns, leading to
poor investment returns. In addition, issuers in the basic materials sector are
at risk for environmental damage and product liability claims and may be
adversely affected by depletion of resources, technical progress, labor
relations and government regulations.
Biotechnology and Genome Industry Risk
Certain factors can affect the biotechnology and genome industry
significantly, including patent considerations, the termination of patent
protections for products, intense domestic and international competition, rapid
technological change and obsolescence, government regulation and expensive
insurance costs due to the risk of product liability lawsuits. In addition, the
biotechnology and genome industry is an emerging growth industry, and therefore
biotechnology and genome companies may be capitalized thinly and may be more
volatile than companies with greater capitalizations. Biotechnology and genome
companies may have persistent losses during a new product’s transition from
development to production, and their revenue patterns may be erratic.
Biotechnology and genome companies also must contend with high development
costs, which may be exacerbated by their inability to raise prices to cover
costs because of managed care pressure, government regulation or price controls.
Moreover, stock prices of biotechnology and genome companies are volatile,
particularly when their products are up for regulatory approval or under
regulatory scrutiny. Companies involved in this industry also may be subject to
extensive government regulations by the Food and Drug Administration (“FDA”),
the Environmental Protection Agency and the United States Department of
Agriculture. These regulations may affect and significantly limit a
biotechnology and genome company’s research, product development and approval of
products.
Building and Construction Industry Risk
Supply and demand for specific products or services, as well as
for industrial sector products in general, may affect significantly the
companies in the building and construction industry. In addition, changes in
government spending, zoning laws, economic conditions, interest rates, taxation,
real estate values and overbuilding also may affect significantly the building
and construction industry. The
products of companies that operate in the building and
construction industry may face obsolescence due to rapid technological
developments and frequent new product introduction. Government regulation, world
events and economic conditions also affect the performance of companies in these
industries. Companies in this industry also face risks of environmental damage
and product liability claims. In addition, environmental clean-up costs and
catastrophic events such as earthquakes, hurricanes and terrorist acts may
affect significantly certain segments of the building and construction industry.
Clean Energy Industry Risk
Companies in the clean energy industry can be significantly
affected by obsolescence of existing technology, short product cycles, falling
prices and profits, competition from new market entrants and general economic
conditions. Further, the clean energy industry can be significantly affected by
intense competition and legislation resulting in more strict government
regulations and enforcement policies and specific expenditures for cleanup
efforts. The clean energy industry may be subject to risks associated with
hazardous materials, and it also can be significantly affected by fluctuations
in energy prices and supply and demand of alternative energy fuels, energy
conservation, the success of exploration projects and tax and other government
regulations. The industry also can be significantly affected by the supply of
and demand for specific products or services, the supply of and demand for oil
and gas, the price of oil and gas, production spending, government regulation,
world events and economic conditions.
This sector is relatively nascent and under-researched in
comparison to more established and mature sectors; therefore, it has greater
investment risk. Changes in U.S., European and other governments’ policies
towards alternative power and power technology also may have an adverse effect
on a fund’s performance. Companies in this sector often have a limited operating
history, and some of them may never have traded profitably. Investment in young
companies with a short operating history is generally riskier than investment in
companies with a longer operating history. To the extent that a fund is composed
of securities issued by companies operating in a limited number of industries,
it will carry greater risk and may be more volatile than a portfolio composed of
securities issued by companies operating in a wide variety of different
industries.
The price of crude oil, natural gas, electricity produced from
traditional hydropower and that generated from nuclear power and possibly other
as yet undiscovered energy sources could potentially have a negative impact on
the competitiveness of renewable energies.
Cleantech Sector Risk
The risks of investing in the cleantech sector include the risks
of focusing investments in the water, energy and environmental sectors. Adverse
developments in the water, energy and environmental sectors may significantly
affect companies in the cleantech sector. Companies involved in the
water sector are subject to tax and price fluctuations and
competition. Securities of companies in the energy sector are subject to swift
price and supply fluctuations caused by events relating to international
politics, the success of project development and tax and other governmental
regulatory policies. Weak demand for the companies’ products or services or for
energy products and services in general, as well as negative developments in
these other areas, may adversely affect a fund’s performance.
Communication Services Sector Risk
The value of the securities of communication services companies
are particularly vulnerable to rapid advancements in technology, the innovation
of competitors, rapid product obsolescence, and government regulation and
competition, both domestically and internationally. Additionally, fluctuating
domestic and international demand, shifting demographics and often unpredictable
changes in consumer tastes can drastically affect a communication services
company’s profitability. While all companies may be susceptible to network
security breaches, certain companies in the communication services sector may be
particular targets of hacking and potential theft of proprietary or consumer
information or disruptions in service, which could have a material adverse
effect on their businesses.
Consumer Discretionary Sector Risk
Companies engaged in the consumer discretionary sector are
affected by fluctuations in supply and demand and changes in consumer
demographics and preferences. The success of consumer product manufacturers and
retailers is tied closely to the performance of domestic and international
economies. Moreover, changes in consumer spending as a result of world events,
political and economic conditions, commodity price volatility, changes in
interest and exchange rates, imposition of import controls, increased
competition, depletion of resources and labor relations also may adversely
affect these companies. Companies in the consumer discretionary sector depend
heavily on disposable household income and consumer spending and may be strongly
affected by social trends and marketing campaigns. These companies may be
subject to severe competition, which may have an adverse impact on their
profitability.
Consumer Staples Sector Risk
Changes in the worldwide economy, consumer spending, competition,
demographics and consumer preferences, exploration and production spending may
adversely affect companies, as well as natural and man-made disasters and
political, social or labor unrest, in the consumer staples sector. Companies in
this sector also are affected by changes in government regulation, world events
and economic conditions.
Energy Exploration and Production Industry Risk
Invesco Dynamic Energy Exploration & Production ETF faces
the risk that companies in the energy exploration and production industry are
subject to extensive government regulation, which may increase the cost of
business and limit
these companies’ earnings. In addition, these companies are at
risk of civil liability from accidents resulting in injury or loss of life or
property, pollution or other environmental damage claims and risk of loss from
terrorism and natural disasters. Changes in economic conditions and events in
the regions where the companies operate (e.g., nationalization, expropriation,
imposition of restrictions on foreign investments and repatriation of capital
and social or labor unrest) also affect companies in this industry
significantly. Companies in this industry could be affected adversely by levels
and volatility of global energy prices, commodity price volatility, changes in
exchange rates, interest rates imposition of import controls, increased
competition, capital expenditures on exploration and production, depletion of
resources, development of alternative energy sources and energy conservation
efforts, technological developments and labor relations.
Energy Sector Risk
Companies in the energy sector are subject to extensive government
regulation, including contractual fixed pricing, which may increase the cost of
business and limit these companies’ earnings. A significant portion of their
revenues may depend on a relatively small number of customers, including
governmental entities and utilities. As a result, governmental budget
constraints may have a material adverse effect on the stock prices of companies
in this industry.
Energy companies may do business with companies in countries other
than the United States. Such companies often operate in countries with less
stringent regulatory regimes and countries that have a history of expropriation
and/or nationalization, among other adverse policies. In addition, these
companies are at risk of civil liability from accidents resulting in injury,
loss of life or property, pollution or other environmental damage claims and
risk of loss from terrorism and natural disasters. The energy sector is
cyclical, and commodity price volatility, changes in exchange rates, imposition
of import controls, increased competition, depletion of resources, development
of alternative energy sources, technological developments and labor relations
also could affect companies in this sector. Recent global economic events have
created greater volatility in the energy sector, including substantial declines
in the price of oil. Such events may create wide fluctuations in the value of
companies in this sector, which may affect the value of the Shares.
Financials Sector Risk
Financial companies are subject to extensive government regulation
and, as a result, their profitability may be affected by new regulations or
regulatory interpretations, unstable interest rates can have a disproportionate
effect on the financials sector; financial companies whose securities a fund may
purchase may themselves have concentrated portfolios, which makes them
vulnerable to economic conditions that affect that sector; and financial
companies have been affected by increased competition, which could adversely
affect the profitability or viability of such companies. In addition, the
financials sector is undergoing numerous
changes, including continuing consolidations, development of new
products and structures and changes to its regulatory framework. Increased
government involvement in financial institutions, including measures such as
taking ownership positions in such institutions, could result in a dilution in
the value of the shares held by shareholders in such institutions.
Moreover, global economies and financial markets are becoming
increasingly interconnected, which increases the possibilities that conditions
in one country or region may adversely affect issuers in another country or
region, which may adversely affect securities held by a fund. These
circumstances have also decreased liquidity in some markets and may continue to
do so. Liquidity in some markets has decreased and credit has become scarcer
worldwide. The recent deterioration of the credit markets has caused an adverse
impact on a broad range of financial markets, thereby causing certain financial
services companies to incur large losses. Certain financial services companies
have experienced decline in the valuation of their assets and even ceased
operations.
Financial services companies also are subject to extensive
government regulation and, as a result, their profitability may be affected by
new regulations or regulatory interpretations. Recent regulatory changes,
including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the
“Dodd-Frank Act”) and the introduction of new international capital and
liquidity requirements under the Basel III Accords (“Basel III”), may cause
lending activity within the financial services sector to be constrained for
several years as Basel III rules phase in and rules and regulations are
promulgated and interpreted under the Dodd-Frank Act. These market conditions
may continue or deteriorate further and may add significantly to the risk of
short-term volatility in a fund.
Food and Beverage Industry Risk
The food and beverage industry (including, but not limited to the
food products industry) is highly competitive and can be significantly affected
by demographic and product trends, competitive pricing, food fads, marketing
campaigns, environmental factors, government regulation, adverse changes in
general economic conditions, evolving consumer preferences, nutritional and
health-related concerns, federal, state and local food inspection and processing
controls, consumer product liability claims, consumer boycotts, risks of product
tampering, and the availability and expense of liability insurance. Product
recalls require companies in the food and beverage industry to withdraw
contaminated or mislabeled products from the market. In addition, there are
risks pertaining to raw materials and the suppliers of such raw materials that
include changing market prices. The prices for raw materials fluctuate in
response to a number of factors, including, but not limited to, changes in the
U.S. Government farm support programs, changes in international agricultural and
trading policies, weather and other conditions during the growing and harvesting
seasons.
Health Care Sector Risk
Factors that may affect the profitability of companies in the
health care sector include extensive government regulation, restrictions on
government reimbursement for medical expenses, rising costs of medical products,
services and facilities, pricing pressure, an increased emphasis on outpatient
services, limited number of products and product obsolescence due to industry
innovation, changes in technologies and other market developments. A major
source of revenue for the health care sector is payments from Medicare and
Medicaid programs. As a result, the sector is sensitive to legislative changes
and reductions in governmental spending for such programs, as well as state or
local health care reform measures. Companies in the health care sector depend
heavily on patent protection. The process of obtaining patent approval can be
long and costly, and the expiration of patents may adversely affect the
profitability of companies in this sector. Health care companies also are
subject to extensive litigation based on product liability and similar claims.
Health care companies are subject to competitive forces that may make raising
prices difficult and, at times, may result in price discounting. In addition,
companies in the health care sector may be thinly capitalized and therefore may
be susceptible to product obsolescence.
Industrials Sector Risk
Changes in government regulation, world events and economic
conditions may adversely affect the companies in the industrials sector. In
addition, these companies are at risk for environmental damage claims.
Industrial companies also may be adversely affected by commodity price
volatility, changes in exchange rates, imposition of import controls, increased
competition, depletion of resources, technological developments, labor relations
and changes in the supply of and demand for their specific products or services
or for industrials sector products in general.
Information Technology Sector Risk
Companies in the technology sector may be adversely affected by
the failure to obtain, or delays in obtaining, financing or regulatory approval,
intense competition, both domestically and internationally, product
compatibility, consumer preferences, corporate capital expenditure, rapid
obsolescence and competition for the services of qualified personnel. Companies
in the technology sector also face competition or potential competition with
numerous alternative technologies. In addition, the highly competitive
technology sector may cause the prices for these products and services to
decline in the future.
Technology companies may have limited product lines, markets,
financial resources or personnel. Companies in the information technology sector
are heavily dependent on patent and intellectual property rights. The loss or
impairment of these rights may adversely affect the profitability of these
companies.
The technology sector is subject to rapid and significant changes
in technology that are evidenced by the increasing
pace of technological upgrades, evolving industry standards,
ongoing improvements in the capacity and quality of digital technology, shorter
development cycles for new products and enhancements, developments in emerging
wireless transmission technologies and changes in customer requirements and
preferences. The success of sector participants depends substantially on the
timely and successful introduction of new products.
Internet and Direct Marketing Retail Industry Risk
Companies in the internet and direct marketing retail industry
provide retail services primarily on the Internet, through mail order and TV
home shopping retailers, and rely heavily on consumer spending. Prices of
securities of companies in this industry may fluctuate widely due to general
economic conditions, consumer spending and the availability of disposable
income, changing consumer tastes and preferences and consumer demographics.
Legislative or regulatory changes and increased government supervision also may
affect companies in this industry.
Leisure and Entertainment Industries Risk
Companies engaged in the design, production, or distribution of
goods or services for the leisure and entertainment industries (including sports
arenas, amusement and theme parks, gaming casinos, sporting goods, camping and
recreational equipment, toys and games, travel-related services, hotels and
motels and fast food and other restaurants) may become obsolete quickly.
Additionally, several factors can significantly affect the leisure and
entertainment industries, including the performance of the overall economy,
changing consumer tastes and discretionary income levels, intense competition,
technological developments and government regulation.
Media Industry Risk
Companies engaged in design, production or distribution of goods
or services for the media industry (including television or radio broadcasting
or manufacturing, publishing, recordings and musical instruments, motion
pictures and photography) may become obsolete quickly. Media companies are
subject to a variety of risks, which include cyclicality of revenues and
earnings; a decrease in the discretionary income of targeted individuals;
changing consumer tastes and interests; fierce competition in the industry; and
the potential for increased government regulation. Media company revenues
largely are dependent on advertising spending. A weakening general economy or a
shift from online to other forms of advertising may lead to a reduction in
discretionary spending on online advertising. Additionally, federal deregulation
of cable and broadcasting, competitive pressures and government regulation may
affect companies in the media industry significantly.
Networking Industry Risk
The risk that the networking industry is evolving rapidly and, as
a result, many factors may affect the industry significantly, including
corporate capital expenditure trends, competitive pressures such as the ability
to attract and retain skilled
employees, and obsolescence due to rapid technological innovation
or changing consumer preferences. The market for these network products is
characterized by rapidly changing technology, rapid product obsolescence,
cyclical market patterns, evolving industry standards and frequent new product
introductions. The success of network companies depends substantially on the
timely and successful introduction of new products or services. An unexpected
change in one or more of the technologies affecting a company’s products or in
the market for products based on a particular technology could have a material
adverse effect on the company’s operating results. Furthermore, there can be no
assurance that the network companies will be able to respond in a timely manner
to compete in the rapidly developing marketplace.
Many network companies rely on a combination of patents,
copyrights, trademarks and trade secret laws to establish and protect their
proprietary rights in their products and technologies. There can be no assurance
that the steps taken by network companies to protect their proprietary rights
will be adequate to prevent misappropriation of their technology or that
competitors will not develop technologies independently that substantially are
equivalent or superior to such companies’ technology. The networking industry is
characterized by the existence of a large number of patents and frequent claims
and related litigation regarding patent, trade secret and other intellectual
property rights.
Oil and Gas Services Industry Risk
The profitability of companies in the oil and gas services
industry may be adversely affected by world events in the regions in which the
companies operate (e.g., expropriation, nationalization, confiscation of assets
and property or the imposition of restrictions on foreign investments and
repatriation of capital, military coups, social unrest, violence or labor
unrest). Prices and supplies of oil and gas may fluctuate significantly over
short and long periods of time due to national and international political
changes, Organization of Petroleum Exporting Countries (“OPEC”) policies,
changes in relationships among OPEC members and between OPEC and oil-importing
nations, the regulatory environment, taxation policies, and the economy of the
key energy-consuming countries. Companies in this industry could be adversely
affected by commodity price volatility, changes in exchange rates, interest
rates, imposition of import controls, increased competition, depletion of
resources, development of alternative energy sources, energy conservation
efforts, technological developments and labor relations. In addition, companies
in the oil and gas services industry are at risk of civil liability from
accidents resulting in injury, loss of life or property, pollution or other
environmental damage claims and risk of loss from terrorism and natural
disasters. Companies in the oil and gas services industry also may have
significant capital investments in, or engage in transactions involving,
emerging market countries, which may heighten these risks. Recent global
economic events have created greater volatility in the oil and gas services
industry, including substantial declines in the price of oil. Such events may
create wide fluctuations in the value of companies in this
industry, which may affect the Shares.
Pharmaceuticals Industry Risk
Factors such as government approval of products and services,
government regulation and reimbursement rates, product liability claims, patent
expirations and protection, and intense competition may all affect significantly
companies in the pharmaceuticals industry.
Substantially all pharmaceutical products are subject to FDA
regulation. The research, design, testing, manufacturing, labeling, marketing,
distribution and advertising of pharmaceutical products are subject to extensive
regulation by governmental authorities in the United States and other countries.
The FDA and foreign regulatory agencies require pharmaceutical companies to
comply with an array of manufacturing and design controls and testing, quality
control, storage and documentation procedures. Manufacturing and sales of
pharmaceutical products outside the United States are also subject to foreign
regulatory requirements that vary from country to country. The approval process
for pharmaceutical products in the United States and abroad can be lengthy,
expensive and require extensive preclinical and clinical trials. As a result,
pharmaceutical companies may expend substantial resources in developing and
testing a new product but fail to obtain the necessary approvals or clearances
to market or manufacture the products on a timely basis or at all. Failure to
comply with applicable domestic and/or foreign requirements can result in: fines
or other enforcement actions, recall or seizure of products, total or partial
suspension of production, withdrawal of existing product approvals or
clearances, refusal to approve or clear new applications or notifications,
increased quality control costs, or criminal prosecution. The pharmaceutical
industry is also subject to federal, state, local and foreign laws and
regulations governing the protection of the environment and occupational health
and safety, including laws regulating air emissions, wastewater discharges, the
management and disposal of hazardous materials and wastes, and the health and
safety of employees. Pharmaceutical companies also are required to obtain
permits from governmental authorities for certain operations. Violation or
failure to comply with these laws or regulations or failure to obtain these
permits could result in fines, penalties or other sanctions.
Pharmaceutical companies are exposed to significant potential
product liability risks that are inherent in the development, manufacturing and
marketing of human therapeutic products. Product liability claims could delay or
prevent completion of companies’ clinical development programs as well as result
in FDA investigations of the safety and effectiveness of companies’ products,
manufacturing processes and facilities, and marketing programs.
Pharmaceutical companies depend on rapidly identifying and seeking
patent protection for their discoveries. The process of obtaining patent
protection is expensive and time consuming. Furthermore, there can be no
assurance that the
steps taken by pharmaceutical companies to protect their
proprietary rights will be adequate to prevent misappropriation of their
proprietary rights or that competitors will not independently develop products
that are substantially equivalent or superior to such companies’ products.
Pharmaceutical companies also rely on trade secrets, know-how and technology,
which are not protected by patents, to maintain their competitive position. If
any trade secret, know-how or other technology not protected by a patent were
disclosed to, or independently developed by, a competitor, that company’s
business and financial condition could be materially adversely affected.
Real Estate Sector Risk
The risks associated with investments in securities issued by
companies in the real estate sector and companies related to the real estate
sector, including REITs, consist of: fluctuations in the value of the underlying
properties; defaults by borrowers or tenants; market saturation; changes in
general and local economic conditions; decreases in market rates for rents;
changes in the availability, cost and terms of mortgage funds; increases in
competition, property taxes, capital expenditures, or operating expenses; and
other economic, political or regulatory occurrences, including the impact of
changes in environmental laws.
The real estate sector has historically been cyclical and
particularly sensitive to economic downturns. Many real estate companies utilize
leverage, which increases investment risk and could adversely affect a company’s
operations and market value in periods of rising interest rates.
Retail Industry Risk
Factors such as the performance of the domestic and international
economy, interest rates, competition and consumer confidence may affect the
retail industry. The success of companies in the retail industry depends heavily
on disposable household income and consumer spending. Changes in demographics
and consumer preferences, fads, marketing campaigns and other factors that
affect supply and demand also may affect the success of retail products. In
addition, the retail industry is subject to severe competition.
Semiconductors Industry Risk
The semiconductors industry is characterized by rapid
technological change, cyclical market patterns, significant price erosion,
periods of over-capacity and production shortages, changing demand, variations
in manufacturing costs and yields and significant expenditures for capital
equipment and product development. In the past, business conditions in this
industry have changed rapidly from periods of strong demand to periods of weak
demand. Any future downturn in the industry could harm the business and
operating results of semiconductor companies.
Semiconductor design and process methodologies are subject to
rapid technological change requiring large expenditures for research and
development in order to improve product performance and increase manufacturing
yields. Current
technology is likely to become obsolete at some point in the
future. Semiconductor companies rely on a combination of patents, trade secret
laws and contractual provisions to protect their technologies. The process of
seeking patent protection can be long and expensive. In addition, the
semiconductors industry is characterized by frequent litigation regarding patent
and other intellectual property rights, which may require semiconductor
companies to defend against competitors’ assertions of intellectual property
infringement or misappropriation.
Software Industry Risk
Various factors may significantly affect the software industry,
such as technological developments, fixed-rate pricing and the ability to
attract and retain skilled employees. Changing domestic and international
demand, research and development costs and product obsolescence can affect the
profitability of software companies. Software company stocks may experience
substantial fluctuations in market price.
The market for software products is characterized by rapidly
changing technology, rapid product obsolescence, cyclical market patterns,
evolving industry standards and frequent new product introductions. The success
of software and services companies depends substantially on the timely and
successful introduction of new products. An unexpected change in one or more of
the technologies affecting a company’s products or in the market for products
based on a particular technology could have a material adverse effect on the
company’s operating results. Furthermore, there can be no assurance that the
software companies will be able to respond in a timely manner to compete in the
rapidly developing marketplace.
Many software companies rely on a combination of patents,
copyrights, trademarks and trade secret laws to establish and protect their
proprietary rights in their products and technologies. There can be no assurance
that the steps taken by software companies to protect their proprietary rights
will be adequate to prevent misappropriation of their technology or that
competitors will not develop technologies independently that substantially are
equivalent or superior to such companies’ technology.
Utilities Sector Risk
The risks inherent in the utilities sector include a variety of
factors that may adversely affect the business or operations of utilities
companies, including high interest costs associated with capital construction
and improvement programs; difficulty in raising adequate capital on reasonable
terms in periods of high inflation and unsettled capital markets; governmental
regulation of rates that the issuer can charge to customers; costs associated
with compliance with, and adjusting to changes to, environmental and other
regulations; effects of economic slowdowns and surplus capacity; and increased
competition from other providers of utility services. Utilities companies may
also be adversely affected by increased costs associated with the reduced
availability of certain types of fuel, occasionally reduced availability and
high costs of natural gas for resale, and the effects of energy
conservation policies. The effects of a national energy policy and
lengthy delays, increased costs and other problems associated with the design,
construction, licensing, regulation and operation of nuclear facilities for
electric generation, which may include the problems associated with the use of
radioactive materials and the disposal of radioactive wastes, may also
negatively impact these companies.
Technological innovations may render existing plants, equipment or
products obsolete, and companies may experience difficulty in obtaining
regulatory approval of new technologies; a lack of compatibility of
telecommunications equipment; and may be affected by the potential impact of
terrorist activities on the utility industry and its customers, as well as the
impact of natural or man-made disasters. Any such event could have serious
consequences for the general population of the affected area and may adversely
impact a Fund’s portfolio securities performance. Issuers in the utilities
sector also may be subject to regulation by various governmental authorities and
may be affected by the imposition of special tariffs and changes in tax laws,
regulatory policies and accounting standards. Deregulation is subjecting
utilities companies to greater competition and may adversely affect
profitability. As deregulation allows utilities to diversify outside of their
original geographic regions and their traditional lines of business, utilities
companies may engage in riskier ventures. There is no assurance that regulatory
authorities will, in the future, grant rate increases, or that such increases
will be adequate to permit the payment of dividends on stocks issued by a
utilities company.
Water Industry Risk
Economic downturns and global and domestic events may affect
companies in the water industry. These events may include additional
governmental regulation, including the increased cost of compliance, inflation,
an increase in the cost of raw materials, an increase in interest rates and
technological advances and changes in consumer sentiment and spending. Companies
engaged in the water industry can be subject to liability for environmental
damage, depletion of resources, conflicts with local communities over water
rights and mandated expenditures for safety and pollution control. Competition
between water companies and government regulation of water companies, including
regulation of the rates that the companies may charge, both domestically and
internationally, may adversely affect the earnings of the companies this
industry.
Investments in BDCs Risk
There are certain risks inherent in investing in BDCs, whose
principal business is to invest in and lend capital to privately held companies.
The 1940 Act imposes certain restraints upon the operations of a BDC. For
example, BDCs are required to invest at least 70% of their total assets
primarily in securities of private companies or thinly traded U.S. public
companies, cash, cash equivalents, U.S. government securities and high-quality
debt investments that mature in one year or less. Generally, little public
information exists for private and thinly traded companies, and there is a risk
that investors may not be able to make a fully informed investment decision.
With investments in debt
instruments, there is a risk that the issuer may default on its
payments or declare bankruptcy. Additionally, a BDC may incur indebtedness only
in amounts such that the BDC’s asset coverage equals at least 200% after such
incurrence. These limitations on asset mix and leverage may prohibit the way
that the BDC raises capital. BDCs generally invest in less mature private
companies, which involve greater risk than well-established, publicly-traded
companies.
Investments made by BDCs generally are subject to legal and other
restrictions on resale and otherwise are less liquid than publicly traded
securities. The illiquidity of these investments may make it difficult to sell
such investments if the need arises, and if there is a need for a BDC in which a
Fund invests to liquidate its portfolio quickly, it may realize a loss on its
investments. BDCs may have relatively concentrated investment portfolios,
consisting of a relatively small number of holdings. A consequence of this
limited number of investments is that the aggregate returns realized may be
disproportionately impacted by the poor performance of a small number of
investments, or even a single investment, particularly if a company experiences
the need to write down the value of an investment, which tends to increase
volatility and result in higher risk. Since BDCs rely on access to short-term
money markets, longer-term capital markets and the bank markets as a significant
source of liquidity, to the extent that BDCs are not able to access capital at
competitive rates, their ability to implement certain financial strategies will
be negatively impacted. Market disruptions, including a downturn in capital
markets in general, or a downgrade of the credit rating of a BDC held by a Fund
may increase the cost of borrowing to that company, thereby adversely impacting
a Fund’s returns. Credit downgrades also may result in requirements on a company
to provide additional support in the form of letters of credit or cash or other
collateral to various counterparties.
Since many of the assets of BDCs do not have readily ascertainable
market values, such assets are most often recorded at fair value, in good faith,
in accordance with valuation procedures adopted by such companies. Such
determination requires that judgment be applied to the specific facts and
circumstances. Due to the absence of a readily ascertainable market value, and
because of the inherent uncertainty of fair valuation, fair value of a BDC’s
investments may differ significantly from the values that would be reflected if
the securities were traded in an established market, potentially resulting in
material differences between a BDC’s NAV per share and its market value.
Investment advisers to BDCs may be entitled to compensation based
on the BDC’s performance, which may result in riskier or more speculative
investments in an effort to maximize incentive compensation and higher fees. In
addition, to the extent that a Fund invests a portion of its assets in BDCs, a
shareholder in the Fund not only will bear his or her proportionate share of the
expenses of the Fund, but also will bear indirectly the expenses of the BDCs.
Investments in Investment Companies Risk
Investing in other investment companies subjects the Fund to those
risks affecting the investment company, including the possibility that the value
of the underlying securities held by the
investment company could decrease or the portfolio becomes
illiquid. Moreover, the Fund will pay indirectly a proportional share of the
fees and expenses of the investment companies in which it invests. Investments
in an exchange-traded fund are subject to, among other risks, the risk that the
exchange-traded fund’s shares may trade at a discount or premium relative to the
NAV of its shares and the listing exchange may halt trading of the
exchange-traded fund’s shares.
Issuer-Specific Changes Risk
The performance of a fund depends on the performance of individual
securities to which that fund has exposure. The value of an individual security
or particular type of security may be more volatile than the market as a whole
and may perform worse than the market as a whole, causing the value of its
securities to decline. Poor performance may be caused by poor management
decisions, competitive pressures, changes in technology, expiration of patent
protection, disruptions in supply, labor problems or shortages, corporate
restructurings, fraudulent disclosures or other factors. Issuers may, in times
of distress or at their own discretion, decide to reduce or eliminate dividends,
which may also cause their stock prices to decline.
Listed Private Equity Companies Risk
Certain risks are inherent in investing in listed private equity
companies, which encompass BDCs and other financial institutions or vehicles
whose principal business is to invest in and lend capital to privately-held
companies. The 1940 Act imposes certain restraints upon the operations of a BDC.
For example, BDCs generally are required to invest at least 70% of their total
assets primarily in securities of private companies or thinly traded U.S.
public companies, cash, cash equivalents, U.S. government securities and
high-quality debt investments that mature in one year or less. Generally, little
public information exists for private and thinly traded companies and there is a
risk that investors may not be able to make a fully informed investment
decision. With investments in debt instruments, there is a risk that the issuer
may default on its payments or declare bankruptcy. Additionally, a BDC may incur
indebtedness only in amounts such that the BDC’s asset coverage equals at least
200% after such incurrence. These limitations on asset mix and leverage may
prohibit the way that the BDC raises capital. BDCs generally invest in less
mature private companies, which involve greater risk than well-established
publicly traded companies.
Investments that listed private equity companies make generally
are subject to legal and other restrictions on resale and otherwise are less
liquid than publicly traded securities. The illiquidity of these investments may
make it difficult to sell such investments if the need arises, and if there is a
need for a listed private equity company in which a fund invests to liquidate
its portfolio quickly, it may realize a loss on its investments. Listed private
equity companies may have relatively concentrated investment portfolios,
consisting of a relatively small number of holdings. A consequence of this
limited number of investments is that the poor performance of a small number of
investments, or even a single investment, particularly if a company experiences
the need to write down the value of an investment can have a disproportionate
impact on the aggregate returns realized. Since
private equity companies rely on access to short-term money
markets, longer-term capital markets and the bank markets as a significant
source of liquidity, to the extent that listed private equity companies are not
able to access capital at competitive rates, their ability to implement certain
financial strategies will be negatively impacted. Market disruptions, including
a downturn in capital markets in general, or a downgrade of the credit rating of
a listed private equity company a fund holds may increase the cost of borrowing
to that company, thereby adversely impacting the fund’s returns. Credit
downgrades also may result in requirements on a company to provide additional
support in the form of letters of credit or cash or other collateral to various
counterparties.
Since many of the assets of listed private equity companies do not
have readily ascertainable market values, such assets are most often recorded at
fair value, in good faith, in accordance with valuation procedures adopted by
such companies. Such determination requires that judgment be applied to the
specific facts and circumstances. Due to the absence of a readily ascertainable
market value, and because of the inherent uncertainty of fair valuation, fair
value of a listed private equity company’s investments may differ significantly
from the values that would be reflected if the securities were traded in an
established market, potentially resulting in material differences between a
listed private equity company’s NAV per share and its market value.
Many listed private equity companies invest in mezzanine and other
debt securities of privately held companies, including senior secured loans.
Typically, mezzanine investments are structured as subordinated loans (with or
without warrants) that carry a fixed rate of interest. Many debt investments in
which private equity companies invest will not be rated by a credit rating
agency such as Moody’s Investors Service, Inc. (“Moody’s”) or Standard and
Poor’s Ratings Services, a division of McGraw Hill Financial, Inc. (“S&P
Ratings”), and will be below investment grade quality, as determined by the
Adviser. These investments are commonly referred to as “junk bonds” and have
predominantly speculative characteristics with respect to an issuer’s capacity
to make payments of interest and principal. Although lower grade securities are
higher yielding, they are characterized by high risk. In addition, the secondary
market for lower grade securities may be less liquid than that of higher rated
securities. Issuers of lower rated securities have a currently identifiable
vulnerability to default or may currently be in default. Lower-rated securities
may react more strongly to real or perceived adverse economic and competitive
industry conditions than higher grade securities. If the issuer of lower-rated
securities defaults, a listed private equity company may incur additional
expenses to seek recovery.
Market Risk
The securities in each Underlying Index or Underlying Intellidex
are subject to market fluctuations, and a fund could lose money due to
short-term market movements and over longer periods during market downturns. You
should anticipate that the value of the Shares will decline, more or less, in
correlation with any decline in value of the securities in its respective
Underlying Index or Underlying Intellidex. The value of a security may decline
due to general market conditions, economic trends or events that are not
specifically related to the issuer of the security or due to factors
that affect a particular industry or group of industries. During a
general downturn in the securities markets, multiple asset classes may be
negatively affected.
Market Trading Risk
Each Fund faces numerous market trading risks, including losses
from trading in secondary markets, periods of high volatility and disruption in
the creation/redemption process of the Fund. Although the Shares of each
Fund are listed for trading on a securities exchange, there can be no assurance
that an active trading market for the Shares will develop or be maintained by
market makers or APs, that the Shares will continue to trade on any such
exchange or that the Shares will continue to meet the requirements for listing
on an exchange. Any of these factors, among others, may lead to the Shares
trading at a premium or discount to a Fund’s NAV. As a result, an investor
could lose money over short or long periods. Further, a Fund may experience low
trading volume and wide bid/ask spreads. Bid/ask spreads vary over time
based on trading volume and market liquidity (including for the underlying
securities held by a Fund) and are generally lower if Shares have more trading
volume and market liquidity and higher if Shares have little trading volume and
market liquidity. Additionally, in stressed market conditions, the market
for the Shares may become less liquid in response to deteriorating liquidity in
the markets for a Fund’s portfolio holdings, which may cause a variance in the
market price of the Shares and their underlying value.
Master Limited Partnership Risk
Investments in MLPs present additional risks when compared to
investments in common stocks. MLPs are subject to certain risks inherent in the
structure of MLPs, including tax risks, limited control and voting rights and
potential conflicts of interest between the MLP and the MLP’s members, limited
partners and general partner. MLPs that concentrate in a particular industry or
a particular geographic region are subject to risks associated with such
industry or region. For example, MLPs in energy-related industries are subject
to fluctuations in the prices of commodities, a significant decrease in the
production of or a sustained decline in demand for energy commodities, and
construction risk, development risk, acquisition risk or other risks arising
from their specific business strategies. Furthermore, as partnerships, MLPs may
be subject to less regulation (and less protection for investors) under state
laws than corporations. Securities issued by MLPs also may experience limited
trading volumes and, thus, may be relatively illiquid or volatile at times.
MLPs are generally not subject to tax at the partnership level,
subject to the application of certain partnership audit rules. Rather, each
partner is allocated a share of the MLP’s income, gains, losses, deductions, and
expenses. A change in current tax law, or a change in the underlying business of
a given MLP could result in the MLP being treated as a corporation for U.S.
federal tax purposes, which would result in such MLP being required to pay U.S.
federal income tax on its taxable income. Such treatment also would have the
effect of reducing the amount of cash available for distribution by the affected
MLP. Thus, if any MLP owned by a Fund were treated as a corporation for U.S.
federal tax purposes, such treatment could result in a reduction in the value of
a Fund’s investment in such MLP.
Momentum Investing Risk
In general, momentum is the tendency of an investment to exhibit
persistence in its relative performance; a “momentum” style of investing
emphasizes investing in securities that have had better recent performance
compared to other securities, on the theory that these securities will continue
to increase in value.
Momentum investing is subject to the risk that the securities may
be more volatile than the market as a whole. High momentum may also be a sign
that the securities’ prices have peaked, and therefore the returns on securities
that previously have exhibited price momentum may be less than returns on other
styles of investing. Momentum can turn quickly, and stocks that previously have
exhibited high momentum may not experience continued positive momentum. A fund
may experience significant losses if momentum stops, reverses or otherwise
behaves differently than predicted. In addition, there may be periods when the
momentum style of investing is out of favor and therefore, the investment
performance of a fund may suffer.
Non-Correlation Risk
A fund’s returns may not match the return of its Underlying Index
or Underlying Intellidex (that is, it may experience tracking error) for a
number of reasons. For example, a fund incurs operating expenses not applicable
to its Underlying Index or Underlying Intellidex and incurs costs in buying and
selling securities, especially when rebalancing the fund’s securities holdings
to reflect changes in the composition of its Underlying Index or Underlying To
the extent that a Fund has recently commenced operations and/or otherwise has a
relatively small amount of assets, such transaction costs could have a
proportionally greater impact on the fund. Additionally, if a fund uses a
sampling approach, it may result in returns for the fund that are not as
well-correlated with the return of its respective Underlying Index or Underlying
Intellidex as would be the case if the fund purchased all of the securities in
its Underlying Index or Underlying Intellidex in the proportions represented in
the Underlying Index or Underlying Intellidex.
The performance of a fund and its Underlying Index or Underlying
Intellidex may vary due to asset valuation differences and differences between
the fund’s portfolio and its Underlying Index or Underlying Intellidex resulting
from legal restrictions, costs or liquidity constraints. Additionally, a fund
that issues or redeems Creation Units principally for cash will incur higher
costs in buying or selling securities than if it issued and redeemed Creation
Units principally in-kind, which may contribute to tracking error. A fund may
fair value certain of the securities it holds. To the extent a fund calculates
its NAV based on fair value prices, the fund’s ability to track its Underlying
Index or Underlying Intellidex may be adversely affected. Since each Underlying
Index or Underlying Intellidex is not subject to the tax diversification
requirements to which each fund must adhere, a fund may be required to deviate
its investments from the securities contained in, and relative weightings of,
its Underlying Index or Underlying Intellidex. A fund may not invest in certain
securities included in its respective Underlying Index or Underlying Intellidex
due to liquidity constraints. Liquidity constraints also may delay a fund’s
purchase or sale of securities included in its respective Underlying Index or
Underlying Intellidex. For tax efficiency purposes, a fund may sell
certain securities to realize losses, causing it to deviate from
its Underlying Index or Underlying Intellidex.
Each fund generally attempts to remain fully invested in the
constituents of its respective Underlying Index or Underlying Intellidex.
However, the Adviser may not fully invest a fund at times, either as a result of
cash flows into the fund, to retain a reserve of cash to meet redemptions and
expenses, or because of low assets (particularly when the fund is new and has
operated only for a short period).
The investment activities of one or more of the Adviser’s
affiliates, including other subsidiaries of the Adviser’s parent company,
Invesco Ltd., for their proprietary accounts and for client accounts also may
adversely impact a fund’s ability to track its Underlying Index or Underlying
Intellidex. For example, in regulated industries, certain emerging or
international markets and under corporate and regulatory ownership definitions,
there may be limits on the aggregate amount of investment by affiliated
investors that may not be exceeded, or that may not be exceeded without the
grant of a license or other regulatory or corporate consent, or, if exceeded,
may cause the Adviser, a fund or other client accounts to suffer disadvantages
or business restrictions. As a result, a fund may be restricted in its ability
to acquire particular securities due to positions held by the fund and the
Adviser’s affiliates.
Non-Diversified Fund Risk
Funds that are classified as non-diversified can invest a greater
portion of their assets in securities of individual issuers than can a
diversified fund. For such funds, changes in the market value of a single
investment could cause greater fluctuations in the Share price of those funds
than would occur in a diversified fund. This may increase a fund’s volatility
and cause the performance of a relatively small number of issuers to have a
greater impact on the fund’s performance.
Portfolio Turnover Risk
Funds that may engage in frequent trading of their portfolio
securities in connection with the rebalancing or adjustment of their Underlying
Index or Underlying Intellidex may have a higher portfolio turnover rate. A
portfolio turnover rate of 200%, for example, is equivalent to a fund buying and
selling all of its securities two times during the course of a year. A high
portfolio turnover rate (such as 100% or more) could result in high brokerage
costs for a fund. A high portfolio turnover rate also can result in an increase
in taxable capital gains distributions to a fund’s shareholders and an increased
likelihood that the capital gains will be taxable at ordinary rates.
Preferred Securities Risk
Preferred securities are subject to issuer-specific and overall
market risks that are generally applicable to equity securities as a whole;
however, there are special risks associated with investing in preferred
securities. Preferred securities may be less liquid than many other types of
securities, such as common stock, and generally provide no voting rights with
respect to the issuer. Preferred securities also may be subordinated to bonds or
other debt instruments in an issuer’s capital structure, meaning that an
issuer’s preferred securities generally pay dividends only after the issuer
makes required payments to holders of its bonds and other
debt. This subjects preferred securities to a greater risk of
non-payment than more senior securities. Because of the subordinated position of
preferred securities in an issuer’s capital structure, the ability to defer
dividend or interest payments for extended periods of time without triggering an
event of default for the issuer, and certain other features, preferred
securities’ quality and value are heavily dependent on the profitability and
cash flows of the issuer rather than on any legal claims to specific assets.
Also, in certain circumstances, an issuer of preferred securities may call or
redeem it prior to a specified date or may convert it to common stock, all of
which may negatively impact its return. Variable rate preferred securities may
be subject to greater liquidity risk than other preferred securities, meaning
that there may be limitations on the Fund’s ability to sell those securities at
any given time. In addition, the floating rate feature of such preferred
securities means that they generally will not experience capital appreciation in
a declining interest rate environment.
Preferred securities may include provisions that permit the
issuer, in its discretion, to defer or omit distributions for a certain period
of time. If certain funds own a security that is deferring or omitting its
distributions, a Fund may be required to report the distribution on its tax
returns, even though it may not have received any income. Dividend payments on a
preferred security typically must be declared by the issuer’s board of
directors, unlike interest payments on debt securities. However, an issuer’s
board of directors generally is not under any obligation to declare a dividend
for an issuer (even if such dividends have accrued). If an issuer of preferred
securities experiences economic difficulties, those securities may lose
substantial value due to the reduced likelihood that the issuer’s board of
directors will declare a dividend.
REIT Risk
Although a funds will not invest in real estate directly, the
REITs in which a fund will invest will be subject to risks inherent in the
direct ownership of real estate. These risks include, among others: fluctuations
in the value of the underlying properties; defaults by borrowers or tenants;
market saturation; changes in general and local economic conditions; decreases
in market rates for rents; changes in the availability, cost and terms of
mortgage funds; increased competition, property taxes, capital expenditures, or
operating expenses; and other occurrences, including the impact of changes in
environmental laws, that may affect the real estate industry. A REIT that
fails to comply with federal tax requirements affecting REITs may be
subject to federal income taxation, or the federal tax requirement that a REIT
distribute substantially all of its net income to its shareholders may result in
a REIT having insufficient capital for future expenditures. The value of a REIT
can depend on the structure of and cash flow generated by the REIT. In addition,
like mutual funds, REITs have expenses, including advisory and administration
fees, that their shareholders pay. As a result, an investor will absorb
duplicate levels of fees when a fund invests in REITs. In addition, REITs are
subject to certain provisions under federal tax law. The failure of a company to
qualify as a REIT could have adverse consequences for a fund, including
significantly reducing return to the fund on its investment in such company.
Mortgage REITs lend money to developers and owners of properties and invest
primarily in
mortgages and similar real estate interests. Mortgage REITs
receive interest payments from the owners of the mortgaged properties.
Accordingly, mortgage REITs are subject to the credit risk of the borrowers to
whom they extend funds. Credit risk is the risk that the borrower will not be
able to make interest and principal payments on the loan to the REIT when they
are due. Mortgage REITs also are subject to the risk that the value of mortgaged
properties may be less than the amounts owed on the properties. If a mortgage
REIT is required to foreclose on a borrower, the amount recovered in connection
with the foreclosure may be less than the amount owed to the mortgage REIT.
Mortgage REITs are subject to significant interest rate risk. During periods
when interest rates are declining, mortgages are often refinanced or prepaid.
Refinancing or prepayment of mortgages may reduce the yield of mortgage REITs.
When interest rates decline, however, the value of a REIT’s investment in fixed
rate obligations can be expected to rise. Conversely, when interest rates rise,
the value of a REIT’s investment in fixed rate obligations can be expected to
decline. In addition, rising interest rates generally increase the costs of
obtaining financing, which could cause the value of a mortgage REIT’s
investments to decline. A REIT’s investment in adjustable rate obligations may
react differently to interest rate changes than an investment in fixed rate
obligations. As interest rates on adjustable rate mortgage loans are reset
periodically, yields on a REIT’s investment in such loans will gradually align
themselves to reflect changes in market interest rates, causing the value of
such investments to fluctuate less dramatically in response to interest rate
fluctuations than would investments in fixed rate obligations.
Mortgage REITs typically use leverage (and in many cases, may be
highly leveraged), which increases investment risk and could adversely affect a
REIT’s operations and market value in periods of rising interest rates,
increased interest rate volatility, downturns in the economy and reductions in
the availability of financing or deterioration in the conditions of the REIT’s
mortgage-related assets.
Restrictions on Investments Risk
A significant portion of Invesco Global Listed Private Equity
ETF’s Underlying Index may be composed of business development companies or
registered investment companies. The Fund may not acquire greater than 3% of the
total outstanding shares of such companies, as required by the 1940 Act, unless
such purchases are made in accordance with exemptive relief pertaining to the
Fund permitting such investments. If the Fund is unable to rely on its exemptive
relief, this limitation could inhibit the Fund’s ability to purchase certain of
the securities in the Underlying Index in the proportions represented in the
Underlying Index. In these circumstances, the Fund would be required to use
sampling techniques, which could increase the risk of tracking error.
Sampling Risk
The use of a representative sampling approach may result in a fund
holding a smaller number of securities than are in its Underlying Index or
Underlying Intellidex. As a result, an adverse development to an issuer of
securities that a fund holds could result in a greater decline in NAV than would
be the case if a fund
held all of the securities in its Underlying Index or Underlying
Intellidex. To the extent the assets in a fund are smaller, these risks will be
greater. In addition, by sampling the securities in an Underlying Index or
Underlying Intellidex, a fund faces the chance that the securities selected for
the fund, in the aggregate, will not provide investment performance matching
that of the fund’s Underlying Index or Underlying Intellidex, thereby increasing
tracking error.
Small- and Mid-Capitalization Company Risk
Securities of small- and mid-capitalization companies may be more
volatile and thinly traded (that is, less liquid) than those of more established
companies. These securities may have returns that vary, sometimes significantly,
from the overall securities market. Often small- and mid-capitalization
companies and the industries in which they focus are still evolving and, as a
result, they may be more sensitive to changing market conditions. In addition,
small- and mid-capitalization companies are typically less financially stable
than larger, more established companies, and they may depend on a small number
of essential personnel, making them more vulnerable to loss of personnel.
Smaller capitalization companies also normally have less diverse product lines
than large-capitalization companies and are more susceptible to adverse
developments concerning their products. As such,
small-and mid-capitalization companies typically are more likely to be adversely
affected than large-capitalization companies by changes in earning results,
business prospects, investor expectations or poor economic or market conditions.
Swap Agreements Risk
Invesco Global Listed Private Equity ETF may enter into swap
transactions, including total return swaps, to simulate full investment in its
Underlying Index or to manage cash flows. A swap is an agreement involving the
exchange by the fund with another party of their respective commitments to pay
or receive payments at specified dates on the basis of a specified amount. In a
total return swap transaction, one party agrees to pay the other party an amount
equal to the total return on a defined underlying asset or a non-asset reference
during a specified period of time. The underlying asset might be a security or
basket of securities, and the non-asset reference could be a securities index.
In return, the other party would make periodic payments based on a fixed or
variable interest rate or on the total return from a different underlying asset
or non-asset reference. The payments of the two parties could be made on a net
basis.
Swaps are highly specialized instruments that require investment
techniques and risk analyses different from those associated with stocks, bonds,
and other traditional instruments. The use of swap agreements entails certain
risks that may be different from, or possibly greater than, the risks associated
with investing directly in the reference instrument that underlies the swap
agreement. Such risks include including leverage risk, liquidity risk and
counterparty risk.
Swap agreements may have a leverage component, and therefore
adverse changes in the value or level of the reference instrument, such as an
underlying asset, can result in gains or losses that are substantially greater
than the amount invested in the swap itself.
Certain swaps, such as total return swaps, have the potential for
unlimited loss, regardless of the size of the initial investment.
Counterparty risk is the risk that the other party in a swap
agreement might default on a contract or fail to perform by not paying amounts
due. In that event, the fund will have contractual remedies pursuant to the
agreements related to the transaction. However, such remedies may be subject to
bankruptcy and insolvency laws that could affect the fund’s rights as a creditor
(e.g., the fund may not receive the net amount of payments that it contractually
is entitled to receive). The fund could experience lengthy delays in recovering
its assets and may not receive any recovery at all. Further, there is a risk
that no suitable counterparties will be willing to enter into, or continue to
enter into, transactions with the fund, which may cause the fund to experience
difficulty in purchasing or selling these instruments in a timely manner.
Invesco Global Listed Private Equity ETF will earmark or segregate
assets in the form of cash and cash equivalents in an amount equal to the
aggregate market value of the swaps of which it is the seller, marked-to-market
on a daily basis.
U.S. Federal Income Tax Risk
Due to certain investment strategies and federal income tax
elections it intends to make, Invesco S&P 500 BuyWrite ETF expects to
account for the gain or loss on its investments for federal income tax purposes
on a daily mark-to-market basis. Generally, the mark-to-market gains and losses
from the stock positions will be compared with the mark-to-market gains or
losses from the call options on a daily basis. To the extent that there is more
gain or loss from the stock positions, Invesco S&P 500 BuyWrite ETF will
have short term capital gain, which is generally taxed like ordinary income, or
short-term capital loss. To the extent there is more gain or loss from the call
options, such gain will be treated for federal tax purposes as 60% long term
capital gain or loss and 40% short term capital gain. As a result of its
investment strategy, the Fund will not be able to designate a portion of their
dividends as being eligible for lower rates of tax in the hands of non-corporate
shareholders (dividends that are commonly referred to as “qualified dividend
income”) or as being eligible for the dividends received deduction when received
by certain corporate shareholders. (See “Dividends, Other Distributions and
Taxes.”) For these reasons, a significant portion of income received from
Invesco S&P 500 BuyWrite ETF may be subject to tax at greater rates than
would apply if Invesco S&P 500 BuyWrite ETF were engaged in a different
investment strategy. You should consult your tax advisors as to the tax
consequences of acquiring, owning and disposing of shares in Invesco S&P 500
BuyWrite ETF.
Valuation Risk
Financial information related to securities of non-U.S. issuers
may be less reliable than information related to securities of U.S. issuers,
which may make it difficult to obtain a current price for a non-U.S. security
held by a Fund. In certain circumstances, market quotations may not be readily
available for some Fund securities, and those securities may be fair valued. The
value established for a security through fair valuation may be different from
what
would be produced if the security had been valued using market
quotations. Fund securities that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their value from one day to the next than would be the case if
market quotations were used. In addition, there is no assurance that a Fund
could sell a portfolio security for the value established for it at any time,
and it is possible that the Fund would incur a loss because a security is sold
at a discount to its established value. For Funds that invest in common stock of
foreign issuers and, because foreign exchanges may be open on days when the Fund
does not price its Shares, the value of those non-U.S. securities in the Fund’s
portfolio may change on days when you will not be able to purchase or sell your
Shares. As a result, trading spreads and the resulting premium or discount on
the Shares may widen, and, therefore, increase the difference between the market
price of the Shares and the NAV of such Shares.
Valuation Time Risk
Certain Funds will invest in securities of foreign issuers and,
because foreign exchanges may be open on days when the Funds do not price their
Shares, the value of those non-U.S. securities in the Fund’s portfolio may
change on days when you will not be able to purchase or sell your Shares. As a
result, trading spreads and the resulting premium or discount on the Shares may
widen, and, therefore, increase the difference between the market price of the
Shares and the NAV of such Shares.
Value Risk
A value style of investing focuses on undervalued companies with
characteristics for improved valuations. Value securities are subject to the
risk that valuations never improve or that the returns on “value” securities are
less than returns on other styles of investing or the overall stock market.
Thus, the value of a fund’s investments will vary and at times may be lower or
higher than that of other types of investments. Historically, value investments
have performed best during periods of economic recovery. Therefore, the value
investing style may over time go in and out of favor. Value stocks also may
decline in price, even though in theory they are already underpriced.
Variable- and Floating-Rate Securities Risk
An investment in variable- and floating-rate securities may be
subject to liquidity risk, meaning that there may be limitations on a fund’s
ability to sell the securities at any given time. Due to these securities’
variable- and floating-rate features, there can be no guarantee that they will
pay a certain level of a dividend, and such securities generally will pay lower
levels of income in a falling interest rate environment. Although floating rate
securities are less sensitive to interest rate risk than fixed rate securities,
they are subject to credit risk and default risk, which could impair their
value. In addition, such securities may decline in value if their interest rates
do not rise as much, or as quickly, as interest rates in general; conversely,
floating rate securities generally will not increase in value if interest rates
decline.
Writing Covered Call Options Risk
By writing covered call options in return for the receipt of
premiums, Invesco S&P 500 BuyWrite ETF will give up the
opportunity to benefit from potential increases in the value of
the S&P 500® Index
above the exercise prices of the Written Options, but will continue to bear the
risk of declines in the value of the S&P 500® Index. The premiums received
from the options may not be sufficient to offset any losses sustained from the
volatility of the underlying stocks over time. In addition, the Fund’s ability
to sell the underlying securities will be limited while the option is in effect
unless the Fund extinguishes the option position through the purchase of an
offsetting identical option prior to the expiration of the written option.
Exchanges may suspend the trading of options in volatile markets. If trading is
suspended, the Fund may be unable to write options at times that may be
desirable or advantageous to the Fund to do so.
Non-Principal Investment Strategies
Each Fund after investing at least 90% of its total assets in
securities that comprise its respective Underlying Index or Underlying
Intellidex, may invest its remaining assets in securities (including other
funds) not included in its Underlying Index or Underlying Intellidex, and in
money market instruments, including repurchase agreements and other funds,
including affiliated funds, that invest exclusively in money market instruments
(subject to applicable limitations under the 1940 Act or exemptions therefrom),
convertible securities, structured notes (notes on which the amount of principal
repayment and interest payments is based on the movement of one or more
specified factors, such as the movement of a particular security or securities
index) and in futures contracts, options and options on futures contracts. The
Funds may use options, futures contracts, convertible securities and structured
notes to seek performance that corresponds to its respective Underlying Index or
Underlying Intellidex, and to manage cash flows. In addition to options and
futures contracts, Invesco Global Listed Private Equity ETF may invest in swaps,
including total return swap agreements. Swap agreements are contracts between
parties in which one party agrees to make periodic payments to the other party
based on the change in market value or level of a specified rate, index or
asset. In return, the other party agrees to make payments to the first party
based on the return of a different specified rate, index or asset.
The Adviser anticipates that it may take approximately two
business days (a business day is any day that the NYSE is open) for additions to
and deletions from each Fund’s respective Underlying Index or Underlying
Intellidex to fully settle in the portfolio composition of that Fund.
In accordance with 1940 Act rules, each Fund (except Invesco
BuyBack AchieversTM ETF,
Invesco Dow Jones Industrial Average Dividend ETF, Invesco DWA Momentum ETF,
Invesco DWA NASDAQ Momentum ETF, Invesco Dynamic Market ETF, Invesco FTSE RAFI
US 1000 ETF, Invesco Insider Sentiment ETF, Invesco International Dividend
AchieversTM ETF, Invesco
S&P 100 Equal Weight ETF, Invesco S&P 500® Equal Weight ETF, Invesco
S&P 500 GARP ETF, Invesco S&P 500® Pure Growth ETF, Invesco
S&P 500® Pure Value
ETF, Invesco S&P 500®
Quality ETF, Invesco S&P 500® Top 50 ETF, Invesco S&P
500 Value with Momentum ETF, Invesco S&P Spin-Off ETF and Invesco Zacks
Multi-Asset Income ETF) has adopted a policy to invest at least 80% of the value
of its total assets in certain types of securities (e.g., securities of a
certain size, such as small-, mid- or large-cap equity
securities) or in securities of companies in a particular industry
or economic sector (e.g., securities of companies in the energy, technology or
health care sectors) that is suggested by the Fund’s name (for each such Fund,
an “80% investment policy”). Each Fund, with an 80% investment policy, considers
the securities suggested by its name to be those securities that comprise its
respective Underlying Index or Underlying Intellidex. Therefore, each such Fund
anticipates meeting its 80% investment policy because it already is required to
invest at least 90% of its total assets in securities that comprise its
respective Underlying Index or Underlying Intellidex, in accordance with its
principal investment strategies and the terms of the Invesco Exchange-Traded
Fund Trust’s (the “Trust”) exemptive relief.
Each Fund’s investment objective and each 80% investment policy,
constitutes a non-fundamental policy that the Board of Trustees (the “Board”) of
the Trust may change without shareholder approval upon 60 days’ prior written
notice to shareholders. The fundamental and non-fundamental policies of the
Funds are set forth in the Trust’s Statement of Additional Information (“SAI”)
under the section “Investment Restrictions.”
Borrowing Money
Each Fund may borrow money up to the limits set forth in the
Trust’s SAI under the section “Investment Restrictions.”
Securities Lending
Each Fund may lend its
portfolio securities to brokers, dealers, and other financial institutions. In
connection with such loans, each Fund receives liquid collateral equal to at
least 102% (105% for international securities) of the value of the loaned
portfolio securities. This collateral is marked-to-market on a daily basis.
Additional Risks of Investing in the Funds
The following provides additional risk information regarding
investing in the Funds.
Convertible Securities Risk
A convertible security generally is a preferred stock that may be
converted within a specified period of time into common stock. Convertible
securities nevertheless remain subject to the risks of both debt securities and
equity securities. As with other equity securities, the value of a convertible
security tends to increase as the price of the underlying stock goes up, and to
decrease as the price of the underlying stock goes down. Declining common stock
values therefore also may cause the value of the Fund’s investments to decline.
Like a debt security, a convertible security provides a fixed income stream and
also tends to decrease in value when interest rates rise. Moreover, many
convertible securities have credit ratings that are below investment grade and
are subject to the same risks as lower-rated debt securities.
Cybersecurity Risk
The Funds, like all companies, may be susceptible to operational
and information security risks. Cyber security failures or breaches of the Funds
or their service providers or the issuers of securities in which the Funds
invest, have the ability to cause disruptions and impact business operations,
potentially resulting in financial losses, the inability of Fund shareholders to
transact business, violations
of applicable privacy and other laws, regulatory fines, penalties,
reputational damage, reimbursement or other compensation costs, and/or
additional compliance costs. The Funds and their shareholders could be
negatively impacted as a result.
Derivatives Risk
The Funds may invest in derivatives, such as futures and options.
Derivatives are financial instruments that derive their value from an underlying
asset, such as a security, index or exchange rate. Derivatives may be riskier
than other types of investments and may be more volatile and less liquid than
other securities.
Derivatives may be used to create synthetic exposure to an
underlying asset or to hedge a portfolio risk. If a Fund uses derivatives to
“hedge” a portfolio risk, the change in value of a derivative may not correlate
as expected with the underlying asset being hedged, and it is possible that the
hedge therefore may not succeed. In addition, given their complexity,
derivatives may be difficult to value.
Derivatives are subject to a number of risks including credit
risk, interest rate risk, and market risk. Credit risk refers to the possibility
that a counterparty will be unable and/or unwilling to perform under the
agreement. Interest rate risk refers to fluctuations in the value of an asset
resulting from changes in the general level of interest rates. Over-the-counter
derivatives are also subject to counterparty risk (sometimes referred to as
“default risk”), which is the risk that the other party to the contract will not
fulfill its contractual obligations.
Derivatives may be especially sensitive to changes in economic and
market conditions, and their use may give rise to a form of leverage. Leverage
may cause the portfolios of the Funds to be more volatile than if the portfolio
had not been leveraged because leverage can exaggerate the effect of any
increase or decrease in the value of securities held by a Fund. For some
derivatives, such leverage could result in losses that exceed the original
amount invested in the derivative.
Index Provider Risk
The Funds seek to track the investment results, before fees and
expenses, of their Underlying Index or Underlying Intellidex, as published by
their Index Provider. There is no assurance that an Index Provider will compile
its Underlying Index or Underlying Intellidex accurately, or that the Underlying
Index or Underlying Intellidex will be determined, composed or calculated
accurately. While an Index Provider gives descriptions of what the Underlying
Index or Underlying Intellidex is designed to achieve, an Index Provider
generally does not provide any warranty or accept any liability in relation to
the quality, accuracy or completeness of data in such Underlying Indices or
Underlying Intellidexes, and it generally does not guarantee that the Underlying
Index or Underlying Intellidex will be in line with its methodology. Errors made
by the Index Provider with respect to the quality, accuracy and completeness of
the data within its Underlying Index or Underlying Intellidex may occur from
time to time and may not be identified and corrected by the Index Provider for a
period of time, if at all. Therefore, gains, losses or costs associated with
Index Provider errors will generally be borne by a Fund and its shareholders.
Index Rebalancing Risk
Pursuant to the methodology that each Index Provider uses to
calculate and maintain its respective Underlying Index or Underlying Intellidex,
a security may be removed from an Underlying Index or Underlying Intellidex in
the event that it does not comply with the eligibility requirements of the
Underlying Index or Underlying Intellidex. As a result, a Fund may be forced to
sell securities at inopportune times or for prices other than at current market
values or may elect not to sell such securities on the day that they are removed
from its Underlying Index or Underlying Intellidex, due to market conditions or
otherwise. Due to these factors, the variation between a Fund’s annual return
and the return of its respective Underlying Index or Underlying Intellidex may
increase significantly.
Apart from scheduled rebalances, an Index Provider may carry out
additional ad hoc rebalances to its Underlying Index or Underlying Intellidex,
for example, to correct an error in the selection of index constituents. When a
Fund in turn rebalances its portfolio, any transaction costs and market exposure
arising from such portfolio rebalancing will be borne by the Fund and its
shareholders. Unscheduled rebalances also expose a Fund to additional tracking
error risk. Therefore, errors and additional ad hoc rebalances carried out by an
Index Provider may increase a Fund’s costs and market exposure.
Money Market Funds Risk
Money market funds are subject to management fees and other
expenses, and a Fund’s investments in money market funds will cause it to bear
proportionately the costs incurred by the money market funds’ operations while
simultaneously paying its own management fees and expenses. An investment in a
money market fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency; it is possible to lose money by
investing in a money market fund. To the extent that a Fund invests in money
market funds, the Fund will be subject to the same risks that investors
experience when investing in money market funds. These risks may include the
impact of significant fluctuations in assets as a result of the cash sweep
program or purchase and redemption activity in those funds.
Money market funds are open-end registered investment companies
that historically have traded at a stable $1.00 per share price. However, under
recent amendments to money market fund regulations under the 1940 Act, money
market funds that do not meet the definition of a “retail money market fund” or
“government money market fund” are required to transact at a floating NAV per
share (i.e., in a manner similar to how all other non-money market mutual funds
transact), instead of at a $1.00 stable share price. Those rule amendments also
permit money market funds to impose liquidity fees and redemption gates for use
in times of market stress. If a Fund invested in a money market fund with a
floating NAV, the impact on the trading and value of the money market instrument
as a result of the rule amendments may negatively affect the Fund’s return
potential.
Portfolio Size Risk
Pursuant to its methodology, an Underlying Index or Underlying
Intellidex may be composed of a relatively small number of
individual securities, as compared to a broad-based securities
index. Therefore, a Fund seeking to track the returns of such an Underlying
Index or Underlying Intellidex typically will hold a similarly small number of
securities. To the extent that a significant portion of a Fund’s total assets is
invested in a limited number of securities, the appreciation or depreciation of
any one security held by the Fund may have a greater impact on the Fund’s NAV
than it would if the Fund invested in a greater number of securities.
Repurchase Agreements Risk
Repurchase agreements are agreements pursuant to which a Fund
acquires securities from a third party with the understanding that the seller
will repurchase them at a fixed price on an agreed date. Repurchase agreements
may be characterized as loans secured by the underlying securities. If the
seller of securities under a repurchase agreement defaults on its obligation to
repurchase the underlying securities, as a result of its bankruptcy or
otherwise, a Fund will seek to dispose of such securities, which action could
involve costs or delays. If the seller becomes insolvent and subject to
liquidation or reorganization under applicable bankruptcy or other laws, a
Fund’s ability to dispose of the underlying securities may be restricted. If the
seller fails to repurchase the securities, a Fund may suffer a loss to the
extent proceeds from the sale of the underlying securities are less than the
repurchase prices.
Risks of Futures and Options
Each Fund may enter into U.S. futures contracts, options and
options on futures contracts to simulate full investment in its Underlying Index
or Underlying Intellidex, or to manage cash flows. The Funds will not use
futures or options for speculative purposes. Each Fund intends to use futures
and options contracts to limit its risk exposure to levels comparable to direct
investment in securities.
An option gives a holder the right to buy or sell a specific
security or an index at a specified price within a specified period of time. An
option on a futures contract gives the purchaser the right, in return for the
premium paid, to assume a position in the underlying futures contract at a
specified price at any time prior to the expiration date of the option. Options
can offer large amounts of leverage, which may result in a Fund’s NAV being more
sensitive to changes in the value of the related instrument. The purchase of put
or call options could be based upon predictions as to anticipated trends; such
predictions could prove to be incorrect resulting in loss of part or all of the
premium paid. The risk of trading uncovered call options in some strategies
(e.g., selling uncovered stock index futures contracts) potentially is
unlimited.
Futures contracts provide for the future sale by one party and
purchase by another party of a specified amount of a specific instrument or
index at a specified future time and at a specified price. Because futures
contracts project price levels in the future, market circumstances may cause a
discrepancy between the price of the stock index future and the movement in the
Underlying Index or Underlying Intellidex. In the event of adverse price
movements, a Fund would remain required to make daily cash payments to maintain
its required margin. There is no assurance that a liquid secondary market will
exist for any particular futures
contract at any particular time. The risk of loss in trading
futures contracts or potentially is unlimited.
Each Fund must segregate liquid assets or take other appropriate
measures to “cover” open positions in futures contracts. For futures contracts
that do not cash settle, each Fund must segregate liquid assets equal to the
full notional value of the futures contracts while the positions are open. For
futures contracts that do cash settle, each Fund is permitted to set aside
liquid assets in an amount equal to the Fund’s daily marked-to-market net
obligations (i.e., the Fund’s daily net liability) under the futures contract,
if any, rather than their full notional value.
Securities Lending Risk
Securities lending involves a risk of loss because the borrower
may fail to return the securities in a timely manner or at all. If a Fund that
lent its securities were unable to recover the securities loaned, it may sell
the collateral and purchase a replacement security in the market. Lending
securities entails a risk of loss to a Fund if and to the extent that the market
value of the loaned securities increases and the collateral is not increased
accordingly. Any cash received as collateral for loaned securities will be
invested in an affiliated money market fund. This investment is subject to
market appreciation or depreciation and a Fund will bear any loss on the
investment of its cash collateral.
Shares May Trade at Prices Different than NAV
The NAV of the Shares generally will fluctuate with changes in the
market value of the Funds’ holdings. The market prices of Shares generally will
fluctuate in accordance with changes in NAV, as well as the relative supply of
and demand for Shares on the exchange on which a Fund trades. The Adviser cannot
predict whether a Fund’s Shares will trade below, at, or above the Fund’s NAV.
Price differences may be due largely to the fact that supply and demand forces
at work in the secondary trading market for the Shares will be related, but not
identical, to the same forces influencing the prices of the securities of each
Fund’s Underlying Index or Underlying Intellidex trading individually or in the
aggregate at any point in time. In addition, disruptions to creations and
redemptions or the existence of extreme market volatility may result in trading
prices that differ significantly from NAV. If a shareholder purchases at a time
when the market price is at a premium to the NAV or sells at a time when the
market price is at a discount to the NAV, the shareholder may sustain losses.
Structured Notes Risk
Investments in structured notes involve risks including interest
rate risk, credit risk and market risk. Interest rate risk refers to
fluctuations in the value of a note resulting from changes in the general level
of interest rates. When the general level of interest rates goes up, the prices
of notes tend to go down. Credit risk refers to the possibility that the issuer
of a note will be unable and/or unwilling to make timely interest payments
and/or repay the principal on its debt. Depending on the factors used, changes
in interest rates and movement of such factors may cause significant price
fluctuations. Structured notes may be less liquid than other types of securities
and more volatile than the reference factor underlying the note. This means that
a Fund may lose money if the issuer of the note defaults, as the Fund may not be
able to readily close out its investment in such notes without
incurring losses.
Trading Issues Risk
Investors buying or selling Shares in the secondary market may pay
brokerage commissions or other charges, which may be a significant proportional
cost for investors seeking to buy or sell relatively small amounts of Shares.
Moreover, trading in Shares on either NYSE Arca, Inc. (the “NYSE Arca”) or
Nasdaq (together, the “Exchanges”) may be halted due to market conditions or for
reasons that, in the view of the relevant Exchange, make trading in Shares
inadvisable. In addition, trading in Shares on the Exchanges is subject to
trading halts caused by extraordinary market volatility pursuant to the
Exchanges’ “circuit breaker” rules. There can be no assurance that the
requirements of the Exchanges necessary to maintain the listing of each Fund
will continue to be met or will remain unchanged. Foreign exchanges may be open
on days when Shares are not priced, and therefore, the value of the securities
in a Fund’s portfolio may change on days when shareholders will not be able to
purchase or sell Shares.
Tax-Advantaged Structure of ETFs
Unlike interests in conventional mutual funds, which typically are
bought and sold only at closing NAVs, the Shares are traded throughout the day
in the secondary market on a national securities exchange on an intra-day basis
and are created and redeemed principally in-kind in Creation Units at each day’s
next calculated NAV. These in-kind arrangements are designed to protect
shareholders from the adverse effects on a Fund’s portfolio that could arise
from frequent cash creation and redemption transactions. In a conventional
mutual fund, redemptions can have an adverse tax impact on taxable shareholders
because the mutual fund may need to sell portfolio securities to obtain cash to
meet the redemptions. These sales may generate taxable gains that must be
distributed to the shareholders of the mutual fund, whereas the Shares’ in-kind
redemption mechanism generally will not lead to such taxable events for a Fund
or its shareholders.
Certain Funds may recognize gains as a result of rebalancing their
securities holdings to reflect changes in the securities included in such Fund’s
Underlying Index or Underlying Intellidex. Certain Funds may be required to
distribute any such gains to their shareholders to avoid adverse federal income
tax consequences. For information concerning the tax consequences of
distributions, see the section entitled “Dividends, Other Distributions and
Taxes” in this Prospectus.
Portfolio Holdings
A description of the Trust’s policies and procedures with respect
to the disclosure of the Funds’ portfolio holdings is available in the Trust’s
SAI, which is available at www.Invesco.com/ETFs.
Management of the Funds
Invesco Capital Management LLC is a registered investment adviser
with its offices at 3500 Lacey Road, Suite 700, Downers Grove, IL 60515.
Invesco Capital Management LLC serves as the investment adviser to the Trust,
Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust,
Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed
Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed
Fund Trust, a family of ETFs, with combined assets under management of
$125.8 billion as of June 30, 2019.
As the Funds’ investment adviser, the Adviser has overall
responsibility for selecting and continuously monitoring the Funds’ investments,
managing the Funds’ business affairs and providing certain clerical, bookkeeping
and other administrative services for the Trust.
Portfolio Managers
The Adviser uses a team of portfolio managers, investment
strategists and other investment specialists. This team approach brings together
many disciplines and leverages the Adviser’s extensive resources.
Peter Hubbard, Vice President of the Trust, oversees all research,
portfolio management and trading operations of each Fund. In this capacity,
Mr. Hubbard oversees a team of portfolio managers (collectively with
Mr. Hubbard, the “Portfolio Managers”) who are responsible for the
day-to-day management of the Funds in the Trust. In managing the Funds,
Mr. Hubbard receives management assistance from Tom Boksa, David Hemming,
Michael Jeanette, Gary Jones, Jeffrey W. Kernagis, Richard Ose, Theodore
Samulowitz and Tony Seisser. Each Portfolio Manager is responsible for various
functions related to portfolio management, including investing cash flows,
coordinating with other team members to focus on certain asset classes,
implementing investment strategy and researching and reviewing investment
strategy. Each Portfolio Manager has limitations on his authority for risk
management and compliance purposes that the Adviser believes to be appropriate.
Peter Hubbard, Director of Portfolio Management of the Adviser,
has been responsible for the Funds in the Trust and the Invesco family of ETFs
since June 2007 and has been associated with the Adviser since 2005.
Tom Boksa, Portfolio Manager of the Adviser, has been responsible
for certain Funds in the Trust and the Invesco family of ETFs since August 2019
and has been associated with the Adviser since 2013.
David Hemming, Senior Portfolio Manager of the Adviser,
Commodities and Alternatives, has been one of the Portfolio Managers primarily
responsible for the day-today management of Invesco S&P 500 BuyWrite ETF
since September 2016. He has been associated with the Adviser since September
2016. From August 2009 to March 2015, he was a Portfolio Manager and Principal
of Commodities at Hermes Investment Management Limited.
Michael Jeanette, Senior Portfolio Manager of the Adviser, has
been responsible for certain Funds in the Trust and the Invesco family of ETFs
since August 2008 and has been associated with the Adviser since 2008.
Gary Jones, Portfolio Manager of the Adviser, has been responsible
for certain Funds in the Trust and the Invesco family of ETFs since August 2013
and has been associated with the Adviser since 2010.
Jeffrey W. Kernagis, Senior Portfolio Manager of the Adviser, has
been responsible for certain Funds in the Trust and the Invesco family of ETFs
since September 2007 and has been associated with the Adviser since 2007.
Richard Ose, Portfolio Manager of the Adviser, has been
responsible for certain Funds in the Trust and the Invesco family of ETFs since
October 2013 and has been associated with the Adviser since 2011.
Theodore Samulowitz, Portfolio Manager of the Adviser, has been
responsible for certain Funds in the Trust and the Invesco family of ETFs since
August 2013 and has been associated with the Adviser since 2012.
Tony Seisser, Portfolio Manager of the Adviser, has been
responsible for certain Funds in the Trust and the Invesco family of ETFs since
August 2014 and has been associated with the Adviser since 2013. From 2010 to
2013, he was employed by Guggenheim Funds Distributors, Inc.
The Trust’s SAI provides additional information about the
Portfolio Managers’ compensation structure, other accounts that the Portfolio
Managers manage and the Portfolio Managers’ ownership of Shares.
Advisory Fees
Pursuant to an investment advisory agreement between the Adviser
and the Trust (the “Investment Advisory Agreement”), each Fund has agreed to pay
the Adviser for its services an annual fee equal to a percentage of its average
daily net assets as set forth in the chart below (the “Advisory Fee”).
|
|
|
|
|
Fund |
|
Advisory Fee |
Invesco Aerospace & Defense
ETF |
|
0.50% |
Invesco BRIC ETF |
|
0.50% |
Invesco BuyBack AchieversTM ETF |
|
0.50% |
Invesco CleantechTM ETF |
|
0.50% |
Invesco Dividend AchieversTM ETF |
|
0.40% |
Invesco Dow Jones Industrial Average
Dividend ETF(1) |
|
0.07% |
Invesco DWA Basic Materials Momentum
ETF |
|
0.50% |
Invesco DWA Consumer Cyclicals Momentum
ETF |
|
0.50% |
Invesco DWA Consumer Staples Momentum
ETF |
|
0.50% |
Invesco DWA Energy Momentum
ETF |
|
0.50% |
Invesco DWA Financial Momentum
ETF |
|
0.50% |
Invesco DWA Healthcare Momentum
ETF |
|
0.50% |
Invesco DWA Industrials Momentum
ETF |
|
0.50% |
Invesco DWA Momentum ETF |
|
0.50% |
|
|
|
|
|
Fund |
|
Advisory Fee |
Invesco DWA NASDAQ Momentum
ETF |
|
0.50% |
Invesco DWA Technology Momentum
ETF |
|
0.50% |
Invesco DWA Utilities Momentum
ETF |
|
0.50% |
Invesco Dynamic
Biotechnology & Genome ETF |
|
0.50% |
Invesco Dynamic Building &
Construction ETF |
|
0.50% |
Invesco Dynamic Energy
Exploration & Production ETF |
|
0.50% |
Invesco Dynamic Food &
Beverage ETF |
|
0.50% |
Invesco Dynamic Large Cap Growth
ETF |
|
0.50% |
Invesco Dynamic Large Cap Value
ETF |
|
0.50% |
Invesco Dynamic Leisure and
Entertainment ETF |
|
0.50% |
Invesco Dynamic Market ETF |
|
0.50% |
Invesco Dynamic Media ETF |
|
0.50% |
Invesco Dynamic Networking
ETF |
|
0.50% |
Invesco Dynamic Oil & Gas
Services ETF |
|
0.50% |
Invesco Dynamic Pharmaceuticals
ETF |
|
0.50% |
Invesco Dynamic Retail ETF |
|
0.50% |
Invesco Dynamic Semiconductors
ETF |
|
0.50% |
Invesco Dynamic Software ETF |
|
0.50% |
Invesco Financial Preferred
ETF |
|
0.50% |
Invesco FTSE RAFI US 1000 ETF |
|
0.29% |
Invesco FTSE RAFI US 1500 Small-Mid
ETF |
|
0.29% |
Invesco Global Listed Private Equity
ETF |
|
0.50% |
Invesco Golden Dragon China
ETF |
|
0.50% |
Invesco High Yield Equity Dividend
AchieversTM
ETF |
|
0.40% |
Invesco Insider Sentiment ETF |
|
0.50% |
Invesco International Dividend
AchieversTM
ETF |
|
0.40% |
Invesco NASDAQ Internet ETF |
|
0.60% |
Invesco Raymond James SB-1 Equity
ETF* |
|
0.75% |
Invesco S&P 100 Equal Weight
ETF |
|
0.25% |
Invesco S&P 500 BuyWrite ETF(2) |
|
0.49% |
Invesco S&P 500® Equal Weight
ETF* |
|
0.20% |
Invesco S&P 500® Equal Weight
Communication Services ETF |
|
0.40% |
Invesco S&P 500® Equal Weight Consumer
Discretionary ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight Consumer
Staples ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight Energy
ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight
Financials ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight Health
Care ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight
Industrials ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight Materials
ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight Real
Estate ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight
Technology ETF** |
|
0.40% |
Invesco S&P 500® Equal Weight Utilities
ETF** |
|
0.40% |
Invesco S&P 500 GARP ETF |
|
0.29% |
Invesco S&P 500® Pure Growth
ETF** |
|
0.35% |
Invesco S&P 500® Pure Value
ETF** |
|
0.35% |
Invesco S&P 500® Quality ETF(3) |
|
0.15% |
Invesco S&P 500® Top 50 ETF** |
|
0.20% |
Invesco S&P 500 Value with Momentum
ETF |
|
0.29% |
Invesco S&P MidCap 400® Equal Weight
ETF** |
|
0.40% |
Invesco S&P MidCap 400® Pure Growth
ETF** |
|
0.35% |
|
|
|
|
|
Fund |
|
Advisory Fee |
Invesco S&P MidCap 400® Pure Value
ETF** |
|
0.35% |
Invesco S&P MidCap Momentum
ETF |
|
0.29% |
Invesco S&P MidCap Quality
ETF |
|
0.25% |
Invesco S&P MidCap Value with
Momentum ETF |
|
0.29% |
Invesco S&P SmallCap 600® Equal Weight
ETF** |
|
0.40% |
Invesco S&P SmallCap 600® Pure Growth
ETF** |
|
0.35% |
Invesco S&P SmallCap 600® Pure Value
ETF** |
|
0.35% |
Invesco S&P SmallCap Momentum
ETF |
|
0.29% |
Invesco S&P SmallCap Value with
Momentum ETF |
|
0.29% |
Invesco S&P Spin-Off ETF |
|
0.50% |
Invesco Water Resources ETF |
|
0.50% |
Invesco WilderHill Clean Energy
ETF |
|
0.50% |
Invesco Zacks Mid-Cap ETF |
|
0.50% |
Invesco Zacks Multi-Asset Income
ETF |
|
0.50% |
* |
The Adviser has agreed to waive a portion
of its Advisory Fee to the extent necessary to prevent each Fund’s
operating expenses (excluding interest expenses, brokerage commissions and
other trading expenses, Acquired Fund Fees and Expenses, if any, taxes and
litigation expenses, and extraordinary expenses) from exceeding the
management fee through at least May 18, 2020.
|
** |
The Adviser has agreed to waive a portion
of its Advisory Fee to the extent necessary to prevent each Fund’s
operating expenses (excluding interest expenses, brokerage commissions and
other trading expenses, Acquired Fund Fees and Expenses, if any, taxes and
litigation expenses, and extraordinary expenses) from exceeding the
management fee through at least April 6, 2020.
|
(1) |
Prior to August 20, 2018, the Fund’s
Advisory Fee was 0.30%. Effective August 20, 2018, the Adviser voluntarily
agreed to permanently waive a portion of the Fund’s Advisory Fee. After
giving effect to such waiver, the net unitary Advisory Fee was 0.07%.
Effective September 24, 2018, the Fund’s Advisory Fee was reduced
from 0.30% to 0.07%. In addition, the Adviser has agreed to waive a
portion of its Advisory Fee to the extent necessary to prevent the Fund’s
operating expenses (excluding interest expenses, brokerage commissions and
other trading expenses, Acquired Fund Fees and Expenses, if any, taxes and
litigation expenses, and extraordinary expenses) from exceeding 0.30%
through at least April 6, 2020. |
(2) |
Prior to July 1, 2018, the Fund’s
Advisory Fee was 0.75% of the Fund’s average daily net assets.
|
(3) |
Prior to August 20, 2018, the Fund’s
Advisory Fee was 0.29%. Effective August 20, 2018, the Adviser voluntarily
agreed to permanently waive a portion of the Fund’s Advisory Fee. After
giving effect to such waiver, the net unitary Advisory Fee was 0.15%.
Effective September 24, 2018, the Fund’s Advisory Fee was reduced
from 0.29% to 0.15%. |
The Advisory Fee paid by each of Invesco Dow Jones Industrial
Average Dividend ETF, Invesco NASDAQ Internet ETF, Invesco Raymond James SB-1
Equity ETF, Invesco S&P 500 BuyWrite ETF, Invesco S&P 500® Equal Weight ETF, Invesco
S&P 500® Equal Weight
Communication Services ETF, Invesco S&P 500® Equal Weight Consumer
Discretionary ETF, Invesco S&P 500® Equal Weight Consumer
Staples ETF, Invesco S&P 500® Equal Weight Energy ETF,
Invesco S&P 500®
Equal Weight Financials ETF, Invesco S&P 500® Equal Weight Health Care
ETF, Invesco S&P 500®
Equal Weight Industrials ETF, Invesco S&P 500® Equal Weight Materials ETF,
Invesco S&P 500®
Equal Weight Real Estate ETF, Invesco S&P 500® Equal Weight Technology ETF,
Invesco S&P 500®
Equal Weight Utilities ETF, Invesco S&P 500® Pure Growth ETF, Invesco
S&P 500® Pure Value
ETF, Invesco S&P 500®
Top 50 ETF, Invesco S&P MidCap 400® Equal Weight ETF,
Invesco S&P MidCap 400® Pure Growth ETF, Invesco
S&P MidCap 400® Pure
Value ETF, Invesco S&P SmallCap 600® Equal Weight ETF, Invesco
S&P SmallCap 600®
Pure Growth ETF and Invesco S&P SmallCap 600® Pure Value ETF to the
Adviser set forth in the table above is an annual unitary management fee. Out of
the unitary management fee, the Adviser pays for substantially all expenses of
each Fund, including the cost of transfer agency, custody, fund administration,
legal, audit and other services, except for advisory fees, distribution fees, if
any, brokerage expenses, taxes, interest, litigation expenses, Acquired Fund
Fees and Expenses, if any, and other extraordinary expenses.
Each Fund (except Invesco Dow Jones Industrial Average Dividend
ETF, Invesco NASDAQ Internet ETF, Invesco Raymond James SB-1 Equity ETF, Invesco
S&P 500 BuyWrite ETF, Invesco S&P 500® Equal Weight ETF, Invesco
S&P 500® Equal Weight
Communication Services ETF, Invesco S&P 500® Equal Weight Consumer
Discretionary ETF, Invesco S&P 500® Equal Weight Consumer
Staples ETF, Invesco S&P 500® Equal Weight Energy ETF,
Invesco S&P 500®
Equal Weight Financials ETF, Invesco S&P 500® Equal Weight Health Care
ETF, Invesco S&P 500®
Equal Weight Industrials ETF, Invesco S&P 500® Equal Weight Materials ETF,
Invesco S&P 500®
Equal Weight Real Estate ETF, Invesco S&P 500® Equal Weight Technology ETF,
Invesco S&P 500®
Equal Weight Utilities ETF, Invesco S&P 500® Pure Growth ETF, Invesco
S&P 500® Pure Value
ETF, Invesco S&P 500®
Top 50 ETF, Invesco S&P MidCap 400® Equal Weight ETF, Invesco
S&P MidCap 400® Pure
Growth ETF, Invesco S&P MidCap 400® Pure Value ETF, Invesco
S&P SmallCap 600®
Equal Weight ETF, Invesco S&P SmallCap 600® Pure Growth ETF and Invesco
S&P SmallCap 600®
Pure Value ETF) is responsible for all of its own expenses, including, but not
limited to, the investment advisory fees, costs of transfer agency, custody,
fund administration, legal, audit and other services, interest, taxes, Acquired
Fund Fees and Expenses, if any, brokerage commissions and other expenses
connected with executions of portfolio transactions, sub-licensing fees related
to its respective Underlying Index or Underlying Intellidex, any distribution
fees or expenses, litigation expenses, fees payable to the Trust’s Board members
and officers who are not “interested persons” of the Trust or the Adviser,
expenses incurred in connection with the Board members’ services, including
travel expenses and legal fees of counsel for those members of the Board who are
not “interested persons” of the Trust or the Adviser and extraordinary expenses.
The Trust and the Adviser have entered into an Amended and
Restated Excess Expense Agreement (the “Expense Agreement”) on behalf of each
Fund listed in the following table pursuant to which the Adviser has agreed to
waive fees and/or pay Fund expenses to the extent necessary to prevent the
operating expenses of each such Fund (excluding interest expenses, sub-licensing
fees, offering costs (as defined below), brokerage commissions and other trading
expenses, taxes, Acquired Fund Fees and Expenses, if applicable, and
extraordinary expenses) from exceeding the percentage of its average daily net
assets per year, as set forth in the chart below (each, an “Expense Cap”), at
least until August 31, 2021.
|
|
|
|
|
Fund |
|
Expense Cap |
Invesco Aerospace & Defense
ETF |
|
0.60% |
Invesco BRIC ETF(2) |
|
0.60% |
Invesco BuyBack AchieversTM ETF |
|
0.60% |
Invesco CleantechTM ETF |
|
0.60% |
Invesco Dividend AchieversTM ETF |
|
0.50% |
Invesco DWA Basic Materials Momentum
ETF(1) |
|
0.60% |
Invesco DWA Consumer Cyclicals Momentum
ETF(1) |
|
0.60% |
Invesco DWA Consumer Staples Momentum
ETF(1) |
|
0.60% |
Invesco DWA Energy Momentum ETF(1) |
|
0.60% |
Invesco DWA Financial Momentum ETF(1) |
|
0.60% |
Invesco DWA Healthcare Momentum ETF(1) |
|
0.60% |
Invesco DWA Industrials Momentum
ETF(1) |
|
0.60% |
Invesco DWA Momentum ETF |
|
0.60% |
Invesco DWA NASDAQ Momentum ETF(3) |
|
0.60% |
Invesco DWA Technology Momentum ETF(1) |
|
0.60% |
Invesco DWA Utilities Momentum ETF(1) |
|
0.60% |
Invesco Dynamic
Biotechnology & Genome ETF |
|
0.60% |
Invesco Dynamic Building &
Construction ETF |
|
0.60% |
Invesco Dynamic Energy
Exploration & Production ETF |
|
0.60% |
Invesco Dynamic Food &
Beverage ETF |
|
0.60% |
Invesco Dynamic Large Cap Growth
ETF |
|
0.60% |
Invesco Dynamic Large Cap Value
ETF |
|
0.60% |
Invesco Dynamic Leisure and
Entertainment ETF |
|
0.60% |
Invesco Dynamic Market ETF(3) |
|
0.60% |
Invesco Dynamic Media ETF |
|
0.60% |
Invesco Dynamic Networking
ETF |
|
0.60% |
Invesco Dynamic Oil & Gas
Services ETF |
|
0.60% |
Invesco Dynamic Pharmaceuticals
ETF |
|
0.60% |
Invesco Dynamic Retail ETF |
|
0.60% |
Invesco Dynamic Semiconductors
ETF |
|
0.60% |
Invesco Dynamic Software ETF |
|
0.60% |
Invesco Financial Preferred
ETF |
|
0.60% |
Invesco FTSE RAFI US 1000 ETF(1) |
|
0.39% |
Invesco FTSE RAFI US 1500 Small-Mid
ETF(1) |
|
0.39% |
Invesco Global Listed Private Equity
ETF |
|
0.60% |
Invesco Golden Dragon China
ETF |
|
0.60% |
Invesco High Yield Equity Dividend
AchieversTM
ETF |
|
0.50% |
Invesco Insider Sentiment ETF(2) |
|
0.60% |
Invesco International Dividend
AchieversTM
ETF |
|
0.50% |
Invesco S&P 100 Equal Weight
ETF(1) |
|
0.25% |
Invesco S&P 500 GARP ETF(1) |
|
0.39% |
Invesco S&P 500® Quality ETF(1)(4) |
|
0.15% |
Invesco S&P 500 Value with Momentum
ETF(1) |
|
0.39% |
Invesco S&P MidCap Momentum ETF(1) |
|
0.39% |
Invesco S&P MidCap Quality ETF(1) |
|
0.25% |
Invesco S&P MidCap Value with
Momentum ETF(1) |
|
0.39% |
Invesco S&P SmallCap Momentum
ETF(1) |
|
0.39% |
Invesco S&P SmallCap Value with
Momentum ETF(1) |
|
0.39% |
Invesco S&P Spin-Off ETF(2) |
|
0.60% |
Invesco Water Resources ETF |
|
0.60% |
|
|
|
|
|
Fund |
|
Expense Cap |
Invesco WilderHill Clean Energy
ETF |
|
0.60% |
Invesco Zacks Mid-Cap ETF(2) |
|
0.60% |
Invesco Zacks Multi-Asset Income
ETF(2) |
|
0.60% |
(1) |
Sub-licensing fees are covered by the
Expense Cap for the Fund. |
(2) |
The Adviser further agrees to reimburse the
Fund in the amount equal to the licensing fees that the Fund pays that
cause the Fund’s operating expenses (excluding interest expenses, offering
costs, brokerage commissions and other trading expenses, taxes, Acquired
Fund Fees and Expenses and extraordinary expenses) to exceed the amount
shown below through April 6, 2020 for each Fund other than Invesco
BRIC ETF and through May 18, 2020 for Invesco BRIC ETF:
|
|
|
|
|
|
Fund |
|
Operating Expenses |
Invesco BRIC ETF |
|
0.64% |
Invesco Insider Sentiment ETF |
|
0.60% |
Invesco
S&P Spin-Off ETF |
|
0.64% |
Invesco
Zacks Mid-Cap ETF |
|
0.65% |
Invesco Zacks Multi-Asset Income
ETF |
|
0.65% |
(3) |
Sub-licensing fees and offering costs are
covered by the Expense Cap for the Fund. |
(4) |
Prior to August 20, 2018, the Fund’s
Expense Cap was 0.29%. |
The offering costs excluded from the Expense Cap for each Fund, as
applicable, are: (a) initial legal fees pertaining to each Fund’s Shares
offered for sale; (b) initial SEC and state registration fees; and
(c) initial fees paid to be listed on an exchange.
The Expense Agreement provides that for each Fund (except Invesco
Dynamic Market ETF and Invesco DWA NASDAQ Momentum ETF), the fees waived and/or
expenses borne by the Adviser are subject to recapture by the Adviser for up to
three years from the date the fees were waived or the expenses were incurred,
but no recapture payment will be made by the Fund if it would result in the Fund
exceeding (i) the Expense Cap or (ii) the expense cap in effect at the
time the fees and/or expenses subject to recapture were waived and/or borne by
the Adviser. For Invesco Dynamic Market ETF and Invesco DWA NASDAQ Momentum ETF,
the expenses borne by the Adviser are not subject to recapture by the Adviser.
The Funds may invest in money market funds that are managed by
affiliates of the Adviser. The indirect portion of the management fee that the
Funds incur through such investments is in addition to the Adviser’s management
fee. Therefore, the Adviser has agreed voluntarily to waive the management fees
that it receives in an amount equal to the indirect management fees that the
Fund incurs through their respective investments in such affiliated money market
funds through August 31, 2021.
There is no guarantee that the Adviser will extend the waiver of
these fees past that date.
A discussion regarding the basis for the Board’s approval of the
Trust’s Investment Advisory Agreement with respect to each Fund is available in
the Funds’ Annual Reports to Shareholders for the fiscal year/period ended
April 30, 2019.
How to Buy and Sell Shares
Each Fund issues or redeems its Shares at NAV per Share only in
Creation Units or Creation Unit Aggregations.
Most investors will buy and sell Shares of each Fund in secondary
market transactions through brokers. Shares of each Fund are listed for trading
on the secondary market on an Exchange. Shares can be bought and sold throughout
the trading day like other publicly traded shares. There is no minimum
investment. Although Shares generally are purchased and sold in “round lots” of
100 Shares, brokerage firms typically permit investors to purchase or sell
Shares in smaller “odd-lots,” at no per share price differential. When buying or
selling Shares through a broker, you will incur customary brokerage commissions
and charges, and you may pay some or all of the spread between the bid and the
offered price in the secondary market on each leg of a round trip (purchase and
sale) transaction. The Shares of the Funds trade under the following symbols on
the following Exchanges:
|
|
|
|
|
|
|
|
Fund |
|
Symbol |
|
Exchange |
Invesco Aerospace & Defense
ETF |
|
PPA |
|
NYSE Arca |
Invesco BRIC ETF |
|
EEB |
|
NYSE Arca |
Invesco BuyBack AchieversTM ETF |
|
PKW |
|
Nasdaq |
Invesco CleantechTM ETF |
|
PZD |
|
NYSE Arca |
Invesco Dividend AchieversTM ETF |
|
PFM |
|
Nasdaq |
Invesco Dow Jones Industrial Average
Dividend ETF |
|
DJD |
|
NYSE Arca |
Invesco DWA Basic Materials Momentum
ETF |
|
PYZ |
|
Nasdaq |
Invesco DWA Consumer Cyclicals Momentum
ETF |
|
PEZ |
|
Nasdaq |
Invesco DWA Consumer Staples Momentum
ETF |
|
PSL |
|
Nasdaq |
Invesco DWA Energy Momentum
ETF |
|
PXI |
|
Nasdaq |
Invesco DWA Financial Momentum
ETF |
|
PFI |
|
Nasdaq |
Invesco DWA Healthcare Momentum
ETF |
|
PTH |
|
Nasdaq |
Invesco DWA Industrials Momentum
ETF |
|
PRN |
|
Nasdaq |
Invesco DWA Momentum ETF |
|
PDP |
|
Nasdaq |
Invesco DWA NASDAQ Momentum
ETF |
|
DWAQ |
|
Nasdaq |
Invesco DWA Technology Momentum
ETF |
|
PTF |
|
Nasdaq |
Invesco DWA Utilities Momentum
ETF |
|
PUI |
|
Nasdaq |
Invesco Dynamic
Biotechnology & Genome ETF |
|
PBE |
|
NYSE Arca |
Invesco Dynamic Building &
Construction ETF |
|
PKB |
|
NYSE Arca |
Invesco Dynamic Energy
Exploration & Production ETF |
|
PXE |
|
NYSE Arca |
Invesco Dynamic Food &
Beverage ETF |
|
PBJ |
|
NYSE Arca |
Invesco Dynamic Large Cap Growth
ETF |
|
PWB |
|
NYSE Arca |
Invesco Dynamic Large Cap Value
ETF |
|
PWV |
|
NYSE Arca |
Invesco Dynamic Leisure and
Entertainment ETF |
|
PEJ |
|
NYSE Arca |
Invesco Dynamic Market ETF |
|
PWC |
|
NYSE Arca |
Invesco Dynamic Media ETF |
|
PBS |
|
NYSE Arca |
Invesco Dynamic Networking
ETF |
|
PXQ |
|
NYSE Arca |
Invesco Dynamic Oil & Gas
Services ETF |
|
PXJ |
|
NYSE Arca |
Invesco Dynamic Pharmaceuticals
ETF |
|
PJP |
|
NYSE Arca |
Invesco Dynamic Retail ETF |
|
PMR |
|
NYSE Arca |
Invesco Dynamic Semiconductors
ETF |
|
PSI |
|
NYSE Arca |
Invesco Dynamic Software ETF |
|
PSJ |
|
NYSE
Arca |
|
|
|
|
|
|
|
|
Fund |
|
Symbol |
|
Exchange |
Invesco Financial Preferred
ETF |
|
PGF |
|
NYSE Arca |
Invesco FTSE RAFI US 1000 ETF |
|
PRF |
|
NYSE Arca |
Invesco FTSE RAFI US 1500 Small-Mid
ETF |
|
PRFZ |
|
Nasdaq |
Invesco Global Listed Private Equity
ETF |
|
PSP |
|
NYSE Arca |
Invesco Golden Dragon China
ETF |
|
PGJ |
|
Nasdaq |
Invesco High Yield Equity Dividend
AchieversTM
ETF |
|
PEY |
|
Nasdaq |
Invesco Insider Sentiment ETF |
|
NFO |
|
NYSE Arca |
Invesco International Dividend
AchieversTM
ETF |
|
PID |
|
Nasdaq |
Invesco NASDAQ Internet ETF |
|
PNQI |
|
Nasdaq |
Invesco Raymond James SB-1
ETF |
|
RYJ |
|
NYSE Arca |
Invesco S&P 100 Equal Weight
ETF |
|
EQWL |
|
NYSE Arca |
Invesco S&P 500 BuyWrite
ETF |
|
PBP |
|
NYSE Arca |
Invesco S&P 500® Equal Weight
ETF |
|
RSP |
|
NYSE Arca |
Invesco S&P 500® Equal Weight
Communication Services ETF |
|
EWCO |
|
NYSE Arca |
Invesco S&P 500® Equal Weight Consumer
Discretionary ETF |
|
RCD |
|
NYSE Arca |
Invesco S&P 500® Equal Weight Consumer
Staples ETF |
|
RHS |
|
NYSE Arca |
Invesco S&P 500® Equal Weight Energy
ETF |
|
RYE |
|
NYSE Arca |
Invesco S&P 500® Equal Weight
Financials ETF |
|
RYF |
|
NYSE Arca |
Invesco S&P 500® Equal Weight Health
Care ETF |
|
RYH |
|
NYSE Arca |
Invesco S&P 500® Equal Weight
Industrials ETF |
|
RGI |
|
NYSE Arca |
Invesco S&P 500® Equal Weight Materials
ETF |
|
RTM |
|
NYSE Arca |
Invesco S&P 500® Equal Weight Real
Estate ETF |
|
EWRE |
|
NYSE Arca |
Invesco S&P 500® Equal Weight
Technology ETF |
|
RYT |
|
NYSE Arca |
Invesco S&P 500® Equal Weight Utilities
ETF |
|
RYU |
|
NYSE Arca |
Invesco S&P 500 GARP ETF |
|
SPGP |
|
NYSE Arca |
Invesco S&P 500® Pure Growth
ETF |
|
RPG |
|
NYSE Arca |
Invesco S&P 500® Pure Value
ETF |
|
RPV |
|
NYSE Arca |
Invesco S&P 500® Quality ETF |
|
SPHQ |
|
NYSE Arca |
Invesco S&P 500® Top 50 ETF |
|
XLG |
|
NYSE Arca |
Invesco S&P 500 Value with Momentum
ETF |
|
SPVM |
|
NYSE Arca |
Invesco S&P MidCap 400® Equal Weight
ETF |
|
EWMC |
|
NYSE Arca |
Invesco S&P MidCap 400® Pure Growth
ETF |
|
RFG |
|
NYSE Arca |
Invesco S&P MidCap 400® Pure Value
ETF |
|
RFV |
|
NYSE Arca |
Invesco S&P MidCap Momentum
ETF |
|
XMMO |
|
NYSE Arca |
Invesco S&P MidCap Quality
ETF |
|
XMHQ |
|
NYSE Arca |
Invesco S&P MidCap Value with
Momentum ETF |
|
XMVM |
|
NYSE Arca |
Invesco S&P SmallCap 600® Equal Weight
ETF |
|
EWSC |
|
NYSE Arca |
Invesco S&P SmallCap 600® Pure Growth
ETF |
|
RZG |
|
NYSE Arca |
Invesco S&P SmallCap 600® Pure Value
ETF |
|
RZV |
|
NYSE Arca |
Invesco S&P SmallCap Momentum
ETF |
|
XSMO |
|
NYSE Arca |
Invesco S&P SmallCap Value with
Momentum ETF |
|
XSVM |
|
NYSE Arca |
Invesco S&P Spin-Off ETF |
|
CSD |
|
NYSE Arca |
Invesco Water Resources ETF |
|
PHO |
|
Nasdaq |
Invesco WilderHill Clean Energy
ETF |
|
PBW |
|
NYSE Arca |
Invesco Zacks Mid-Cap ETF |
|
CZA |
|
NYSE Arca |
Invesco Zacks Multi-Asset Income
ETF |
|
CVY |
|
NYSE Arca |
Share prices are reported in dollars and cents per Share.
APs may acquire Shares directly from each Fund, and APs may tender
their Shares for redemption directly to each Fund, at NAV per Share, only in
Creation Units or Creation Unit Aggregations, and in accordance with the
procedures described in the SAI. Under normal circumstances, a Fund will pay out
redemption proceeds to a redeeming AP within two days after the AP’s redemption
request is received, in accordance with the process set forth in the Fund’s SAI
and in the agreement between the AP and the Fund’s distributor. However, each
Fund reserves the right, including under stressed market conditions, to take up
to seven days after the receipt of a redemption request to pay an AP, all as
permitted by the 1940 Act. Funds that track underlying indexes composed of
foreign securities may pay out redemption proceeds up to 14 days after the
receipt of a redemption request, consistent with the Trust’s SEC exemptive
relief. The Funds anticipate regularly meeting redemption requests primarily
through in-kind redemptions. However, the Funds reserve the right to pay
redemption proceeds to an AP in cash, consistent with the Trust’s exemptive
relief. Cash used for redemptions will be raised from the sale of portfolio
assets or may come from existing holdings of cash or cash equivalents.
Each Fund may liquidate and terminate at any time without
shareholder approval.
Book Entry
Shares are held in book-entry form, which means that no stock
certificates are issued. The Depository Trust Company (“DTC”) or its nominee is
the record owner of all outstanding Shares of the Funds and is recognized as the
owner of all Shares for all purposes.
Investors owning Shares are beneficial owners as shown on the
records of DTC or its participants. DTC serves as the securities depository for
all Shares. Participants in DTC include securities brokers and dealers, banks,
trust companies, clearing corporations and other institutions that directly or
indirectly maintain a custodial relationship with DTC. As a beneficial owner of
Shares, you are not entitled to receive physical delivery of stock certificates
or to have Shares registered in your name, and you are not considered a
registered owner of Shares. Therefore, to exercise any right as an owner of
Shares, you must rely upon the procedures of DTC and its participants. These
procedures are the same as those that apply to any other stocks that you hold in
book entry or “street name” form.
Share Trading Prices
The trading prices of Shares of each Fund on the relevant Exchange
may differ from the Fund’s daily NAV. Market forces of supply and demand,
economic conditions and other factors may affect the trading prices of Shares of
each Fund.
The approximate value of Shares of each Fund, an amount
representing on a per share basis the sum of the current market price of the
securities accepted by the Fund in exchange for Shares of the Fund and an
estimated cash component will be disseminated every 15 seconds throughout the
trading day through the facilities of the Consolidated Tape Association. With
respect to Funds that invest in securities of foreign issuers traded on foreign
exchanges, as the respective international local
markets close, the market value of the Deposit Securities will
continue to be updated for foreign exchange rates for the remainder of the U.S.
trading day at the prescribed 15 second intervals. This approximate value should
not be viewed as a “real-time” update of the NAV per Share of the Fund because
the approximate value may not be calculated in the same manner as the NAV, which
is computed once a day, generally at the end of the business day. The Funds are
not involved in, or responsible for, the calculation or dissemination of the
approximate value of the Shares, and the Funds do not make any warranty as to
the accuracy of the approximate value.
Frequent Purchases and Redemptions of
Fund Shares
Shares of the Funds may be purchased and redeemed directly from
the Funds only in Creation Units by APs. The vast majority of trading in Shares
of the Funds occurs on the secondary market and does not involve the Funds
directly. In-kind purchases and redemptions of Creation Units by APs and cash
trades on the secondary market are unlikely to cause many of the harmful effects
of frequent purchases and/or redemptions of the Shares of the Funds. Cash
purchases and/or redemptions of Creation Units, however, can result in increased
tracking error, disruption of portfolio management, dilution to the Funds and
increased transaction costs, which could negatively impact the Funds’ ability to
achieve their investment objectives, and may lead to the realization of capital
gains. These consequences may increase as the frequency of cash purchases and
redemptions of Creation Units by APs increases. However, direct trading by APs
is critical to ensuring that Shares trade at or close to NAV.
To minimize these potential consequences of frequent purchases and
redemptions of Shares, each Fund imposes transaction fees on purchases and
redemptions of Creation Units to cover the custodial and other costs the Fund
incurs in effecting trades. In addition, the Adviser monitors trades by APs for
patterns of abusive trading and the Funds reserve the right not to accept orders
from APs that the Adviser has determined may be disruptive to the management of
the Funds, or otherwise are not in the best interests of the Funds. For these
reasons, the Board has not adopted policies and procedures with respect to
frequent purchases and redemptions of Shares of the Funds.
Dividends, Other Distributions and Taxes
Dividends and Other Distributions
Generally, dividends from net investment income, if any, are
declared and paid quarterly by each Fund, except Invesco Financial Preferred ETF
and Invesco High Yield Equity Dividend AchieversTM ETF, which declare and pay
dividends from net investment income, if any, monthly, and except for Invesco
BRIC ETF, Invesco Insider Sentiment ETF, Invesco Raymond James SB-1 ETF, Invesco
S&P Spin-Off ETF and Invesco Zacks Mid-Cap ETF which declare and pay
dividends from net investment income, if any, annually.
Each Fund also intends to distribute its net realized capital
gains, if any, to shareholders annually.
Dividends and other distributions may be declared and paid more
frequently to comply with the distribution requirements of Subchapter M of the
Internal Revenue Code and to avoid a federal excise tax imposed on regulated
investment companies.
Distributions in cash may be reinvested automatically in
additional whole Shares only if the broker through whom you purchased Shares
makes such option available.
Taxes
A Fund intends to qualify each year as a regulated investment
company (RIC) and, as such, is not subject to entity-level tax on the income and
gain it distributes. If you are a taxable investor, dividends and distributions
you receive generally are taxable to you whether you reinvest distributions in
additional Fund shares or take them in cash. Every year, you will be sent
information showing the amount of dividends and distributions you received
during the prior calendar year. In addition, investors in taxable accounts
should be aware of the following basic tax points as supplemented below where
relevant:
Fund Tax Basics
• |
|
A Fund earns income
generally in the form of dividends or interest on its investments. This
income, less expenses incurred in the operation of a Fund, constitutes the
Fund’s net investment income from which dividends may be paid to
shareholders. If you are a taxable investor, distributions of net
investment income generally are taxable to you as ordinary income.
|
• |
|
Distributions of net
short-term capital gains are taxable to you as ordinary income. A Fund
with a high portfolio turnover rate (a measure of how frequently assets
within a Fund are bought and sold) is more likely to generate short-term
capital gains than a Fund with a low portfolio turnover rate.
|
• |
|
Distributions of net
long-term capital gains are taxable to you as long-term capital gains no
matter how long you have owned your Fund Shares.
|
• |
|
A portion of income
dividends paid by a Fund may be reported as qualified dividend income
eligible for taxation by individual shareholders at long-term capital gain
rates, provided certain holding period requirements are met. These reduced
rates generally are available for dividends derived from a Fund’s
investment in stocks of domestic corporations and qualified foreign
corporations. In the case of a Fund that invests primarily in debt
securities, either none or only a nominal portion of the dividends paid by
the Fund will be eligible for taxation at these reduced rates.
|
• |
|
The use of derivatives by a
Fund may cause the Fund to realize higher amounts of ordinary income or
short-term capital gain, distributions from which are taxable to
individual shareholders at ordinary income tax rates rather than at the
more favorable tax rates for long-term capital gain.
|
• |
|
Distributions declared to
shareholders with a record date in December—if paid to you by the end of
January—are taxable for federal income tax purposes as if received in
December. |
• |
|
Any long-term or short-term
capital gains realized on the sale of your Fund Shares will be subject to
federal income tax. |
• |
|
A shareholder’s cost basis
information will be provided on the sale of any of the shareholder’s
Shares, subject to certain exceptions for exempt recipients. Please
contact the broker (or other nominee) that holds your Shares with respect
to reporting of cost basis and available elections for your account.
|
• |
|
At the time you purchase
your Fund Shares, the Fund’s net asset value may reflect undistributed
income or undistributed capital gains. A subsequent distribution to you of
such amounts, although constituting a return of your investment, would be
taxable. Buying Shares in a Fund just before it declares an income
dividend or capital gains distribution is sometimes known as “buying a
dividend.” In addition, a Fund’s net asset value may, at any time, reflect
net unrealized appreciation, which may result in future taxable
distributions to you. |
• |
|
By law, if you do not
provide a Fund with your proper taxpayer identification number and certain
required certifications, you may be subject to backup withholding on any
distributions of income, capital gains, or proceeds from the sale of your
Shares. A Fund also must withhold if the IRS instructs it to do so. When
withholding is required, the amount will be 24% of any distributions or
proceeds paid. |
• |
|
An additional 3.8% Medicare
tax is imposed on certain net investment income (including ordinary
dividends and capital gain distributions received from a Fund and net
gains from redemptions or other taxable dispositions of Fund Shares) of
U.S. individuals, estates and trusts to the extent that such person’s
“modified adjusted gross income” (in the case of an individual) or
“adjusted gross income” (in the case of an estate or trust) exceeds a
threshold amount. This Medicare tax, if applicable, is reported by you on,
and paid with, your federal income tax return. |
• |
|
You will not be required to
include the portion of dividends paid by a Fund derived from interest on
U.S. government obligations in your gross income for purposes of personal
and, in some cases, corporate income taxes in many state and local tax
jurisdictions. The percentage of dividends that constitutes dividends
derived from interest on federal obligations will be determined annually.
This percentage may differ from the actual percentage of interest received
by the Fund on federal obligations for the particular days on which you
hold shares. |
• |
|
Fund distributions and gains
from sale of Fund Shares generally are subject to state and local income
taxes. |
• |
|
If a Fund qualifies to pass
through the tax benefits from foreign taxes it pays on its investments,
and elects to do so, then any foreign taxes it pays on these investments
may be passed through to you as a foreign tax credit. You will then be
required to include your pro-rata share of these taxes in gross
income, even though not actually received by you, and will be entitled
either to deduct your share of these taxes in computing your taxable
income, or to claim a foreign tax credit for these taxes against your U.S.
federal income tax. |
• |
|
Foreign investors should be
aware that U.S. withholding, special certification requirements to avoid
U.S. backup withholding and claim any treaty benefits, and estate taxes
may apply to an investment in a Fund. |
• |
|
Under the Foreign Account
Tax Compliance Act (FATCA), a 30% tax withholding tax is imposed on income
dividends made by a Fund to certain foreign entities, referred to as
foreign financial institutions or non-financial foreign entities, that
fail to comply (or be deemed compliant) with extensive reporting and
withholding requirements designed to inform the U.S. Department of the
Treasury of U.S.-owned foreign investment accounts. After December 31,
2018, FATCA withholding also would have applied to certain capital gain
distributions, return of capital distributions and the proceeds arising
from the sale of Shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer
required unless final regulations provide otherwise (which is not
expected). A Fund may disclose the information that it receives from its
shareholders to the IRS, non-U.S. taxing authorities or other parties as
necessary to comply with FATCA or similar laws. Withholding also may be
required if a foreign entity that is a shareholder of a Fund fails to
provide the Fund with appropriate certifications or other documentation
concerning its status under FATCA. |
• |
|
If a Fund invests in an
underlying fund taxed as a RIC, please see any relevant section below for
more information regarding the Fund’s investment in such underlying fund.
|
Funds Investing in Real Estate Securities
• |
|
Because of “noncash”
expenses such as property depreciation, the cash flow of a REIT that owns
properties will exceed its taxable income. The REIT, and in turn a Fund,
may distribute this excess cash. Such a distribution is classified as a
return of capital. Return of capital distributions generally are not
taxable to you. Your cost basis in your Fund shares will be decreased by
the amount of any return of capital. Any return of capital distributions
in excess of your cost basis will be treated as capital gains.
|
• |
|
Dividends paid to
shareholders from a Fund’s investments in U.S. REITs generally will not
qualify for taxation at long-term capital gain rates applicable to
qualified dividend income. |
• |
|
A Fund may derive “excess
inclusion income” from certain equity interests in mortgage pooling
vehicles either directly or through an investment in a U.S. REIT. Please
see the SAI for a discussion of the risks and special tax consequences to
shareholders in the event a Fund realizes excess inclusion income in
excess of certain threshold amounts. |
• |
|
Under the Tax Cuts and Jobs
Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than
capital gain dividends and portions of REIT dividends designated as
qualified dividend income) are treated as eligible for a 20% deduction by
noncorporate taxpayers. Proposed regulations issued by the IRS, which can
be relied upon currently, enable the Fund to pass through the special
character of “qualified REIT dividends” to a shareholder, provided both
the Fund and a shareholder meet certain holding period requirements with
respect to their shares. |
• |
|
A Fund’s foreign
shareholders should see the SAI for a discussion of the risks and special
tax consequences to them from a sale of a U.S. real property interest by a
REIT in which the Fund invests. |
Funds Investing in Partnerships
• |
|
Recent legislation (which by
its terms became effective for taxable years beginning after
December 31, 2017) generally requires that taxes, penalties, and
interest associated with an audit of a partnership be assessed and
collected at the partnership level. Therefore, an adverse federal income
tax audit of a partnership that a Fund invests in (including MLPs taxed as
partnerships) could result in the Fund being required to pay federal
income tax. A Fund may have little input in any audit asserted against a
partnership and may be contractually or legally obligated to make payments
in regard to deficiencies asserted without the ability to put forward an
independent defense. Accordingly, even if a partnership in which a Fund
invests were to remain classified as a partnership (instead of as a
corporation), it could be required to pay additional taxes, interest and
penalties as a result of an audit adjustment, and the Fund, as a direct or
indirect partner of such partnership, could be required to bear the
economic burden of those taxes, interest and penalties, which would reduce
the value of Fund shares. |
• |
|
Under the Tax Cuts and Jobs
Act “qualified publicly traded partnership income” is treated as eligible
for a 20% deduction by noncorporate taxpayers. The legislation does not
contain a provision permitting a RIC, such as a Fund, to pass the special
character of this income through to its shareholders. It is uncertain
whether a future technical corrections bill or regulations issued by the
IRS will address this issue to enable a Fund to pass through the special
character of “qualified publicly traded partnership income” to its
shareholders. |
• |
|
Some amounts received by a
Fund from the MLPs in which it invests likely will be treated as returns
of capital to such Fund because of accelerated deductions available to the
MLPs. The receipt of returns of capital from the MLPs in which a Fund
invests could cause some or all of the Fund’s distributions to be
classified as a return of capital. Return of capital distributions
generally are not taxable to you. Your cost basis in your Fund shares will
be decreased by the amount of any return of capital. Any return of capital
distributions in excess of your cost basis will be treated as capital
gains. |
Special Tax Considerations for Invesco S&P 500 BuyWrite ETF
Invesco S&P 500 BuyWrite ETF expects that its ownership of
stocks and sale of call options thereon generally will constitute “straddles”
(offsetting positions with respect to personal property) under section 1092 of
the Internal Revenue Code. Unlike certain other funds that utilize covered call
strategies, based on their particular investment strategy, the Fund does not
anticipate that the call options will be structured to be treated as “qualified
covered call options” under that section. The straddle rules usually will
terminate the Fund’s holding periods for its stocks that become part of a
straddle before the long-term capital gain holding period (more than one year)
has been reached, which is
expected to eliminate the Fund’s ability to recognize long-term
capital gains from a sale or other disposition of the stocks. The straddle rules
also usually will defer recognition of realized losses and require the
capitalization of certain interest expenses and carrying charges. In addition,
dividends, if any, on stocks will not qualify for either the reduced tax rates
applicable to “qualified dividend income” or for the corporate
dividends-received deduction. In this regard, Invesco S&P 500 BuyWrite ETF
intends to make certain elections consistent with its investment policies that
may minimize certain of these adverse consequences. As a result, the Fund
generally will be required to mark-to-market its positions in the stocks and the
call options on a daily basis and, therefore, the Fund may have to recognize
gain on its investments sooner than it would if engaged in a different
investment strategy. The specific rules that are expected to apply to the Fund’s
investments generally will require the mark-to-market gains and losses from the
stock positions to be compared with the mark-to-market gains or losses from the
call options on a daily basis; to the extent that there is more gain or loss
from the stock positions, the Fund will have short-term capital gain, which is
generally taxed like ordinary income, or short-term capital loss; to the extent
there is more gain or loss from the call options, such gain will be 60%
long-term capital gain or loss and 40% short-term capital gain or loss. These
rules also impose limits on the total percentage of gain for a taxable year that
can be characterized as long-term capital gain and the percentage of loss for a
taxable year that can be characterized as short-term capital loss. As a result,
the Fund may be required to pass through more income to you in a particular year
than it would if it had a different investment strategy. It is also possible
that a significant portion of the income passed through to you will be ordinary.
As a result of this, and the Fund’s inability to generate distributions eligible
for the reduced rates applicable to “qualified dividend income” or eligible for
the dividends-received deduction, an investor may be subject to significantly
greater amounts of tax as a result of the investment than would apply to an
investment in a fund engaged in a different investment strategy. You should
consider whether an investment in the Fund should be made in a taxable account
or whether it is best suited for a tax-advantaged account.
Taxes on Purchase and Redemption of Creation Units
To the extent that a Fund permits in-kind transactions,
an AP that exchanges securities for a Creation Unit generally will recognize a
capital gain or loss equal to the difference between the market value of the
Creation Units at the time of exchange (plus any cash received by the AP as part
of the issue) and the sum of the AP’s aggregate basis in the securities
surrendered plus any cash component paid. Similarly, an AP that redeems a
Creation Unit in exchange for securities generally will recognize a gain or loss
equal to the difference between the AP’s basis in the Creation Units (plus any
cash paid by the AP as part of the redemption) and the aggregate market value of
the securities received (plus any cash received by the AP as part of the
redemption). The IRS, however, may assert that a loss realized upon an exchange
of securities for a Creation Unit, or of a Creation Unit for securities, cannot
be deducted currently under the rules governing “wash sales” or on the ground
that there has been no significant change in the AP’s economic position. An AP
exchanging securities should
consult their own tax advisors with respect to whether wash sale
rules apply and when a loss otherwise might not be deductible.
Any capital gain or loss realized on a redemption of a Creation
Unit generally is treated as long-term capital gain or loss if the Shares have
been held for more than one year and as short-term capital gain or loss if the
Shares have been held for one year or less, assuming that such Creation Units
are held as a capital asset. If you purchase or redeem one or more Creation
Units, you will be sent a confirmation statement showing how many Shares you
purchased or sold and at what price.
The foregoing discussion summarizes some of the more important
possible consequences under current federal, state and local tax law of an
investment in the Funds. It is not a substitute for personal tax advice. You
also may be subject to state, local and/or foreign tax on a Fund’s distributions
and sales and/or redemptions of Shares. Consult your personal tax advisor(s)
about the potential tax consequences of an investment in the Shares under all
applicable tax laws.
Distributor
Invesco Distributors, Inc. (the “Distributor”) serves as the
distributor of Creation Units for each Fund on an agency basis. The Distributor
does not maintain a secondary market in Shares. The Distributor is an affiliate
of the Adviser.
Net Asset Value
The Bank of New York Mellon (“BNYM”) calculates each Fund’s NAV at
the close of regular trading (normally 4:00 p.m., Eastern time) every day the
NYSE is open. The NAV for each Fund will be calculated and disseminated daily on
each day that the NYSE is open. NAV is calculated by deducting all of the Fund’s
liabilities from the total value of its assets and dividing the result by the
number of Shares outstanding, rounding to the nearest cent. Generally, the
portfolio securities are recorded in the NAV no later than trade date plus one
day. All valuations are subject to review by the Trust’s Board or its
delegate.
In determining NAV, expenses are accrued and applied daily and
securities and other assets for which market quotations are readily available
are valued at market value. Securities listed or traded on an exchange generally
are valued at the last sales price or official closing price that day as of the
close of the exchange where the security is primarily traded. Investment
companies are valued using such company’s NAV per share, unless the shares are
exchange-traded, in which case they will be valued at the last sale or official
closing price on the exchanges on which they primarily trade. Deposits, other
obligations of U.S. and non-U.S. banks and financial institutions, and cash
equivalents are valued at their daily account value. Debt obligations and
securities not listed on an exchange normally are valued on the basis of prices
provided by independent pricing services. Pricing services generally value debt
securities assuming orderly transactions of institutional round lot size, but a
Fund may hold or transact in the same securities in smaller, odd lot sizes. Odd
lots often trade at lower prices than
institutional round lots. Futures contracts are valued at the
final settlement price set by the exchange on which they are principally traded.
Listed options are valued at the mean between the last bid and ask prices from
the exchange on which they are principally traded. Options not listed on an
exchange are valued by an independent source at the mean between the last bid
and asked prices. Swaps generally are valued using pricing provided from
independent pricing services. For purposes of determining NAV per Share, futures
and option contracts and swaps generally are valued 15 minutes after the close
of the customary trading session of the NYSE.
Certain securities may not be listed on an exchange; typically,
those securities are bought and sold by institutional investors in individually
negotiated private transactions. Such securities, as well as listed securities
whose market price is not readily available, will be valued using pricing
provided from independent pricing services or by another method that the
Adviser, in its judgment, believes will better reflect the security’s fair value
in accordance with the Trust’s valuation policies and procedures approved by the
Board.
Even when market quotations are available for portfolio
securities, they may be stale or unreliable because the security is not traded
frequently, trading on the security ceased before the close of the trading
market or issuer specific events occurred after the security ceased trading or
because of the passage of time between the close of the market on which the
security trades and the close of the NYSE and when a Fund calculates its NAV.
Events that may cause the last market quotation to be unreliable include a
merger or insolvency, events which affect a geographical area or an industry
segment, such as political events or natural disasters, or market events such as
a significant movement in the U.S. market. Where market quotations are not
readily available, including where the Adviser determines that the closing price
of the security is unreliable, the Adviser will value the security at fair value
in good faith using procedures approved by the Board. Fair value pricing
involves subjective judgments, and it is possible that a fair value
determination for a security is materially different from the value that could
be realized upon the sale of the security. In addition, fair value pricing could
result in a difference between the prices used to calculate a Fund’s NAV and the
prices used by the Fund’s Underlying Index or Underlying Intellidex, as
applicable. This may adversely affect a Fund’s ability to track its Underlying
Index or Underlying Intellidex. With respect to securities that primarily are
listed on foreign exchanges, the value of a Fund’s portfolio securities may
change on days when you are not able to purchase or sell your Shares.
Fund Service Providers
BNYM, 240 Greenwich Street, New York, New York 10286, is the
administrator, custodian and fund accounting and transfer agent for each Fund.
Stradley Ronon Stevens & Young LLP, 191 North Wacker
Drive, Suite 1601, Chicago, Illinois 60606, and 1250 Connecticut Avenue, N.W.,
Suite 500, Washington, D.C. 20036, serves as legal counsel to the Trust.
PricewaterhouseCoopers LLP, One North Wacker Drive, Chicago,
Illinois 60606, serves as the Funds’ independent registered public accounting
firm. PricewaterhouseCoopers LLP is responsible for auditing the annual
financial statements of each Fund and performs other related audit services.
Ernst & Young LLP, located at 1775 Tysons Boulevard, Tysons, Virginia
22102, served as the independent registered public accounting firm for the
Predecessor Funds for the previous fiscal years ended prior to 2018.
Financial Highlights
The financial highlights tables below are intended to help you
understand each Fund’s (and, if applicable, its Predecessor Fund’s) financial
performance for the past five fiscal years, or if shorter, for the period since
a Fund’s (or its Predecessor Fund’s) inception. Certain information reflects
financial results for a single Share. The total returns in each table represent
the rate that an investor would have earned (or lost) on an investment in each
Fund (assuming reinvestment of all dividends and other distributions).
This information has been derived from the Funds’ financial
statements, which have been audited by PricewaterhouseCoopers LLP, whose report,
along with the Funds’ financial statements, is included in the Funds’ Annual
Report for the fiscal year/period ended April 30, 2019, which is available
upon request.
Certain Funds have adopted the financial and performance history
of their respective Predecessor Fund as a result of a reorganization.
Accordingly, the financial information presented for those Funds for the
previous fiscal years ended prior to 2018 is that of its respective Predecessor
Fund and has been audited by Ernst & Young LLP, the independent public
accounting firm of each Predecessor Fund.
Invesco Aerospace & Defense ETF (PPA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
55.62 |
|
|
$ |
44.81 |
|
|
$ |
36.43 |
|
|
$ |
35.73 |
|
|
$ |
32.16 |
|
Net investment income(a) |
|
|
0.49 |
|
|
|
0.42 |
|
|
|
0.60 |
|
|
|
0.53 |
(b) |
|
|
0.32 |
|
Net realized and unrealized gain on
investments |
|
|
6.30 |
|
|
|
10.79 |
|
|
|
8.43 |
|
|
|
0.67 |
|
|
|
3.52 |
|
Total from investment operations |
|
|
6.79 |
|
|
|
11.21 |
|
|
|
9.03 |
|
|
|
1.20 |
|
|
|
3.84 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.48 |
) |
|
|
(0.40 |
) |
|
|
(0.65 |
) |
|
|
(0.50 |
) |
|
|
(0.27 |
) |
Net asset value at end of year |
|
$ |
61.93 |
|
|
$ |
55.62 |
|
|
$ |
44.81 |
|
|
$ |
36.43 |
|
|
$ |
35.73 |
|
Market price at end of year(c) |
|
$ |
61.94 |
|
|
$ |
55.66 |
|
|
$ |
44.84 |
|
|
$ |
36.42 |
|
|
$ |
35.71 |
|
Net Asset Value Total Return(d) |
|
|
12.33 |
% |
|
|
25.13 |
% |
|
|
25.06 |
% |
|
|
3.43 |
% |
|
|
11.99 |
% |
Market Price Total Return(d) |
|
|
12.27 |
% |
|
|
25.14 |
% |
|
|
25.18 |
% |
|
|
3.46 |
% |
|
|
11.96 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
938,246 |
|
|
$ |
1,006,709 |
|
|
$ |
569,149 |
|
|
$ |
298,735 |
|
|
$ |
262,613 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.59 |
% |
|
|
0.60 |
% |
|
|
0.61 |
% |
|
|
0.64 |
% |
|
|
0.66 |
% |
Expenses, prior to Waivers |
|
|
0.59 |
% |
|
|
0.60 |
% |
|
|
0.61 |
% |
|
|
0.64 |
% |
|
|
0.66 |
% |
Net investment income, after Waivers |
|
|
0.86 |
% |
|
|
0.80 |
% |
|
|
1.47 |
% |
|
|
1.50 |
%(b) |
|
|
0.94 |
% |
Portfolio turnover rate(e) |
|
|
15 |
% |
|
|
7 |
% |
|
|
10 |
% |
|
|
16 |
% |
|
|
13 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Net Investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received during the year. Net investment income per share and the
ratio of net investment income to average net assets excluding the
significant dividends are $0.33 and 0.93%, respectively.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco BRIC ETF (EEB)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eight Months Ended April 30, 2019 |
|
|
Years Ended August 31, |
|
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
35.40 |
|
|
$ |
36.00 |
|
|
$ |
28.64 |
|
|
$ |
24.97 |
|
|
$ |
37.98 |
|
|
$ |
31.99 |
|
Net investment income(a) |
|
|
0.21 |
|
|
|
0.66 |
|
|
|
0.53 |
|
|
|
0.36 |
|
|
|
0.56 |
|
|
|
0.75 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
2.55 |
|
|
|
(0.62 |
) |
|
|
7.24 |
|
|
|
3.79 |
|
|
|
(12.54 |
) |
|
|
6.10 |
|
Total from investment operations |
|
|
2.76 |
|
|
|
0.04 |
|
|
|
7.77 |
|
|
|
4.15 |
|
|
|
(11.98 |
) |
|
|
6.85 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.99 |
) |
|
|
(0.64 |
) |
|
|
(0.41 |
) |
|
|
(0.48 |
) |
|
|
(1.03 |
) |
|
|
(0.86 |
) |
Net asset value at end of period |
|
$ |
37.17 |
|
|
$ |
35.40 |
|
|
$ |
36.00 |
|
|
$ |
28.64 |
|
|
$ |
24.97 |
|
|
$ |
37.98 |
|
Market price at end of period |
|
$ |
37.21 |
(b) |
|
$ |
35.39 |
(b) |
|
$ |
36.03 |
|
|
$ |
28.54 |
|
|
$ |
24.95 |
|
|
$ |
37.84 |
|
Net asset value Total Return(c) |
|
|
8.34 |
% |
|
|
0.01 |
% |
|
|
27.49 |
% |
|
|
16.97 |
% |
|
|
(31.90 |
)% |
|
|
21.68 |
% |
Market Price Total Return(c) |
|
|
8.47 |
% |
|
|
(0.10 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
72,516 |
|
|
$ |
69,067 |
|
|
$ |
86,429 |
|
|
$ |
74,480 |
|
|
$ |
86,177 |
|
|
$ |
180,427 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after waivers |
|
|
0.64 |
%(d) |
|
|
0.59 |
% |
|
|
0.64 |
% |
|
|
0.64 |
% |
|
|
0.64 |
% |
|
|
0.64 |
% |
Expenses, prior to waivers |
|
|
0.85 |
%(d) |
|
|
0.67 |
% |
|
|
0.75 |
% |
|
|
0.78 |
% |
|
|
0.70 |
% |
|
|
0.66 |
% |
Net investment income, after waivers |
|
|
0.91 |
%(d) |
|
|
1.75 |
% |
|
|
1.69 |
% |
|
|
1.41 |
% |
|
|
1.81 |
% |
|
|
2.17 |
% |
Portfolio turnover rate(e) |
|
|
42 |
% |
|
|
39 |
% |
|
|
41 |
% |
|
|
24 |
% |
|
|
24 |
% |
|
|
68 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco BuyBack Achievers™ ETF (PKW)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
56.93 |
|
|
$ |
52.20 |
|
|
$ |
45.67 |
|
|
$ |
48.78 |
|
|
$ |
43.42 |
|
Net investment income(a) |
|
|
0.73 |
|
|
|
0.55 |
|
|
|
0.51 |
|
|
|
0.56 |
|
|
|
0.51 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
6.67 |
|
|
|
4.64 |
|
|
|
6.70 |
|
|
|
(3.08 |
) |
|
|
5.38 |
|
Total from investment operations |
|
|
7.40 |
|
|
|
5.19 |
|
|
|
7.21 |
|
|
|
(2.52 |
) |
|
|
5.89 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.73 |
) |
|
|
(0.46 |
) |
|
|
(0.68 |
) |
|
|
(0.59 |
) |
|
|
(0.53 |
) |
Net asset value at end of year |
|
$ |
63.60 |
|
|
$ |
56.93 |
|
|
$ |
52.20 |
|
|
$ |
45.67 |
|
|
$ |
48.78 |
|
Market price at end of year(b) |
|
$ |
63.62 |
|
|
$ |
56.95 |
|
|
$ |
52.19 |
|
|
$ |
45.65 |
|
|
$ |
48.77 |
|
Net Asset Value Total Return(c) |
|
|
13.16 |
% |
|
|
9.95 |
% |
|
|
15.92 |
% |
|
|
(5.18 |
)% |
|
|
13.63 |
% |
Market Price Total Return(c) |
|
|
13.16 |
% |
|
|
10.02 |
% |
|
|
15.96 |
% |
|
|
(5.20 |
)% |
|
|
13.61 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
1,313,404 |
|
|
$ |
1,312,224 |
|
|
$ |
1,362,381 |
|
|
$ |
1,639,434 |
|
|
$ |
2,970,924 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
%(d) |
|
|
0.63 |
%(d) |
Net investment income |
|
|
1.25 |
% |
|
|
0.99 |
% |
|
|
1.05 |
% |
|
|
1.21 |
% |
|
|
1.09 |
% |
Portfolio turnover rate(e) |
|
|
76 |
% |
|
|
66 |
% |
|
|
57 |
% |
|
|
53 |
% |
|
|
68 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Cleantech™ ETF (PZD)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
42.12 |
|
|
$ |
37.06 |
|
|
$ |
30.41 |
|
|
$ |
30.60 |
|
|
$ |
31.90 |
|
Net investment income(a) |
|
|
0.19 |
|
|
|
0.25 |
|
|
|
0.59 |
(b) |
|
|
0.22 |
|
|
|
0.27 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
2.95 |
|
|
|
5.18 |
|
|
|
6.41 |
|
|
|
(0.18 |
) |
|
|
(1.33 |
) |
Total from investment operations |
|
|
3.14 |
|
|
|
5.43 |
|
|
|
7.00 |
|
|
|
0.04 |
|
|
|
(1.06 |
) |
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.23 |
) |
|
|
(0.37 |
) |
|
|
(0.35 |
) |
|
|
(0.23 |
) |
|
|
(0.24 |
) |
Net asset value at end of year |
|
$ |
45.03 |
|
|
$ |
42.12 |
|
|
$ |
37.06 |
|
|
$ |
30.41 |
|
|
$ |
30.60 |
|
Market price at end of year(c) |
|
$ |
45.21 |
|
|
$ |
42.26 |
|
|
$ |
37.19 |
|
|
$ |
30.29 |
|
|
$ |
30.54 |
|
Net Asset Value Total Return(d) |
|
|
7.48 |
% |
|
|
14.74 |
% |
|
|
23.21 |
% |
|
|
0.15 |
% |
|
|
(3.36 |
)% |
Market Price Total Return(d) |
|
|
7.55 |
% |
|
|
14.72 |
% |
|
|
24.13 |
% |
|
|
(0.05 |
)% |
|
|
(3.61 |
)% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
180,121 |
|
|
$ |
160,057 |
|
|
$ |
92,639 |
|
|
$ |
71,466 |
|
|
$ |
76,512 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.68 |
% |
|
|
0.67 |
% |
|
|
0.68 |
% |
|
|
0.67 |
% |
|
|
0.67 |
% |
Expenses, prior to Waivers |
|
|
0.68 |
% |
|
|
0.68 |
% |
|
|
0.73 |
% |
|
|
0.73 |
% |
|
|
0.72 |
% |
Net investment income, after Waivers |
|
|
0.47 |
% |
|
|
0.61 |
% |
|
|
1.81 |
%(b) |
|
|
0.76 |
% |
|
|
0.89 |
% |
Portfolio turnover rate(e) |
|
|
21 |
% |
|
|
17 |
% |
|
|
24 |
% |
|
|
25 |
% |
|
|
22 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Net Investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received during the year. Net investment income per share and the
ratio of net investment income to average net assets excluding the
significant dividends are $0.39 and 1.20%, respectively.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dividend Achievers™ ETF (PFM)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
25.22 |
|
|
$ |
23.96 |
|
|
$ |
21.75 |
|
|
$ |
21.42 |
|
|
$ |
20.50 |
|
Net investment income(a) |
|
|
0.59 |
|
|
|
0.54 |
|
|
|
0.50 |
|
|
|
0.49 |
|
|
|
0.44 |
|
Net realized and unrealized gain on
investments |
|
|
3.29 |
|
|
|
1.24 |
|
|
|
2.25 |
|
|
|
0.33 |
|
|
|
0.90 |
|
Total from investment operations |
|
|
3.88 |
|
|
|
1.78 |
|
|
|
2.75 |
|
|
|
0.82 |
|
|
|
1.34 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.58 |
) |
|
|
(0.52 |
) |
|
|
(0.54 |
) |
|
|
(0.49 |
) |
|
|
(0.42 |
) |
Net asset value at end of year |
|
$ |
28.52 |
|
|
$ |
25.22 |
|
|
$ |
23.96 |
|
|
$ |
21.75 |
|
|
$ |
21.42 |
|
Market price at end of year(b) |
|
$ |
28.52 |
|
|
$ |
25.24 |
|
|
$ |
23.99 |
|
|
$ |
21.75 |
|
|
$ |
21.40 |
|
Net Asset Value Total Return(c) |
|
|
15.63 |
% |
|
|
7.42 |
% |
|
|
12.80 |
% |
|
|
3.98 |
% |
|
|
6.54 |
% |
Market Price Total Return(c) |
|
|
15.53 |
% |
|
|
7.37 |
% |
|
|
12.94 |
% |
|
|
4.08 |
% |
|
|
6.44 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
299,475 |
|
|
$ |
285,010 |
|
|
$ |
313,895 |
|
|
$ |
287,052 |
|
|
$ |
343,819 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.54 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
Net investment income |
|
|
2.22 |
% |
|
|
2.15 |
% |
|
|
2.17 |
% |
|
|
2.35 |
% |
|
|
2.07 |
% |
Portfolio turnover rate(d) |
|
|
13 |
% |
|
|
5 |
% |
|
|
6 |
% |
|
|
7 |
% |
|
|
20 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dow Jones Industrial Average Dividend ETF (DJD)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Eight Months Ended
April 30, 2018 |
|
|
Year Ended August 31, 2017 |
|
|
For the Period
December 16, 2016(a)
Through
August 31, 2016 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
33.32 |
|
|
$ |
31.07 |
|
|
$ |
27.55 |
|
|
$ |
25.35 |
|
Net investment income(b) |
|
|
0.91 |
|
|
|
0.49 |
|
|
|
0.83 |
|
|
|
0.53 |
|
Net realized and unrealized gain on
investments |
|
|
3.74 |
|
|
|
2.37 |
|
|
|
3.55 |
|
|
|
2.05 |
|
Total from investment operations |
|
|
4.65 |
|
|
|
2.86 |
|
|
|
4.38 |
|
|
|
2.58 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.99 |
) |
|
|
(0.53 |
) |
|
|
(0.86 |
) |
|
|
(0.38 |
) |
Net realized gains |
|
|
— |
|
|
|
(0.08 |
) |
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.99 |
) |
|
|
(0.61 |
) |
|
|
(0.86 |
) |
|
|
(0.38 |
) |
Net asset value at end of period |
|
$ |
36.98 |
|
|
$ |
33.32 |
|
|
$ |
31.07 |
|
|
$ |
27.55 |
|
Market price at end of period |
|
$ |
37.02 |
(c) |
|
$ |
33.35 |
(c) |
|
$ |
31.10 |
|
|
$ |
27.52 |
|
Net Asset Value Total Return(d) |
|
|
14.24 |
% |
|
|
9.23 |
% |
|
|
16.13 |
% |
|
|
10.27 |
% |
Market Price Total Return(d) |
|
|
14.25 |
% |
|
|
9.22 |
% |
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
73,967 |
|
|
$ |
14,994 |
|
|
$ |
10,875 |
|
|
$ |
2,755 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.09 |
% |
|
|
0.30 |
%(e) |
|
|
0.30 |
% |
|
|
0.30 |
%(e) |
Expenses, prior to Waivers |
|
|
0.10 |
% |
|
|
0.30 |
%(e) |
|
|
0.30 |
% |
|
|
0.30 |
%(e) |
Net investment income, after Waivers |
|
|
2.62 |
% |
|
|
2.25 |
%(e) |
|
|
2.80 |
% |
|
|
2.86 |
%(e) |
Portfolio turnover rate(f) |
|
|
20 |
% |
|
|
19 |
% |
|
|
3 |
% |
|
|
0 |
% |
(a) |
Commencement of investment operations.
|
(b) |
Based on average shares outstanding.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(f) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Basic Materials Momentum ETF (PYZ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
66.74 |
|
|
$ |
61.38 |
|
|
$ |
54.35 |
|
|
$ |
53.85 |
|
|
$ |
52.33 |
|
Net investment income(a) |
|
|
0.72 |
|
|
|
0.49 |
|
|
|
0.46 |
|
|
|
0.58 |
|
|
|
0.43 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(6.30 |
) |
|
|
5.27 |
|
|
|
7.14 |
|
|
|
0.59 |
|
|
|
1.57 |
|
Total from investment operations |
|
|
(5.58 |
) |
|
|
5.76 |
|
|
|
7.60 |
|
|
|
1.17 |
|
|
|
2.00 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.67 |
) |
|
|
(0.40 |
) |
|
|
(0.57 |
) |
|
|
(0.67 |
) |
|
|
(0.48 |
) |
Net asset value at end of year |
|
$ |
60.49 |
|
|
$ |
66.74 |
|
|
$ |
61.38 |
|
|
$ |
54.35 |
|
|
$ |
53.85 |
|
Market price at end of year(b) |
|
$ |
60.48 |
|
|
$ |
66.79 |
|
|
$ |
61.38 |
|
|
$ |
54.38 |
|
|
$ |
53.80 |
|
Net Asset Value Total Return(c) |
|
|
(8.36 |
)% |
|
|
9.40 |
% |
|
|
14.04 |
% |
|
|
2.32 |
% |
|
|
3.82 |
% |
Market Price Total Return(c) |
|
|
(8.46 |
)% |
|
|
9.48 |
% |
|
|
13.98 |
% |
|
|
2.47 |
% |
|
|
3.77 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
63,518 |
|
|
$ |
100,114 |
|
|
$ |
101,269 |
|
|
$ |
168,497 |
|
|
$ |
78,082 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.76 |
% |
|
|
0.76 |
% |
|
|
0.69 |
% |
|
|
0.69 |
% |
|
|
0.69 |
% |
Net investment income, after Waivers |
|
|
1.12 |
% |
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
1.17 |
% |
|
|
0.79 |
% |
Portfolio turnover rate(d) |
|
|
89 |
% |
|
|
75 |
% |
|
|
132 |
% |
|
|
96 |
% |
|
|
80 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
50.42 |
|
|
$ |
44.36 |
|
|
$ |
42.26 |
|
|
$ |
45.93 |
|
|
$ |
39.79 |
|
Net investment income(a) |
|
|
0.08 |
|
|
|
0.25 |
|
|
|
0.15 |
|
|
|
0.17 |
|
|
|
0.27 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
6.53 |
|
|
|
6.03 |
|
|
|
2.30 |
|
|
|
(3.71 |
) |
|
|
6.06 |
|
Total from investment operations |
|
|
6.61 |
|
|
|
6.28 |
|
|
|
2.45 |
|
|
|
(3.54 |
) |
|
|
6.33 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.17 |
) |
|
|
(0.22 |
) |
|
|
(0.35 |
) |
|
|
(0.13 |
) |
|
|
(0.19 |
) |
Net asset value at end of year |
|
$ |
56.86 |
|
|
$ |
50.42 |
|
|
$ |
44.36 |
|
|
$ |
42.26 |
|
|
$ |
45.93 |
|
Market price at end of year(b) |
|
$ |
56.87 |
|
|
$ |
50.48 |
|
|
$ |
44.37 |
|
|
$ |
42.25 |
|
|
$ |
45.93 |
|
Net Asset Value Total Return(c) |
|
|
13.15 |
% |
|
|
14.20 |
% |
|
|
5.85 |
% |
|
|
(7.73 |
)% |
|
|
15.91 |
% |
Market Price Total Return(c) |
|
|
13.03 |
% |
|
|
14.31 |
% |
|
|
5.90 |
% |
|
|
(7.76 |
)% |
|
|
16.06 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
31,271 |
|
|
$ |
55,464 |
|
|
$ |
28,837 |
|
|
$ |
92,964 |
|
|
$ |
96,463 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.80 |
% |
|
|
0.90 |
% |
|
|
0.86 |
% |
|
|
0.71 |
% |
|
|
0.81 |
% |
Net investment income, after Waivers |
|
|
0.15 |
% |
|
|
0.52 |
% |
|
|
0.35 |
% |
|
|
0.39 |
% |
|
|
0.63 |
% |
Portfolio turnover rate(d) |
|
|
136 |
% |
|
|
185 |
% |
|
|
117 |
% |
|
|
139 |
% |
|
|
114 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Consumer Staples Momentum ETF (PSL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
67.39 |
|
|
$ |
59.38 |
|
|
$ |
56.05 |
|
|
$ |
51.43 |
|
|
$ |
43.04 |
|
Net investment income(a) |
|
|
0.45 |
|
|
|
0.41 |
|
|
|
0.76 |
|
|
|
0.43 |
|
|
|
0.76 |
(b) |
Net realized and unrealized gain on
investments |
|
|
5.25 |
|
|
|
7.90 |
|
|
|
3.69 |
|
|
|
4.54 |
|
|
|
8.37 |
|
Total from investment operations |
|
|
5.70 |
|
|
|
8.31 |
|
|
|
4.45 |
|
|
|
4.97 |
|
|
|
9.13 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.42 |
) |
|
|
(0.30 |
) |
|
|
(1.12 |
) |
|
|
(0.35 |
) |
|
|
(0.74 |
) |
Net asset value at end of year |
|
$ |
72.67 |
|
|
$ |
67.39 |
|
|
$ |
59.38 |
|
|
$ |
56.05 |
|
|
$ |
51.43 |
|
Market price at end of year(c) |
|
$ |
72.65 |
|
|
$ |
67.61 |
|
|
$ |
59.38 |
|
|
$ |
56.05 |
|
|
$ |
51.43 |
|
Net Asset Value Total Return(d) |
|
|
8.50 |
% |
|
|
14.03 |
% |
|
|
8.12 |
% |
|
|
9.67 |
% |
|
|
21.28 |
% |
Market Price Total Return(d) |
|
|
8.12 |
% |
|
|
14.40 |
% |
|
|
8.12 |
% |
|
|
9.67 |
% |
|
|
21.31 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
174,401 |
|
|
$ |
90,977 |
|
|
$ |
77,191 |
|
|
$ |
297,070 |
|
|
$ |
97,713 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.71 |
% |
|
|
0.79 |
% |
|
|
0.71 |
% |
|
|
0.69 |
% |
|
|
0.78 |
% |
Net investment income, after Waivers |
|
|
0.64 |
% |
|
|
0.65 |
% |
|
|
1.33 |
% |
|
|
0.76 |
% |
|
|
1.54 |
%(b) |
Portfolio turnover rate(e) |
|
|
118 |
% |
|
|
80 |
% |
|
|
106 |
% |
|
|
113 |
% |
|
|
83 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Net investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received of $5.77 per share owned of Pilgrim’s Pride Corp. on
January 28, 2015. Net investment income per share and the ratio of
net investment income to average net assets excluding the significant
dividend are $0.28 and 0.55%, respectively.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Energy Momentum ETF (PXI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
42.26 |
|
|
$ |
36.36 |
|
|
$ |
37.97 |
|
|
$ |
49.51 |
|
|
$ |
60.41 |
|
Net investment income(a) |
|
|
0.28 |
|
|
|
0.41 |
|
|
|
0.14 |
|
|
|
0.51 |
|
|
|
0.53 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(10.24 |
) |
|
|
5.80 |
|
|
|
(1.50 |
) |
|
|
(11.39 |
) |
|
|
(10.82 |
) |
Total from investment operations |
|
|
(9.96 |
) |
|
|
6.21 |
|
|
|
(1.36 |
) |
|
|
(10.88 |
) |
|
|
(10.29 |
) |
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.35 |
) |
|
|
(0.31 |
) |
|
|
(0.19 |
) |
|
|
(0.66 |
) |
|
|
(0.61 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
(0.06 |
) |
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.35 |
) |
|
|
(0.31 |
) |
|
|
(0.25 |
) |
|
|
(0.66 |
) |
|
|
(0.61 |
) |
Net asset value at end of year |
|
$ |
31.95 |
|
|
$ |
42.26 |
|
|
$ |
36.36 |
|
|
$ |
37.97 |
|
|
$ |
49.51 |
|
Market price at end of year(b) |
|
$ |
31.95 |
|
|
$ |
42.32 |
|
|
$ |
36.35 |
|
|
$ |
37.95 |
|
|
$ |
49.51 |
|
Net Asset Value Total Return(c) |
|
|
(23.63 |
)% |
|
|
17.28 |
% |
|
|
(3.62 |
)% |
|
|
(22.01 |
)% |
|
|
(17.08 |
)% |
Market Price Total Return(c) |
|
|
(23.74 |
)% |
|
|
17.47 |
% |
|
|
(3.60 |
)% |
|
|
(22.05 |
)% |
|
|
(17.02 |
)% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
51,127 |
|
|
$ |
88,738 |
|
|
$ |
112,731 |
|
|
$ |
125,286 |
|
|
$ |
183,178 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.75 |
% |
|
|
0.78 |
% |
|
|
0.72 |
% |
|
|
0.76 |
% |
|
|
0.74 |
% |
Net investment income, after Waivers |
|
|
0.72 |
% |
|
|
1.15 |
% |
|
|
0.34 |
% |
|
|
1.32 |
% |
|
|
0.97 |
% |
Portfolio turnover rate(d) |
|
|
113 |
% |
|
|
95 |
% |
|
|
116 |
% |
|
|
119 |
% |
|
|
109 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Financial Momentum ETF (PFI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
35.16 |
|
|
$ |
30.66 |
|
|
$ |
29.42 |
|
|
$ |
30.76 |
|
|
$ |
27.82 |
|
Net investment income(a) |
|
|
0.41 |
|
|
|
0.35 |
|
|
|
0.47 |
|
|
|
0.42 |
|
|
|
0.37 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.39 |
|
|
|
4.44 |
|
|
|
1.43 |
|
|
|
(1.37 |
) |
|
|
2.92 |
|
Total from investment operations |
|
|
0.80 |
|
|
|
4.79 |
|
|
|
1.90 |
|
|
|
(0.95 |
) |
|
|
3.29 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.44 |
) |
|
|
(0.29 |
) |
|
|
(0.66 |
) |
|
|
(0.39 |
) |
|
|
(0.35 |
) |
Net asset value at end of year |
|
$ |
35.52 |
|
|
$ |
35.16 |
|
|
$ |
30.66 |
|
|
$ |
29.42 |
|
|
$ |
30.76 |
|
Market price at end of year(b) |
|
$ |
35.49 |
|
|
$ |
35.22 |
|
|
$ |
30.64 |
|
|
$ |
29.43 |
|
|
$ |
30.76 |
|
Net Asset Value Total Return(c) |
|
|
2.44 |
% |
|
|
15.64 |
% |
|
|
6.51 |
% |
|
|
(3.11 |
)% |
|
|
11.84 |
% |
Market Price Total Return(c) |
|
|
2.18 |
% |
|
|
15.91 |
% |
|
|
6.41 |
% |
|
|
(3.08 |
)% |
|
|
11.96 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
24,861 |
|
|
$ |
70,330 |
|
|
$ |
85,857 |
|
|
$ |
29,418 |
|
|
$ |
38,447 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
%(d) |
Expenses, prior to Waivers |
|
|
0.79 |
% |
|
|
0.75 |
% |
|
|
0.77 |
% |
|
|
0.84 |
% |
|
|
0.85 |
%(d) |
Net investment income, after Waivers |
|
|
1.22 |
% |
|
|
1.04 |
% |
|
|
1.53 |
% |
|
|
1.38 |
% |
|
|
1.24 |
% |
Portfolio turnover rate(e) |
|
|
132 |
% |
|
|
105 |
% |
|
|
204 |
% |
|
|
119 |
% |
|
|
115 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Healthcare Momentum ETF (PTH)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
77.65 |
|
|
$ |
55.03 |
|
|
$ |
44.31 |
|
|
$ |
57.68 |
|
|
$ |
45.34 |
|
Net investment income (loss)(a) |
|
|
(0.33 |
) |
|
|
(0.21 |
) |
|
|
(0.19 |
) |
|
|
(0.27 |
) |
|
|
(0.20 |
) |
Net realized and unrealized gain (loss) on
investments |
|
|
0.47 |
|
|
|
22.83 |
|
|
|
10.91 |
|
|
|
(13.10 |
) |
|
|
12.54 |
|
Total from investment operations |
|
|
0.14 |
|
|
|
22.62 |
|
|
|
10.72 |
|
|
|
(13.37 |
) |
|
|
12.34 |
|
Net asset value at end of year |
|
$ |
77.79 |
|
|
$ |
77.65 |
|
|
$ |
55.03 |
|
|
$ |
44.31 |
|
|
$ |
57.68 |
|
Market price at end of year(b) |
|
$ |
77.69 |
|
|
$ |
77.80 |
|
|
$ |
55.02 |
|
|
$ |
44.28 |
|
|
$ |
57.64 |
|
Net Asset Value Total Return(c) |
|
|
0.18 |
% |
|
|
41.11 |
% |
|
|
24.19 |
% |
|
|
(23.18 |
)% |
|
|
27.22 |
% |
Market Price Total Return(c) |
|
|
(0.15 |
)% |
|
|
41.40 |
% |
|
|
24.26 |
% |
|
|
(23.18 |
)% |
|
|
27.13 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
163,351 |
|
|
$ |
155,292 |
|
|
$ |
63,279 |
|
|
$ |
75,332 |
|
|
$ |
178,802 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.69 |
% |
|
|
0.73 |
% |
|
|
0.78 |
% |
|
|
0.70 |
% |
|
|
0.68 |
% |
Net investment income (loss), after Waivers |
|
|
(0.39 |
)% |
|
|
(0.31 |
)% |
|
|
(0.39 |
)% |
|
|
(0.48 |
)% |
|
|
(0.38 |
)% |
Portfolio turnover rate(d) |
|
|
166 |
% |
|
|
130 |
% |
|
|
175 |
% |
|
|
200 |
% |
|
|
151 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Industrials Momentum ETF (PRN)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
57.87 |
|
|
$ |
52.27 |
|
|
$ |
45.13 |
|
|
$ |
46.84 |
|
|
$ |
46.47 |
|
Net investment income(a) |
|
|
0.17 |
|
|
|
0.23 |
|
|
|
0.29 |
|
|
|
0.22 |
|
|
|
0.17 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
5.76 |
|
|
|
5.73 |
|
|
|
7.14 |
|
|
|
(1.73 |
) |
|
|
0.35 |
|
Total from investment operations |
|
|
5.93 |
|
|
|
5.96 |
|
|
|
7.43 |
|
|
|
(1.51 |
) |
|
|
0.52 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.15 |
) |
|
|
(0.23 |
) |
|
|
(0.29 |
) |
|
|
(0.20 |
) |
|
|
(0.15 |
) |
Return of capital |
|
|
— |
|
|
|
(0.13 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.15 |
) |
|
|
(0.36 |
) |
|
|
(0.29 |
) |
|
|
(0.20 |
) |
|
|
(0.15 |
) |
Net asset value at end of year |
|
$ |
63.65 |
|
|
$ |
57.87 |
|
|
$ |
52.27 |
|
|
$ |
45.13 |
|
|
$ |
46.84 |
|
Market price at end of year(b) |
|
$ |
63.64 |
|
|
$ |
57.91 |
|
|
$ |
52.26 |
|
|
$ |
45.13 |
|
|
$ |
46.85 |
|
Net Asset Value Total Return(c) |
|
|
10.28 |
% |
|
|
11.43 |
% |
|
|
16.50 |
% |
|
|
(3.24 |
)% |
|
|
1.12 |
% |
Market Price Total Return(c) |
|
|
10.19 |
% |
|
|
11.53 |
% |
|
|
16.48 |
% |
|
|
(3.26 |
)% |
|
|
1.23 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
101,839 |
|
|
$ |
107,053 |
|
|
$ |
130,669 |
|
|
$ |
42,876 |
|
|
$ |
112,414 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.64 |
% |
|
|
0.64 |
% |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.64 |
% |
Net investment income, after Waivers |
|
|
0.29 |
% |
|
|
0.39 |
% |
|
|
0.59 |
% |
|
|
0.48 |
% |
|
|
0.36 |
% |
Portfolio turnover rate(d) |
|
|
104 |
% |
|
|
106 |
% |
|
|
122 |
% |
|
|
122 |
% |
|
|
121 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Momentum ETF (PDP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
52.66 |
|
|
$ |
45.86 |
|
|
$ |
40.51 |
|
|
$ |
42.44 |
|
|
$ |
36.96 |
|
Net investment income(a) |
|
|
0.11 |
|
|
|
0.13 |
|
|
|
0.28 |
|
|
|
0.12 |
|
|
|
0.16 |
|
Net realized and unrealized gain (loss) on investments |
|
|
6.10 |
|
|
|
6.81 |
|
|
|
5.41 |
|
|
|
(1.94 |
) |
|
|
5.43 |
|
Total from investment operations |
|
|
6.21 |
|
|
|
6.94 |
|
|
|
5.69 |
|
|
|
(1.82 |
) |
|
|
5.59 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.09 |
) |
|
|
(0.13 |
) |
|
|
(0.34 |
) |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
Return of capital |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.09 |
) |
|
|
(0.14 |
) |
|
|
(0.34 |
) |
|
|
(0.11 |
) |
|
|
(0.11 |
) |
Net asset value at end of year |
|
$ |
58.78 |
|
|
$ |
52.66 |
|
|
$ |
45.86 |
|
|
$ |
40.51 |
|
|
$ |
42.44 |
|
Market price at end of year(b) |
|
$ |
58.79 |
|
|
$ |
52.72 |
|
|
$ |
45.87 |
|
|
$ |
40.50 |
|
|
$ |
42.43 |
|
Net Asset Value Total Return(c) |
|
|
11.81 |
% |
|
|
15.17 |
% |
|
|
14.12 |
% |
|
|
(4.29 |
)% |
|
|
15.13 |
% |
Market Price Total Return(c) |
|
|
11.70 |
% |
|
|
15.28 |
% |
|
|
14.17 |
% |
|
|
(4.29 |
)% |
|
|
15.19 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
1,545,947 |
|
|
$ |
1,521,909 |
|
|
$ |
1,417,070 |
|
|
$ |
1,438,022 |
|
|
$ |
1,871,780 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.64 |
% |
|
|
0.63 |
%(d) |
Expenses, prior to Waivers |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.64 |
% |
|
|
0.63 |
%(d) |
Net investment income, after Waivers |
|
|
0.20 |
% |
|
|
0.26 |
% |
|
|
0.65 |
% |
|
|
0.29 |
% |
|
|
0.39 |
% |
Portfolio turnover rate(e) |
|
|
82 |
% |
|
|
68 |
% |
|
|
68 |
% |
|
|
100 |
% |
|
|
73 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA NASDAQ Momentum ETF (DWAQ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
104.08 |
|
|
$ |
86.42 |
|
|
$ |
69.83 |
|
|
$ |
75.06 |
|
|
$ |
64.34 |
|
Net investment income (loss)(a) |
|
|
(0.30 |
) |
|
|
(0.11 |
) |
|
|
0.07 |
|
|
|
(0.06 |
) |
|
|
0.06 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
8.54 |
|
|
|
17.88 |
|
|
|
16.65 |
|
|
|
(5.11 |
) |
|
|
10.66 |
|
Total from investment operations |
|
|
8.24 |
|
|
|
17.77 |
|
|
|
16.72 |
|
|
|
(5.17 |
) |
|
|
10.72 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
— |
|
|
|
(0.11 |
) |
|
|
(0.06 |
) |
|
|
(0.05 |
) |
|
|
— |
|
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
|
|
(0.01 |
) |
|
|
— |
|
Total distributions |
|
|
— |
|
|
|
(0.11 |
) |
|
|
(0.13 |
) |
|
|
(0.06 |
) |
|
|
— |
|
Net asset value at end of year |
|
$ |
112.32 |
|
|
$ |
104.08 |
|
|
$ |
86.42 |
|
|
$ |
69.83 |
|
|
$ |
75.06 |
|
Market price at end of year(b) |
|
$ |
112.25 |
|
|
$ |
104.23 |
|
|
$ |
86.38 |
|
|
$ |
69.82 |
|
|
$ |
75.10 |
|
Net Asset Value Total Return(c) |
|
|
7.92 |
% |
|
|
20.56 |
% |
|
|
23.98 |
% |
|
|
(6.90 |
)% |
|
|
16.66 |
% |
Market Price Total Return(c) |
|
|
7.72 |
% |
|
|
20.79 |
% |
|
|
23.95 |
% |
|
|
(6.96 |
)% |
|
|
16.76 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
44,927 |
|
|
$ |
52,040 |
|
|
$ |
34,570 |
|
|
$ |
34,913 |
|
|
$ |
30,023 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.77 |
% |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
0.81 |
% |
|
|
0.96 |
% |
Net investment income (loss), after Waivers |
|
|
(0.28 |
)% |
|
|
(0.11 |
)% |
|
|
0.09 |
% |
|
|
(0.09 |
)% |
|
|
0.09 |
% |
Portfolio turnover rate(d) |
|
|
156 |
% |
|
|
80 |
% |
|
|
89 |
% |
|
|
118 |
% |
|
|
154 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Technology Momentum ETF (PTF)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
56.19 |
|
|
$ |
45.25 |
|
|
$ |
36.16 |
|
|
$ |
40.37 |
|
|
$ |
32.44 |
|
Net investment income (loss)(a) |
|
|
(0.09 |
) |
|
|
0.04 |
|
|
|
0.07 |
|
|
|
(0.01 |
) |
|
|
0.17 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
15.76 |
|
|
|
10.92 |
|
|
|
9.12 |
|
|
|
(4.20 |
) |
|
|
8.02 |
|
Total from investment operations |
|
|
15.67 |
|
|
|
10.96 |
|
|
|
9.19 |
|
|
|
(4.21 |
) |
|
|
8.19 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
(0.05 |
) |
|
|
— |
|
|
|
(0.26 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
(0.05 |
) |
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
(0.10 |
) |
|
|
— |
|
|
|
(0.26 |
) |
Net asset value at end of year |
|
$ |
71.82 |
|
|
$ |
56.19 |
|
|
$ |
45.25 |
|
|
$ |
36.16 |
|
|
$ |
40.37 |
|
Market price at end of year(b) |
|
$ |
71.91 |
|
|
$ |
56.21 |
|
|
$ |
45.22 |
|
|
$ |
36.16 |
|
|
$ |
40.36 |
|
Net Asset Value Total Return(c) |
|
|
27.90 |
% |
|
|
24.22 |
% |
|
|
25.46 |
% |
|
|
(10.43 |
)% |
|
|
25.29 |
% |
Market Price Total Return(c) |
|
|
28.01 |
% |
|
|
24.35 |
% |
|
|
25.38 |
% |
|
|
(10.41 |
)% |
|
|
25.22 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
175,966 |
|
|
$ |
117,996 |
|
|
$ |
131,217 |
|
|
$ |
182,623 |
|
|
$ |
64,588 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.72 |
% |
|
|
0.74 |
% |
|
|
0.72 |
% |
|
|
0.70 |
% |
|
|
0.77 |
% |
Net investment income (loss), after Waivers |
|
|
(0.15 |
)% |
|
|
0.08 |
% |
|
|
0.17 |
% |
|
|
(0.03 |
)% |
|
|
0.46 |
% |
Portfolio turnover rate(d) |
|
|
133 |
% |
|
|
107 |
% |
|
|
147 |
% |
|
|
159 |
% |
|
|
157 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco DWA Utilities Momentum ETF (PUI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
27.11 |
|
|
$ |
27.50 |
|
|
$ |
25.12 |
|
|
$ |
22.51 |
|
|
$ |
22.49 |
|
Net investment income(a) |
|
|
0.63 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.64 |
|
|
|
0.57 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
4.98 |
|
|
|
(0.31 |
) |
|
|
2.71 |
|
|
|
2.60 |
|
|
|
(0.01 |
) |
Total from investment operations |
|
|
5.61 |
|
|
|
0.34 |
|
|
|
3.36 |
|
|
|
3.24 |
|
|
|
0.56 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.54 |
) |
|
|
(0.73 |
) |
|
|
(0.98 |
) |
|
|
(0.63 |
) |
|
|
(0.54 |
) |
Net asset value at end of year |
|
$ |
32.18 |
|
|
$ |
27.11 |
|
|
$ |
27.50 |
|
|
$ |
25.12 |
|
|
$ |
22.51 |
|
Market price at end of year(b) |
|
$ |
32.18 |
|
|
$ |
27.13 |
|
|
$ |
27.51 |
|
|
$ |
25.10 |
|
|
$ |
22.50 |
|
Net Asset Value Total Return(c) |
|
|
20.98 |
% |
|
|
1.16 |
% |
|
|
13.65 |
% |
|
|
14.86 |
% |
|
|
2.48 |
% |
Market Price Total Return(c) |
|
|
20.89 |
% |
|
|
1.19 |
% |
|
|
13.78 |
% |
|
|
14.81 |
% |
|
|
2.53 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
223,637 |
|
|
$ |
44,730 |
|
|
$ |
137,476 |
|
|
$ |
200,953 |
|
|
$ |
34,893 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Expenses, prior to Waivers |
|
|
0.73 |
% |
|
|
0.83 |
% |
|
|
0.71 |
% |
|
|
0.74 |
% |
|
|
0.80 |
% |
Net investment income, after Waivers |
|
|
2.08 |
% |
|
|
2.35 |
% |
|
|
2.46 |
% |
|
|
2.74 |
% |
|
|
2.49 |
% |
Portfolio turnover rate(d) |
|
|
49 |
% |
|
|
41 |
% |
|
|
54 |
% |
|
|
91 |
% |
|
|
47 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Biotechnology & Genome ETF (PBE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
48.02 |
|
|
$ |
43.11 |
|
|
$ |
39.35 |
|
|
$ |
52.98 |
|
|
$ |
39.71 |
|
Net investment income (loss)(a) |
|
|
(0.16 |
) |
|
|
0.00 |
(b) |
|
|
0.33 |
|
|
|
0.50 |
|
|
|
0.34 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
4.36 |
|
|
|
5.13 |
|
|
|
3.63 |
|
|
|
(13.56 |
) |
|
|
13.21 |
|
Total from investment operations |
|
|
4.20 |
|
|
|
5.13 |
|
|
|
3.96 |
|
|
|
(13.06 |
) |
|
|
13.55 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.00 |
)(c) |
|
|
(0.22 |
) |
|
|
(0.20 |
) |
|
|
(0.57 |
) |
|
|
(0.28 |
) |
Net asset value at end of year |
|
$ |
52.22 |
|
|
$ |
48.02 |
|
|
$ |
43.11 |
|
|
$ |
39.35 |
|
|
$ |
52.98 |
|
Market price at end of year(d) |
|
$ |
52.22 |
|
|
$ |
48.08 |
|
|
$ |
43.13 |
|
|
$ |
39.35 |
|
|
$ |
52.95 |
|
Net Asset Value Total Return(e) |
|
|
8.75 |
% |
|
|
11.94 |
% |
|
|
10.09 |
% |
|
|
(24.92 |
)% |
|
|
34.25 |
% |
Market Price Total Return(e) |
|
|
8.62 |
% |
|
|
12.04 |
% |
|
|
10.15 |
% |
|
|
(24.88 |
)% |
|
|
34.28 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
248,027 |
|
|
$ |
232,910 |
|
|
$ |
230,631 |
|
|
$ |
267,584 |
|
|
$ |
511,262 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.57 |
% |
|
|
0.59 |
% |
|
|
0.58 |
% |
|
|
0.58 |
% |
|
|
0.57 |
% |
Expenses, prior to Waivers |
|
|
0.57 |
% |
|
|
0.59 |
% |
|
|
0.58 |
% |
|
|
0.58 |
% |
|
|
0.57 |
% |
Net investment income (loss), after Waivers |
|
|
(0.29 |
)% |
|
|
0.01 |
% |
|
|
0.81 |
% |
|
|
1.00 |
% |
|
|
0.69 |
% |
Portfolio turnover rate(f) |
|
|
117 |
% |
|
|
141 |
% |
|
|
69 |
% |
|
|
74 |
% |
|
|
95 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Amount represents less than $0.005.
|
(c) |
Amount represents less than $(0.005).
|
(d) |
The mean between the last bid and ask
prices. |
(e) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(f) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Building & Construction ETF (PKB)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
30.33 |
|
|
$ |
29.58 |
|
|
$ |
25.08 |
|
|
$ |
22.99 |
|
|
$ |
22.09 |
|
Net investment income(a) |
|
|
0.13 |
|
|
|
0.08 |
|
|
|
0.07 |
|
|
|
0.04 |
|
|
|
0.03 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(0.29 |
) |
|
|
0.73 |
|
|
|
4.52 |
|
|
|
2.08 |
|
|
|
0.89 |
|
Total from investment operations |
|
|
(0.16 |
) |
|
|
0.81 |
|
|
|
4.59 |
|
|
|
2.12 |
|
|
|
0.92 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.13 |
) |
|
|
(0.06 |
) |
|
|
(0.09 |
) |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
Net asset value at end of year |
|
$ |
30.04 |
|
|
$ |
30.33 |
|
|
$ |
29.58 |
|
|
$ |
25.08 |
|
|
$ |
22.99 |
|
Market price at end of year(b) |
|
$ |
30.05 |
|
|
$ |
30.34 |
|
|
$ |
29.60 |
|
|
$ |
25.08 |
|
|
$ |
22.98 |
|
Net Asset Value Total Return(c) |
|
|
(0.47 |
)% |
|
|
2.73 |
% |
|
|
18.33 |
% |
|
|
9.21 |
% |
|
|
4.17 |
% |
Market Price Total Return(c) |
|
|
(0.47 |
)% |
|
|
2.70 |
% |
|
|
18.41 |
% |
|
|
9.26 |
% |
|
|
4.08 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
118,639 |
|
|
$ |
280,510 |
|
|
$ |
317,995 |
|
|
$ |
60,201 |
|
|
$ |
55,177 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.58 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
Expenses, prior to Waivers |
|
|
0.60 |
% |
|
|
0.58 |
% |
|
|
0.63 |
% |
|
|
0.68 |
% |
|
|
0.65 |
% |
Net investment income, after Waivers |
|
|
0.44 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
0.18 |
% |
|
|
0.15 |
% |
Portfolio turnover rate(d) |
|
|
148 |
% |
|
|
143 |
% |
|
|
129 |
% |
|
|
90 |
% |
|
|
96 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Energy Exploration & Production ETF (PXE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
24.06 |
|
|
$ |
20.28 |
|
|
$ |
22.63 |
|
|
$ |
31.78 |
|
|
$ |
37.76 |
|
Net investment income(a) |
|
|
0.20 |
|
|
|
0.28 |
|
|
|
0.24 |
|
|
|
0.51 |
|
|
|
0.39 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(4.48 |
) |
|
|
3.89 |
|
|
|
(1.15 |
) |
|
|
(9.04 |
) |
|
|
(5.84 |
) |
Total from investment operations |
|
|
(4.28 |
) |
|
|
4.17 |
|
|
|
(0.91 |
) |
|
|
(8.53 |
) |
|
|
(5.45 |
) |
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.23 |
) |
|
|
(0.39 |
) |
|
|
(1.44 |
) |
|
|
(0.62 |
) |
|
|
(0.53 |
) |
Net asset value at end of year |
|
$ |
19.55 |
|
|
$ |
24.06 |
|
|
$ |
20.28 |
|
|
$ |
22.63 |
|
|
$ |
31.78 |
|
Market price at end of year(b) |
|
$ |
19.57 |
|
|
$ |
24.12 |
|
|
$ |
20.28 |
|
|
$ |
22.63 |
|
|
$ |
31.77 |
|
Net Asset Value Total Return(c) |
|
|
(17.84 |
)% |
|
|
21.00 |
% |
|
|
(3.96 |
)% |
|
|
(26.93 |
)% |
|
|
(14.51 |
)% |
Market Price Total Return(c) |
|
|
(17.96 |
)% |
|
|
21.31 |
% |
|
|
(3.96 |
)% |
|
|
(26.91 |
)% |
|
|
(14.54 |
)% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
40,078 |
|
|
$ |
49,324 |
|
|
$ |
55,760 |
|
|
$ |
74,682 |
|
|
$ |
117,593 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.63 |
% |
|
|
0.65 |
% |
|
|
0.80 |
%(d) |
|
|
0.65 |
% |
|
|
0.64 |
% |
Expenses, prior to Waivers |
|
|
0.64 |
% |
|
|
0.77 |
% |
|
|
0.88 |
%(d) |
|
|
0.67 |
% |
|
|
0.64 |
% |
Net investment income, after Waivers |
|
|
0.82 |
% |
|
|
1.37 |
% |
|
|
1.13 |
% |
|
|
2.09 |
% |
|
|
1.20 |
% |
Portfolio turnover rate(e) |
|
|
110 |
% |
|
|
87 |
% |
|
|
91 |
% |
|
|
134 |
% |
|
|
140 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Expenses, after Waivers and Expenses, prior
to Waivers include state income taxes paid during the fiscal year ended
April 30, 2017. Expenses, after Waivers and Expenses, prior to
Waivers excluding the taxes paid are 0.63% and 0.71%, respectively.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Food & Beverage ETF (PBJ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
32.81 |
|
|
$ |
33.75 |
|
|
$ |
32.31 |
|
|
$ |
31.45 |
|
|
$ |
26.98 |
|
Net investment income(a) |
|
|
0.34 |
|
|
|
0.41 |
|
|
|
0.33 |
|
|
|
0.39 |
|
|
|
0.31 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.39 |
|
|
|
(0.99 |
) |
|
|
1.61 |
|
|
|
0.88 |
|
|
|
4.58 |
|
Total from investment operations |
|
|
1.73 |
|
|
|
(0.58 |
) |
|
|
1.94 |
|
|
|
1.27 |
|
|
|
4.89 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.33 |
) |
|
|
(0.36 |
) |
|
|
(0.50 |
) |
|
|
(0.41 |
) |
|
|
(0.42 |
) |
Net asset value at end of year |
|
$ |
34.21 |
|
|
$ |
32.81 |
|
|
$ |
33.75 |
|
|
$ |
32.31 |
|
|
$ |
31.45 |
|
Market price at end of year(b) |
|
$ |
34.19 |
|
|
$ |
32.76 |
|
|
$ |
33.74 |
|
|
$ |
32.30 |
|
|
$ |
31.43 |
|
Net Asset Value Total Return(c) |
|
|
5.37 |
% |
|
|
(1.70 |
)% |
|
|
6.03 |
% |
|
|
4.06 |
% |
|
|
18.25 |
% |
Market Price Total Return(c) |
|
|
5.47 |
% |
|
|
(1.82 |
)% |
|
|
6.03 |
% |
|
|
4.10 |
% |
|
|
18.13 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
71,831 |
|
|
$ |
78,732 |
|
|
$ |
146,821 |
|
|
$ |
300,455 |
|
|
$ |
265,721 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.59 |
% |
|
|
0.58 |
% |
|
|
0.58 |
% |
Expenses, prior to Waivers |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.59 |
% |
|
|
0.58 |
% |
|
|
0.58 |
% |
Net investment income, after Waivers |
|
|
1.05 |
% |
|
|
1.25 |
% |
|
|
0.99 |
% |
|
|
1.21 |
% |
|
|
1.05 |
% |
Portfolio turnover rate(d) |
|
|
122 |
% |
|
|
147 |
% |
|
|
145 |
% |
|
|
109 |
% |
|
|
124 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Large Cap Growth ETF (PWB)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
43.32 |
|
|
$ |
35.00 |
|
|
$ |
30.82 |
|
|
$ |
30.19 |
|
|
$ |
25.62 |
|
Net investment income(a) |
|
|
0.48 |
|
|
|
0.27 |
|
|
|
0.24 |
|
|
|
0.19 |
|
|
|
0.18 |
|
Net realized and unrealized gain on
investments |
|
|
5.39 |
|
|
|
8.32 |
|
|
|
4.19 |
|
|
|
0.62 |
|
|
|
4.56 |
|
Total from investment operations |
|
|
5.87 |
|
|
|
8.59 |
|
|
|
4.43 |
|
|
|
0.81 |
|
|
|
4.74 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.44 |
) |
|
|
(0.27 |
) |
|
|
(0.25 |
) |
|
|
(0.18 |
) |
|
|
(0.17 |
) |
Net asset value at end of year |
|
$ |
48.75 |
|
|
$ |
43.32 |
|
|
$ |
35.00 |
|
|
$ |
30.82 |
|
|
$ |
30.19 |
|
Market price at end of year(b) |
|
$ |
48.77 |
|
|
$ |
43.38 |
|
|
$ |
35.02 |
|
|
$ |
30.81 |
|
|
$ |
30.17 |
|
Net Asset Value Total Return(c) |
|
|
13.69 |
% |
|
|
24.63 |
% |
|
|
14.46 |
% |
|
|
2.70 |
% |
|
|
18.52 |
% |
Market Price Total Return(c) |
|
|
13.57 |
% |
|
|
24.73 |
% |
|
|
14.57 |
% |
|
|
2.73 |
% |
|
|
18.44 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
758,057 |
|
|
$ |
569,715 |
|
|
$ |
441,053 |
|
|
$ |
443,752 |
|
|
$ |
327,579 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.55 |
% |
|
|
0.57 |
% |
|
|
0.57 |
% |
|
|
0.57 |
% |
|
|
0.58 |
% |
Expenses, prior to Waivers |
|
|
0.55 |
% |
|
|
0.57 |
% |
|
|
0.57 |
% |
|
|
0.57 |
% |
|
|
0.58 |
% |
Net investment income, after Waivers |
|
|
1.06 |
% |
|
|
0.68 |
% |
|
|
0.74 |
% |
|
|
0.64 |
% |
|
|
0.63 |
% |
Portfolio turnover rate(d) |
|
|
181 |
% |
|
|
119 |
% |
|
|
116 |
% |
|
|
97 |
% |
|
|
143 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Large Cap Value ETF (PWV)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
36.10 |
|
|
$ |
35.26 |
|
|
$ |
30.01 |
|
|
$ |
31.43 |
|
|
$ |
29.51 |
|
Net investment income(a) |
|
|
0.84 |
|
|
|
0.73 |
|
|
|
0.67 |
|
|
|
0.73 |
|
|
|
0.64 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.68 |
|
|
|
0.83 |
|
|
|
5.28 |
|
|
|
(1.43 |
) |
|
|
1.88 |
|
Total from investment operations |
|
|
1.52 |
|
|
|
1.56 |
|
|
|
5.95 |
|
|
|
(0.70 |
) |
|
|
2.52 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.89 |
) |
|
|
(0.72 |
) |
|
|
(0.70 |
) |
|
|
(0.72 |
) |
|
|
(0.60 |
) |
Net asset value at end of year |
|
$ |
36.73 |
|
|
$ |
36.10 |
|
|
$ |
35.26 |
|
|
$ |
30.01 |
|
|
$ |
31.43 |
|
Market price at end of year(b) |
|
$ |
36.74 |
|
|
$ |
36.13 |
|
|
$ |
35.27 |
|
|
$ |
30.00 |
|
|
$ |
31.42 |
|
Net Asset Value Total Return(c) |
|
|
4.32 |
% |
|
|
4.39 |
% |
|
|
20.06 |
% |
|
|
(2.17 |
)% |
|
|
8.56 |
% |
Market Price Total Return(c) |
|
|
4.26 |
% |
|
|
4.44 |
% |
|
|
20.14 |
% |
|
|
(2.18 |
)% |
|
|
8.60 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
1,041,362 |
|
|
$ |
1,373,520 |
|
|
$ |
1,256,973 |
|
|
$ |
975,299 |
|
|
$ |
1,087,343 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.55 |
% |
|
|
0.56 |
% |
|
|
0.56 |
% |
|
|
0.57 |
% |
|
|
0.57 |
% |
Expenses, prior to Waivers |
|
|
0.55 |
% |
|
|
0.56 |
% |
|
|
0.56 |
% |
|
|
0.57 |
% |
|
|
0.57 |
% |
Net investment income, after Waivers |
|
|
2.33 |
% |
|
|
1.96 |
% |
|
|
2.04 |
% |
|
|
2.44 |
% |
|
|
2.10 |
% |
Portfolio turnover rate(d) |
|
|
189 |
% |
|
|
128 |
% |
|
|
118 |
% |
|
|
98 |
% |
|
|
82 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Leisure and Entertainment ETF (PEJ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
44.89 |
|
|
$ |
42.00 |
|
|
$ |
35.69 |
|
|
$ |
36.40 |
|
|
$ |
32.35 |
|
Net investment income(a) |
|
|
0.19 |
|
|
|
0.41 |
|
|
|
0.31 |
|
|
|
0.11 |
|
|
|
0.31 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(0.05 |
) |
|
|
2.86 |
|
|
|
6.26 |
|
|
|
(0.74 |
) |
|
|
4.04 |
|
Total from investment operations |
|
|
0.14 |
|
|
|
3.27 |
|
|
|
6.57 |
|
|
|
(0.63 |
) |
|
|
4.35 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.23 |
) |
|
|
(0.38 |
) |
|
|
(0.26 |
) |
|
|
(0.08 |
) |
|
|
(0.30 |
) |
Net asset value at end of year |
|
$ |
44.80 |
|
|
$ |
44.89 |
|
|
$ |
42.00 |
|
|
$ |
35.69 |
|
|
$ |
36.40 |
|
Market price at end of year(b) |
|
$ |
44.78 |
|
|
$ |
44.96 |
|
|
$ |
42.00 |
|
|
$ |
35.68 |
|
|
$ |
36.39 |
|
Net Asset Value Total Return(c) |
|
|
0.33 |
% |
|
|
7.84 |
% |
|
|
18.52 |
% |
|
|
(1.73 |
)% |
|
|
13.47 |
% |
Market Price Total Return(c) |
|
|
0.12 |
% |
|
|
8.01 |
% |
|
|
18.55 |
% |
|
|
(1.73 |
)% |
|
|
13.47 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
67,201 |
|
|
$ |
116,724 |
|
|
$ |
144,902 |
|
|
$ |
142,754 |
|
|
$ |
192,940 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.61 |
% |
|
|
0.61 |
% |
|
|
0.63 |
% |
Expenses, prior to Waivers |
|
|
0.63 |
% |
|
|
0.65 |
% |
|
|
0.61 |
% |
|
|
0.61 |
% |
|
|
0.63 |
% |
Net investment income, after Waivers |
|
|
0.42 |
% |
|
|
0.97 |
% |
|
|
0.83 |
% |
|
|
0.29 |
% |
|
|
0.88 |
% |
Portfolio turnover rate(d) |
|
|
207 |
% |
|
|
177 |
% |
|
|
183 |
% |
|
|
136 |
% |
|
|
187 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Market ETF (PWC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
96.96 |
|
|
$ |
84.15 |
|
|
$ |
71.56 |
|
|
$ |
73.46 |
|
|
$ |
70.27 |
|
Net investment income(a) |
|
|
0.90 |
|
|
|
2.11 |
(b) |
|
|
0.43 |
|
|
|
0.82 |
|
|
|
0.68 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.99 |
|
|
|
12.64 |
|
|
|
12.98 |
|
|
|
(1.91 |
) |
|
|
3.25 |
|
Total from investment operations |
|
|
2.89 |
|
|
|
14.75 |
|
|
|
13.41 |
|
|
|
(1.09 |
) |
|
|
3.93 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.12 |
) |
|
|
(1.94 |
) |
|
|
(0.82 |
) |
|
|
(0.81 |
) |
|
|
(0.74 |
) |
Net asset value at end of year |
|
$ |
98.73 |
|
|
$ |
96.96 |
|
|
$ |
84.15 |
|
|
$ |
71.56 |
|
|
$ |
73.46 |
|
Market price at end of year(c) |
|
$ |
98.63 |
|
|
$ |
96.98 |
|
|
$ |
84.16 |
|
|
$ |
71.55 |
|
|
$ |
73.40 |
|
Net Asset Value Total Return(d) |
|
|
3.00 |
% |
|
|
17.67 |
% |
|
|
18.88 |
% |
|
|
(1.50 |
)% |
|
|
5.58 |
% |
Market Price Total Return(d) |
|
|
2.89 |
% |
|
|
17.68 |
% |
|
|
18.91 |
% |
|
|
(1.43 |
)% |
|
|
5.49 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
157,975 |
|
|
$ |
155,134 |
|
|
$ |
143,052 |
|
|
$ |
143,122 |
|
|
$ |
168,950 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.59 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.59 |
% |
Expenses, prior to Waivers |
|
|
0.59 |
% |
|
|
0.61 |
% |
|
|
0.61 |
% |
|
|
0.60 |
% |
|
|
0.59 |
% |
Net investment income, after Waivers |
|
|
0.91 |
% |
|
|
2.30 |
%(b) |
|
|
0.56 |
% |
|
|
1.13 |
% |
|
|
0.93 |
% |
Portfolio turnover rate(e) |
|
|
240 |
% |
|
|
215 |
% |
|
|
231 |
% |
|
|
231 |
% |
|
|
237 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Net investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received during the period. Net investment income per share and
the ratio of net investment income to average net assets excluding the
significant dividend are $1.10 and 1.19%, respectively.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Media ETF (PBS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
29.14 |
|
|
$ |
27.97 |
|
|
$ |
25.13 |
|
|
$ |
26.73 |
|
|
$ |
23.81 |
|
Net investment income(a) |
|
|
0.16 |
|
|
|
0.15 |
|
|
|
0.06 |
|
|
|
0.07 |
|
|
|
0.21 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
5.58 |
|
|
|
1.14 |
|
|
|
2.82 |
|
|
|
(1.45 |
) |
|
|
2.89 |
|
Total from investment operations |
|
|
5.74 |
|
|
|
1.29 |
|
|
|
2.88 |
|
|
|
(1.38 |
) |
|
|
3.10 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.23 |
) |
|
|
(0.12 |
) |
|
|
(0.04 |
) |
|
|
(0.22 |
) |
|
|
(0.18 |
) |
Net asset value at end of year |
|
$ |
34.65 |
|
|
$ |
29.14 |
|
|
$ |
27.97 |
|
|
$ |
25.13 |
|
|
$ |
26.73 |
|
Market price at end of year(b) |
|
$ |
34.65 |
|
|
$ |
29.16 |
|
|
$ |
27.98 |
|
|
$ |
25.12 |
|
|
$ |
26.72 |
|
Net Asset Value Total Return(c) |
|
|
19.81 |
% |
|
|
4.64 |
% |
|
|
11.49 |
% |
|
|
(5.18 |
)% |
|
|
13.04 |
% |
Market Price Total Return(c) |
|
|
19.73 |
% |
|
|
4.67 |
% |
|
|
11.57 |
% |
|
|
(5.18 |
)% |
|
|
13.09 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
88,348 |
|
|
$ |
48,080 |
|
|
$ |
148,230 |
|
|
$ |
90,461 |
|
|
$ |
145,668 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.61 |
% |
|
|
0.59 |
% |
Expenses, prior to Waivers |
|
|
0.67 |
% |
|
|
0.68 |
% |
|
|
0.63 |
% |
|
|
0.61 |
% |
|
|
0.59 |
% |
Net investment income, after Waivers |
|
|
0.49 |
% |
|
|
0.53 |
% |
|
|
0.21 |
% |
|
|
0.26 |
% |
|
|
0.84 |
% |
Portfolio turnover rate(d) |
|
|
103 |
% |
|
|
150 |
% |
|
|
103 |
% |
|
|
124 |
% |
|
|
131 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Networking ETF (PXQ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
50.08 |
|
|
$ |
43.58 |
|
|
$ |
33.65 |
|
|
$ |
36.65 |
|
|
$ |
31.20 |
|
Net investment income (loss)(a) |
|
|
0.66 |
|
|
|
0.18 |
|
|
|
0.21 |
|
|
|
0.15 |
|
|
|
(0.01 |
) |
Net realized and unrealized gain (loss) on
investments |
|
|
13.13 |
|
|
|
6.62 |
|
|
|
9.90 |
|
|
|
(3.15 |
) |
|
|
5.46 |
|
Total from investment operations |
|
|
13.79 |
|
|
|
6.80 |
|
|
|
10.11 |
|
|
|
(3.00 |
) |
|
|
5.45 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.71 |
) |
|
|
(0.30 |
) |
|
|
(0.18 |
) |
|
|
— |
|
|
|
— |
|
Net asset value at end of year |
|
$ |
63.16 |
|
|
$ |
50.08 |
|
|
$ |
43.58 |
|
|
$ |
33.65 |
|
|
$ |
36.65 |
|
Market price at end of year(b) |
|
$ |
63.14 |
|
|
$ |
50.10 |
|
|
$ |
43.59 |
|
|
$ |
33.65 |
|
|
$ |
36.64 |
|
Net Asset Value Total Return(c) |
|
|
27.90 |
% |
|
|
15.70 |
% |
|
|
30.19 |
% |
|
|
(8.19 |
)% |
|
|
17.47 |
% |
Market Price Total Return(c) |
|
|
27.81 |
% |
|
|
15.73 |
% |
|
|
30.22 |
% |
|
|
(8.16 |
)% |
|
|
17.48 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
101,051 |
|
|
$ |
60,091 |
|
|
$ |
26,145 |
|
|
$ |
20,189 |
|
|
$ |
27,485 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
Expenses, prior to Waivers |
|
|
0.64 |
% |
|
|
0.83 |
% |
|
|
0.89 |
% |
|
|
0.88 |
% |
|
|
0.85 |
% |
Net investment income (loss), after Waivers |
|
|
1.21 |
% |
|
|
0.39 |
% |
|
|
0.55 |
% |
|
|
0.42 |
% |
|
|
(0.02 |
)% |
Portfolio turnover rate(d) |
|
|
98 |
% |
|
|
79 |
% |
|
|
97 |
% |
|
|
87 |
% |
|
|
74 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Oil & Gas Services ETF (PXJ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
9.70 |
|
|
$ |
10.70 |
|
|
$ |
13.20 |
|
|
$ |
18.91 |
|
|
$ |
28.01 |
|
Net investment income(a) |
|
|
0.04 |
|
|
|
0.27 |
(b) |
|
|
0.06 |
|
|
|
0.20 |
|
|
|
0.22 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(2.81 |
) |
|
|
(1.01 |
) |
|
|
(2.41 |
) |
|
|
(5.69 |
) |
|
|
(9.07 |
) |
Total from investment operations |
|
|
(2.77 |
) |
|
|
(0.74 |
) |
|
|
(2.35 |
) |
|
|
(5.49 |
) |
|
|
(8.85 |
) |
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.06 |
) |
|
|
(0.26 |
) |
|
|
(0.08 |
) |
|
|
(0.22 |
) |
|
|
(0.25 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.06 |
) |
|
|
(0.26 |
) |
|
|
(0.15 |
) |
|
|
(0.22 |
) |
|
|
(0.25 |
) |
Net asset value at end of year |
|
$ |
6.87 |
|
|
$ |
9.70 |
|
|
$ |
10.70 |
|
|
$ |
13.20 |
|
|
$ |
18.91 |
|
Market price at end of year(c) |
|
$ |
6.87 |
|
|
$ |
9.70 |
|
|
$ |
10.70 |
|
|
$ |
13.19 |
|
|
$ |
18.92 |
|
Net Asset Value Total Return(d) |
|
|
(28.69 |
)% |
|
|
(6.71 |
)% |
|
|
(17.99 |
)% |
|
|
(29.06 |
)% |
|
|
(31.67 |
)% |
Market Price Total Return(d) |
|
|
(28.69 |
)% |
|
|
(6.72 |
)% |
|
|
(17.92 |
)% |
|
|
(29.15 |
)% |
|
|
(31.61 |
)% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
17,519 |
|
|
$ |
37,827 |
|
|
$ |
33,174 |
|
|
$ |
45,534 |
|
|
$ |
72,786 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
Expenses, prior to Waivers |
|
|
0.83 |
% |
|
|
0.86 |
% |
|
|
0.75 |
% |
|
|
0.72 |
% |
|
|
0.64 |
% |
Net investment income, after Waivers |
|
|
0.48 |
% |
|
|
2.90 |
%(b) |
|
|
0.47 |
% |
|
|
1.46 |
% |
|
|
0.96 |
% |
Portfolio turnover rate(e) |
|
|
81 |
% |
|
|
91 |
% |
|
|
90 |
% |
|
|
89 |
% |
|
|
79 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Net investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received during the period. Net investment income per share and
the ratio of net investment income to average net assets excluding the
significant dividend are $0.06 and 0.61%, respectively.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Pharmaceuticals ETF (PJP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
61.49 |
|
|
$ |
60.71 |
|
|
$ |
62.16 |
|
|
$ |
74.40 |
|
|
$ |
57.65 |
|
Net investment income(a) |
|
|
0.69 |
|
|
|
0.43 |
|
|
|
0.48 |
|
|
|
0.41 |
|
|
|
0.32 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.17 |
|
|
|
0.79 |
|
|
|
(1.40 |
) |
|
|
(8.81 |
) |
|
|
18.42 |
|
Total from investment operations |
|
|
1.86 |
|
|
|
1.22 |
|
|
|
(0.92 |
) |
|
|
(8.40 |
) |
|
|
18.74 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.70 |
) |
|
|
(0.44 |
) |
|
|
(0.53 |
) |
|
|
(0.39 |
) |
|
|
(0.34 |
) |
Net realized gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3.45 |
) |
|
|
(1.65 |
) |
Total distributions |
|
|
(0.70 |
) |
|
|
(0.44 |
) |
|
|
(0.53 |
) |
|
|
(3.84 |
) |
|
|
(1.99 |
) |
Net asset value at end of year |
|
$ |
62.65 |
|
|
$ |
61.49 |
|
|
$ |
60.71 |
|
|
$ |
62.16 |
|
|
$ |
74.40 |
|
Market price at end of year(b) |
|
$ |
62.64 |
|
|
$ |
61.53 |
|
|
$ |
60.71 |
|
|
$ |
62.14 |
|
|
$ |
74.35 |
|
Net Asset Value Total Return(c) |
|
|
3.02 |
% |
|
|
1.99 |
% |
|
|
(1.47 |
)% |
|
|
(11.86 |
)% |
|
|
32.95 |
% |
Market Price Total Return(c) |
|
|
2.94 |
% |
|
|
2.05 |
% |
|
|
(1.44 |
)% |
|
|
(11.83 |
)% |
|
|
32.97 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
416,591 |
|
|
$ |
525,754 |
|
|
$ |
764,908 |
|
|
$ |
1,168,526 |
|
|
$ |
1,926,934 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.56 |
% |
|
|
0.57 |
% |
|
|
0.56 |
% |
|
|
0.57 |
% |
|
|
0.56 |
% |
Expenses, prior to Waivers |
|
|
0.56 |
% |
|
|
0.57 |
% |
|
|
0.56 |
% |
|
|
0.57 |
% |
|
|
0.56 |
% |
Net investment income, after Waivers |
|
|
1.03 |
% |
|
|
0.68 |
% |
|
|
0.79 |
% |
|
|
0.58 |
% |
|
|
0.48 |
% |
Portfolio turnover rate(d) |
|
|
81 |
% |
|
|
98 |
% |
|
|
26 |
% |
|
|
26 |
% |
|
|
47 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Retail ETF (PMR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
36.67 |
|
|
$ |
36.07 |
|
|
$ |
35.69 |
|
|
$ |
38.41 |
|
|
$ |
33.15 |
|
Net investment income(a) |
|
|
0.42 |
|
|
|
0.45 |
|
|
|
0.27 |
|
|
|
0.25 |
|
|
|
0.22 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.80 |
|
|
|
0.57 |
|
|
|
0.43 |
|
|
|
(2.70 |
) |
|
|
5.38 |
|
Total from investment operations |
|
|
2.22 |
|
|
|
1.02 |
|
|
|
0.70 |
|
|
|
(2.45 |
) |
|
|
5.60 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.41 |
) |
|
|
(0.42 |
) |
|
|
(0.32 |
) |
|
|
(0.27 |
) |
|
|
(0.34 |
) |
Net asset value at end of year |
|
$ |
38.48 |
|
|
$ |
36.67 |
|
|
$ |
36.07 |
|
|
$ |
35.69 |
|
|
$ |
38.41 |
|
Market price at end of year(b) |
|
$ |
38.47 |
|
|
$ |
36.71 |
|
|
$ |
36.05 |
|
|
$ |
35.69 |
|
|
$ |
38.42 |
|
Net Asset Value Total Return(c) |
|
|
6.09 |
% |
|
|
2.87 |
% |
|
|
1.98 |
% |
|
|
(6.40 |
)% |
|
|
16.97 |
% |
Market Price Total Return(c) |
|
|
5.95 |
% |
|
|
3.03 |
% |
|
|
1.92 |
% |
|
|
(6.42 |
)% |
|
|
17.04 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
7,696 |
|
|
$ |
11,000 |
|
|
$ |
14,429 |
|
|
$ |
21,416 |
|
|
$ |
38,410 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
Expenses, prior to Waivers |
|
|
1.24 |
% |
|
|
1.27 |
% |
|
|
0.99 |
% |
|
|
0.88 |
% |
|
|
0.91 |
% |
Net investment income, after Waivers |
|
|
1.09 |
% |
|
|
1.27 |
% |
|
|
0.76 |
% |
|
|
0.67 |
% |
|
|
0.61 |
% |
Portfolio turnover rate(d) |
|
|
148 |
% |
|
|
131 |
% |
|
|
152 |
% |
|
|
129 |
% |
|
|
111 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Semiconductors ETF (PSI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
48.91 |
|
|
$ |
42.47 |
|
|
$ |
24.50 |
|
|
$ |
26.30 |
|
|
$ |
20.62 |
|
Net investment income(a) |
|
|
0.38 |
|
|
|
0.14 |
|
|
|
0.19 |
|
|
|
0.10 |
|
|
|
0.25 |
(b) |
Net realized and unrealized gain (loss) on
investments |
|
|
9.19 |
|
|
|
6.41 |
|
|
|
18.02 |
|
|
|
(1.86 |
) |
|
|
5.88 |
|
Total from investment operations |
|
|
9.57 |
|
|
|
6.55 |
|
|
|
18.21 |
|
|
|
(1.76 |
) |
|
|
6.13 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.39 |
) |
|
|
(0.11 |
) |
|
|
(0.24 |
) |
|
|
(0.04 |
) |
|
|
(0.33 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.12 |
) |
Total distributions |
|
|
(0.39 |
) |
|
|
(0.11 |
) |
|
|
(0.24 |
) |
|
|
(0.04 |
) |
|
|
(0.45 |
) |
Net asset value at end of year |
|
$ |
58.09 |
|
|
$ |
48.91 |
|
|
$ |
42.47 |
|
|
$ |
24.50 |
|
|
$ |
26.30 |
|
Market price at end of year(c) |
|
$ |
58.04 |
|
|
$ |
48.94 |
|
|
$ |
42.51 |
|
|
$ |
24.48 |
|
|
$ |
26.31 |
|
Net Asset Value Total Return(d) |
|
|
19.71 |
% |
|
|
15.42 |
% |
|
|
74.65 |
% |
|
|
(6.69 |
)% |
|
|
29.90 |
% |
Market Price Total Return(d) |
|
|
19.53 |
% |
|
|
15.38 |
% |
|
|
74.96 |
% |
|
|
(6.80 |
)% |
|
|
29.95 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
200,423 |
|
|
$ |
315,455 |
|
|
$ |
235,699 |
|
|
$ |
48,999 |
|
|
$ |
78,911 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.58 |
% |
|
|
0.61 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
Expenses, prior to Waivers |
|
|
0.58 |
% |
|
|
0.61 |
% |
|
|
0.63 |
% |
|
|
0.68 |
% |
|
|
0.78 |
% |
Net investment income, after Waivers |
|
|
0.73 |
% |
|
|
0.29 |
% |
|
|
0.55 |
% |
|
|
0.38 |
% |
|
|
1.03 |
%(b) |
Portfolio turnover rate(e) |
|
|
98 |
% |
|
|
65 |
% |
|
|
62 |
% |
|
|
104 |
% |
|
|
103 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Net investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received of $16.50 per share owned of KLA-Tencor Corp. on November 26,
2014. Net investment income per share and the ratio of net investment
income to average net assets excluding the significant dividend are $0.05
and 0.22%, respectively. |
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Dynamic Software ETF (PSJ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
70.81 |
|
|
$ |
53.44 |
|
|
$ |
42.20 |
|
|
$ |
42.47 |
|
|
$ |
33.96 |
|
Net investment income (loss)(a) |
|
|
(0.22 |
) |
|
|
(0.27 |
) |
|
|
(0.05 |
) |
|
|
(0.08 |
) |
|
|
0.11 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
25.51 |
|
|
|
17.64 |
|
|
|
11.30 |
|
|
|
(0.13 |
) |
|
|
8.44 |
|
Total from investment operations |
|
|
25.29 |
|
|
|
17.37 |
|
|
|
11.25 |
|
|
|
(0.21 |
) |
|
|
8.55 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.04 |
) |
Net asset value at end of year |
|
$ |
96.10 |
|
|
$ |
70.81 |
|
|
$ |
53.44 |
|
|
$ |
42.20 |
|
|
$ |
42.47 |
|
Market price at end of year(b) |
|
$ |
96.13 |
|
|
$ |
70.90 |
|
|
$ |
53.39 |
|
|
$ |
42.21 |
|
|
$ |
42.48 |
|
Net Asset Value Total Return(c) |
|
|
35.71 |
% |
|
|
32.51 |
% |
|
|
26.67 |
% |
|
|
(0.50 |
)% |
|
|
25.18 |
% |
Market Price Total Return(c) |
|
|
35.58 |
% |
|
|
32.80 |
% |
|
|
26.52 |
% |
|
|
(0.50 |
)% |
|
|
25.32 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
437,243 |
|
|
$ |
155,784 |
|
|
$ |
101,545 |
|
|
$ |
73,847 |
|
|
$ |
57,329 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.58 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
Expenses, prior to Waivers |
|
|
0.58 |
% |
|
|
0.63 |
% |
|
|
0.64 |
% |
|
|
0.66 |
% |
|
|
0.71 |
% |
Net investment income (loss), after Waivers |
|
|
(0.27 |
)% |
|
|
(0.42 |
)% |
|
|
(0.11 |
)% |
|
|
(0.19 |
)% |
|
|
0.29 |
% |
Portfolio turnover rate(d) |
|
|
157 |
% |
|
|
145 |
% |
|
|
154 |
% |
|
|
154 |
% |
|
|
132 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Financial Preferred ETF (PGF)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
18.32 |
|
|
$ |
18.87 |
|
|
$ |
18.80 |
|
|
$ |
18.45 |
|
|
$ |
17.99 |
|
Net investment income(a) |
|
|
0.97 |
|
|
|
0.99 |
|
|
|
1.03 |
|
|
|
1.06 |
|
|
|
1.07 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.05 |
|
|
|
(0.53 |
) |
|
|
0.07 |
|
|
|
0.36 |
|
|
|
0.45 |
|
Total from investment operations |
|
|
1.02 |
|
|
|
0.46 |
|
|
|
1.10 |
|
|
|
1.42 |
|
|
|
1.52 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.01 |
) |
|
|
(1.01 |
) |
|
|
(1.03 |
) |
|
|
(1.07 |
) |
|
|
(1.06 |
) |
Net asset value at end of year |
|
$ |
18.33 |
|
|
$ |
18.32 |
|
|
$ |
18.87 |
|
|
$ |
18.80 |
|
|
$ |
18.45 |
|
Market price at end of year(b) |
|
$ |
18.35 |
|
|
$ |
18.31 |
|
|
$ |
18.87 |
|
|
$ |
18.83 |
|
|
$ |
18.46 |
|
Net Asset Value Total Return(c) |
|
|
5.79 |
% |
|
|
2.43 |
% |
|
|
6.06 |
% |
|
|
8.01 |
% |
|
|
8.73 |
% |
Market Price Total Return(c) |
|
|
5.97 |
% |
|
|
2.37 |
% |
|
|
5.89 |
% |
|
|
8.12 |
% |
|
|
8.85 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
1,385,773 |
|
|
$ |
1,565,028 |
|
|
$ |
1,672,911 |
|
|
$ |
1,636,378 |
|
|
$ |
1,471,716 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.62 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
Net investment income |
|
|
5.35 |
% |
|
|
5.26 |
% |
|
|
5.48 |
% |
|
|
5.76 |
% |
|
|
5.87 |
% |
Portfolio turnover rate(d) |
|
|
21 |
% |
|
|
5 |
% |
|
|
8 |
% |
|
|
13 |
% |
|
|
9 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco FTSE RAFI US 1000 ETF (PRF)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
111.04 |
|
|
$ |
102.66 |
|
|
$ |
90.15 |
|
|
$ |
92.45 |
|
|
$ |
85.42 |
|
Net investment income(a) |
|
|
2.40 |
|
|
|
2.18 |
|
|
|
1.86 |
|
|
|
1.93 |
|
|
|
1.72 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
6.72 |
|
|
|
8.29 |
|
|
|
12.56 |
|
|
|
(2.23 |
) |
|
|
6.93 |
|
Total from investment operations |
|
|
9.12 |
|
|
|
10.47 |
|
|
|
14.42 |
|
|
|
(0.30 |
) |
|
|
8.65 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(2.35 |
) |
|
|
(2.09 |
) |
|
|
(1.91 |
) |
|
|
(2.00 |
) |
|
|
(1.62 |
) |
Net asset value at end of year |
|
$ |
117.81 |
|
|
$ |
111.04 |
|
|
$ |
102.66 |
|
|
$ |
90.15 |
|
|
$ |
92.45 |
|
Market price at end of year(b) |
|
$ |
117.82 |
|
|
$ |
111.12 |
|
|
$ |
102.67 |
|
|
$ |
90.13 |
|
|
$ |
92.43 |
|
Net Asset Value Total Return(c) |
|
|
8.40 |
% |
|
|
10.26 |
% |
|
|
16.16 |
% |
|
|
(0.23 |
)% |
|
|
10.19 |
% |
Market Price Total Return(c) |
|
|
8.32 |
% |
|
|
10.33 |
% |
|
|
16.19 |
% |
|
|
(0.24 |
)% |
|
|
10.23 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
5,590,025 |
|
|
$ |
5,124,420 |
|
|
$ |
4,897,087 |
|
|
$ |
4,142,401 |
|
|
$ |
4,558,017 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.40 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
Net investment income, after Waivers |
|
|
2.13 |
% |
|
|
2.00 |
% |
|
|
1.93 |
% |
|
|
2.19 |
% |
|
|
1.92 |
% |
Portfolio turnover rate(d) |
|
|
10 |
% |
|
|
9 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
10 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
130.30 |
|
|
$ |
117.87 |
|
|
$ |
97.56 |
|
|
$ |
103.44 |
|
|
$ |
96.35 |
|
Net investment income(a) |
|
|
1.76 |
|
|
|
1.44 |
|
|
|
1.30 |
|
|
|
1.25 |
|
|
|
1.38 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.75 |
|
|
|
12.31 |
|
|
|
20.46 |
|
|
|
(5.93 |
) |
|
|
7.04 |
|
Total from investment operations |
|
|
3.51 |
|
|
|
13.75 |
|
|
|
21.76 |
|
|
|
(4.68 |
) |
|
|
8.42 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.64 |
) |
|
|
(1.32 |
) |
|
|
(1.45 |
) |
|
|
(1.20 |
) |
|
|
(1.33 |
) |
Net asset value at end of year |
|
$ |
132.17 |
|
|
$ |
130.30 |
|
|
$ |
117.87 |
|
|
$ |
97.56 |
|
|
$ |
103.44 |
|
Market price at end of year(b) |
|
$ |
132.22 |
|
|
$ |
130.51 |
|
|
$ |
117.82 |
|
|
$ |
97.55 |
|
|
$ |
103.45 |
|
Net Asset Value Total Return(c) |
|
|
2.75 |
% |
|
|
11.73 |
% |
|
|
22.44 |
% |
|
|
(4.49 |
)% |
|
|
8.80 |
% |
Market Price Total Return(c) |
|
|
2.60 |
% |
|
|
11.96 |
% |
|
|
22.40 |
% |
|
|
(4.52 |
)% |
|
|
8.78 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
2,094,831 |
|
|
$ |
1,889,333 |
|
|
$ |
1,632,527 |
|
|
$ |
1,107,295 |
|
|
$ |
1,158,510 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.40 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
Net investment income, after Waivers |
|
|
1.33 |
% |
|
|
1.15 |
% |
|
|
1.20 |
% |
|
|
1.30 |
% |
|
|
1.39 |
% |
Portfolio turnover rate(d) |
|
|
24 |
% |
|
|
26 |
% |
|
|
29 |
% |
|
|
28 |
% |
|
|
26 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Global Listed Private Equity ETF (PSP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
12.19 |
|
|
$ |
12.25 |
|
|
$ |
10.45 |
|
|
$ |
11.95 |
|
|
$ |
11.79 |
|
Net investment income(a) |
|
|
0.32 |
|
|
|
0.40 |
(b) |
|
|
0.41 |
|
|
|
0.60 |
(c) |
|
|
0.35 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(0.03 |
) |
|
|
0.99 |
|
|
|
1.85 |
|
|
|
(1.53 |
) |
|
|
0.41 |
|
Total from investment operations |
|
|
0.29 |
|
|
|
1.39 |
|
|
|
2.26 |
|
|
|
(0.93 |
) |
|
|
0.76 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.38 |
) |
|
|
(1.40 |
) |
|
|
(0.46 |
) |
|
|
(0.57 |
) |
|
|
(0.60 |
) |
Return of capital |
|
|
— |
|
|
|
(0.05 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.38 |
) |
|
|
(1.45 |
) |
|
|
(0.46 |
) |
|
|
(0.57 |
) |
|
|
(0.60 |
) |
Net asset value at end of year |
|
$ |
12.10 |
|
|
$ |
12.19 |
|
|
$ |
12.25 |
|
|
$ |
10.45 |
|
|
$ |
11.95 |
|
Market price at end of year(d) |
|
$ |
12.13 |
|
|
$ |
12.21 |
|
|
$ |
12.29 |
|
|
$ |
10.39 |
|
|
$ |
11.93 |
|
Net Asset Value Total Return(e) |
|
|
2.28 |
% |
|
|
11.76 |
% |
|
|
22.21 |
% |
|
|
(8.09 |
)% |
|
|
6.79 |
% |
Market Price Total Return(e) |
|
|
2.36 |
% |
|
|
11.57 |
% |
|
|
23.32 |
% |
|
|
(8.47 |
)% |
|
|
6.09 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
244,443 |
|
|
$ |
245,052 |
|
|
$ |
286,143 |
|
|
$ |
325,925 |
|
|
$ |
476,606 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers(f) |
|
|
0.64 |
% |
|
|
0.64 |
% |
|
|
0.66 |
% |
|
|
0.64 |
% |
|
|
0.64 |
% |
Expenses, prior to Waivers(f) |
|
|
0.66 |
% |
|
|
0.65 |
% |
|
|
0.67 |
% |
|
|
0.66 |
% |
|
|
0.66 |
% |
Net investment income, after Waivers |
|
|
2.79 |
% |
|
|
3.16 |
%(b) |
|
|
3.77 |
% |
|
|
5.51 |
%(c) |
|
|
3.04 |
% |
Portfolio turnover rate(g) |
|
|
64 |
% |
|
|
44 |
% |
|
|
39 |
% |
|
|
35 |
% |
|
|
30 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Net Investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received during the period. Net investment income per share and
the ratio of net investment income to average net assets excluding the
significant dividends are $0.30 and 2.37%, respectively.
|
(c) |
Net Investment income per share and the
ratio of net investment income to average net assets include a significant
dividend received during the year. Net investment income per share and the
ratio of net investment income to average net assets excluding the
significant dividends are $0.34 and 3.12%, respectively.
|
(d) |
The mean between the last bid and ask
prices. |
(e) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(f) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(g) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Golden Dragon China ETF (PGJ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
45.58 |
|
|
$ |
35.69 |
|
|
$ |
30.51 |
|
|
$ |
33.67 |
|
|
$ |
27.65 |
|
Net investment income(a) |
|
|
0.11 |
|
|
|
0.31 |
|
|
|
0.19 |
|
|
|
0.06 |
|
|
|
0.21 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(3.51 |
) |
|
|
10.50 |
|
|
|
5.54 |
|
|
|
(3.10 |
) |
|
|
6.06 |
|
Total from investment operations |
|
|
(3.40 |
) |
|
|
10.81 |
|
|
|
5.73 |
|
|
|
(3.04 |
) |
|
|
6.27 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.10 |
) |
|
|
(0.92 |
) |
|
|
(0.55 |
) |
|
|
(0.09 |
) |
|
|
(0.25 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Total distributions |
|
|
(0.10 |
) |
|
|
(0.92 |
) |
|
|
(0.55 |
) |
|
|
(0.12 |
) |
|
|
(0.25 |
) |
Net asset value at end of year |
|
$ |
42.08 |
|
|
$ |
45.58 |
|
|
$ |
35.69 |
|
|
$ |
30.51 |
|
|
$ |
33.67 |
|
Market price at end of year(b) |
|
$ |
42.11 |
|
|
$ |
45.58 |
|
|
$ |
35.69 |
|
|
$ |
30.49 |
|
|
$ |
33.62 |
|
Net Asset Value Total Return(c) |
|
|
(7.46 |
)% |
|
|
30.46 |
% |
|
|
19.23 |
% |
|
|
(9.04 |
)% |
|
|
22.79 |
% |
Market Price Total Return(c) |
|
|
(7.39 |
)% |
|
|
30.46 |
% |
|
|
19.31 |
% |
|
|
(8.97 |
)% |
|
|
22.83 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
216,730 |
|
|
$ |
271,208 |
|
|
$ |
153,460 |
|
|
$ |
163,248 |
|
|
$ |
230,631 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
Expenses, prior to Waivers |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.73 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
Net investment income, after Waivers |
|
|
0.27 |
% |
|
|
0.70 |
% |
|
|
0.61 |
% |
|
|
0.18 |
% |
|
|
0.68 |
% |
Portfolio turnover rate(d) |
|
|
36 |
% |
|
|
25 |
% |
|
|
30 |
% |
|
|
47 |
% |
|
|
25 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco High Yield Equity Dividend Achievers™ ETF (PEY)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
17.12 |
|
|
$ |
17.01 |
|
|
$ |
14.90 |
|
|
$ |
13.45 |
|
|
$ |
12.32 |
|
Net investment income(a) |
|
|
0.63 |
|
|
|
0.62 |
|
|
|
0.52 |
|
|
|
0.48 |
|
|
|
0.43 |
|
Net realized and unrealized gain on
investments |
|
|
1.17 |
|
|
|
0.14 |
|
|
|
2.12 |
|
|
|
1.46 |
|
|
|
1.13 |
|
Total from investment operations |
|
|
1.80 |
|
|
|
0.76 |
|
|
|
2.64 |
|
|
|
1.94 |
|
|
|
1.56 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.67 |
) |
|
|
(0.65 |
) |
|
|
(0.53 |
) |
|
|
(0.49 |
) |
|
|
(0.43 |
) |
Net asset value at end of year |
|
$ |
18.25 |
|
|
$ |
17.12 |
|
|
$ |
17.01 |
|
|
$ |
14.90 |
|
|
$ |
13.45 |
|
Market price at end of year(b) |
|
$ |
18.26 |
|
|
$ |
17.12 |
|
|
$ |
17.02 |
|
|
$ |
14.91 |
|
|
$ |
13.45 |
|
Net Asset Value Total Return(c) |
|
|
10.79 |
% |
|
|
4.48 |
% |
|
|
17.95 |
% |
|
|
14.92 |
% |
|
|
12.89 |
% |
Market Price Total Return(c) |
|
|
10.86 |
% |
|
|
4.42 |
% |
|
|
17.94 |
% |
|
|
14.99 |
% |
|
|
12.89 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
834,224 |
|
|
$ |
763,400 |
|
|
$ |
984,725 |
|
|
$ |
737,783 |
|
|
$ |
537,324 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.53 |
% |
|
|
0.54 |
% |
|
|
0.54 |
% |
|
|
0.54 |
% |
|
|
0.54 |
% |
Net investment income |
|
|
3.58 |
% |
|
|
3.63 |
% |
|
|
3.23 |
% |
|
|
3.62 |
% |
|
|
3.29 |
% |
Portfolio turnover rate(d) |
|
|
50 |
% |
|
|
38 |
% |
|
|
49 |
% |
|
|
59 |
% |
|
|
45 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Insider Sentiment ETF (NFO)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Eight Months Ended April 30, 2018 |
|
|
Years Ended August 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
63.16 |
|
|
$ |
57.67 |
|
|
$ |
50.29 |
|
|
$ |
47.50 |
|
|
$ |
49.25 |
|
|
$ |
41.15 |
|
Net investment income(a) |
|
|
0.70 |
|
|
|
0.44 |
|
|
|
0.61 |
|
|
|
0.69 |
|
|
|
0.55 |
|
|
|
0.56 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
4.01 |
|
|
|
5.97 |
|
|
|
7.67 |
|
|
|
2.82 |
|
|
|
(1.72 |
) |
|
|
7.98 |
|
Total from investment operations |
|
|
4.71 |
|
|
|
6.41 |
|
|
|
8.28 |
|
|
|
3.51 |
|
|
|
(1.17 |
) |
|
|
8.54 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.59 |
) |
|
|
(0.92 |
) |
|
|
(0.90 |
) |
|
|
(0.72 |
) |
|
|
(0.58 |
) |
|
|
(0.44 |
) |
Net asset value at end of period |
|
$ |
67.28 |
|
|
$ |
63.16 |
|
|
$ |
57.67 |
|
|
$ |
50.29 |
|
|
$ |
47.50 |
|
|
$ |
49.25 |
|
Market price at end of period |
|
$ |
67.21 |
(b) |
|
$ |
63.18 |
(b) |
|
$ |
57.51 |
|
|
$ |
50.23 |
|
|
$ |
47.52 |
|
|
$ |
49.22 |
|
Net Asset Value Total Return(c) |
|
|
7.70 |
% |
|
|
11.14 |
% |
|
|
16.79 |
% |
|
|
7.51 |
% |
|
|
(2.40 |
)% |
|
|
20.80 |
% |
Market Price Total Return(c) |
|
|
7.56 |
% |
|
|
11.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
70,696 |
|
|
$ |
72,685 |
|
|
$ |
72,128 |
|
|
$ |
77,983 |
|
|
$ |
123,547 |
|
|
$ |
184,735 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.60 |
%(d) |
|
|
0.61 |
% |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.66 |
% |
Expenses, prior to Waivers |
|
|
0.69 |
% |
|
|
0.73 |
%(d) |
|
|
0.74 |
% |
|
|
0.76 |
% |
|
|
0.73 |
% |
|
|
0.74 |
% |
Net investment income, after Waivers |
|
|
1.10 |
% |
|
|
1.08 |
%(d) |
|
|
1.18 |
% |
|
|
1.47 |
% |
|
|
1.13 |
% |
|
|
1.21 |
% |
Portfolio turnover rate(e) |
|
|
116 |
% |
|
|
108 |
% |
|
|
189 |
% |
|
|
117 |
% |
|
|
112 |
% |
|
|
106 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco International Dividend Achievers™ ETF (PID)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
15.92 |
|
|
$ |
15.09 |
|
|
$ |
14.66 |
|
|
$ |
18.42 |
|
|
$ |
18.56 |
|
Net investment income(a) |
|
|
0.58 |
|
|
|
0.56 |
|
|
|
0.44 |
|
|
|
0.56 |
|
|
|
0.51 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.48 |
|
|
|
0.87 |
|
|
|
0.56 |
|
|
|
(3.78 |
) |
|
|
(0.17 |
) |
Total from investment operations |
|
|
1.06 |
|
|
|
1.43 |
|
|
|
1.00 |
|
|
|
(3.22 |
) |
|
|
0.34 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.54 |
) |
|
|
(0.60 |
) |
|
|
(0.57 |
) |
|
|
(0.54 |
) |
|
|
(0.48 |
) |
Net asset value at end of year |
|
$ |
16.44 |
|
|
$ |
15.92 |
|
|
$ |
15.09 |
|
|
$ |
14.66 |
|
|
$ |
18.42 |
|
Market price at end of year(b) |
|
$ |
16.45 |
|
|
$ |
15.91 |
|
|
$ |
15.09 |
|
|
$ |
14.65 |
|
|
$ |
18.43 |
|
Net Asset Value Total Return(c) |
|
|
6.99 |
% |
|
|
9.57 |
% |
|
|
7.12 |
% |
|
|
(17.53 |
)% |
|
|
1.83 |
% |
Market Price Total Return(c) |
|
|
7.13 |
% |
|
|
9.50 |
% |
|
|
7.19 |
% |
|
|
(17.63 |
)% |
|
|
1.77 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
766,283 |
|
|
$ |
862,878 |
|
|
$ |
811,780 |
|
|
$ |
701,684 |
|
|
$ |
1,571,846 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.54 |
% |
|
|
0.55 |
% |
|
|
0.56 |
% |
|
|
0.58 |
% |
|
|
0.55 |
% |
Net investment income |
|
|
3.70 |
% |
|
|
3.52 |
% |
|
|
3.01 |
% |
|
|
3.62 |
% |
|
|
2.77 |
% |
Portfolio turnover rate(d) |
|
|
47 |
% |
|
|
55 |
% |
|
|
61 |
% |
|
|
61 |
% |
|
|
66 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco NASDAQ Internet ETF (PNQI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
129.15 |
|
|
$ |
99.14 |
|
|
$ |
76.48 |
|
|
$ |
72.28 |
|
|
$ |
61.62 |
|
Net investment income (loss)(a) |
|
|
(0.44 |
) |
|
|
(0.36 |
) |
|
|
(0.22 |
) |
|
|
(0.16 |
) |
|
|
(0.21 |
) |
Net realized and unrealized gain on
investments |
|
|
13.73 |
|
|
|
30.40 |
|
|
|
22.88 |
|
|
|
4.36 |
|
|
|
10.87 |
|
Total from investment operations |
|
|
13.29 |
|
|
|
30.04 |
|
|
|
22.66 |
|
|
|
4.20 |
|
|
|
10.66 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net asset value at end of year |
|
$ |
142.44 |
|
|
$ |
129.15 |
|
|
$ |
99.14 |
|
|
$ |
76.48 |
|
|
$ |
72.28 |
|
Market price at end of year(b) |
|
$ |
142.41 |
|
|
$ |
129.29 |
|
|
$ |
99.17 |
|
|
$ |
76.44 |
|
|
$ |
72.26 |
|
Net Asset Value Total Return(c) |
|
|
10.29 |
% |
|
|
30.30 |
% |
|
|
29.63 |
% |
|
|
5.81 |
% |
|
|
17.30 |
% |
Market Price Total Return(c) |
|
|
10.15 |
% |
|
|
30.40 |
% |
|
|
29.73 |
% |
|
|
5.79 |
% |
|
|
17.48 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
598,232 |
|
|
$ |
600,535 |
|
|
$ |
351,939 |
|
|
$ |
279,152 |
|
|
$ |
216,851 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Net investment income (loss) |
|
|
(0.34 |
)% |
|
|
(0.31 |
)% |
|
|
(0.26 |
)% |
|
|
(0.21 |
)% |
|
|
(0.31 |
)% |
Portfolio turnover rate(d) |
|
|
20 |
% |
|
|
20 |
% |
|
|
14 |
% |
|
|
27 |
% |
|
|
31 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Raymond James SB-1 Equity ETF (RYJ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eight Months Ended April 30, 2019 |
|
|
Years Ended August 31, |
|
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
49.24 |
|
|
$ |
39.34 |
|
|
$ |
35.99 |
|
|
$ |
34.24 |
|
|
$ |
35.26 |
|
|
$ |
29.06 |
|
Net investment income(a) |
|
|
0.13 |
|
|
|
0.27 |
|
|
|
0.12 |
|
|
|
0.29 |
|
|
|
0.21 |
|
|
|
0.12 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(3.55 |
) |
|
|
9.63 |
|
|
|
3.82 |
|
|
|
1.76 |
|
|
|
(1.14 |
) |
|
|
6.19 |
|
Total from investment operations |
|
|
(3.42 |
) |
|
|
9.90 |
|
|
|
3.94 |
|
|
|
2.05 |
|
|
|
(0.93 |
) |
|
|
6.31 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.52 |
) |
|
|
— |
|
|
|
(0.52 |
) |
|
|
(0.30 |
) |
|
|
(0.09 |
) |
|
|
(0.11 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions to shareholders |
|
|
(0.52 |
) |
|
|
— |
|
|
|
(0.59 |
) |
|
|
(0.30 |
) |
|
|
(0.09 |
) |
|
|
(0.11 |
) |
Net asset value at end of period |
|
$ |
45.30 |
|
|
$ |
49.24 |
|
|
$ |
39.34 |
|
|
$ |
35.99 |
|
|
$ |
34.24 |
|
|
$ |
35.26 |
|
Market price at end of period |
|
$ |
45.30 |
(b) |
|
$ |
49.19 |
(b) |
|
$ |
39.32 |
|
|
$ |
36.01 |
|
|
$ |
34.19 |
|
|
$ |
35.28 |
|
Net asset value Total Return(c) |
|
|
(6.60 |
)% |
|
|
25.16 |
% |
|
|
11.00 |
% |
|
|
6.08 |
% |
|
|
(2.64 |
)% |
|
|
21.75 |
% |
Market Price Total Return(c) |
|
|
(6.51 |
)% |
|
|
25.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
173,156 |
|
|
$ |
200,560 |
|
|
$ |
185,801 |
|
|
$ |
180,784 |
|
|
$ |
240,495 |
|
|
$ |
267,054 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after waivers |
|
|
0.75 |
%(d)(e) |
|
|
0.71 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.76 |
% |
Expenses, prior to waivers |
|
|
0.75 |
%(d)(e) |
|
|
0.71 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.76 |
% |
Net investment income, after waivers |
|
|
0.44 |
%(e) |
|
|
0.60 |
% |
|
|
0.30 |
% |
|
|
0.87 |
% |
|
|
0.59 |
% |
|
|
0.36 |
% |
Portfolio turnover rate(f) |
|
|
65 |
% |
|
|
82 |
% |
|
|
90 |
% |
|
|
118 |
% |
|
|
95 |
% |
|
|
114 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(f) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 100 Equal Weight ETF (EQWL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
52.38 |
|
|
$ |
46.71 |
|
|
$ |
39.77 |
|
|
$ |
40.24 |
|
|
$ |
37.06 |
|
Net investment income(a) |
|
|
1.14 |
|
|
|
0.88 |
|
|
|
0.74 |
|
|
|
0.78 |
|
|
|
0.75 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
4.52 |
|
|
|
5.63 |
|
|
|
6.95 |
|
|
|
(0.48 |
) |
|
|
3.14 |
|
Total from investment operations |
|
|
5.66 |
|
|
|
6.51 |
|
|
|
7.69 |
|
|
|
0.30 |
|
|
|
3.89 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.14 |
) |
|
|
(0.84 |
) |
|
|
(0.75 |
) |
|
|
(0.77 |
) |
|
|
(0.71 |
) |
Net asset value at end of year |
|
$ |
56.90 |
|
|
$ |
52.38 |
|
|
$ |
46.71 |
|
|
$ |
39.77 |
|
|
$ |
40.24 |
|
Market price at end of year(b) |
|
$ |
56.91 |
|
|
$ |
52.42 |
|
|
$ |
46.75 |
|
|
$ |
39.73 |
|
|
$ |
40.21 |
|
Net Asset Value Total Return(c) |
|
|
11.04 |
% |
|
|
14.02 |
% |
|
|
19.58 |
% |
|
|
0.81 |
% |
|
|
10.52 |
% |
Market Price Total Return(c) |
|
|
10.98 |
% |
|
|
14.01 |
% |
|
|
19.80 |
% |
|
|
0.78 |
% |
|
|
10.38 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
59,749 |
|
|
$ |
60,232 |
|
|
$ |
39,703 |
|
|
$ |
33,805 |
|
|
$ |
42,249 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.41 |
% |
|
|
0.47 |
% |
|
|
0.54 |
% |
|
|
0.54 |
% |
|
|
0.57 |
% |
Net investment income, after Waivers |
|
|
2.13 |
% |
|
|
1.74 |
% |
|
|
1.74 |
% |
|
|
1.99 |
% |
|
|
1.92 |
% |
Portfolio turnover rate(d) |
|
|
24 |
% |
|
|
32 |
% |
|
|
27 |
% |
|
|
101 |
% |
|
|
3 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P 500 BuyWrite ETF (PBP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
21.29 |
|
|
$ |
22.21 |
|
|
$ |
20.33 |
|
|
$ |
21.22 |
|
|
$ |
21.32 |
|
Net investment income(a) |
|
|
0.32 |
|
|
|
0.28 |
|
|
|
0.29 |
|
|
|
0.30 |
|
|
|
0.28 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.32 |
|
|
|
1.16 |
|
|
|
2.10 |
|
|
|
(0.11 |
) |
|
|
0.65 |
|
Total from investment operations |
|
|
0.64 |
|
|
|
1.44 |
|
|
|
2.39 |
|
|
|
0.19 |
|
|
|
0.93 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.31 |
) |
|
|
(1.09 |
) |
|
|
(0.33 |
) |
|
|
(0.34 |
) |
|
|
(0.86 |
) |
Net realized gains |
|
|
(0.23 |
) |
|
|
(1.27 |
) |
|
|
(0.18 |
) |
|
|
(0.74 |
) |
|
|
(0.17 |
) |
Total distributions |
|
|
(0.54 |
) |
|
|
(2.36 |
) |
|
|
(0.51 |
) |
|
|
(1.08 |
) |
|
|
(1.03 |
) |
Net asset value at end of year |
|
$ |
21.39 |
|
|
$ |
21.29 |
|
|
$ |
22.21 |
|
|
$ |
20.33 |
|
|
$ |
21.22 |
|
Market price at end of year(b) |
|
$ |
21.39 |
|
|
$ |
21.33 |
|
|
$ |
22.23 |
|
|
$ |
20.29 |
|
|
$ |
21.22 |
|
Net Asset Value Total Return(c) |
|
|
3.16 |
% |
|
|
6.59 |
% |
|
|
11.86 |
% |
|
|
0.90 |
% |
|
|
4.48 |
% |
Market Price Total Return(c) |
|
|
2.97 |
% |
|
|
6.68 |
% |
|
|
12.18 |
% |
|
|
0.67 |
% |
|
|
4.32 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
320,778 |
|
|
$ |
302,296 |
|
|
$ |
327,596 |
|
|
$ |
297,895 |
|
|
$ |
404,270 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.53 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
Net investment income |
|
|
1.47 |
% |
|
|
1.25 |
% |
|
|
1.37 |
% |
|
|
1.47 |
% |
|
|
1.33 |
% |
Portfolio turnover rate(d) |
|
|
15 |
% |
|
|
16 |
% |
|
|
24 |
% |
|
|
43 |
% |
|
|
50 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight ETF (RSP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
99.87 |
|
|
$ |
96.58 |
|
|
$ |
81.57 |
|
|
$ |
78.71 |
|
|
$ |
78.08 |
|
|
$ |
67.94 |
|
Net investment income(a) |
|
|
1.78 |
|
|
|
0.85 |
|
|
|
1.39 |
|
|
|
1.31 |
|
|
|
1.22 |
|
|
|
1.09 |
|
Net realized and unrealized gain on
investments |
|
|
8.45 |
|
|
|
3.33 |
|
|
|
14.85 |
|
|
|
2.78 |
|
|
|
0.71 |
|
|
|
10.13 |
|
Total from investment operations |
|
|
10.23 |
|
|
|
4.18 |
|
|
|
16.24 |
|
|
|
4.09 |
|
|
|
1.93 |
|
|
|
11.22 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.90 |
) |
|
|
(0.89 |
) |
|
|
(1.23 |
) |
|
|
(1.23 |
) |
|
|
(1.30 |
) |
|
|
(1.08 |
) |
Net asset value at end of period |
|
$ |
108.20 |
|
|
$ |
99.87 |
|
|
$ |
96.58 |
|
|
$ |
81.57 |
|
|
$ |
78.71 |
|
|
$ |
78.08 |
|
Market price at end of period(b) |
|
$ |
108.22 |
|
|
$ |
99.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
10.45 |
% |
|
|
4.30 |
% |
|
|
19.98 |
% |
|
|
5.24 |
% |
|
|
2.49 |
% |
|
|
16.60 |
% |
Market Price Total Return(c) |
|
|
10.43 |
% |
|
|
4.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
16,143,961 |
|
|
$ |
14,616,057 |
|
|
$ |
14,226,625 |
|
|
$ |
9,959,671 |
|
|
$ |
9,799,542 |
|
|
$ |
8,976,197 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.20 |
% |
|
|
0.20 |
%(d) |
|
|
0.33 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Expenses, prior to Waivers |
|
|
0.20 |
% |
|
|
0.20 |
%(d) |
|
|
0.36 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income, after Waivers |
|
|
1.74 |
% |
|
|
1.69 |
%(d) |
|
|
1.52 |
% |
|
|
1.66 |
% |
|
|
1.53 |
% |
|
|
1.48 |
% |
Portfolio turnover rate(e) |
|
|
19 |
% |
|
|
9 |
% |
|
|
21 |
% |
|
|
22 |
% |
|
|
22 |
% |
|
|
18 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Communication
Services ETF (EWCO)
|
|
|
|
|
|
|
|
|
For the Period November 5,
2018(a) Through April 30, 2019 |
|
Per Share Operating Performance: |
|
|
|
|
Net asset value at beginning of period |
|
$ |
25.00 |
|
Net investment income(b) |
|
|
0.16 |
|
Net realized and unrealized gain on
investments |
|
|
0.33 |
|
Total from investment operations |
|
|
0.49 |
|
Distributions to shareholders
from: |
|
|
|
|
Net investment income |
|
|
(0.10 |
) |
Net asset value at end of period |
|
$ |
25.39 |
|
Market price at end of period(c) |
|
$ |
25.41 |
|
Net Asset Value Total Return(d) |
|
|
2.04 |
%(e) |
Market Price Total Return(d) |
|
|
2.12 |
%(e) |
Ratios/Supplemental Data: |
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
22,851 |
|
Ratio to average net assets of: |
|
|
|
|
Expenses |
|
|
0.40 |
%(f) |
Net investment income |
|
|
1.42 |
%(f) |
Portfolio turnover rate(g) |
|
|
10 |
% |
(a) |
Commencement of investment operations.
|
(b) |
Based on average shares outstanding.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
The net asset value total return from Fund
Inception (November 7, 2018, the first day of trading on the exchange) to
April 30, 2019 was 0.08%. The market price total return from Fund
Inception to April 30, 2019 was 0.04%.
|
(g) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Consumer
Discretionary ETF (RCD)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
99.15 |
|
|
$ |
91.21 |
|
|
$ |
85.40 |
|
|
$ |
90.26 |
|
|
$ |
82.76 |
|
|
$ |
76.06 |
|
Net investment income(a) |
|
|
1.49 |
|
|
|
0.68 |
|
|
|
1.27 |
|
|
|
1.29 |
|
|
|
1.15 |
|
|
|
0.95 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
8.80 |
|
|
|
7.98 |
|
|
|
5.84 |
|
|
|
(4.96 |
) |
|
|
7.39 |
|
|
|
6.67 |
|
Total from investment operations |
|
|
10.29 |
|
|
|
8.66 |
|
|
|
7.11 |
|
|
|
(3.67 |
) |
|
|
8.54 |
|
|
|
7.62 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.59 |
) |
|
|
(0.72 |
) |
|
|
(1.30 |
) |
|
|
(1.19 |
) |
|
|
(1.04 |
) |
|
|
(0.92 |
) |
Net asset value at end of period |
|
$ |
107.85 |
|
|
$ |
99.15 |
|
|
$ |
91.21 |
|
|
$ |
85.40 |
|
|
$ |
90.26 |
|
|
$ |
82.76 |
|
Market price at end of period(b) |
|
$ |
107.86 |
|
|
$ |
99.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
10.58 |
% |
|
|
9.49 |
% |
|
|
8.32 |
% |
|
|
(4.07 |
)% |
|
|
10.35 |
% |
|
|
10.07 |
% |
Market Price Total Return(c) |
|
|
10.61 |
% |
|
|
9.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
113,239 |
|
|
$ |
84,279 |
|
|
$ |
72,965 |
|
|
$ |
68,323 |
|
|
$ |
176,001 |
|
|
$ |
86,897 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
1.45 |
% |
|
|
1.38 |
%(d) |
|
|
1.39 |
% |
|
|
1.49 |
% |
|
|
1.29 |
% |
|
|
1.20 |
% |
Portfolio turnover rate(e) |
|
|
30 |
% |
|
|
13 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
23 |
% |
|
|
22 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Consumer
Staples ETF (RHS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
122.87 |
|
|
$ |
121.67 |
|
|
$ |
121.52 |
|
|
$ |
111.76 |
|
|
$ |
100.75 |
|
|
$ |
88.48 |
|
Net investment income(a) |
|
|
2.87 |
|
|
|
1.32 |
|
|
|
2.30 |
|
|
|
2.19 |
|
|
|
2.08 |
|
|
|
2.04 |
|
Net realized and unrealized gain on
investments |
|
|
12.30 |
|
|
|
1.14 |
|
|
|
0.13 |
|
|
|
9.69 |
|
|
|
10.86 |
|
|
|
12.03 |
|
Total from investment operations |
|
|
15.17 |
|
|
|
2.46 |
|
|
|
2.43 |
|
|
|
11.88 |
|
|
|
12.94 |
|
|
|
14.07 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(3.09 |
) |
|
|
(1.26 |
) |
|
|
(2.28 |
) |
|
|
(2.12 |
) |
|
|
(1.93 |
) |
|
|
(1.80 |
) |
Net asset value at end of period |
|
$ |
134.95 |
|
|
$ |
122.87 |
|
|
$ |
121.67 |
|
|
$ |
121.52 |
|
|
$ |
111.76 |
|
|
$ |
100.75 |
|
Market price at end of period(b) |
|
$ |
134.97 |
|
|
$ |
122.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
12.63 |
% |
|
|
1.96 |
% |
|
|
1.99 |
% |
|
|
10.63 |
% |
|
|
12.95 |
% |
|
|
16.04 |
% |
Market Price Total Return(c) |
|
|
12.67 |
% |
|
|
1.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
431,837 |
|
|
$ |
417,753 |
|
|
$ |
444,092 |
|
|
$ |
613,661 |
|
|
$ |
530,872 |
|
|
$ |
186,382 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
2.27 |
% |
|
|
2.06 |
%(d) |
|
|
1.86 |
% |
|
|
1.81 |
% |
|
|
1.94 |
% |
|
|
2.18 |
% |
Portfolio turnover rate(e) |
|
|
19 |
% |
|
|
9 |
% |
|
|
20 |
% |
|
|
17 |
% |
|
|
16 |
% |
|
|
20 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Energy ETF
(RYE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
60.29 |
|
|
$ |
54.29 |
|
|
$ |
56.90 |
|
|
$ |
54.39 |
|
|
$ |
77.16 |
|
|
$ |
79.86 |
|
Net investment income(a) |
|
|
0.82 |
|
|
|
0.47 |
|
|
|
1.28 |
|
|
|
0.90 |
|
|
|
1.35 |
|
|
|
1.40 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(8.34 |
) |
|
|
5.98 |
|
|
|
(2.50 |
) |
|
|
2.53 |
|
|
|
(22.73 |
) |
|
|
(2.91 |
) |
Total from investment operations |
|
|
(7.52 |
) |
|
|
6.45 |
|
|
|
(1.22 |
) |
|
|
3.43 |
|
|
|
(21.38 |
) |
|
|
(1.51 |
) |
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.96 |
) |
|
|
(0.45 |
) |
|
|
(1.39 |
) |
|
|
(0.92 |
) |
|
|
(1.39 |
) |
|
|
(1.19 |
) |
Net asset value at end of period |
|
$ |
51.81 |
|
|
$ |
60.29 |
|
|
$ |
54.29 |
|
|
$ |
56.90 |
|
|
$ |
54.39 |
|
|
$ |
77.16 |
|
Market price at end of period(b) |
|
$ |
51.82 |
|
|
$ |
60.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
(12.46 |
)% |
|
|
11.97 |
% |
|
|
(2.20 |
)% |
|
|
6.50 |
% |
|
|
(27.93 |
)% |
|
|
(2.02 |
)% |
Market Price Total Return(c) |
|
|
(12.65 |
)% |
|
|
12.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
209,823 |
|
|
$ |
253,202 |
|
|
$ |
230,747 |
|
|
$ |
199,164 |
|
|
$ |
176,773 |
|
|
$ |
100,307 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
1.46 |
% |
|
|
1.69 |
%(d) |
|
|
2.22 |
% |
|
|
1.72 |
% |
|
|
2.16 |
% |
|
|
1.64 |
% |
Portfolio turnover rate(e) |
|
|
31 |
% |
|
|
10 |
% |
|
|
34 |
% |
|
|
41 |
% |
|
|
34 |
% |
|
|
25 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight
Financials ETF (RYF)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
43.94 |
|
|
$ |
41.93 |
|
|
$ |
31.41 |
|
|
$ |
43.72 |
|
|
$ |
43.27 |
|
|
$ |
37.64 |
|
Net investment income(a) |
|
|
0.78 |
|
|
|
0.40 |
|
|
|
0.55 |
|
|
|
0.81 |
|
|
|
0.72 |
|
|
|
0.53 |
|
Net realized and unrealized gain on
investments |
|
|
— |
|
|
|
1.91 |
|
|
|
10.45 |
|
|
|
1.03 |
|
|
|
0.58 |
|
|
|
5.76 |
|
Total from investment operations |
|
|
0.78 |
|
|
|
2.31 |
|
|
|
11.00 |
|
|
|
1.84 |
|
|
|
1.30 |
|
|
|
6.29 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.94 |
) |
|
|
(0.30 |
) |
|
|
(0.48 |
) |
|
|
(0.78 |
) |
|
|
(0.80 |
) |
|
|
(0.66 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13.37 |
)(b) |
|
|
(0.05 |
) |
|
|
— |
|
Total distributions |
|
|
(0.94 |
) |
|
|
(0.30 |
) |
|
|
(0.48 |
) |
|
|
(14.15 |
) |
|
|
(0.85 |
) |
|
|
(0.66 |
) |
Net asset value at end of period |
|
$ |
43.78 |
|
|
$ |
43.94 |
|
|
$ |
41.93 |
|
|
$ |
31.41 |
|
|
$ |
43.72 |
|
|
$ |
43.27 |
|
Market price at end of period(c) |
|
$ |
43.79 |
|
|
$ |
43.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(d) |
|
|
1.98 |
% |
|
|
5.50 |
% |
|
|
35.15 |
% |
|
|
4.33 |
% |
|
|
3.04 |
% |
|
|
16.84 |
% |
Market Price Total Return(d) |
|
|
1.91 |
% |
|
|
5.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
291,145 |
|
|
$ |
441,558 |
|
|
$ |
358,496 |
|
|
$ |
114,649 |
|
|
$ |
183,620 |
|
|
$ |
136,316 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(e) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
1.86 |
% |
|
|
1.81 |
%(e) |
|
|
1.44 |
% |
|
|
1.96 |
% |
|
|
1.64 |
% |
|
|
1.30 |
% |
Portfolio turnover rate(f) |
|
|
17 |
% |
|
|
7 |
% |
|
|
15 |
% |
|
|
53 |
% |
|
|
13 |
% |
|
|
19 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
Special distribution.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(f) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Health Care ETF
(RYH)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
178.78 |
|
|
$ |
175.84 |
|
|
$ |
143.79 |
|
|
$ |
149.97 |
|
|
$ |
137.44 |
|
|
$ |
104.50 |
|
Net investment income(a) |
|
|
1.05 |
|
|
|
0.44 |
|
|
|
0.78 |
|
|
|
0.78 |
|
|
|
0.75 |
|
|
|
0.66 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
14.87 |
|
|
|
2.93 |
|
|
|
32.02 |
|
|
|
(6.22 |
) |
|
|
12.46 |
|
|
|
32.89 |
|
Total from investment operations |
|
|
15.92 |
|
|
|
3.37 |
|
|
|
32.80 |
|
|
|
(5.44 |
) |
|
|
13.21 |
|
|
|
33.55 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.04 |
) |
|
|
(0.43 |
) |
|
|
(0.75 |
) |
|
|
(0.74 |
) |
|
|
(0.68 |
) |
|
|
(0.61 |
) |
Net asset value at end of period |
|
$ |
193.66 |
|
|
$ |
178.78 |
|
|
$ |
175.84 |
|
|
$ |
143.79 |
|
|
$ |
149.97 |
|
|
$ |
137.44 |
|
Market price at end of period(b) |
|
$ |
193.67 |
|
|
$ |
178.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
8.91 |
% |
|
|
1.92 |
% |
|
|
22.85 |
% |
|
|
(3.65 |
)% |
|
|
9.61 |
% |
|
|
32.20 |
% |
Market Price Total Return(c) |
|
|
8.82 |
% |
|
|
2.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
706,845 |
|
|
$ |
598,911 |
|
|
$ |
650,617 |
|
|
$ |
474,494 |
|
|
$ |
569,893 |
|
|
$ |
391,714 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
0.55 |
% |
|
|
0.49 |
%(d) |
|
|
0.48 |
% |
|
|
0.52 |
% |
|
|
0.49 |
% |
|
|
0.55 |
% |
Portfolio turnover rate(e) |
|
|
23 |
% |
|
|
12 |
% |
|
|
24 |
% |
|
|
28 |
% |
|
|
22 |
% |
|
|
23 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Industrials ETF
(RGI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
115.01 |
|
|
$ |
113.29 |
|
|
$ |
90.92 |
|
|
$ |
85.30 |
|
|
$ |
88.18 |
|
|
$ |
76.33 |
|
Net investment income(a) |
|
|
1.53 |
|
|
|
0.62 |
|
|
|
1.24 |
|
|
|
1.40 |
|
|
|
1.13 |
|
|
|
1.22 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
11.15 |
|
|
|
1.73 |
|
|
|
22.50 |
|
|
|
5.57 |
|
|
|
(2.69 |
) |
|
|
11.59 |
|
Total from investment operations |
|
|
12.68 |
|
|
|
2.35 |
|
|
|
23.74 |
|
|
|
6.97 |
|
|
|
(1.56 |
) |
|
|
12.81 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.66 |
) |
|
|
(0.63 |
) |
|
|
(1.37 |
) |
|
|
(1.35 |
) |
|
|
(1.29 |
) |
|
|
(0.96 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Total distributions |
|
|
(1.66 |
) |
|
|
(0.63 |
) |
|
|
(1.37 |
) |
|
|
(1.35 |
) |
|
|
(1.32 |
) |
|
|
(0.96 |
) |
Net asset value at end of period |
|
$ |
126.03 |
|
|
$ |
115.01 |
|
|
$ |
113.29 |
|
|
$ |
90.92 |
|
|
$ |
85.30 |
|
|
$ |
88.18 |
|
Market price at end of period(b) |
|
$ |
126.01 |
|
|
$ |
115.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
11.21 |
% |
|
|
2.05 |
% |
|
|
26.21 |
% |
|
|
8.25 |
% |
|
|
(1.78 |
)% |
|
|
16.85 |
% |
Market Price Total Return(c) |
|
|
11.17 |
% |
|
|
2.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
245,750 |
|
|
$ |
281,763 |
|
|
$ |
226,584 |
|
|
$ |
127,288 |
|
|
$ |
93,831 |
|
|
$ |
123,447 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
1.29 |
% |
|
|
1.05 |
%(d) |
|
|
1.18 |
% |
|
|
1.60 |
% |
|
|
1.29 |
% |
|
|
1.47 |
% |
Portfolio turnover rate(e) |
|
|
28 |
% |
|
|
7 |
% |
|
|
18 |
% |
|
|
23 |
% |
|
|
22 |
% |
|
|
15 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Materials ETF
(RTM)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
106.31 |
|
|
$ |
107.79 |
|
|
$ |
84.46 |
|
|
$ |
79.97 |
|
|
$ |
82.38 |
|
|
$ |
75.49 |
|
Net investment income(a) |
|
|
1.79 |
|
|
|
0.70 |
|
|
|
1.49 |
|
|
|
1.29 |
|
|
|
1.23 |
|
|
|
1.21 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.97 |
|
|
|
(1.50 |
) |
|
|
23.28 |
|
|
|
4.49 |
|
|
|
(2.41 |
) |
|
|
6.85 |
|
Total from investment operations |
|
|
3.76 |
|
|
|
(0.80 |
) |
|
|
24.77 |
|
|
|
5.78 |
|
|
|
(1.18 |
) |
|
|
8.06 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.96 |
) |
|
|
(0.68 |
) |
|
|
(1.44 |
) |
|
|
(1.29 |
) |
|
|
(1.23 |
) |
|
|
(1.17 |
) |
Net asset value at end of period |
|
$ |
108.11 |
|
|
$ |
106.31 |
|
|
$ |
107.79 |
|
|
$ |
84.46 |
|
|
$ |
79.97 |
|
|
$ |
82.38 |
|
Market price at end of period(b) |
|
$ |
108.16 |
|
|
$ |
106.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
3.67 |
% |
|
|
(0.77 |
)% |
|
|
29.52 |
% |
|
|
7.29 |
% |
|
|
(1.44 |
)% |
|
|
10.68 |
% |
Market Price Total Return(c) |
|
|
3.70 |
% |
|
|
(0.91 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
129,728 |
|
|
$ |
180,726 |
|
|
$ |
194,020 |
|
|
$ |
84,463 |
|
|
$ |
55,982 |
|
|
$ |
74,138 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
1.69 |
% |
|
|
1.28 |
%(d) |
|
|
1.54 |
% |
|
|
1.57 |
% |
|
|
1.46 |
% |
|
|
1.48 |
% |
Portfolio turnover rate(e) |
|
|
23 |
% |
|
|
6 |
% |
|
|
22 |
% |
|
|
25 |
% |
|
|
27 |
% |
|
|
22 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Real Estate ETF
(EWRE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended October 31, |
|
|
For the Period August 13,
2015(a) Through October 31, 2015 |
|
|
|
2017 |
|
|
2016 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
25.96 |
|
|
$ |
27.29 |
|
|
$ |
25.81 |
|
|
$ |
25.63 |
|
|
$ |
25.31 |
|
Net investment income(b) |
|
|
0.69 |
|
|
|
0.44 |
|
|
|
0.54 |
|
|
|
0.70 |
|
|
|
0.13 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
3.97 |
|
|
|
(1.20 |
) |
|
|
1.59 |
|
|
|
(0.08 |
) |
|
|
0.27 |
|
Total from investment operations |
|
|
4.66 |
|
|
|
(0.76 |
) |
|
|
2.13 |
|
|
|
0.62 |
|
|
|
0.40 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.85 |
) |
|
|
(0.35 |
) |
|
|
(0.65 |
) |
|
|
(0.44 |
) |
|
|
(0.08 |
) |
Net realized gains |
|
|
(0.06 |
) |
|
|
(0.22 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions |
|
|
(0.91 |
) |
|
|
(0.57 |
) |
|
|
(0.65 |
) |
|
|
(0.44 |
) |
|
|
(0.08 |
) |
Net asset value at end of period |
|
$ |
29.71 |
|
|
$ |
25.96 |
|
|
$ |
27.29 |
|
|
$ |
25.81 |
|
|
$ |
25.63 |
|
Market price at end of period(c) |
|
$ |
29.75 |
|
|
$ |
25.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(d) |
|
|
18.35 |
% |
|
|
(2.93 |
)% |
|
|
8.33 |
% |
|
|
2.39 |
% |
|
|
1.61 |
% |
Market Price Total Return(d) |
|
|
18.51 |
% |
|
|
(2.35 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
37,143 |
|
|
$ |
16,873 |
|
|
$ |
24,561 |
|
|
$ |
36,135 |
|
|
$ |
2,563 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.41 |
%(e) |
|
|
0.41 |
% |
|
|
0.37 |
% |
|
|
0.40 |
%(e) |
Net investment income |
|
|
2.46 |
% |
|
|
3.28 |
%(e) |
|
|
2.00 |
% |
|
|
2.70 |
% |
|
|
2.49 |
%(e) |
Portfolio turnover rate(f) |
|
|
14 |
% |
|
|
2 |
% |
|
|
24 |
% |
|
|
10 |
% |
|
|
5 |
% |
(a) |
Commencement of investment operations.
|
(b) |
Based on average shares outstanding.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(f) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Technology ETF
(RYT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
150.94 |
|
|
$ |
142.44 |
|
|
$ |
104.67 |
|
|
$ |
93.16 |
|
|
$ |
87.17 |
|
|
$ |
70.98 |
|
Net investment income(a) |
|
|
1.57 |
|
|
|
0.56 |
|
|
|
1.16 |
|
|
|
1.47 |
|
|
|
1.09 |
|
|
|
0.78 |
|
Net realized and unrealized gain on
investments |
|
|
29.78 |
|
|
|
8.56 |
|
|
|
37.61 |
|
|
|
11.48 |
|
|
|
6.09 |
|
|
|
16.15 |
|
Total from investment operations |
|
|
31.35 |
|
|
|
9.12 |
|
|
|
38.77 |
|
|
|
12.95 |
|
|
|
7.18 |
|
|
|
16.93 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.60 |
) |
|
|
(0.62 |
) |
|
|
(1.00 |
) |
|
|
(1.44 |
) |
|
|
(1.12 |
) |
|
|
(0.74 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.07 |
) |
|
|
— |
|
Total distributions |
|
|
(1.60 |
) |
|
|
(0.62 |
) |
|
|
(1.00 |
) |
|
|
(1.44 |
) |
|
|
(1.19 |
) |
|
|
(0.74 |
) |
Net asset value at end of period |
|
$ |
180.69 |
|
|
$ |
150.94 |
|
|
$ |
142.44 |
|
|
$ |
104.67 |
|
|
$ |
93.16 |
|
|
$ |
87.17 |
|
Market price at end of period(b) |
|
$ |
180.66 |
|
|
$ |
151.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
20.92 |
% |
|
|
6.40 |
% |
|
|
37.19 |
% |
|
|
14.06 |
% |
|
|
8.30 |
% |
|
|
23.92 |
% |
Market Price Total Return(c) |
|
|
20.77 |
% |
|
|
6.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
1,788,846 |
|
|
$ |
1,615,066 |
|
|
$ |
1,509,833 |
|
|
$ |
915,879 |
|
|
$ |
740,629 |
|
|
$ |
671,221 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
0.98 |
% |
|
|
0.76 |
%(d) |
|
|
0.95 |
% |
|
|
1.55 |
% |
|
|
1.20 |
% |
|
|
0.97 |
% |
Portfolio turnover rate(e) |
|
|
27 |
% |
|
|
10 |
% |
|
|
19 |
% |
|
|
24 |
% |
|
|
21 |
% |
|
|
22 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Equal Weight Utilities ETF
(RYU)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April
30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
84.51 |
|
|
$ |
88.52 |
|
|
$ |
81.10 |
|
|
$ |
73.29 |
|
|
$ |
76.69 |
|
|
$ |
64.67 |
|
Net investment income(a) |
|
|
2.67 |
|
|
|
1.38 |
|
|
|
2.54 |
|
|
|
2.49 |
|
|
|
2.48 |
|
|
|
2.59 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
12.69 |
|
|
|
(3.92 |
) |
|
|
7.44 |
|
|
|
7.81 |
|
|
|
(2.97 |
) |
|
|
11.75 |
|
Total from investment operations |
|
|
15.36 |
|
|
|
(2.54 |
) |
|
|
9.98 |
|
|
|
10.30 |
|
|
|
(0.49 |
) |
|
|
14.34 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(2.62 |
) |
|
|
(1.47 |
) |
|
|
(2.56 |
) |
|
|
(2.49 |
) |
|
|
(2.91 |
) |
|
|
(2.32 |
) |
Net asset value at end of period |
|
$ |
97.25 |
|
|
$ |
84.51 |
|
|
$ |
88.52 |
|
|
$ |
81.10 |
|
|
$ |
73.29 |
|
|
$ |
76.69 |
|
Market price at end of period(b) |
|
$ |
97.23 |
|
|
$ |
84.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
18.54 |
% |
|
|
(2.88 |
)% |
|
|
12.51 |
% |
|
|
14.13 |
% |
|
|
(0.56 |
)% |
|
|
22.61 |
% |
Market Price Total Return(c) |
|
|
18.60 |
% |
|
|
(2.92 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
335,499 |
|
|
$ |
139,434 |
|
|
$ |
168,180 |
|
|
$ |
210,865 |
|
|
$ |
128,258 |
|
|
$ |
141,875 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
Net investment income |
|
|
2.96 |
% |
|
|
3.29 |
%(d) |
|
|
3.01 |
% |
|
|
3.09 |
% |
|
|
3.30 |
% |
|
|
3.72 |
% |
Portfolio turnover rate(e) |
|
|
27 |
% |
|
|
7 |
% |
|
|
11 |
% |
|
|
22 |
% |
|
|
20 |
% |
|
|
31 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500 GARP ETF (SPGP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
47.90 |
|
|
$ |
38.49 |
|
|
$ |
32.92 |
|
|
$ |
33.84 |
|
|
$ |
29.53 |
|
Net investment income(a) |
|
|
0.47 |
|
|
|
0.35 |
|
|
|
0.29 |
|
|
|
0.28 |
|
|
|
0.55 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
7.29 |
|
|
|
9.38 |
|
|
|
5.61 |
|
|
|
(0.91 |
) |
|
|
4.29 |
|
Total from investment operations |
|
|
7.76 |
|
|
|
9.73 |
|
|
|
5.90 |
|
|
|
(0.63 |
) |
|
|
4.84 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.46 |
) |
|
|
(0.32 |
) |
|
|
(0.33 |
) |
|
|
(0.29 |
) |
|
|
(0.53 |
) |
Net asset value at end of year |
|
$ |
55.20 |
|
|
$ |
47.90 |
|
|
$ |
38.49 |
|
|
$ |
32.92 |
|
|
$ |
33.84 |
|
Market price at end of year(b) |
|
$ |
55.18 |
|
|
$ |
47.94 |
|
|
$ |
38.50 |
|
|
$ |
32.92 |
|
|
$ |
33.82 |
|
Net Asset Value Total Return(c) |
|
|
16.35 |
% |
|
|
25.36 |
% |
|
|
18.06 |
% |
|
|
(1.89 |
)% |
|
|
16.49 |
% |
Market Price Total Return(c) |
|
|
16.20 |
% |
|
|
25.44 |
% |
|
|
18.09 |
% |
|
|
(1.83 |
)% |
|
|
16.46 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
229,088 |
|
|
$ |
208,355 |
|
|
$ |
146,256 |
|
|
$ |
151,415 |
|
|
$ |
145,502 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.36 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.36 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.43 |
% |
Net investment income, after Waivers |
|
|
0.92 |
% |
|
|
0.80 |
% |
|
|
0.84 |
% |
|
|
0.85 |
% |
|
|
1.73 |
% |
Portfolio turnover rate(d) |
|
|
17 |
% |
|
|
19 |
% |
|
|
30 |
% |
|
|
105 |
% |
|
|
2 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P 500® Pure Growth ETF (RPG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
109.10 |
|
|
$ |
103.50 |
|
|
$ |
82.11 |
|
|
$ |
82.93 |
|
|
$ |
78.96 |
|
|
$ |
66.12 |
|
Net investment income(a) |
|
|
0.60 |
|
|
|
0.25 |
|
|
|
0.47 |
|
|
|
0.59 |
|
|
|
0.52 |
|
|
|
0.55 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
10.04 |
|
|
|
5.55 |
|
|
|
21.52 |
|
|
|
(0.95 |
) |
|
|
3.93 |
|
|
|
12.81 |
|
Total from investment operations |
|
|
10.64 |
|
|
|
5.80 |
|
|
|
21.99 |
|
|
|
(0.36 |
) |
|
|
4.45 |
|
|
|
13.36 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.57 |
) |
|
|
(0.20 |
) |
|
|
(0.60 |
) |
|
|
(0.46 |
) |
|
|
(0.48 |
) |
|
|
(0.52 |
) |
Net asset value at end of period |
|
$ |
119.17 |
|
|
$ |
109.10 |
|
|
$ |
103.50 |
|
|
$ |
82.11 |
|
|
$ |
82.93 |
|
|
$ |
78.96 |
|
Market price at end of period(b) |
|
$ |
119.19 |
|
|
$ |
109.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
9.79 |
% |
|
|
5.61 |
% |
|
|
26.87 |
% |
|
|
(0.42 |
)% |
|
|
5.65 |
% |
|
|
20.24 |
% |
Market Price Total Return(c) |
|
|
9.71 |
% |
|
|
5.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
2,842,159 |
|
|
$ |
2,345,747 |
|
|
$ |
2,214,956 |
|
|
$ |
1,769,585 |
|
|
$ |
2,338,586 |
|
|
$ |
1,792,516 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.35 |
% |
|
|
0.35 |
%(d) |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
Net investment income |
|
|
0.53 |
% |
|
|
0.47 |
%(d) |
|
|
0.52 |
% |
|
|
0.74 |
% |
|
|
0.64 |
% |
|
|
0.74 |
% |
Portfolio turnover rate(e) |
|
|
64 |
% |
|
|
52 |
% |
|
|
58 |
% |
|
|
67 |
% |
|
|
62 |
% |
|
|
46 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Pure Value ETF (RPV)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
66.33 |
|
|
$ |
62.43 |
|
|
$ |
52.33 |
|
|
$ |
51.45 |
|
|
$ |
54.14 |
|
|
$ |
46.51 |
|
Net investment income(a) |
|
|
1.49 |
|
|
|
0.63 |
|
|
|
1.11 |
|
|
|
1.17 |
|
|
|
1.12 |
|
|
|
0.90 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(0.01 |
) |
|
|
3.84 |
|
|
|
10.05 |
|
|
|
0.81 |
|
|
|
(2.70 |
) |
|
|
7.50 |
|
Total from investment operations |
|
|
1.48 |
|
|
|
4.47 |
|
|
|
11.16 |
|
|
|
1.98 |
|
|
|
(1.58 |
) |
|
|
8.40 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.47 |
) |
|
|
(0.57 |
) |
|
|
(1.06 |
) |
|
|
(1.10 |
) |
|
|
(1.11 |
) |
|
|
(0.77 |
) |
Net asset value at end of period |
|
$ |
66.34 |
|
|
$ |
66.33 |
|
|
$ |
62.43 |
|
|
$ |
52.33 |
|
|
$ |
51.45 |
|
|
$ |
54.14 |
|
Market price at end of period(b) |
|
$ |
66.36 |
|
|
$ |
66.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
2.37 |
% |
|
|
7.17 |
% |
|
|
21.44 |
% |
|
|
3.94 |
% |
|
|
(2.94 |
)% |
|
|
18.13 |
% |
Market Price Total Return(c) |
|
|
2.33 |
% |
|
|
7.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
928,883 |
|
|
$ |
882,392 |
|
|
$ |
830,507 |
|
|
$ |
719,663 |
|
|
$ |
813,029 |
|
|
$ |
1,275,062 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.35 |
% |
|
|
0.35 |
%(d) |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
Net investment income |
|
|
2.29 |
% |
|
|
1.94 |
%(d) |
|
|
1.89 |
% |
|
|
2.32 |
% |
|
|
2.09 |
% |
|
|
1.74 |
% |
Portfolio turnover rate(e) |
|
|
37 |
% |
|
|
35 |
% |
|
|
46 |
% |
|
|
44 |
% |
|
|
54 |
% |
|
|
25 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500® Quality ETF (SPHQ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
29.53 |
|
|
$ |
27.62 |
|
|
$ |
24.70 |
|
|
$ |
23.25 |
|
|
$ |
20.90 |
|
Net investment income(a) |
|
|
0.51 |
|
|
|
0.57 |
|
|
|
0.54 |
|
|
|
0.45 |
|
|
|
0.41 |
|
Net realized and unrealized gain on
investments |
|
|
3.75 |
|
|
|
1.89 |
|
|
|
2.84 |
|
|
|
1.46 |
|
|
|
2.33 |
|
Total from investment operations |
|
|
4.26 |
|
|
|
2.46 |
|
|
|
3.38 |
|
|
|
1.91 |
|
|
|
2.74 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.50 |
) |
|
|
(0.55 |
) |
|
|
(0.46 |
) |
|
|
(0.46 |
) |
|
|
(0.39 |
) |
Net asset value at end of year |
|
$ |
33.29 |
|
|
$ |
29.53 |
|
|
$ |
27.62 |
|
|
$ |
24.70 |
|
|
$ |
23.25 |
|
Market price at end of year(b) |
|
$ |
33.30 |
|
|
$ |
29.55 |
|
|
$ |
27.63 |
|
|
$ |
24.70 |
|
|
$ |
23.24 |
|
Net Asset Value Total Return(c) |
|
|
14.63 |
% |
|
|
8.94 |
% |
|
|
13.84 |
% |
|
|
8.39 |
% |
|
|
13.17 |
% |
Market Price Total Return(c) |
|
|
14.59 |
% |
|
|
8.98 |
% |
|
|
13.88 |
% |
|
|
8.43 |
% |
|
|
13.18 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
1,469,785 |
|
|
$ |
1,327,157 |
|
|
$ |
1,222,223 |
|
|
$ |
899,078 |
|
|
$ |
533,537 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.19 |
% |
|
|
0.29 |
% |
|
|
0.29 |
% |
|
|
0.29 |
% |
|
|
0.29 |
% |
Expenses, prior to Waivers |
|
|
0.26 |
% |
|
|
0.37 |
% |
|
|
0.38 |
% |
|
|
0.38 |
% |
|
|
0.38 |
% |
Net investment income, after Waivers |
|
|
1.67 |
% |
|
|
1.95 |
% |
|
|
2.10 |
% |
|
|
1.92 |
% |
|
|
1.83 |
% |
Portfolio turnover rate(d) |
|
|
73 |
% |
|
|
60 |
% |
|
|
49 |
% |
|
|
102 |
% |
|
|
18 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P 500® Top 50 ETF (XLG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
187.22 |
|
|
$ |
183.08 |
|
|
$ |
150.05 |
|
|
$ |
145.93 |
|
|
$ |
140.87 |
|
|
$ |
123.06 |
|
Net investment income(a) |
|
|
3.72 |
|
|
|
1.71 |
|
|
|
3.35 |
|
|
|
3.12 |
|
|
|
3.00 |
|
|
|
2.74 |
|
Net realized and unrealized gain on
investments |
|
|
25.18 |
|
|
|
4.18 |
|
|
|
32.95 |
|
|
|
4.09 |
|
|
|
5.09 |
|
|
|
17.82 |
|
Total from investment operations |
|
|
28.90 |
|
|
|
5.89 |
|
|
|
36.30 |
|
|
|
7.21 |
|
|
|
8.09 |
|
|
|
20.56 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(3.78 |
) |
|
|
(1.75 |
) |
|
|
(3.27 |
) |
|
|
(3.09 |
) |
|
|
(3.03 |
) |
|
|
(2.75 |
) |
Net asset value at end of period |
|
$ |
212.34 |
|
|
$ |
187.22 |
|
|
$ |
183.08 |
|
|
$ |
150.05 |
|
|
$ |
145.93 |
|
|
$ |
140.87 |
|
Market price at end of period(b) |
|
$ |
212.32 |
|
|
$ |
187.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
15.64 |
% |
|
|
3.20 |
% |
|
|
24.40 |
% |
|
|
4.99 |
% |
|
|
5.87 |
% |
|
|
16.86 |
% |
Market Price Total Return(c) |
|
|
15.50 |
% |
|
|
3.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
838,904 |
|
|
$ |
683,491 |
|
|
$ |
686,711 |
|
|
$ |
577,802 |
|
|
$ |
496,264 |
|
|
$ |
598,797 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.20 |
% |
|
|
0.20 |
%(d) |
|
|
0.20 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
Net investment income |
|
|
1.89 |
% |
|
|
1.81 |
%(d) |
|
|
2.00 |
% |
|
|
2.13 |
% |
|
|
2.11 |
% |
|
|
2.08 |
% |
Portfolio turnover rate(e) |
|
|
8 |
% |
|
|
1 |
% |
|
|
4 |
% |
|
|
7 |
% |
|
|
8 |
% |
|
|
6 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P 500 Value with Momentum ETF (SPVM)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
38.01 |
|
|
$ |
35.60 |
|
|
$ |
29.58 |
|
|
$ |
30.63 |
|
|
$ |
29.40 |
|
Net investment income(a) |
|
|
1.03 |
|
|
|
0.93 |
|
|
|
0.73 |
|
|
|
0.80 |
|
|
|
0.72 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
2.06 |
|
|
|
2.28 |
|
|
|
6.13 |
|
|
|
(1.09 |
) |
|
|
1.16 |
|
Total from investment operations |
|
|
3.09 |
|
|
|
3.21 |
|
|
|
6.86 |
|
|
|
(0.29 |
) |
|
|
1.88 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.10 |
) |
|
|
(0.80 |
) |
|
|
(0.84 |
) |
|
|
(0.76 |
) |
|
|
(0.65 |
) |
Net asset value at end of year |
|
$ |
40.00 |
|
|
$ |
38.01 |
|
|
$ |
35.60 |
|
|
$ |
29.58 |
|
|
$ |
30.63 |
|
Market price at end of year(b) |
|
$ |
39.99 |
|
|
$ |
38.03 |
|
|
$ |
35.63 |
|
|
$ |
29.55 |
|
|
$ |
30.62 |
|
Net Asset Value Total Return(c) |
|
|
8.40 |
% |
|
|
9.07 |
% |
|
|
23.47 |
% |
|
|
(0.84 |
)% |
|
|
6.41 |
% |
Market Price Total Return(c) |
|
|
8.31 |
% |
|
|
9.04 |
% |
|
|
23.69 |
% |
|
|
(0.92 |
)% |
|
|
6.41 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
96,009 |
|
|
$ |
104,539 |
|
|
$ |
74,770 |
|
|
$ |
68,029 |
|
|
$ |
41,348 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.41 |
% |
|
|
0.44 |
% |
|
|
0.46 |
% |
|
|
0.55 |
% |
|
|
0.62 |
% |
Net investment income, after Waivers |
|
|
2.70 |
% |
|
|
2.49 |
% |
|
|
2.23 |
% |
|
|
2.78 |
% |
|
|
2.37 |
% |
Portfolio turnover rate(d) |
|
|
32 |
% |
|
|
25 |
% |
|
|
28 |
% |
|
|
77 |
% |
|
|
2 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P MidCap 400® Equal Weight ETF (EWMC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
63.30 |
|
|
$ |
62.00 |
|
|
$ |
51.40 |
|
|
$ |
49.09 |
|
|
$ |
50.39 |
|
|
$ |
45.24 |
|
Net investment income(a) |
|
|
0.77 |
|
|
|
0.42 |
|
|
|
0.60 |
|
|
|
0.66 |
|
|
|
0.62 |
|
|
|
0.62 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
2.96 |
|
|
|
1.30 |
|
|
|
10.59 |
|
|
|
2.30 |
|
|
|
(1.21 |
) |
|
|
5.48 |
|
Total from investment operations |
|
|
3.73 |
|
|
|
1.72 |
|
|
|
11.19 |
|
|
|
2.96 |
|
|
|
(0.59 |
) |
|
|
6.10 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.85 |
) |
|
|
(0.42 |
) |
|
|
(0.59 |
) |
|
|
(0.65 |
) |
|
|
(0.67 |
) |
|
|
(0.59 |
) |
Capital gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.36 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
|
|
— |
|
Total distributions |
|
|
(0.85 |
) |
|
|
(0.42 |
) |
|
|
(0.59 |
) |
|
|
(0.65 |
) |
|
|
(0.71 |
) |
|
|
(0.95 |
) |
Net asset value at end of period |
|
$ |
66.18 |
|
|
$ |
63.30 |
|
|
$ |
62.00 |
|
|
$ |
51.40 |
|
|
$ |
49.09 |
|
|
$ |
50.39 |
|
Market price at end of period(b) |
|
$ |
66.19 |
|
|
$ |
63.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
5.96 |
% |
|
|
2.76 |
% |
|
|
21.82 |
% |
|
|
6.08 |
% |
|
|
(1.19 |
)% |
|
|
13.61 |
% |
Market Price Total Return(c) |
|
|
5.99 |
% |
|
|
2.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
105,893 |
|
|
$ |
104,438 |
|
|
$ |
114,692 |
|
|
$ |
89,944 |
|
|
$ |
132,532 |
|
|
$ |
146,125 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
Net investment income |
|
|
1.19 |
% |
|
|
1.33 |
%(d) |
|
|
1.02 |
% |
|
|
1.35 |
% |
|
|
1.22 |
% |
|
|
1.27 |
% |
Portfolio turnover rate(e) |
|
|
30 |
% |
|
|
9 |
% |
|
|
26 |
% |
|
|
101 |
% |
|
|
31 |
% |
|
|
29 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P MidCap 400® Pure Growth ETF (RFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April
30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
154.65 |
|
|
$ |
150.04 |
|
|
$ |
119.22 |
|
|
$ |
128.31 |
|
|
$ |
123.30 |
|
|
$ |
115.31 |
|
Net investment income(a) |
|
|
1.07 |
|
|
|
0.22 |
|
|
|
0.90 |
|
|
|
0.59 |
|
|
|
0.70 |
|
|
|
0.75 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(2.69 |
) |
|
|
4.77 |
|
|
|
30.73 |
|
|
|
(9.10 |
) |
|
|
5.10 |
|
|
|
7.93 |
|
Total from investment operations |
|
|
(1.62 |
) |
|
|
4.99 |
|
|
|
31.63 |
|
|
|
(8.51 |
) |
|
|
5.80 |
|
|
|
8.68 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.17 |
) |
|
|
(0.38 |
) |
|
|
(0.81 |
) |
|
|
(0.58 |
) |
|
|
(0.71 |
) |
|
|
(0.69 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.08 |
) |
|
|
— |
|
Total distributions |
|
|
(1.17 |
) |
|
|
(0.38 |
) |
|
|
(0.81 |
) |
|
|
(0.58 |
) |
|
|
(0.79 |
) |
|
|
(0.69 |
) |
Net asset value at end of period |
|
$ |
151.86 |
|
|
$ |
154.65 |
|
|
$ |
150.04 |
|
|
$ |
119.22 |
|
|
$ |
128.31 |
|
|
$ |
123.30 |
|
Market price at end of period(b) |
|
$ |
151.97 |
|
|
$ |
154.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
(1.05 |
)% |
|
|
3.32 |
% |
|
|
26.59 |
% |
|
|
(6.65 |
)% |
|
|
4.71 |
% |
|
|
7.53 |
% |
Market Price Total Return(c) |
|
|
(1.07 |
)% |
|
|
3.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
493,563 |
|
|
$ |
595,412 |
|
|
$ |
585,170 |
|
|
$ |
518,620 |
|
|
$ |
769,872 |
|
|
$ |
745,942 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.35 |
% |
|
|
0.35 |
%(d) |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
Net investment income |
|
|
0.69 |
% |
|
|
0.29 |
%(d) |
|
|
0.66 |
% |
|
|
0.48 |
% |
|
|
0.54 |
% |
|
|
0.62 |
% |
Portfolio turnover rate(e) |
|
|
86 |
% |
|
|
70 |
% |
|
|
81 |
% |
|
|
78 |
% |
|
|
102 |
% |
|
|
75 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P MidCap 400® Pure Value ETF (RFV)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
65.71 |
|
|
$ |
65.44 |
|
|
$ |
53.46 |
|
|
$ |
50.79 |
|
|
$ |
52.71 |
|
|
$ |
48.42 |
|
Net investment income(a) |
|
|
0.81 |
|
|
|
0.49 |
|
|
|
0.75 |
|
|
|
0.69 |
|
|
|
0.86 |
|
|
|
0.71 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
3.90 |
|
|
|
0.21 |
|
|
|
12.01 |
|
|
|
2.65 |
|
|
|
(1.96 |
) |
|
|
4.18 |
|
Total from investment operations |
|
|
4.71 |
|
|
|
0.70 |
|
|
|
12.76 |
|
|
|
3.34 |
|
|
|
(1.10 |
) |
|
|
4.89 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.81 |
) |
|
|
(0.43 |
) |
|
|
(0.78 |
) |
|
|
(0.67 |
) |
|
|
(0.82 |
) |
|
|
(0.60 |
) |
Net asset value at end of period |
|
$ |
69.61 |
|
|
$ |
65.71 |
|
|
$ |
65.44 |
|
|
$ |
53.46 |
|
|
$ |
50.79 |
|
|
$ |
52.71 |
|
Market price at end of period(b) |
|
$ |
69.69 |
|
|
$ |
65.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
7.25 |
% |
|
|
1.05 |
% |
|
|
23.93 |
% |
|
|
6.65 |
% |
|
|
(2.12 |
)% |
|
|
10.14 |
% |
Market Price Total Return(c) |
|
|
7.25 |
% |
|
|
1.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
142,737 |
|
|
$ |
101,890 |
|
|
$ |
108,015 |
|
|
$ |
165,753 |
|
|
$ |
104,142 |
|
|
$ |
118,631 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.35 |
% |
|
|
0.35 |
%(d) |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
Net investment income |
|
|
1.20 |
% |
|
|
1.47 |
%(d) |
|
|
1.21 |
% |
|
|
1.36 |
% |
|
|
1.62 |
% |
|
|
1.38 |
% |
Portfolio turnover rate(e) |
|
|
57 |
% |
|
|
44 |
% |
|
|
76 |
% |
|
|
47 |
% |
|
|
59 |
% |
|
|
40 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P MidCap Momentum ETF (XMMO)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
45.61 |
|
|
$ |
34.85 |
|
|
$ |
29.14 |
|
|
$ |
31.95 |
|
|
$ |
30.02 |
|
Net investment income(a) |
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.07 |
|
|
|
0.47 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
13.47 |
|
|
|
10.79 |
|
|
|
5.70 |
|
|
|
(2.72 |
) |
|
|
1.92 |
|
Total from investment operations |
|
|
13.53 |
|
|
|
10.81 |
|
|
|
5.79 |
|
|
|
(2.65 |
) |
|
|
2.39 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.09 |
) |
|
|
(0.05 |
) |
|
|
(0.08 |
) |
|
|
(0.16 |
) |
|
|
(0.46 |
) |
Net asset value at end of year |
|
$ |
59.05 |
|
|
$ |
45.61 |
|
|
$ |
34.85 |
|
|
$ |
29.14 |
|
|
$ |
31.95 |
|
Market price at end of year(b) |
|
$ |
59.07 |
|
|
$ |
45.71 |
|
|
$ |
34.85 |
|
|
$ |
29.12 |
|
|
$ |
31.95 |
|
Net Asset Value Total Return(c) |
|
|
29.72 |
% |
|
|
31.05 |
% |
|
|
19.89 |
% |
|
|
(8.34 |
)% |
|
|
7.98 |
% |
Market Price Total Return(c) |
|
|
29.48 |
% |
|
|
31.34 |
% |
|
|
19.98 |
% |
|
|
(8.40 |
)% |
|
|
8.09 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
625,899 |
|
|
$ |
132,259 |
|
|
$ |
67,967 |
|
|
$ |
67,015 |
|
|
$ |
87,870 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.39 |
% |
|
|
0.43 |
% |
|
|
0.46 |
% |
|
|
0.44 |
% |
|
|
0.46 |
% |
Net investment income, after Waivers |
|
|
0.12 |
% |
|
|
0.05 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
|
|
1.51 |
% |
Portfolio turnover rate(d) |
|
|
30 |
% |
|
|
29 |
% |
|
|
49 |
% |
|
|
147 |
% |
|
|
3 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P MidCap Quality ETF (XMHQ)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
47.29 |
|
|
$ |
43.74 |
|
|
$ |
38.93 |
|
|
$ |
40.34 |
|
|
$ |
36.31 |
|
Net investment income(a) |
|
|
0.66 |
|
|
|
0.60 |
|
|
|
0.54 |
|
|
|
0.56 |
|
|
|
0.50 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
3.46 |
|
|
|
3.53 |
|
|
|
4.86 |
|
|
|
(1.41 |
) |
|
|
4.03 |
|
Total from investment operations |
|
|
4.12 |
|
|
|
4.13 |
|
|
|
5.40 |
|
|
|
(0.85 |
) |
|
|
4.53 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.67 |
) |
|
|
(0.58 |
) |
|
|
(0.59 |
) |
|
|
(0.56 |
) |
|
|
(0.50 |
) |
Net asset value at end of year |
|
$ |
50.74 |
|
|
$ |
47.29 |
|
|
$ |
43.74 |
|
|
$ |
38.93 |
|
|
$ |
40.34 |
|
Market price at end of year(b) |
|
$ |
50.72 |
|
|
$ |
47.30 |
|
|
$ |
43.74 |
|
|
$ |
38.89 |
|
|
$ |
40.35 |
|
Net Asset Value Total Return(c) |
|
|
8.85 |
% |
|
|
9.50 |
% |
|
|
14.00 |
% |
|
|
(2.02 |
)% |
|
|
12.52 |
% |
Market Price Total Return(c) |
|
|
8.78 |
% |
|
|
9.52 |
% |
|
|
14.11 |
% |
|
|
(2.14 |
)% |
|
|
12.73 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
25,372 |
|
|
$ |
23,645 |
|
|
$ |
26,242 |
|
|
$ |
23,357 |
|
|
$ |
34,292 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.61 |
% |
|
|
0.66 |
% |
|
|
0.68 |
% |
|
|
0.69 |
% |
|
|
0.66 |
% |
Net investment income, after Waivers |
|
|
1.36 |
% |
|
|
1.31 |
% |
|
|
1.32 |
% |
|
|
1.50 |
% |
|
|
1.31 |
% |
Portfolio turnover rate(d) |
|
|
30 |
% |
|
|
28 |
% |
|
|
36 |
% |
|
|
135 |
% |
|
|
5 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P MidCap Value with Momentum ETF (XMVM)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
30.69 |
|
|
$ |
31.00 |
|
|
$ |
27.22 |
|
|
$ |
27.55 |
|
|
$ |
25.88 |
|
Net investment income(a) |
|
|
0.84 |
|
|
|
0.69 |
|
|
|
0.68 |
|
|
|
0.68 |
|
|
|
0.43 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.64 |
|
|
|
(0.26 |
) |
|
|
3.80 |
|
|
|
(0.37 |
) |
|
|
1.63 |
|
Total from investment operations |
|
|
2.48 |
|
|
|
0.43 |
|
|
|
4.48 |
|
|
|
0.31 |
|
|
|
2.06 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.79 |
) |
|
|
(0.74 |
) |
|
|
(0.70 |
) |
|
|
(0.64 |
) |
|
|
(0.39 |
) |
Net asset value at end of year |
|
$ |
32.38 |
|
|
$ |
30.69 |
|
|
$ |
31.00 |
|
|
$ |
27.22 |
|
|
$ |
27.55 |
|
Market price at end of year(b) |
|
$ |
32.36 |
|
|
$ |
30.69 |
|
|
$ |
31.00 |
|
|
$ |
27.21 |
|
|
$ |
27.53 |
|
Net Asset Value Total Return(c) |
|
|
8.36 |
% |
|
|
1.39 |
% |
|
|
16.60 |
% |
|
|
1.35 |
% |
|
|
7.98 |
% |
Market Price Total Return(c) |
|
|
8.30 |
% |
|
|
1.39 |
% |
|
|
16.64 |
% |
|
|
1.39 |
% |
|
|
7.94 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
51,809 |
|
|
$ |
46,028 |
|
|
$ |
68,203 |
|
|
$ |
50,364 |
|
|
$ |
52,338 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
%(d) |
|
|
0.39 |
%(d) |
Expenses, prior to Waivers |
|
|
0.48 |
% |
|
|
0.51 |
% |
|
|
0.49 |
% |
|
|
0.54 |
%(d) |
|
|
0.56 |
%(d) |
Net investment income, after Waivers |
|
|
2.73 |
% |
|
|
2.24 |
% |
|
|
2.28 |
% |
|
|
2.62 |
% |
|
|
1.58 |
% |
Portfolio turnover rate(e) |
|
|
49 |
% |
|
|
52 |
% |
|
|
39 |
% |
|
|
131 |
% |
|
|
4 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P SmallCap 600® Equal Weight ETF (EWSC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
54.92 |
|
|
$ |
52.78 |
|
|
$ |
42.47 |
|
|
$ |
41.84 |
|
|
$ |
44.87 |
|
|
$ |
42.89 |
|
Net investment income(a) |
|
|
0.59 |
|
|
|
0.29 |
|
|
|
0.47 |
|
|
|
0.32 |
|
|
|
0.49 |
|
|
|
0.43 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.80 |
|
|
|
2.15 |
|
|
|
10.27 |
|
|
|
0.67 |
|
|
|
(2.97 |
) |
|
|
1.97 |
|
Total from investment operations |
|
|
1.39 |
|
|
|
2.44 |
|
|
|
10.74 |
|
|
|
0.99 |
|
|
|
(2.48 |
) |
|
|
2.40 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.48 |
) |
|
|
(0.30 |
) |
|
|
(0.43 |
) |
|
|
(0.36 |
) |
|
|
(0.52 |
) |
|
|
(0.42 |
) |
Return of capital |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Total distributions |
|
|
(0.48 |
) |
|
|
(0.30 |
) |
|
|
(0.43 |
) |
|
|
(0.36 |
) |
|
|
(0.55 |
) |
|
|
(0.42 |
) |
Net asset value at end of period |
|
$ |
55.83 |
|
|
$ |
54.92 |
|
|
$ |
52.78 |
|
|
$ |
42.47 |
|
|
$ |
41.84 |
|
|
$ |
44.87 |
|
Market price at end of period(b) |
|
$ |
55.63 |
|
|
$ |
55.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
2.55 |
% |
|
|
4.62 |
% |
|
|
25.32 |
% |
|
|
2.39 |
% |
|
|
(5.59 |
)% |
|
|
5.58 |
% |
Market Price Total Return(c) |
|
|
2.00 |
% |
|
|
4.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
36,287 |
|
|
$ |
30,208 |
|
|
$ |
31,666 |
|
|
$ |
33,978 |
|
|
$ |
43,930 |
|
|
$ |
40,380 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.40 |
% |
|
|
0.40 |
%(d) |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
Net investment income |
|
|
1.05 |
% |
|
|
1.10 |
%(d) |
|
|
0.96 |
% |
|
|
0.80 |
% |
|
|
1.11 |
% |
|
|
0.96 |
% |
Portfolio turnover rate(e) |
|
|
34 |
% |
|
|
10 |
% |
|
|
24 |
% |
|
|
96 |
% |
|
|
47 |
% |
|
|
43 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P SmallCap 600® Pure Growth ETF (RZG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
114.43 |
|
|
$ |
111.12 |
|
|
$ |
82.65 |
|
|
$ |
85.26 |
|
|
$ |
80.56 |
|
|
$ |
74.23 |
|
Net investment income(a) |
|
|
0.32 |
|
|
|
0.36 |
|
|
|
0.46 |
|
|
|
0.79 |
|
|
|
0.47 |
|
|
|
0.31 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
1.32 |
|
|
|
3.33 |
|
|
|
28.43 |
|
|
|
(2.69 |
) |
|
|
4.70 |
|
|
|
6.33 |
|
Total from investment operations |
|
|
1.64 |
|
|
|
3.69 |
|
|
|
28.89 |
|
|
|
(1.90 |
) |
|
|
5.17 |
|
|
|
6.64 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.48 |
) |
|
|
(0.38 |
) |
|
|
(0.42 |
) |
|
|
(0.71 |
) |
|
|
(0.47 |
) |
|
|
(0.31 |
) |
Net asset value at end of period |
|
$ |
115.59 |
|
|
$ |
114.43 |
|
|
$ |
111.12 |
|
|
$ |
82.65 |
|
|
$ |
85.26 |
|
|
$ |
80.56 |
|
Market price at end of period(b) |
|
$ |
115.58 |
|
|
$ |
114.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
1.43 |
% |
|
|
3.32 |
% |
|
|
35.01 |
% |
|
|
(2.20 |
)% |
|
|
6.42 |
% |
|
|
8.96 |
% |
Market Price Total Return(c) |
|
|
1.26 |
% |
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
236,954 |
|
|
$ |
263,179 |
|
|
$ |
238,904 |
|
|
$ |
152,910 |
|
|
$ |
225,933 |
|
|
$ |
104,723 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.35 |
% |
|
|
0.35 |
%(d) |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
Net investment income |
|
|
0.26 |
% |
|
|
0.64 |
%(d) |
|
|
0.45 |
% |
|
|
0.97 |
% |
|
|
0.55 |
% |
|
|
0.39 |
% |
Portfolio turnover rate(e) |
|
|
71 |
% |
|
|
56 |
% |
|
|
70 |
% |
|
|
92 |
% |
|
|
62 |
% |
|
|
78 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P SmallCap 600® Pure Value ETF (RZV)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Six Months Ended April 30, 2018 |
|
|
Years Ended
October 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
71.57 |
|
|
$ |
70.68 |
|
|
$ |
60.52 |
|
|
$ |
57.76 |
|
|
$ |
62.54 |
|
|
$ |
57.37 |
|
Net investment income(a) |
|
|
0.99 |
|
|
|
0.46 |
|
|
|
0.62 |
|
|
|
0.47 |
|
|
|
0.71 |
|
|
|
0.44 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(4.02 |
) |
|
|
0.86 |
|
|
|
10.18 |
|
|
|
2.69 |
|
|
|
(4.79 |
) |
|
|
5.14 |
|
Total from investment operations |
|
|
(3.03 |
) |
|
|
1.32 |
|
|
|
10.80 |
|
|
|
3.16 |
|
|
|
(4.08 |
) |
|
|
5.58 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(1.07 |
) |
|
|
(0.43 |
) |
|
|
(0.64 |
) |
|
|
(0.40 |
) |
|
|
(0.70 |
) |
|
|
(0.41 |
) |
Net asset value at end of period |
|
$ |
67.47 |
|
|
$ |
71.57 |
|
|
$ |
70.68 |
|
|
$ |
60.52 |
|
|
$ |
57.76 |
|
|
$ |
62.54 |
|
Market price at end of period(b) |
|
$ |
67.53 |
|
|
$ |
71.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Total Return(c) |
|
|
(4.27 |
)% |
|
|
1.87 |
% |
|
|
17.88 |
% |
|
|
5.50 |
% |
|
|
(6.60 |
)% |
|
|
9.73 |
% |
Market Price Total Return(c) |
|
|
(4.28 |
)% |
|
|
1.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
192,279 |
|
|
$ |
164,625 |
|
|
$ |
236,795 |
|
|
$ |
193,665 |
|
|
$ |
150,190 |
|
|
$ |
171,990 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.35 |
% |
|
|
0.35 |
%(d) |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.35 |
% |
Net investment income |
|
|
1.38 |
% |
|
|
1.28 |
%(d) |
|
|
0.91 |
% |
|
|
0.83 |
% |
|
|
1.15 |
% |
|
|
0.73 |
% |
Portfolio turnover rate(e) |
|
|
52 |
% |
|
|
48 |
% |
|
|
68 |
% |
|
|
51 |
% |
|
|
52 |
% |
|
|
51 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco S&P SmallCap Momentum ETF (XSMO)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April 30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
33.25 |
|
|
$ |
28.50 |
|
|
$ |
23.23 |
|
|
$ |
25.22 |
|
|
$ |
23.90 |
|
Net investment income(a) |
|
|
0.13 |
|
|
|
0.14 |
|
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.25 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
4.04 |
|
|
|
4.75 |
|
|
|
5.27 |
|
|
|
(1.93 |
) |
|
|
1.39 |
|
Total from investment operations |
|
|
4.17 |
|
|
|
4.89 |
|
|
|
5.34 |
|
|
|
(1.87 |
) |
|
|
1.64 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.13 |
) |
|
|
(0.14 |
) |
|
|
(0.07 |
) |
|
|
(0.12 |
) |
|
|
(0.32 |
) |
Net asset value at end of year |
|
$ |
37.29 |
|
|
$ |
33.25 |
|
|
$ |
28.50 |
|
|
$ |
23.23 |
|
|
$ |
25.22 |
|
Market price at end of year(b) |
|
$ |
37.31 |
|
|
$ |
33.31 |
|
|
$ |
28.49 |
|
|
$ |
23.26 |
|
|
$ |
25.21 |
|
Net Asset Value Total Return(c) |
|
|
12.55 |
% |
|
|
17.18 |
% |
|
|
23.02 |
% |
|
|
(7.47 |
)% |
|
|
6.92 |
% |
Market Price Total Return(c) |
|
|
12.41 |
% |
|
|
17.43 |
% |
|
|
22.82 |
% |
|
|
(7.31 |
)% |
|
|
6.92 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
89,495 |
|
|
$ |
48,215 |
|
|
$ |
34,195 |
|
|
$ |
26,719 |
|
|
$ |
32,791 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
%(d) |
|
|
0.39 |
%(d) |
Expenses, prior to Waivers |
|
|
0.44 |
% |
|
|
0.59 |
% |
|
|
0.65 |
% |
|
|
0.67 |
%(d) |
|
|
0.69 |
%(d) |
Net investment income, after Waivers |
|
|
0.37 |
% |
|
|
0.47 |
% |
|
|
0.29 |
% |
|
|
0.27 |
% |
|
|
1.02 |
% |
Portfolio turnover rate(e) |
|
|
44 |
% |
|
|
43 |
% |
|
|
55 |
% |
|
|
144 |
% |
|
|
6 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning at the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P SmallCap Value with Momentum ETF (XSVM)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April
30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
30.37 |
|
|
$ |
29.27 |
|
|
$ |
23.87 |
|
|
$ |
25.75 |
|
|
$ |
24.67 |
|
Net investment income(a) |
|
|
0.58 |
|
|
|
0.63 |
|
|
|
0.52 |
|
|
|
0.63 |
|
|
|
0.42 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.03 |
|
|
|
1.04 |
|
|
|
5.55 |
|
|
|
(1.91 |
) |
|
|
1.03 |
|
Total from investment operations |
|
|
0.61 |
|
|
|
1.67 |
|
|
|
6.07 |
|
|
|
(1.28 |
) |
|
|
1.45 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.67 |
) |
|
|
(0.57 |
) |
|
|
(0.67 |
) |
|
|
(0.60 |
) |
|
|
(0.37 |
) |
Net asset value at end of year |
|
$ |
30.31 |
|
|
$ |
30.37 |
|
|
$ |
29.27 |
|
|
$ |
23.87 |
|
|
$ |
25.75 |
|
Market price at end of year(b) |
|
$ |
30.30 |
|
|
$ |
30.40 |
|
|
$ |
29.26 |
|
|
$ |
23.88 |
|
|
$ |
25.75 |
|
Net Asset Value Total Return(c) |
|
|
2.13 |
% |
|
|
5.73 |
% |
|
|
25.64 |
% |
|
|
(4.93 |
)% |
|
|
5.91 |
% |
Market Price Total Return(c) |
|
|
2.00 |
% |
|
|
5.87 |
% |
|
|
25.54 |
% |
|
|
(4.90 |
)% |
|
|
5.87 |
% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
78,794 |
|
|
$ |
72,883 |
|
|
$ |
83,415 |
|
|
$ |
59,668 |
|
|
$ |
72,093 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
|
|
0.39 |
% |
Expenses, prior to Waivers |
|
|
0.44 |
% |
|
|
0.46 |
% |
|
|
0.46 |
% |
|
|
0.50 |
% |
|
|
0.55 |
% |
Net investment income, after Waivers |
|
|
1.88 |
% |
|
|
2.12 |
% |
|
|
1.90 |
% |
|
|
2.67 |
% |
|
|
1.65 |
% |
Portfolio turnover rate(d) |
|
|
52 |
% |
|
|
56 |
% |
|
|
50 |
% |
|
|
137 |
% |
|
|
5 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
For the year ended April 30, 2016, the portfolio turnover calculation
includes the value of securities purchased and sold in the effort to
realign the Fund’s portfolio holdings due to the underlying index change.
|
Invesco S&P Spin-Off ETF (CSD)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended April 30, 2019 |
|
|
Eight Months Ended April 30, 2018 |
|
|
Years Ended
August 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
52.61 |
|
|
$ |
49.42 |
|
|
$ |
42.42 |
|
|
$ |
40.90 |
|
|
$ |
46.47 |
|
|
$ |
37.96 |
|
Net investment income(a) |
|
|
0.43 |
|
|
|
0.04 |
|
|
|
0.39 |
|
|
|
0.61 |
|
|
|
0.72 |
|
|
|
0.45 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
(0.19 |
) |
|
|
3.46 |
|
|
|
7.31 |
|
|
|
1.91 |
|
|
|
(5.55 |
) |
|
|
8.15 |
|
Total from investment operations |
|
|
0.24 |
|
|
|
3.50 |
|
|
|
7.70 |
|
|
|
2.52 |
|
|
|
(4.83 |
) |
|
|
8.60 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.42 |
) |
|
|
(0.20 |
) |
|
|
(0.70 |
) |
|
|
(1.00 |
) |
|
|
(0.74 |
) |
|
|
(0.09 |
) |
Return of capital |
|
|
— |
|
|
|
(0.11 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total distributions to shareholders |
|
|
(0.42 |
) |
|
|
(0.31 |
) |
|
|
(0.70 |
) |
|
|
(1.00 |
) |
|
|
(0.74 |
) |
|
|
(0.09 |
) |
Net asset value at end of period |
|
$ |
52.43 |
|
|
$ |
52.61 |
|
|
$ |
49.42 |
|
|
$ |
42.42 |
|
|
$ |
40.90 |
|
|
$ |
46.47 |
|
Market price at end of period |
|
$ |
52.41 |
(b) |
|
$ |
52.55 |
(b) |
|
$ |
49.34 |
|
|
$ |
42.42 |
|
|
$ |
40.85 |
|
|
$ |
46.46 |
|
Net Asset Value Total Return(c) |
|
|
0.71 |
% |
|
|
7.10 |
% |
|
|
18.39 |
% |
|
|
6.42 |
% |
|
|
(10.54 |
)% |
|
|
22.65 |
% |
Market Price Total Return(c) |
|
|
0.78 |
% |
|
|
7.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period (000’s omitted) |
|
$ |
146,814 |
|
|
$ |
202,534 |
|
|
$ |
195,208 |
|
|
$ |
216,319 |
|
|
$ |
413,092 |
|
|
$ |
615,693 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.62 |
% |
|
|
0.64 |
%(d) |
|
|
0.64 |
% |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.66 |
% |
Expenses, prior to Waivers |
|
|
0.62 |
% |
|
|
0.65 |
%(d) |
|
|
0.64 |
% |
|
|
0.71 |
% |
|
|
0.71 |
% |
|
|
0.72 |
% |
Net investment income, after Waivers |
|
|
0.84 |
% |
|
|
0.12 |
%(d) |
|
|
0.86 |
% |
|
|
1.54 |
% |
|
|
1.57 |
% |
|
|
1.00 |
% |
Portfolio turnover rate(e) |
|
|
49 |
% |
|
|
24 |
% |
|
|
44 |
% |
|
|
116 |
% |
|
|
56 |
% |
|
|
81 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Water Resources ETF (PHO)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April
30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
30.09 |
|
|
$ |
26.71 |
|
|
$ |
22.99 |
|
|
$ |
25.19 |
|
|
$ |
25.92 |
|
Net investment income(a) |
|
|
0.16 |
|
|
|
0.09 |
|
|
|
0.16 |
|
|
|
0.13 |
|
|
|
0.14 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
4.55 |
|
|
|
3.39 |
|
|
|
3.68 |
|
|
|
(2.17 |
) |
|
|
(0.72 |
) |
Total from investment operations |
|
|
4.71 |
|
|
|
3.48 |
|
|
|
3.84 |
|
|
|
(2.04 |
) |
|
|
(0.58 |
) |
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.13 |
) |
|
|
(0.10 |
) |
|
|
(0.12 |
) |
|
|
(0.16 |
) |
|
|
(0.15 |
) |
Net asset value at end of year |
|
$ |
34.67 |
|
|
$ |
30.09 |
|
|
$ |
26.71 |
|
|
$ |
22.99 |
|
|
$ |
25.19 |
|
Market price at end of year(b) |
|
$ |
34.70 |
|
|
$ |
30.09 |
|
|
$ |
26.70 |
|
|
$ |
22.98 |
|
|
$ |
25.17 |
|
Net Asset Value Total Return(c) |
|
|
15.74 |
% |
|
|
13.07 |
% |
|
|
16.73 |
% |
|
|
(8.09 |
)% |
|
|
(2.25 |
)% |
Market Price Total Return(c) |
|
|
15.84 |
% |
|
|
13.11 |
% |
|
|
16.74 |
% |
|
|
(8.06 |
)% |
|
|
(2.29 |
)% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
941,269 |
|
|
$ |
821,548 |
|
|
$ |
797,147 |
|
|
$ |
680,463 |
|
|
$ |
855,159 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.60 |
% |
|
|
0.62 |
% |
|
|
0.62 |
% |
|
|
0.61 |
% |
|
|
0.61 |
% |
Expenses, prior to Waivers |
|
|
0.60 |
% |
|
|
0.62 |
% |
|
|
0.62 |
% |
|
|
0.61 |
% |
|
|
0.61 |
% |
Net investment income, after Waivers |
|
|
0.51 |
% |
|
|
0.31 |
% |
|
|
0.64 |
% |
|
|
0.58 |
% |
|
|
0.56 |
% |
Portfolio turnover rate(d) |
|
|
31 |
% |
|
|
23 |
% |
|
|
44 |
% |
|
|
89 |
% |
|
|
25 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(d) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco WilderHill Clean Energy ETF (PBW)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended April
30, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2017(a) |
|
|
2016(a) |
|
|
2015(a) |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of year |
|
$ |
24.64 |
|
|
$ |
20.85 |
|
|
$ |
20.55 |
|
|
$ |
28.80 |
|
|
$ |
32.95 |
|
Net investment income(b) |
|
|
0.39 |
|
|
|
0.31 |
|
|
|
0.30 |
|
|
|
0.55 |
|
|
|
0.70 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
3.66 |
|
|
|
3.78 |
|
|
|
0.40 |
|
|
|
(8.30 |
) |
|
|
(4.10 |
) |
Total from investment operations |
|
|
4.05 |
|
|
|
4.09 |
|
|
|
0.70 |
|
|
|
(7.75 |
) |
|
|
(3.40 |
) |
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.39 |
) |
|
|
(0.30 |
) |
|
|
(0.40 |
) |
|
|
(0.50 |
) |
|
|
(0.75 |
) |
Net asset value at end of year |
|
$ |
28.30 |
|
|
$ |
24.64 |
|
|
$ |
20.85 |
|
|
$ |
20.55 |
|
|
$ |
28.80 |
|
Market price at end of year(c) |
|
$ |
28.31 |
|
|
$ |
24.66 |
|
|
$ |
20.85 |
|
|
$ |
20.55 |
|
|
$ |
28.80 |
|
Net Asset Value Total Return(d) |
|
|
16.76 |
% |
|
|
19.78 |
% |
|
|
3.60 |
% |
|
|
(27.19 |
)% |
|
|
(10.36 |
)% |
Market Price Total Return(d) |
|
|
16.70 |
% |
|
|
19.87 |
% |
|
|
3.60 |
% |
|
|
(27.19 |
)% |
|
|
(10.36 |
)% |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of year (000’s omitted) |
|
$ |
144,857 |
|
|
$ |
116,263 |
|
|
$ |
103,177 |
|
|
$ |
101,255 |
|
|
$ |
143,790 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
Expenses, prior to Waivers |
|
|
0.71 |
% |
|
|
0.77 |
% |
|
|
0.76 |
% |
|
|
0.76 |
% |
|
|
0.72 |
% |
Net investment income, after Waivers |
|
|
1.56 |
% |
|
|
1.30 |
% |
|
|
1.59 |
% |
|
|
2.37 |
% |
|
|
2.39 |
% |
Portfolio turnover rate(e) |
|
|
40 |
% |
|
|
43 |
% |
|
|
59 |
% |
|
|
60 |
% |
|
|
48 |
% |
(a) |
Per share amounts have been adjusted to
reflect a one-for-five reverse stock split
effective after the close of business on October 20, 2017.
|
(b) |
Based on average shares outstanding.
|
(c) |
The mean between the last bid and ask
prices. |
(d) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Zacks Mid-Cap ETF (CZA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Eight Months Ended April 30,
2018 |
|
|
Years Ended August 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
64.70 |
|
|
$ |
61.60 |
|
|
$ |
53.00 |
|
|
$ |
49.05 |
|
|
$ |
49.97 |
|
|
$ |
40.44 |
|
Net investment income(a) |
|
|
0.90 |
|
|
|
0.53 |
|
|
|
0.81 |
|
|
|
0.87 |
|
|
|
0.50 |
|
|
|
0.41 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
5.82 |
|
|
|
3.29 |
|
|
|
8.81 |
|
|
|
3.73 |
|
|
|
(1.05 |
) |
|
|
9.58 |
|
Total from investment operations |
|
|
6.72 |
|
|
|
3.82 |
|
|
|
9.62 |
|
|
|
4.60 |
|
|
|
(0.55 |
) |
|
|
9.99 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.75 |
) |
|
|
(0.72 |
) |
|
|
(1.02 |
) |
|
|
(0.65 |
) |
|
|
(0.37 |
) |
|
|
(0.46 |
) |
Net asset value at end of period |
|
$ |
70.67 |
|
|
$ |
64.70 |
|
|
$ |
61.60 |
|
|
$ |
53.00 |
|
|
$ |
49.05 |
|
|
$ |
49.97 |
|
Market price at end of period |
|
$ |
70.75 |
(b) |
|
$ |
64.75 |
(b) |
|
$ |
61.67 |
|
|
$ |
52.94 |
|
|
$ |
49.09 |
|
|
$ |
50.04 |
|
Net Asset Value Total Return(c) |
|
|
10.68 |
% |
|
|
6.19 |
% |
|
|
18.40 |
% |
|
|
9.53 |
% |
|
|
(1.11 |
)% |
|
|
24.81 |
% |
Market Price Total Return(c) |
|
|
10.72 |
% |
|
|
6.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period
(000’s omitted) |
|
$ |
265,019 |
|
|
$ |
255,584 |
|
|
$ |
203,284 |
|
|
$ |
143,100 |
|
|
$ |
149,597 |
|
|
$ |
132,428 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.65 |
%(e) |
|
|
0.65 |
%(d) |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.66 |
% |
Expenses, prior to Waivers |
|
|
0.70 |
%(e) |
|
|
0.74 |
%(d) |
|
|
0.74 |
% |
|
|
0.74 |
% |
|
|
0.73 |
% |
|
|
0.73 |
% |
Net investment income, after Waivers |
|
|
1.36 |
% |
|
|
1.23 |
%(d) |
|
|
1.43 |
% |
|
|
1.78 |
% |
|
|
1.01 |
% |
|
|
0.89 |
% |
Portfolio turnover rate(f) |
|
|
170 |
% |
|
|
136 |
% |
|
|
181 |
% |
|
|
172 |
% |
|
|
164 |
% |
|
|
175 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(f) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Invesco Zacks Multi-Asset Income ETF (CVY)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended April 30, 2019 |
|
|
Eight Months Ended April 30,
2018 |
|
|
Years Ended August 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Per Share Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value at beginning of period |
|
$ |
21.87 |
|
|
$ |
21.11 |
|
|
$ |
19.75 |
|
|
$ |
19.92 |
|
|
$ |
26.06 |
|
|
$ |
23.34 |
|
Net investment income(a) |
|
|
0.81 |
|
|
|
0.49 |
|
|
|
0.80 |
|
|
|
0.87 |
|
|
|
1.30 |
|
|
|
1.38 |
|
Net realized and unrealized gain (loss) on
investments |
|
|
0.38 |
|
|
|
0.94 |
|
|
|
1.46 |
|
|
|
(0.06 |
) |
|
|
(6.10 |
) |
|
|
2.57 |
|
Total from investment operations |
|
|
1.19 |
|
|
|
1.43 |
|
|
|
2.26 |
|
|
|
0.81 |
|
|
|
(4.80 |
) |
|
|
3.95 |
|
Distributions to shareholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.81 |
) |
|
|
(0.59 |
) |
|
|
(0.60 |
) |
|
|
(0.98 |
) |
|
|
(1.31 |
) |
|
|
(1.23 |
) |
Return of capital |
|
|
— |
|
|
|
(0.08 |
) |
|
|
(0.30 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Total distributions |
|
|
(0.81 |
) |
|
|
(0.67 |
) |
|
|
(0.90 |
) |
|
|
(0.98 |
) |
|
|
(1.34 |
) |
|
|
(1.23 |
) |
Net asset value at end of period |
|
$ |
22.25 |
|
|
$ |
21.87 |
|
|
$ |
21.11 |
|
|
$ |
19.75 |
|
|
$ |
19.92 |
|
|
$ |
26.06 |
|
Market price at end of period |
|
$ |
22.27 |
(b) |
|
$ |
21.87 |
(b) |
|
$ |
21.08 |
|
|
$ |
19.74 |
|
|
$ |
19.89 |
|
|
$ |
26.05 |
|
Net Asset Value Total Return(c) |
|
|
5.67 |
% |
|
|
6.83 |
% |
|
|
11.73 |
% |
|
|
4.49 |
% |
|
|
(18.90 |
)% |
|
|
17.29 |
% |
Market Price Total Return(c) |
|
|
5.76 |
% |
|
|
6.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period
(000’s omitted) |
|
$ |
229,220 |
|
|
$ |
286,460 |
|
|
$ |
346,144 |
|
|
$ |
427,658 |
|
|
$ |
647,321 |
|
|
$ |
1,485,282 |
|
Ratio to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, after Waivers |
|
|
0.65 |
%(e) |
|
|
0.65 |
%(d)(e) |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.66 |
% |
Expenses, prior to Waivers |
|
|
0.71 |
%(e) |
|
|
0.74 |
%(d)(e) |
|
|
0.72 |
% |
|
|
0.73 |
% |
|
|
0.71 |
% |
|
|
0.71 |
% |
Net investment income, after Waivers |
|
|
3.71 |
% |
|
|
3.38 |
%(d) |
|
|
3.93 |
% |
|
|
4.62 |
% |
|
|
5.68 |
% |
|
|
5.54 |
% |
Portfolio turnover rate(f) |
|
|
196 |
% |
|
|
142 |
% |
|
|
203 |
% |
|
|
228 |
% |
|
|
213 |
% |
|
|
180 |
% |
(a) |
Based on average shares outstanding.
|
(b) |
The mean between the last bid and ask
prices. |
(c) |
Net asset value total return is calculated
assuming an initial investment made at the net asset value at the
beginning of the period, reinvestment of all dividends and distributions
at net asset value during the period, and redemption on the last day of
the period. Net asset value total return includes adjustments in
accordance with accounting principles generally accepted in the United
States of America and as such, the net asset value for financial reporting
purposes and the returns based upon those net asset values may differ from
the net asset value and returns for shareholder transactions. Market price
total return is calculated assuming an initial investment made at the
market price at the beginning of the period, reinvestment of all dividends
and distributions at market price during the period, and sale at the
market price on the last day of the period. Total investment returns
calculated for a period of less than one year are not annualized.
|
(e) |
In addition to the fees and expenses which
the Fund bears directly, the Fund indirectly bears a pro rata share of the
fees and expenses of the investment companies in which the Fund invests.
Estimated investment companies’ expenses are not expenses that are
incurred directly by the Fund. They are expenses that are incurred
directly by the investment companies and are deducted from the value of
the investment companies the Fund invests in. The effect of the estimated
investment companies’ expenses that the Fund bears indirectly is included
in the Fund’s total return. |
(f) |
Portfolio turnover rate is not annualized
for periods less than one year, if applicable, and does not include
securities received or delivered from processing creations or redemptions.
|
Index and Intellidex Providers
No entity that creates, compiles, sponsors or maintains the
Underlying Indexes or Underlying Intellidexes is or will be an affiliated
person, as defined in Section 2(a)(3) of the 1940 Act, or an affiliated
person of an affiliated person, of the Trust, the Adviser, the Distributor or a
promoter of a Fund.
Neither the Adviser nor any affiliate of the Adviser has any
rights to influence the selection of the securities in the Underlying Indexes or
Underlying Intellidexes.
Each Index Provider is responsible for the maintenance and
calculation of its respective Underlying Index or Underlying Intellidex. The
Index Providers are not affiliated with the Trust, the Adviser or the
Distributor. The Adviser has entered into a license agreement with each Index
Provider. Each Fund is entitled to use its respective Underlying Index or
Underlying Intellidex, as applicable, pursuant to a sublicensing agreement with
the Adviser.
Set forth below is a list of each Fund and its Underlying Index or
Underlying Intellidex:
|
|
|
Invesco Aerospace & Defense
ETF |
|
SPADE® Defense
Index |
Invesco BRIC ETF |
|
S&P/BNY Mellon BRIC Select DR
Index (USD) |
Invesco BuyBack AchieversTM ETF |
|
NASDAQ US BuyBack AchieversTM Index |
Invesco CleantechTM ETF |
|
The Cleantech IndexTM |
Invesco Dividend AchieversTM ETF |
|
NASDAQ US Broad Dividend
AchieversTM
Index |
Invesco Dow Jones Industrial Average
Dividend ETF |
|
Dow Jones Industrial Average Yield
Weighted |
Invesco DWA Basic Materials Momentum
ETF |
|
Dorsey Wright® Basic Materials
Technical Leaders Index |
Invesco DWA Consumer Cyclicals Momentum
ETF |
|
Dorsey Wright® Consumer Cyclicals
Technical Leaders Index |
Invesco DWA Consumer Staples Momentum
ETF |
|
Dorsey Wright® Consumer Staples
Technical Leaders Index |
Invesco DWA Energy Momentum
ETF |
|
Dorsey Wright® Energy Technical
Leaders Index |
Invesco DWA Financial Momentum
ETF |
|
Dorsey Wright® Financials Technical
Leaders Index |
Invesco DWA Healthcare Momentum
ETF |
|
Dorsey Wright® Healthcare Technical
Leaders Index |
Invesco DWA Industrials Momentum
ETF |
|
Dorsey Wright® Industrials Technical
Leaders Index |
Invesco DWA Momentum ETF |
|
Dorsey Wright® Technical Leaders
Index |
Invesco DWA NASDAQ Momentum
ETF |
|
Dorsey Wright® NASDAQ Technical
Leaders Index |
Invesco DWA Technology Momentum
ETF |
|
Dorsey Wright® Technology Technical
Leaders Index |
Invesco DWA Utilities Momentum
ETF |
|
Dorsey Wright® Utilities Technical
Leaders Index |
Invesco Dynamic
Biotechnology & Genome ETF |
|
Dynamic Biotech & Genome
IntellidexSM
Index |
Invesco Dynamic Building &
Construction ETF |
|
Dynamic Building &
Construction IntellidexSM
Index |
|
|
|
Invesco Dynamic Energy
Exploration & Production ETF |
|
Dynamic Energy
Exploration & Production IntellidexSM Index |
Invesco Dynamic Food &
Beverage ETF |
|
Dynamic Food & Beverage
IntellidexSM
Index |
Invesco Dynamic Large Cap Growth
ETF |
|
Dynamic Large Cap Growth
IntellidexSM
Index |
Invesco Dynamic Large Cap Value
ETF |
|
Dynamic Large Cap Value
IntellidexSM
Index |
Invesco Dynamic Leisure and
Entertainment ETF |
|
Dynamic Leisure &
Entertainment IntellidexSM Index |
Invesco Dynamic Market ETF |
|
Dynamic Market IntellidexSM Index |
Invesco Dynamic Media ETF |
|
Dynamic Media IntellidexSM Index |
Invesco Dynamic Networking
ETF |
|
Dynamic Networking IntellidexSM Index |
Invesco Dynamic Oil & Gas
Services ETF |
|
Dynamic Oil Services IntellidexSM Index |
Invesco Dynamic Pharmaceuticals
ETF |
|
Dynamic Pharmaceutical
IntellidexSM
Index |
Invesco Dynamic Retail ETF |
|
Dynamic Retail IntellidexSM Index |
Invesco Dynamic Semiconductors
ETF |
|
Dynamic Semiconductor IntellidexSM Index |
Invesco Dynamic Software ETF |
|
Dynamic Software IntellidexSM Index |
Invesco Financial Preferred
ETF |
|
Wells Fargo® Hybrid and Preferred
Securities Financial Index |
Invesco FTSE RAFI US 1000 ETF |
|
FTSE RAFITM US 1000
Index |
Invesco FTSE RAFI US 1500 Small-Mid
ETF |
|
FTSE RAFITM US Mid Small 1500
Index |
Invesco Global Listed Private Equity
ETF |
|
Red Rocks Global Listed Private
Equity Index |
Invesco Golden Dragon China
ETF |
|
NASDAQ Golden Dragon China
Index |
Invesco High Yield Equity Dividend
AchieversTM
ETF |
|
NASDAQ US Dividend AchieversTM 50 Index |
Invesco Insider Sentiment ETF |
|
Nasdaq US Insider Sentiment
Index |
Invesco International Dividend
AchieversTM
ETF |
|
NASDAQ International Dividend
AchieversTM
Index |
Invesco NASDAQ Internet ETF |
|
NASDAQ Internet IndexSM |
Invesco Raymond James SB-1 Equity
ETF |
|
Raymond James SB-1 Equity
Index |
Invesco S&P 100 Equal Weight
ETF |
|
S&P 100 Equal Weight
Index |
Invesco S&P 500 BuyWrite
ETF |
|
CBOE S&P 500 BuyWrite IndexSM |
Invesco S&P 500® Equal Weight
ETF |
|
S&P 500® Equal Weight
Index |
Invesco S&P 500® Equal Weight
Communication Services ETF |
|
S&P 500® Equal Weight
Communication Services Plus Index |
Invesco S&P 500® Equal Weight Consumer
Discretionary ETF |
|
S&P 500® Equal Weight Consumer
Discretionary Index |
Invesco S&P 500® Equal Weight Consumer
Staples ETF |
|
S&P 500® Equal Weight Consumer
Staples Index |
Invesco S&P 500® Equal Weight Energy
ETF |
|
S&P 500® Equal Weight Energy
Index |
Invesco S&P 500® Equal Weight
Financials ETF |
|
S&P 500® Equal Weight
Financials Index |
Invesco S&P 500® Equal Weight Health
Care ETF |
|
S&P 500® Equal Weight Health
Care Index |
Invesco S&P 500® Equal Weight
Industrials ETF |
|
S&P 500® Equal Weight
Industrials Index |
Invesco S&P 500® Equal Weight Materials
ETF |
|
S&P 500® Equal Weight Materials
Index |
|
|
|
Invesco S&P 500® Equal Weight Real
Estate ETF |
|
S&P 500® Equal Weight Real
Estate Index |
Invesco S&P 500® Equal Weight
Technology ETF |
|
S&P 500® Equal Weight
Information Technology Index |
Invesco S&P 500® Equal Weight Utilities
ETF |
|
S&P 500® Equal Weight Utilities
Plus Index |
Invesco S&P 500 GARP ETF |
|
S&P 500 GARP Index |
Invesco S&P 500® Pure Growth
ETF |
|
S&P 500® Pure Growth
Index |
Invesco S&P 500® Pure Value
ETF |
|
S&P 500® Pure Value
Index |
Invesco S&P 500® Quality ETF |
|
S&P 500® Quality
Index |
Invesco S&P 500® Top 50 ETF |
|
S&P 500® Top 50
Index |
Invesco S&P 500 Value with Momentum
ETF |
|
S&P 500 High Momentum Value
Index |
Invesco S&P MidCap 400® Equal Weight
ETF |
|
S&P MidCap 400® Equal Weight
Index |
Invesco S&P MidCap 400® Pure Growth
ETF |
|
S&P MidCap 400® Pure Growth
Index |
Invesco S&P MidCap 400® Pure Value
ETF |
|
S&P MidCap 400® Pure Value
Index |
Invesco S&P MidCap Momentum
ETF |
|
S&P MidCap 400 Momentum
Index |
Invesco S&P MidCap Quality
ETF |
|
S&P MidCap 400 Quality
Index |
Invesco S&P MidCap Value with
Momentum ETF |
|
S&P MidCap400 High Momentum
Value Index |
Invesco S&P SmallCap 600® Equal Weight
ETF |
|
S&P SmallCap 600® Equal Weight
Index |
Invesco S&P SmallCap 600® Pure Growth
ETF |
|
S&P SmallCap 600® Pure Growth
Index |
Invesco S&P SmallCap 600® Pure Value
ETF |
|
S&P SmallCap 600® Pure Value
Index |
Invesco S&P SmallCap Momentum
ETF |
|
S&P SmallCap 600 Momentum
Index |
Invesco S&P SmallCap Value with
Momentum ETF |
|
S&P SmallCap 600 High Momentum
Value Index |
Invesco S&P Spin-Off ETF |
|
S&P U.S. Spin-Off
Index |
Invesco Water Resources ETF |
|
NASDAQ OMX US Water IndexSM |
Invesco WilderHill Clean Energy
ETF |
|
WilderHill Clean Energy
Index |
Invesco Zacks Mid-Cap ETF |
|
Zacks Mid-Cap Core
Index |
Invesco Zacks Multi-Asset Income
ETF |
|
Zacks Multi-Asset Income
Index |
Cleantech Indices LLC. Cleantech Indices LLC (“Cleantech”)
is the Index Provider for Invesco CleantechTM ETF. There is no
relationship between Cleantech and the Distributor, the Adviser or the Trust
other than a license by Cleantech to the Adviser of certain Cleantech trademarks
and trade names, and The Cleantech IndexTM, for use by the
Distributor, the Adviser and the Trust. Such trademarks, tradenames and The
Cleantech IndexTM have
been created and developed by Cleantech without regard to the Distributor, the
Adviser, the Trust, their businesses, the Fund and/or any prospective investor.
Invesco CleantechTM ETF
is entitled to use The Cleantech IndexTM pursuant to a sub-licensing
agreement with the Adviser.
Dorsey, Wright & Associates, LLC. Dorsey,
Wright & Associates, LLC (“Dorsey Wright”) is the Index Provider for
the Underlying Index of each of Invesco DWA Basic Materials Momentum ETF,
Invesco DWA Consumer Cyclicals Momentum ETF, Invesco DWA Consumer Staples
Momentum ETF, Invesco DWA Energy Momentum ETF, Invesco DWA Financial Momentum
ETF, Invesco
DWA Healthcare Momentum ETF, Invesco DWA Industrials Momentum ETF,
Invesco DWA Momentum ETF, Invesco DWA NASDAQ Momentum ETF, Invesco DWA
Technology Momentum ETF and Invesco DWA Utilities Momentum ETF (each, an Invesco
DWA Fund) . The Dorsey Wright® Basic Materials Technical
Leaders Index, Dorsey Wright® Consumer Cyclicals Technical
Leaders Index, Dorsey Wright® Consumer Staples Technical
Leaders Index, Dorsey Wright® Energy Technical Leaders
Index, Dorsey Wright®
Financials Technical Leaders Index, Dorsey Wright® Healthcare Technical Leaders
Index, Dorsey Wright®
Industrials Technical Leaders Index, Dorsey Wright® Technical Leaders Index,
Dorsey Wright® NASDAQ
Technical Leaders Index, Dorsey Wright® Technology Technical Leaders
Index and Dorsey Wright®
Utilities Technical Leaders Index are calculated and maintained by Nasdaq, Inc.
FTSE International Limited. FTSE International Limited
(“FTSE”) and Research Affiliates, LLC (“RA”) are together the Index Provider for
Invesco FTSE RAFI US 1000 ETF and Invesco FTSE RAFI US 1500 Small-Mid ETF. The
Index Provider is not affiliated with the Trust, the Adviser or the Distributor.
The Adviser has entered into a license agreement with FTSE to use the Underlying
Indexes of these Funds. Each of Invesco FTSE RAFI US 1000 ETF and Invesco FTSE
RAFI US 1500 Small-Mid ETF is entitled to use its respective Underlying Index
pursuant to a sub-licensing agreement with the Adviser.
ICE Data Indices, LLC. ICE Data Indices, LLC (“ICE Data”)
is the Intellidex Provider and administrator of the Underlying Intellidex of
each of Invesco Dynamic Biotechnology & Genome ETF, Invesco Dynamic
Building & Construction ETF, Invesco Dynamic Energy
Exploration & Production ETF, Invesco Dynamic Food & Beverage
ETF, Invesco Dynamic Large Cap Growth ETF, Invesco Dynamic Large Cap Value ETF,
Invesco Dynamic Leisure and Entertainment ETF, Invesco Dynamic Market ETF,
Invesco Dynamic Media ETF, Invesco Dynamic Networking ETF, Invesco Dynamic
Oil & Gas Services ETF, Invesco Dynamic Pharmaceuticals ETF, Invesco
Dynamic Retail ETF, Invesco Dynamic Semiconductors ETF and Invesco Dynamic
Software ETF. ICE Data is not affiliated with the Trust, the Adviser or the
Distributor and is not a promoter of the Funds.
Dynamic Biotech & Genome IntellidexSM Index, Dynamic
Building & Construction IntellidexSM Index, Dynamic Energy
Exploration & Production IntellidexSM Index, Dynamic
Food & Beverage IntellidexSM Index, Dynamic Large Cap
Growth IntellidexSM
Index, Dynamic Large Cap Value IntellidexSM Index, Dynamic
Leisure & Entertainment IntellidexSM Index, Dynamic Market
IntellidexSM Index,
Dynamic Media IntellidexSM
Index, Dynamic Networking IntellidexSM Index, Dynamic Oil Services
IntellidexSM Index,
Dynamic Pharmaceutical IntellidexSM Index, Dynamic Retail
IntellidexSM Index,
Dynamic Semiconductor IntellidexSM Index and Dynamic Software
IntellidexSM Index are
each a service mark of ICE Data and have been licensed for use for certain
purposes by the Adviser.
Nasdaq, Inc. Nasdaq, Inc. (“Nasdaq”) is the Index Provider
for the Underlying Index of each of Invesco BuyBack AchieversTM ETF, Invesco Dividend
AchieversTM ETF, Invesco
Golden Dragon China ETF, Invesco High Yield Equity Dividend AchieversTM ETF, Invesco
Insider Sentiment ETF, Invesco International Dividend
AchieversTM ETF, Invesco
NASDAQ Internet ETF and Invesco Water Resources ETF. BuyBack Achievers® is a registered trademarks
of Mergent, Inc. which has been licensed for use within the BuyBack
AchieversTM Index and
Invesco BuyBack AchieversTM ETF.
Raymond James Research Services, LLC. Raymond James
Research Services, LLC is the Index Provider for the Invesco Raymond James SB-1
Equity ETF.
Red Rocks Capital, LLC. Red Rocks Capital, LLC (“Red
Rocks”) is the Index Provider for the Invesco Global Listed Private Equity ETF.
There is no relationship between Red Rocks and the Distributor, the Adviser or
the Trust other than a license by Red Rocks to the Adviser of certain Listed
Private Equity Marks, trademarks and trade names, and the Red Rocks Global
Listed Private Equity Index, for use by the Distributor, the Adviser and the
Trust. Such trademarks, tradenames and the Red Rocks Global Listed Private
Equity Index have been created and developed by Red Rocks without regard to the
Distributor, the Adviser, the Trust, their businesses, the Fund and/or any
prospective investor. Invesco Global Listed Private Equity ETF is entitled to
use the Red Rocks Global Listed Private Equity Index pursuant to a sub-licensing
agreement with the Adviser.
S&P Dow Jones Indices LLC and Chicago Board Options Exchange,
Incorporated.
S&P Dow Jones Indices LLC® (“S&P DJI”) is the Index
Provider for the Underlying Indexes of the Invesco BRIC ETF, Invesco Dow Jones
Industrial Average Dividend ETF, Invesco S&P 100 Equal Weight ETF, Invesco
S&P 500® Equal Weight
ETF, Invesco S&P 500 Equal Weight Communication Services ETF,
Invesco S&P 500®
Equal Weight Consumer Discretionary ETF, Invesco S&P 500® Equal Weight Consumer
Staples ETF, Invesco S&P 500® Equal Weight Energy ETF,
Invesco S&P 500®
Equal Weight Financials ETF, Invesco S&P 500® Equal Weight Health Care
ETF, Invesco S&P 500®
Equal Weight Industrials ETF, Invesco S&P 500® Equal Weight Materials ETF,
Invesco S&P 500®
Equal Weight Real Estate ETF, Invesco S&P 500® Equal Weight Technology ETF,
Invesco S&P 500®
Equal Weight Utilities ETF, Invesco S&P 500 GARP ETF, Invesco S&P
500® Pure Growth ETF,
Invesco S&P 500® Pure
Value ETF, Invesco S&P 500® Quality ETF, Invesco S&P
500® Top 50 ETF, Invesco
S&P 500 Value with Momentum ETF, Invesco S&P MidCap 400® Equal Weight ETF, Invesco
S&P MidCap 400® Pure
Growth ETF, Invesco S&P MidCap 400® Pure Value ETF, Invesco
S&P MidCap Momentum ETF, Invesco S&P MidCap Quality ETF, Invesco S&P
MidCap Value with Momentum ETF, Invesco S&P SmallCap 600® Equal Weight ETF, Invesco
S&P SmallCap 600®
Pure Growth ETF, Invesco S&P SmallCap 600® Pure Value ETF, Invesco
S&P SmallCap Momentum ETF, Invesco S&P SmallCap Value with Momentum ETF
and the Invesco S&P Spin-Off ETF (together the “S&P DJI Funds”).
Chicago Board Options Exchange, Incorporated (“Cboe”) complies,
calculates and maintains the CBOE S&P 500 BuyWrite IndexSM, the Underlying Index of
the Invesco S&P 500 BuyWrite ETF. Cboe has entered into an agreement with
S&P DJI, a division of S&P Global, Inc. Pursuant to that agreement, Cboe
has granted the right to S&P DJI to grant licenses to third parties to use
the
Underlying Index. S&P DJI has granted a license to the Adviser
to use the CBOE S&P 500 BuyWrite IndexSM. Invesco S&P 500
BuyWrite ETF is entitled to use its Underlying Index pursuant to a sub-licensing
agreement with the Adviser.
SPADE Indexes, LLC. SPADE Indexes, LLC (“SPADE Indexes”) is
the Index Provider for the Underlying Index of the Invesco Aerospace &
Defense ETF.
Wells Fargo Securities, LLC. Wells Fargo Securities,
LLC (together with Wells Fargo & Company, “Wells Fargo”) is the Index
Provider for the Underlying Index of Invesco Financial Preferred ETF.
Wells Fargo is not affiliated with the Trust, the Adviser or the
Distributor. Wells Fargo®
Hybrid and Preferred Securities Financial Index is a service mark of Wells
Fargo & Company and has been licensed for use by the Adviser.
WilderHill. WilderHill, owned by WilderShares LLC
(“WilderShares”), is the Index Provider for Invesco WilderHill Clean Energy ETF.
There is no relationship between WilderShares and the Distributor, the Adviser
or the Trust other than a license by WilderShares to the Adviser of certain
WilderHill trademarks and trade names, and the WilderHill Clean Energy Index,
for use by the Distributor, the Adviser and the Trust. Such trademarks,
tradenames, and the WilderHill Clean Energy Index have been created and
developed by WilderShares without regard to the Distributor, the Adviser, the
Trust, their businesses, the Fund and/or any prospective investor. Invesco
WilderHill Clean Energy ETF is entitled to use the WilderHill Clean Energy Index
pursuant to a sub-licensing agreement with the Adviser.
Zacks Investment Research Inc. Zacks Investment Research
Inc. (“Zacks”) is the Index Provider for the Underlying Indexes of Invesco Zacks
Mid-Cap ETF and Invesco Zacks Multi-Asset Income ETF.
Disclaimers
Cleantech, Red Rocks, and WilderShares.
The Cleantech IndexTM, is a trademark of
Cleantech. Red Rocks LLC and Red Rocks Global Listed Private Equity IndexTM are tradenames and
trademarks of Red Rocks. The WilderHill Clean Energy Index is a trademark of
WilderShares. These indexes are collectively referred to as the “Underlying
Indexes” in this sub-section. Each of these Underlying Indexes has been licensed
for use for certain purposes by the Adviser.
The Invesco CleantechTM ETF, Invesco Global Listed
Private Equity ETF and Invesco WilderHill Clean Energy ETF (collectively in this
sub-section, the “Funds”) are not sponsored, endorsed, sold or promoted by
Cleantech, Red Rocks or WilderShares, as the case may be (collectively in this
sub-section, the “Index Providers”), and none of the Index Providers makes any
representation regarding the advisability of investing in Shares of the Funds.
THE INDEX PROVIDERS MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO
RESULTS TO BE OBTAINED BY THE DISTRIBUTOR, THE ADVISER, THE TRUST OR OWNERS OF
SHARES, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF THE UNDERLYING INDEXES OR
ANY DATA INCLUDED
THEREIN. THE INDEX PROVIDERS MAKE NO EXPRESS OR IMPLIED
WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE UNDERLYING INDEXES OR ANY
DATA INCLUDED THEREIN, BY THE FUNDS, THE TRUST OR THE SHARES. WITHOUT LIMITING
ANY OF THE FOREGOING, IN NO EVENT SHALL THE INDEX PROVIDERS HAVE ANY LIABILITY
FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST
PROFITS) RESULTING FROM THE USE OF THE UNDERLYING INDEXES OR ANY DATA INCLUDED
THEREIN, BY THE FUNDS, THE TRUST OR THE SHARES, EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES.
Dorsey, Wright & Associates, LLC. The
Shares of Invesco DWA Basic Materials Momentum ETF, Invesco DWA Consumer
Cyclicals Momentum ETF, Invesco DWA Consumer Staples Momentum ETF, Invesco DWA
Energy Momentum ETF, Invesco DWA Financial Momentum ETF, Invesco DWA Healthcare
Momentum ETF, Invesco DWA Industrials Momentum ETF, Invesco DWA Momentum ETF,
Invesco DWA NASDAQ Momentum ETF, Invesco DWA Technology Momentum ETF and Invesco
DWA Utilities Momentum ETF (collectively in this sub-section, the “Funds”) are
not sponsored, endorsed, sold or promoted by Dorsey Wright or its affiliates
(collectively in this sub-section, “Dorsey Wright”), and Dorsey Wright does not
make any representation regarding the advisability of investing in Shares of
these Funds.
There is no relationship between Dorsey Wright and the Adviser
other than a license by Dorsey Wright to the Adviser of certain Dorsey Wright
trademarks and tradenames, and the Dorsey Wright® Basic Materials Technical
Leaders Index, Dorsey Wright® Consumer Cyclicals Technical
Leaders Index, Dorsey Wright® Consumer Staples Technical
Leaders Index, Dorsey Wright® Energy Technical Leaders
Index, Dorsey Wright®
Financials Technical Leaders Index, Dorsey Wright® Healthcare Technical Leaders
Index, Dorsey Wright®
Industrials Technical Leaders Index, Dorsey Wright® Technical Leaders Index,
Dorsey Wright® NASDAQ
Technical Leaders Index, Dorsey Wright® Technology Technical Leaders
Index and Dorsey Wright®
Utilities Technical Leaders Index for use by the Adviser. Such trademarks, trade
names and Underlying Indexes have been created and developed by Dorsey Wright
without regard to and independently of the Adviser, its businesses, its
development of the Invesco DWA Funds and/or any prospective investor. The
Adviser has arranged with Dorsey, Wright & Associates, LLC to license
ETF investment models such as the Dorsey Wright Indexes based on
Point & Figure Analysis for possible inclusion in products which the
Adviser independently develops and promotes. The licensing of any Model such as
the Dorsey Wright Indexes to the Adviser is not an offer to purchase or sell, or
a solicitation. A determination that any portion of an investor’s portfolio
should be devoted to any Invesco DWA Fund developed by the Adviser with
reference to a Dorsey Wright Index is a determination made solely by the
investment adviser serving the investor or the investor himself, not Dorsey
Wright.
Dorsey Wright is not responsible for, and has not participated in,
the determination of the prices and amount of Shares, the timing of the issuance
or sale of Shares or in the determination of any financial calculations relating
thereto. Dorsey Wright has no
obligation or liability in connection with the administration of
the Trust or marketing of the Shares. Dorsey Wright does not guarantee the
accuracy and/or the completeness of any Underlying Index or any data included
therein. Dorsey Wright shall have no liability for any errors, omissions or
interruptions therein. Dorsey Wright makes no warranty, express or implied, as
to results to be obtained by the Distributor, the Adviser, the Trust or owners
of Shares, or any other person or entity, from the use of the Underlying
Indexes, or any data included therein in connection with the Invesco DWA Funds,
or for any other use. Dorsey Wright expressly disclaims all warranties and
conditions of merchantability, title or fitness for a particular purpose or use,
with respect to the Invesco DWA Funds or Underlying Indexes or to any data
included therein, except as set forth in the respective license agreements with
the Adviser. Without limiting any of the foregoing, in no event shall Dorsey
Wright have any liability for any incidental, special, exemplary, punitive,
indirect or consequential damages (including lost profits), however caused and
on any theory of liability, whether in contract, strict liability or tort
(including negligence or otherwise), resulting from the use of the Underlying
Indexes or any data included therein, even if notified of the possibility of
such damages.
The Adviser does not guarantee the accuracy and/or the
completeness of the Underlying Indexes or any data included therein, and the
Adviser shall have no liability for any errors, omissions, or interruptions
therein. The Adviser makes no warranty, express or implied, as to results to be
obtained by the Invesco DWA Funds or any other person or entity from the use of
the Underlying Indexes or any data included therein.
FTSE International Limited. The Invesco FTSE RAFI US
1000 ETF and Invesco FTSE RAFI US 1500 Small-Mid ETF (the “Funds”) are not in
any way sponsored, endorsed, sold or promoted by FTSE International Limited
(“FTSE”), by the London Stock Exchange Group companies (“LSEG”) or by Research
Affiliates, LLC (“RA”) (collectively the “Licensor Parties”). Licensor Parties
make no claim, prediction, warranty or representation whatsoever, expressly or
impliedly, either as to (i) the results to be obtained from the use of the
FTSE RAFITM US 1000 Index
or the FTSE RAFITM US Mid
Small 1500 Index (the “Indexes”) (upon which the Funds are based), (ii) the
figure at which either Index is said to stand at any particular time on any
particular day or otherwise, or (iii) the suitability of either Index for
the purpose to which it is being put in connection with a Fund. The Indexes are
compiled and calculated by FTSE in conjunction with RA. Licensor Parties shall
not be (a) liable (whether in negligence or otherwise) to any person for
any error in either Index or (b) under any obligation to advise any person
of any error therein. None of the Licensor Parties have provided any financial
advice or recommendation in relation to the Underlying Indexes to Invesco or to
its clients.
All rights in the Indexes vest in FTSE. “FTSE®”, “Russell®”, “MTS®”, “FTSE TMX®” and “FTSE Russell” and
other service marks and trademarks related to the FTSE or Russell indexes are
trademarks of the London Stock Exchange Group companies and are used by FTSE,
MTS, FTSE TMX and Russell under license. The trade names Fundamental Index® and RAFI® are registered trademarks of
Research Affiliates, LLC.
ICE Data Indices, LLC. Invesco Dynamic
Biotechnology & Genome ETF, Invesco Dynamic Building &
Construction ETF, Invesco Dynamic Energy Exploration & Production ETF,
Invesco Dynamic Food & Beverage ETF, Invesco Dynamic Large Cap Growth
ETF, Invesco Dynamic Large Cap Value ETF, Invesco Dynamic Leisure and
Entertainment ETF, Invesco Dynamic Market ETF, Invesco Dynamic Media ETF,
Invesco Dynamic Networking ETF, Invesco Dynamic Oil & Gas Services ETF,
Invesco Dynamic Pharmaceuticals ETF, Invesco Dynamic Retail ETF, Invesco Dynamic
Semiconductors ETF and Invesco Dynamic Software ETF (collectively in this
sub-section, the “ Funds”) are based in whole, or in part, on its respective
Underlying Index (set forth below), which is owned by Intercontinental Exchange,
Inc. or its affiliates, and is used by the Adviser with permission under license
by ICE Data, an affiliate of Intercontinental Exchange, Inc. Dynamic
Biotech & Genome IntellidexSM Index, Dynamic
Building & Construction IntellidexSM Index, Dynamic Energy
Exploration & Production IntellidexSM Index, Dynamic
Food & Beverage IntellidexSM Index, Dynamic Large Cap
Growth IntellidexSM
Index, Dynamic Large Cap Value IntellidexSM Index, Dynamic Leisure and
Entertainment IntellidexSM
Index, Dynamic Market IntellidexSM Index, Dynamic Media
IntellidexSM Index,
Dynamic Networking IntellidexSM Index, Dynamic Oil Services
IntellidexSM Index,
Dynamic Pharmaceutical IntellidexSM Index, Dynamic Retail
IntellidexSM Index,
Dynamic Semiconductor IntellidexSM Index and Dynamic Software
IntellidexSM Index
(collectively in this sub-section, the “Underlying Intellidexes”) are service
marks of ICE Data and/or its affiliates and have been licensed for use for
certain purposes by the Adviser on behalf of the Funds. Each Underlying Index is
maintained by ICE Data. ICE Data is not affiliated with the Funds or any of
their affiliates. The Adviser has entered into a license agreement with ICE Data
to use the Underlying Indexes.
The Shares of the Funds are not sponsored or endorsed by ICE Data.
ICE Data makes no representations or warranty, express or implied, to the owners
of Shares or any member of the public regarding the advisability of investing in
Shares particularly or the ability of the product to track the performance of
any sector of the stock market. ICE Data’s only relationship to the Distributor,
the Adviser or the Trust is the licensing of certain trademarks and indices,
which are determined, composed and calculated by ICE Data without regard to the
Funds. ICE Data has no obligation to take the needs of the Funds or their
shareholders into consideration in determining, composing or calculating the
Underlying Intellidexes. ICE Data is not responsible for and has not
participated in any determination or calculation made with respect to the
issuance or redemption of Shares of the Funds. The Underlying Intellidexes are
selected and calculated without regard to the Distributor, the Adviser, the
Trust or any holders of Shares. ICE Data has no obligation to take the needs of
the Distributor, the Adviser, the Trust or the owners of Shares into
consideration in determining, composing or calculating the Underlying
Intellidexes. ICE Data is not responsible for and has not participated in the
determination of the prices and amount of Shares or the timing of the issuance
or sale of Shares or in the determination of any financial calculations relating
thereto. ICE Data has no obligation or liability in connection with the
administration of the Trust, or marketing of the Shares.
ICE DATA DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS
OF THE UNDERLYING INTELLIDEXES OR ANY DATA INCLUDED THEREIN. ICE DATA MAKES NO
WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE FUNDS, OWNERS
OF THE SHARES OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE
UNDERLYING INTELLIDEXES OR ANY DATA INCLUDED THEREIN. ICE DATA MAKES NO EXPRESS
OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE
UNDERLYING INTELLIDEXES OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF
THE FOREGOING, IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL,
PUNITIVE, DIRECT, INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS) IF
NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
Nasdaq, Inc. Invesco BuyBack AchieversTM ETF, Invesco Dividend
AchieversTM ETF, Invesco
Golden Dragon China ETF, Invesco High Yield Equity Dividend AchieversTM ETF, Invesco Insider
Sentiment ETF, Invesco International Dividend AchieversTM ETF, Invesco NASDAQ
Internet ETF and Invesco Water Resources ETF (collectively in this sub-section,
the “Funds”) are not sponsored, endorsed, sold or promoted by Nasdaq or its
affiliates (Nasdaq, with its affiliates, are referred to as the “Corporations”).
The Corporations have not passed on the legality or suitability of, or the
accuracy or adequacy of descriptions and disclosures relating to, these Funds.
The Corporations calculate and maintain the Underlying Indexes for
the Invesco DWA Basic Materials Momentum ETF, Invesco DWA Consumer Cyclicals
Momentum ETF, Invesco DWA Consumer Staples Momentum ETF, Invesco DWA Energy
Momentum ETF, Invesco DWA Financial Momentum ETF, Invesco DWA Healthcare
Momentum ETF, Invesco DWA Industrials Momentum ETF, Invesco DWA Momentum ETF,
Invesco DWA NASDAQ Momentum ETF, Invesco DWA Technology Momentum ETF, Invesco
DWA Utilities Momentum ETF, Invesco BuyBack AchieversTM ETF, Invesco Dividend
AchieversTM ETF, Invesco
Golden Dragon China ETF, Invesco High Yield Equity Dividend AchieversTM ETF, Invesco Insider
Sentiment ETF, Invesco International Dividend AchieversTM ETF, Invesco NASDAQ
Internet ETF and Invesco Water Resources ETF.
The Corporations make no representation or warranty, express or
implied to the owners of the Funds or any member of the public regarding the
advisability of investing in securities generally or in the Funds particularly,
or the ability of the Dorsey Wright® Basic Materials Technical
Leaders Index, Dorsey Wright® Consumer Cyclicals Technical
Leaders Index, Dorsey Wright® Consumer Staples Technical
Leaders Index, Dorsey Wright® Energy Technical Leaders
Index, Dorsey Wright®
Financials Technical Leaders Index, Dorsey Wright® Healthcare Technical Leaders
Index, Dorsey Wright®
Industrials Technical Leaders Index, Dorsey Wright® Technical Leaders Index,
Dorsey Wright® NASDAQ
Technical Leaders Index, Dorsey Wright® Technology Technical Leaders
Index, Dorsey Wright®
Utilities Technical Leaders Index, NASDAQ US BuyBack AchieversTM Index, NASDAQ US Broad
Dividend AchieversTM
Index, NASDAQ Golden Dragon China Index, NASDAQ US Dividend AchieversTM 50 Index, Nasdaq US Insider
Sentiment
Index, NASDAQ International Dividend AchieversTM Index, NASDAQ Internet
IndexSM and NASDAQ OMX US
Water IndexSM to track
general stock market performance.
The Corporations’ only relationship to Invesco Capital Management,
LLC (“Licensee” or the “Adviser”) is in the licensing of the NASDAQ®, OMX®, NASDAQ OMX®, and Underlying Index,
trade/service marks, and certain trade names of the Corporations and the use of
the Underlying Indexes, which are determined, composed and calculated by Nasdaq
without regard to the Adviser or the Funds. BuyBack AchieversTM is a trademark of Mergent,
Inc. and has also been licensed for use for certain purposes by the Adviser.
Nasdaq has no obligation to take the needs of the Adviser or the
owners of the Funds into consideration in determining, composing or calculating,
as applicable, the Underlying Indexes. The Corporations are not responsible for
and have not participated in the determination of the timing of, prices at, or
quantities of the Funds to be issued or in the determination or calculation of
the equation by which the Funds are to be converted into cash. The Corporations
have no liability in connection with the administration, marketing or trading of
the Funds.
THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR
UNINTERRUPTED CALCULATION OF EACH UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN.
THE CORPORATIONS MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE
OBTAINED BY LICENSEE, OWNERS OF SUCH FUND, OR ANY OTHER PERSON OR ENTITY FROM
THE USE OF EACH UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS
MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO EACH
UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE
FOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE ANY LIABILITY FOR ANY LOST
PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES,
EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
Raymond James. The Invesco Raymond James SB-1 Equity
ETF is not sponsored, endorsed, sold or promoted by Raymond James.
Raymond James makes no representation or warranty, express or
implied, to the shareholders of the Invesco Raymond James SB-1 Equity ETF or any
member of the public regarding the advisability of investing in securities
generally or in the Invesco Raymond James SB-1 Equity ETF particularly or the
ability of the Raymond James SB-1 Equity Index to track general stock market
performance. Raymond James’ only relationship to the Adviser is the licensing of
the Raymond James SB-1 Equity Index, which is determined, composed and
calculated by Raymond James without regard to the Adviser or the Invesco Raymond
James SB-1 Equity ETF. Raymond James has no obligation to take the needs of the
Adviser or the shareholders (whether former, current or potential) of the
Invesco Raymond James SB-1 Equity ETF into consideration in determining,
composing or calculating the data
supplied by Raymond James. Raymond James shall not be liable to
any person for any error in the Raymond James SB-1 Equity Index nor shall it be
under any obligation to the Adviser or any person for any error therein.
WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL RAYMOND
JAMES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE,
INDIRECT, OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH
DAMAGES.
S&P Dow Jones Indices LLC and Chicago Board Options
Exchange, Incorporated. The CBOE S&P 500 BuyWrite IndexSM is a product of S&P Dow
Jones Indices LLC or its affiliates and Cboe and has been licensed to S&P
DJI and sublicensed for use by the Adviser. For more information on the
relationship of S&P DJI and CBOE as it relates to the CBOE S&P 500
BuyWrite IndexSM, refer
to the information regarding the Index Providers (see “Index and Intellidex
Providers”).
CBOE S&P 500 BuyWrite IndexSM and Cboe® are trademarks of Cboe or
Cboe Global Markets, Inc. (except that S&P retains the rights in its
trademarks embedded in such trademarks). Such marks have been licensed by
S&P DJI and sublicensed for certain purposes to the Adviser.
The CBOE S&P 500 BuyWrite IndexSM, Dow Jones Industrial
Average Yield Weighted, S&P/BNY Mellon BRIC Select DR Index (USD), S&P
100 Equal Weight Index, S&P 500® Equal Weight Index, S&P
500® Equal Weight
Communication Services Plus Index, S&P 500® Equal Weight Consumer
Discretionary Index, S&P 500® Equal Weight Consumer
Staples Index, S&P 500® Equal Weight Energy Index,
S&P 500® Equal Weight
Financials Index, S&P 500® Equal Weight Health Care
Index, S&P 500® Equal
Weight Industrials Index, S&P 500® Equal Weight Materials
Index, S&P 500® Equal
Weight Real Estate Index, S&P 500® Equal Weight Information
Technology Index, S&P 500® Equal Weight Utilities Plus
Index, S&P 500 GARP Index, S&P 500® Pure Growth Index, S&P
500® Pure Value Index,
S&P 500® Quality
Index, S&P 500® Top
50 Index, S&P 500 High Momentum Value Index, S&P MidCap 400® Equal Weight Index, S&P
MidCap 400® Pure Growth
Index, S&P MidCap 400® Pure Value Index, S&P
MidCap 400 Momentum Index, S&P MidCap 400 Quality Index, S&P MidCap 400
High Momentum Value Index, S&P SmallCap 600® Equal Weight Index, S&P
SmallCap 600® Pure Growth
Index, S&P SmallCap 600® Pure Value Index, S&P
SmallCap 600 Momentum Index, S&P SmallCap 600 High Momentum Value Index and
S&P U.S. Spin-Off Index (together, the “S&P DJI Indices”) are products
of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been
licensed for use by the Adviser. Standard & Poor’s® and S&P® are registered trademarks of
Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of
Dow Jones Trademark Holdings LLC (“Dow Jones”). The trademarks have been
licensed to S&P DJI and have been sublicensed for use for certain purposes
by the Adviser.
Invesco BRIC ETF, Invesco Dow Jones Industrial Average Dividend
ETF, Invesco S&P 100 Equal Weight ETF, Invesco S&P 500 BuyWrite ETF,
Invesco S&P 500®
Equal Weight ETF, Invesco S&P 500® Equal Weight Communication
Services ETF, Invesco S&P
500® Equal
Weight Consumer Discretionary ETF, Invesco S&P 500® Equal Weight Consumer
Staples ETF, Invesco S&P 500® Equal Weight Energy ETF,
Invesco S&P 500®
Equal Weight Financials ETF, Invesco S&P 500® Equal Weight Health Care
ETF, Invesco S&P 500®
Equal Weight Industrials ETF, Invesco S&P 500® Equal Weight Materials ETF,
Invesco S&P 500®
Equal Weight Real Estate ETF, Invesco S&P 500® Equal Weight Technology ETF,
Invesco S&P 500®
Equal Weight Utilities ETF, Invesco S&P 500 GARP ETF, Invesco S&P
500® Pure Growth ETF,
Invesco S&P 500® Pure
Value ETF, Invesco S&P 500® Quality ETF, Invesco S&P
500® Top 50 ETF, Invesco
S&P 500 Value with Momentum ETF, Invesco S&P MidCap 400® Equal Weight ETF, Invesco
S&P MidCap 400® Pure
Growth ETF, Invesco S&P MidCap 400® Pure Value ETF, Invesco
S&P MidCap Momentum ETF, Invesco S&P MidCap Quality ETF, Invesco S&P
MidCap Value with Momentum ETF, Invesco S&P SmallCap 600® Equal Weight ETF, Invesco
S&P SmallCap 600®
Pure Growth ETF, Invesco S&P SmallCap 600® Pure Value ETF, Invesco
S&P SmallCap Momentum ETF, Invesco S&P SmallCap Value with Momentum ETF,
and the Invesco S&P Spin-Off ETF (together the “S&P DJI Funds”) are not
sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, any of
their respective affiliates (collectively, “S&P Dow Jones Indices”) or Cboe
for the Invesco S&P 500 BuyWrite ETF. S&P Dow Jones Indices and Cboe, as
applicable, do not make any representation or warranty, express or implied, to
the owners of the S&P DJI Funds or any member of the public regarding the
advisability of investing in securities generally or in the S&P DJI Funds
particularly or the ability of the S&P DJI Indices to track general market
performance. S&P Dow Jones Indices only relationship to the Adviser with
respect to the S&P DJI Indices is the licensing of each Index and certain
trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or
its licensors. The S&P DJI Indices are determined, composed and calculated
by S&P Dow Jones Indices and Cboe, as applicable, without regard to the
Adviser or the S&P DJI Funds. Neither S&P Dow Jones Indices nor Cboe, as
applicable, has any obligation to take the needs of the Adviser or the owners of
the S&P DJI Funds into consideration in determining, composing or
calculating the S&P DJI Indices. S&P DJI Dow Jones Indices and Cboe, as
applicable, are not responsible for and have not participated in the
determination of the prices, and amount of the S&P DJI Funds or the timing
of the issuance or sale of the S&P DJI Funds or in the determination or
calculation of the equation by which the S&P DJI Funds are to be converted
into cash, surrendered or redeemed, as the case may be. Neither S&P Dow
Jones Indices nor Cboe, as applicable, have any obligation or liability in
connection with the administration, marketing or trading of the S&P DJI
Funds. There is no assurance that investment products based on the S&P DJI
Indices will accurately track index performance or provide positive investment
returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion
of a security within an index is not a recommendation by S&P Dow Jones
Indices to buy, sell, or hold such security, nor is it considered to be
investment advice.
NEITHER S&P DOW JONES INDICES NOR CBOE, AS APPLICABLE,
GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE
S&P DJI DOW JONES INDICES OR ANY DATA RELATED THERETO OR ANY COMMUNICATION,
INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION
(INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES
INDICES AND CBOE SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY
ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND CBOE MAKE NO
EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO
BE OBTAINED BY THE ADVISER, OWNERS OF THE S&P DJI FUNDS, OR ANY OTHER PERSON
OR ENTITY FROM THE USE OF THE S&P DJI INDICES OR WITH RESPECT TO ANY DATA
RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER
SHALL S&P DOW JONES INDICES OR CBOE BE LIABLE FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO,
LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT
LIABILITY, OR OTHERWISE. THERE ARE NO THIRD- PARTY BENEFICIARIES OF ANY
AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND CBOE AND THE
ADVISER, OTHER THAN THE LICENSORS OF THE S&P DJI INDICES.
SPADE Indexes LLC. SPADE® is a registered trademark of
SPADE Indexes LLC and has been licensed for use for certain purposes by the
Adviser.
There is no relationship between SPADE Indexes and the Adviser
other than a license by SPADE Indexes to the Adviser of certain SPADE Indexes
trademarks, the SPADE®
Defense Index and trade names for use by the Adviser. Such trademarks, trade
names and the SPADE®
Defense Index have been created and developed by SPADE Indexes without regard to
the Adviser, its business, the Invesco Aerospace & Defense ETF and/or
any investor. Invesco Aerospace & Defense ETF and its Shares are not
sponsored, endorsed, sold or promoted by SPADE Indexes. SPADE Indexes makes no
warranty or representation regarding the advisability of purchasing, holding or
trading the Invesco Aerospace & Defense ETF or investing in securities
generally or in the Invesco Aerospace & Defense ETF particularly or the
ability of any data supplied by SPADE Indexes to track general stock market
performance. SPADE Indexes’ only relationship to the Adviser is the licensing of
certain trademarks and trade names of SPADE Indexes and of the data supplied by
SPADE Indexes which is determined, composed and calculated by SPADE Indexes
without regard to the Invesco Aerospace & Defense ETF or its Shares.
SPADE Indexes has no obligation to take the needs of the Adviser or the
shareholders of the Invesco Aerospace & Defense ETF into consideration
in determining, composing or calculating the data supplied by SPADE Indexes.
SPADE Indexes is not responsible for and has not participated in the
determination of the prices of the Shares of the Invesco Aerospace &
Defense ETF or the timing of the issuance or sale of such Shares. SPADE Indexes
has no obligation or liability in connection with the administration, marketing
or trading of the Invesco Aerospace & Defense ETF or its Shares.
Wells Fargo. Invesco Financial Preferred ETF (in
this sub-section, the “Fund”) is not sponsored, endorsed, sold or promoted by
Wells Fargo. Wells Fargo makes no representation or warranty, express or
implied, to Fund investors or any member of the public regarding the
advisability of investing in securities generally or in the Fund particularly or
the ability of any data supplied by Wells Fargo to track the performance of the
securities referenced by the Wells Fargo® Hybrid and Preferred
Securities Financial Index. Wells Fargo’s only relationship to the Adviser is
the licensing of certain trademarks and trade names of Wells Fargo and of the
data supplied by Wells Fargo that is determined, composed and calculated by
Wells Fargo without regard to the Fund or its Shares. Wells Fargo has no
obligation to take the needs of the Fund into consideration when determining,
composing or calculating the data. Wells Fargo has no obligation or liability in
connection with the administration, marketing or trading of the Fund.
WELLS FARGO DOES NOT GUARANTEE THE ACCURACY AND/OR THE
COMPLETENESS OF THE WELLS FARGO® HYBRID AND PREFERRED
SECURITIES FINANCIAL INDEX OR ANY DATA INCLUDED THEREIN. WELLS FARGO MAKES NO
WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ADVISER AND
THE INVESCO FINANCIAL PREFERRED ETF, OR ANY OTHER PERSON OR ENTITY FROM THE USE
OF THE WELLS FARGO®
HYBRID AND PREFERRED SECURITIES FINANCIAL INDEX DATA. WELLS FARGO DISCLAIMS ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT
SHALL WELLS FARGO HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR
CONSEQUENTIAL DAMAGES INCLUDING LOST PROFITS, EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES.
NYSE Arca, which acts as calculation agent for the Wells Fargo® Hybrid and Preferred
Securities Financial Index, is not affiliated with the Adviser or Wells Fargo
and does not approve, endorse, review or recommend the Fund. The Fund is based
on the Wells Fargo®
Hybrid and Preferred Securities Financial Index, and the value of the Wells
Fargo® Hybrid and
Preferred Securities Financial Index is derived from sources deemed reliable,
but NYSE Arca and its suppliers do not guarantee the correctness or completeness
of the Wells Fargo®
Hybrid and Preferred Securities Financial Index, its values or other
information furnished in connection with the Wells Fargo® Hybrid and Preferred
Securities Financial Index.
NYSE ARCA MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE RESULTS
TO BE OBTAINED BY ANY PERSON OR ENTITY FROM THE USE OF THE WELLS FARGO® HYBRID AND PREFERRED
SECURITIES FINANCIAL INDEX, TRADING BASED ON THE WELLS FARGO® HYBRID AND PREFERRED
SECURITIES FINANCIAL INDEX, OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH THE
TRADING OF THE INVESCO FINANCIAL PREFERRED ETF, OR FOR ANY OTHER USE. WELLS
FARGO AND NYSE ARCA MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AND HEREBY EXPRESSLY
DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
OR USE WITH RESPECT TO THE WELLS FARGO® HYBRID AND PREFERRED
SECURITIES FINANCIAL INDEX OR ANY DATA INCLUDED THEREIN.
Zacks. The only relationship that Zacks has with the
Adviser or Distributor of Invesco Zacks Mid-Cap ETF and Invesco Zacks
Multi-Asset Income ETF (in this sub-section, the “Funds”) in connection with the
Funds is certain Zacks trademarks, indexes and trade names and that Zacks has
licensed certain of its intellectual property to the Adviser, including the
determination of the component stocks of the Zacks Mid-Cap Core Index and Zacks
Multi-Asset Income Index and the name of the Zacks Mid-Cap Core Index and Zacks
Multi-Asset Income Index. The Zacks Mid-Cap Core Index and Zacks Multi-Asset
Income Index are selected and calculated without regard to the Adviser,
Distributor or owners of the Funds. Zacks has no obligation to take the specific
needs of the Adviser, Distributor or owners of the Funds into consideration in
the determination and calculation of the Zacks Mid-Cap Core Index and Zacks
Multi-Asset Income Index. Zacks is not responsible for and has not participated
in the determination of pricing or the timing of the issuance or sale of the
Shares of the Funds or in the determination or calculation of the asset value of
the Funds. Zacks does not have any obligation or liability in connection with
the administration, marketing or trading of the Funds.
The Funds are not sponsored, endorsed, sold or promoted by Zacks.
Zacks makes no representation or warranty, express or implied, regarding the
advisability of investing in securities generally or in the Funds particularly
or the ability of Zacks Mid-Cap Core Index and Zacks Multi-Asset Income Index
(the “Underlying Indexes”) to track generally market performance. Zack’s only
relationship to the Adviser is the licensing of the Underlying Indexes which is
determined, composed and calculated by Zacks without regard to the Adviser or
the Funds. Zacks has no obligation to take the needs of the Adviser or other
owners of the Funds into consideration in determining, composing or calculating
the Underlying Indexes. Zacks shall not be liable to any person for any error in
the Underlying Indexes nor shall it be under any obligation to advise any person
of any error therein.
ZACKS SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR
INTERRUPTIONS RELATED TO THE FUNDS OR ZACKS MID-CAP CORE INDEX, OR ZACKS
MULTI-ASSET INCOME INDEX. ZACKS MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO
RESULTS TO BE OBTAINED BY THE ADVISER, DISTRIBUTOR OR OWNERS OF THE FUNDS, OR
ANY OTHER PERSON OR ENTITY, FROM THE USE OF ZACKS MID-CAP CORE INDEX, OR ZACKS
MULTI-ASSET INCOME INDEX OR ANY DATA INCLUDED THEREIN. ZACKS DOES NOT MAKE ANY
WARRANTY, EXPRESS OR IMPLIED, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, WITH RESPECT TO THE
FUNDS OR TO ZACKS MID-CAP CORE INDEX, OR ZACKS MULTI-ASSET INCOME INDEX OR TO
ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT
SHALL ZACKS BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES WHICH MAY BE INCURRED OR EXPERIENCED ON ACCOUNT OF ENTERING INTO OR
RELYING ON THIS AGEEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES.
The Adviser does not guarantee the accuracy and/or the
completeness of the Underlying Indexes or any data included
therein, and the Adviser shall have no liability for any errors,
omissions, restatements, re-calculations or interruptions therein. The Adviser
makes no warranty, express or implied, as to results to be obtained by the
Funds, owners of the Shares or any other person or entity from the use of the
Underlying Indexes or any data included therein. The Adviser makes no express or
implied warranties and expressly disclaims all warranties of merchantability or
fitness for a particular purpose or use with respect to the Underlying Indexes
or any data included therein. Without limiting any of the foregoing, in no event
shall the Adviser have any liability for any special, punitive, direct, indirect
or consequential damages (including lost profits) arising out of matters
relating to the use of the Underlying Indexes, even if notified of the
possibility of such damages.
Premium/Discount Information
Information on the daily NAV per Share for each Fund can be found
at www.invesco.com/ETFs. Additionally, information regarding how often the
Shares of each Fund traded on NYSE Arca or Nasdaq, as applicable, at a price
above (at a premium) or below (at a discount) the NAV of the Fund during the
prior calendar year and subsequent quarters can be found at
www.invesco.com/ETFs.
Other Information
Section 12(d)(1) of the 1940 Act restricts investments by
investment companies (and companies relying on Sections 3(c)(1) and 3(c)(7) of
the 1940 Act) in the securities of other investment companies. However,
registered investment companies are permitted to invest in the Funds beyond the
limits set forth in Section 12(d)(1) subject to certain terms and
conditions set forth in an SEC exemptive order issued to the Trust, including
that such investment companies enter into a participant agreement with the Trust
on behalf of a Fund prior to exceeding the limits imposed by
Section 12(d)(1). Additionally, each Fund is permitted to invest in other
registered investment companies beyond the limits set forth in
Section 12(d)(1) subject to certain terms and conditions set forth in
another exemptive order that the SEC has issued to the Trust. If a Fund relies
on this exemptive relief, however, other investment companies may not invest in
the Fund beyond the statutory provisions of Section 12(d)(1).
Continuous Offering
The method by which Creation Unit Aggregations of Shares are
created and traded may raise certain issues under applicable securities laws.
Because new Creation Unit Aggregations of Shares are issued and sold by the
Funds on an ongoing basis, a “distribution,” as such term is used in the
Securities Act of 1933, as amended (the “Securities Act”), may occur at any
point. Broker-dealers and other persons are cautioned that some activities on
their part may, depending on the circumstances, result in their being deemed
participants in a distribution in a manner which could render them statutory
underwriters and subject them to the prospectus-delivery requirement and
liability provisions of the Securities Act. For example, a broker-dealer firm or
its client may be deemed a statutory underwriter if it takes
Creation Unit Aggregations after placing an order with the
Distributor, breaks them down into constituent Shares and sells such Shares
directly to customers, or if it chooses to couple the creation of a supply of
new Shares with an active selling effort involving solicitation of secondary
market demand for Shares. A determination of whether one is an underwriter for
purposes of the Securities Act must take into account all the facts and
circumstances pertaining to the activities of the broker-dealer or its client in
the particular case, and the examples mentioned above should not be considered a
complete description of all the activities that could lead to a characterization
as an underwriter.
Broker-dealer firms should also note that dealers who are not
“underwriters” but are effecting transactions in Shares, whether or not
participating in the distribution of Shares, are generally required to deliver a
prospectus. This is because the prospectus delivery exemption in
Section 4(a)(3)(C) of the Securities Act is not available in respect of
such transactions as a result of Section 24(d) of the 1940 Act. As a
result, broker-dealer firms should note that dealers who are not “underwriters”
but are participating in a distribution (as contrasted with engaging in ordinary
secondary market transactions), and thus dealing with the Shares that are part
of an overallotment within the meaning of Section 4(a)(3)(C) of the
Securities Act, will be unable to take advantage of the prospectus delivery
exemption provided by Section 4(a)(3) of the Securities Act. For delivery
of prospectuses to exchange members, the prospectus delivery mechanism of
Rule 153 under the Securities Act only is available with respect to
transactions on a national exchange.
Delivery of Shareholder Documents—Householding
Householding is an option available to certain investors of the
Funds. Householding is a method of delivery, based on the preference of the
individual investor, in which a single copy of certain shareholder documents can
be delivered to investors who share the same address, even if their accounts are
registered under different names. Householding for the Funds is available
through certain broker-dealers. If you are interested in enrolling in
householding and receiving a single copy of prospectuses and other shareholder
documents, please contact your broker-dealer. If you currently are enrolled in
householding and wish to change your householding status, please contact your
broker-dealer.
For More Information
For more detailed information on the Trust, the Funds and the
Shares, you may request a copy of the Trust’s SAI. The SAI provides detailed
information about the Funds, and is incorporated by reference into this
Prospectus. This means that the SAI legally is a part of this Prospectus.
Additional information about the Funds’ investments also is available in the
Funds’ Annual and Semi-Annual Reports to Shareholders. In the Funds’ current
Annual Report, you will find a discussion of the market conditions and
investment strategies that significantly affected each Fund’s performance during
the last fiscal year. If you have questions about the Funds or Shares or you
wish to obtain the SAI, Annual
Report and/or Semi-Annual Report free of charge, or make
shareholder inquiries, please:
|
Call: |
Invesco Distributors, Inc. at
1-800-983-0903 Monday through Friday 8:00 a.m. to 5:00 p.m. Central Time
|
|
Write: |
Invesco Exchange-Traded Fund Trust c/o
Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, Texas
77046-1173 |
|
Visit: |
www.invesco.com/ETFs
|
Reports and other information about the Funds are available on the
EDGAR Database on the SEC’s Internet site at www.sec.gov, and copies of this
information may be obtained, after paying a duplicating fee, by electronic
request at the following e-mail address: [email protected].
No person is authorized to give any information or to make any
representations about the Funds and their Shares not contained in this
Prospectus, and you should not rely on any other information. Read and keep this
Prospectus for future reference.
Dealers effecting transactions in the Funds’ Shares, whether or
not participating in this distribution, generally are required to deliver a
Prospectus. This is in addition to any obligation of dealers to deliver a
Prospectus when acting as underwriters.
The Trust’s registration number under the 1940 Act is 811-21265.
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Invesco Exchange-Traded Fund Trust
3500
Lacey Road, Suite 700
Downers
Grove, IL 60515 |
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P-PS-PRO-1 |
|
www.invesco.com
800.983.0903
@invescoETFs |