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Invesco Annual Report to Shareholders

 

 

August 31, 2023

 

  POWA   Invesco Bloomberg Pricing Power ETF (formerly, Invesco Defensive Equity ETF)
  IUS   Invesco RAFITM Strategic US ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      5  
Liquidity Risk Management Program      10  
Schedules of Investments   

Invesco Bloomberg Pricing Power ETF (POWA)

     11  

Invesco RAFITM Strategic US ETF (IUS)

     13  
Statements of Assets and Liabilities      19  
Statements of Operations      20  
Statements of Changes in Net Assets      21  
Financial Highlights      22  
Notes to Financial Statements      24  
Report of Independent Registered Public Accounting Firm      33  
Fund Expenses      34  
Tax Information      35  
Trustees and Officers      36  
Approval of Investment Advisory Contracts      46  

 

   2   

 

 

 

 


 

The Market Environment

 

Domestic Equity

At the start of the fiscal year, volatility in the equity markets increased. US equity markets rose in August 2022 until the US Federal Reserve (the Fed) chairman Jerome Powell gave hawkish comments at an economic policy symposium held in Jackson Hole, sparking a sharp selloff at month-end. The Fed reiterated that it would continue taking aggressive action to curb inflation, even though such measures could “bring pain to households and businesses,” and the Fed raised the benchmark federal funds rate by another 0.75% in September.1 After a continued decline in September 2022, US equity markets rebounded in October and November, despite mixed data on the economy and corporate earnings. However, the Fed’s message of continued rate hikes until data shows inflation meaningfully declining sent markets lower in December. As energy prices declined, the rate of inflation slowed modestly in the fourth quarter of 2022. Corporate earnings generally met expectations, though companies provided cautious future guidance. With inflation still at multi-decade highs and little evidence of a slowing economy, the Fed raised its target rate by 0.75% in November and by 0.50% in December.1

US equities managed to deliver gains in the first quarter of 2023 despite significant volatility and a banking crisis. A January rally gave way to a February selloff as higher-than-expected inflation, a tight labor market and solid economic growth indicated that the Fed’s monetary policy would remain tight for the foreseeable future, raising the risk of a deeper than expected recession. In March, the failure of two US regional banks, Silicon Valley Bank and Signature Bank, prompted steep losses in the banking sector. The subsequent takeover of Credit Suisse and ongoing fear that bank troubles would spread sent investors to safe-haven assets, sparking a bond rally, particularly among securities at the short end of the yield curve. With instability in the banking sector, the Fed raised the federal funds rate by only 0.25% in February of 2023 and again in March.1 The Fed’s actions to stabilize the banking system in March sent markets higher, so equities were surprisingly resilient despite the turmoil.

The US economy and equity markets remained resilient in the second quarter of 2023, as milder inflation data and better-than-expected corporate earnings supported equities, with most major indexes posting gains for the quarter and with some big tech names providing optimistic future guidance. The Consumer Price Index (CPI) rose 4% as of May 31, 2023, the smallest 12-month increase in nearly two years.2 The labor market maintained momentum in the second quarter with unemployment still at historic lows despite a slight uptick at the end of May. Facing persistently strong employment data, the Fed raised the federal funds rate by 0.25% at its May meeting, but investors got a long-awaited “pause” in rate hikes as the Fed left rates unchanged at its June meeting, sending equity

markets higher. However, the Fed raised rates another 0.25% in July, bringing the rate to its highest level since June 2006.1 After two months of gains, equity markets declined in August as a resilient economy complicated the Fed’s efforts to tame inflation. While inflation has slowed from its peak in June 2022, the highest level since 1981, the CPI rose by 0.2% in July and the 12-month headline inflation rate rose to 3.2% from 3% in June.2 At its annual Jackson Hole symposium in August 2023, Fed chair Jerome Powell remarked that while progress has been made, inflation is still too high, and the Fed intends “to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

Despite higher rates and increased market volatility, US stocks for the fiscal year had strong returns of 15.94%, as measured by the S&P 500 Index.3

 

1 

Source: US Federal Reserve

2 

Source: US Bureau of Labor Statistics

3 

Source: Lipper Inc.

Global Equity

Global equity markets declined at the beginning of the fiscal year weighed down by rising inflation, central bank tightening and a slowing global economy. To tame inflation, several central banks, including the US Federal Reserve, the European Central Bank and the Bank of England, continued to raise interest rates. Emerging market equities, hampered by the strong US dollar, underperformed developed market equities. China faced headwinds, which included the country’s zero-COVID-19 policy and a growing property market crisis.

Global equity markets posted gains for the fourth quarter of 2022, after better inflation data sparked a rally in October and November. However, investor sentiment worsened in December after central banks signaled continued interest rate hikes into 2023 as inflation remained above target levels. International stocks outperformed US stocks, led by results in the UK and the rest of Europe. Emerging market equities also posted gains for the fourth quarter, driven by China, which eased its zero-COVID-19 policy and started to reopen.

For the first half of 2023, global equity markets continued to deliver gains amid continued interest rate increases, volatility and a banking crisis. The largest shock came in March 2023 as the failure of two US regional banks, Silicon Valley Bank and Signature Bank, along with the subsequent UBS takeover of Credit Suisse, led to a selloff in US and European financial stocks. Optimism about AI (Artificial Intelligence) boosted technology stocks during the second quarter of 2023. Emerging market equities also posted gains for the first half of 2023 but within the region, China’s equities declined due to weaker-than-expected economic data, real estate developer debt issues and geopolitical concerns.

 

   3   

 

 

 

 


 

The Market Environment–(continued)

 

Market volatility increased in August 2023, with both developed market equities and emerging market equities declining. For the overall fiscal year ended August 31, 2023, developed market equities posted a positive return, outperforming emerging market equities, which ended the period slightly positive.

 

   4   

 

 

 

 


 

 

POWA    Management’s Discussion of Fund Performance
   Invesco Bloomberg Pricing Power ETF (POWA)

 

Effective after the close of markets on August 25, 2023, Invesco Defensive Equity ETF changed its name to Invesco Bloomberg Pricing Power ETF (the “Fund”) and the underlying index changed from Invesco Defensive Equity Index (the “Previous Index”) to the Bloomberg Pricing Power Index (the “Index”). At that time, the Fund also changed its ticker symbol from DEF to POWA and changed its investment objective and investment policies.

As an index fund, the Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index, and through August 25, 2023, the Previous Index. The Fund generally will invest at least 80% of its total assets in the securities that comprise the Index, and through August 25, 2023, the Previous Index.

Bloomberg Index Services Limited (the “Index Provider”) compiles, maintains and calculates the Index, which is composed of the securities of U.S. large- and mid-cap companies that, in the view of the Index Provider, are well-positioned to maintain stable profit margins in all market conditions. The Index focuses on companies that have the smallest deviations among their annual gross profit margins over the last five years. Securities eligible for inclusion in the Index are screened, pursuant to the index methodology, for their company’s (i) profitability history, (ii) market cap sector ranking, (iii) debt to market capitalization ratio, and (iv) gross margin stability. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 6.29%. On a net asset value (“NAV”) basis, the Fund returned 6.36%. During the same time period, the Blended—Invesco Defensive Equity Index (which reflected the returns of the Previous Index from the beginning of the fiscal year through August 25, 2023, and of the Index for the remainder of the fiscal year, referred to herein as the “Custom Index”) returned 6.94%. During the fiscal year, the Fund fully replicated the components of the Custom Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Custom Index primarily due to fees and operating expenses incurred by the Fund during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 15.94%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 500 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. stock market.

The performance of the Fund differed from the Benchmark Index because the Fund seeks to track its underlying index, which employs a proprietary stock selection and equal weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the industrials, health care and consumer staples sectors and most underweight in the information technology, communication services and energy sectors during the fiscal year ended August 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation to and security selection in the information technology and communication services sectors.

For the fiscal year ended August 31, 2023, the industrials sector contributed most significantly to the Fund’s return, followed by the financials and consumer discretionary sectors, respectively. The utilities sector detracted most significantly from the Fund’s return, followed by the real estate and communication services sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included O’Reilly Automotive, Inc., a consumer discretionary company (portfolio average weight of 1.08%), and Merck & Co., Inc., a health care company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during the period included CVS Health Corp., a health care company (no longer held at fiscal year-end), and Hasbro, Inc., a consumer discretionary (no longer held at fiscal year-end).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
       
Industrials      38.71  
Health Care      19.08  
Consumer Staples      12.76  
Consumer Discretionary      12.13  
Information Technology      10.77  
Sector Types Each Less Than 3%      6.56  
Other Assets Less Liabilities      (0.01)  
Top Ten Fund Holdings
(% of the Fund’s Net Assets)
as of August 31, 2023
       
Security   
Veeva Systems, Inc., Class A      2.43  
Lam Research Corp.      2.35  
Trane Technologies PLC      2.33  
Amphenol Corp., Class A      2.29  
Automatic Data Processing, Inc.      2.25  
Cadence Design Systems, Inc.      2.23  
Comcast Corp., Class A      2.21  
PACCAR, Inc.      2.21  
Equinix, Inc.      2.19  
Avery Dennison Corp.      2.16  
Total      22.65  

 

 

  5  

 


 

Invesco Bloomberg Pricing Power ETF (POWA) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2023

 

          3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Blended—Invesco Defensive Equity Index     6.94     8.46     27.60     8.82     52.60     10.45     170.17       8.89     315.17
Bloomberg Pricing Power Index     N/A       N/A       N/A       N/A       N/A       N/A       N/A         N/A       N/A  
S&P 500® Index     15.94       10.52       35.00       11.12       69.43       12.81       233.79         9.30       341.74  
Fund                    
NAV Return     6.36       7.87       25.51       8.22       48.43       9.81       154.92         8.21       273.94  
Market Price Return     6.29       7.82       25.34       8.20       48.29       9.82       155.05         8.21       273.88  

 

Guggenheim Defensive Equity ETF (the “Predecessor Fund”) Inception: December 15, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.40% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund.

 

-

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

 

-

The Blended-Invesco Defensive Equity Index performance is comprised of the performance of the Sabrient Defensive Equity Index from the Predecessor Fund’s inception through October 24, 2016, followed by the performance of the Previous Index from October 25, 2016 through August 25, 2023, followed by the performance of the Index from August 26, 2023 through August 31, 2023.

 

 

  6  

 


 

 

IUS    Management’s Discussion of Fund Performance
   Invesco RAFITM Strategic US ETF (IUS)

 

As an index fund, the Invesco RAFI Strategic US ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Invesco Strategic US Index (the “Index”). The Fund generally will invest at least 80% of its total assets in securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Invesco Indexing LLC (“Invesco Indexing” or the “Index Provider”) compiles and maintains the Index, which is designed to measure the performance of equity securities of U.S. companies that tend to have larger, higher quality businesses. Invesco Indexing is affiliated with Invesco Capital Management LLC, the Fund’s investment adviser, and Invesco Distributors, Inc., the Fund’s distributor.

The Index Provider selects components for inclusion in the Index from an investment universe of domestic equity securities with at least one year of trading history. Each eligible equity security is assigned a business-size score (“Business-Size Score”) based on the equally-weighted average of the following four factors of company size over the prior five years (or, if shorter, the life of the security): sales, operating cash flow, total return of capital (dividends and share repurchases) and book value. For real estate securities (real estate investment trusts (“REITs”) and common stocks of companies in the real estate sector), operating cash flow is replaced by funds from operations and book value is replaced by total assets. Each eligible security is then assigned a quality score (“Quality Score”) based on the equally-weighted average of the following two quality factors of its company’s business: efficiency (calculated as the ratio of sales-to-assets in the prior year) and growth (calculated as the percentage change in the ratio of sales-to-assets over the prior five years (or, if shorter, the life of the security)). Each eligible security is ranked in descending order by its Business-Size Score. Those securities within the top 90% in cumulative Business-Size Score are eligible for inclusion in the Index and, of those, the 80% with the highest Quality Scores are included in the Index. Securities in the Index are weighted proportionally to their float-adjusted Business-Size Scores. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. stock market.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 14.34%. On a net asset value (“NAV”) basis, the Fund returned 14.46%. During the same time period, the Index returned 14.67%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the Russell 1000® Index (the “Benchmark Index”) returned 15.40%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 1,000 securities.

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

Relative to the Benchmark Index, the Fund was most overweight in the energy and communication services sectors and most underweight in the information technology and financials sectors during the fiscal year ended August 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation to and security selection in the information technology sector.

For the fiscal year ended August 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the communication services and industrials sectors, respectively. The utilities sector was the only sector to detract from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Meta Platforms, Inc., Class A, a communication services company (portfolio average weight of 1.91%), and Apple, Inc., an information technology company (portfolio average weight of 5.14%). Positions that detracted most significantly from the Fund’s return during the period included CVS Health Corp., a health care company (portfolio average weight of 1.02%), and Lumen Technologies, Inc., a communication services company (portfolio average weight of 0.09%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
       
Information Technology      18.49  
Health Care      14.79  
Communication Services      12.28  
Energy      11.65  
Consumer Discretionary      10.83  
Industrials      10.33  
Consumer Staples      8.08  
Financials      5.96  
Materials      4.67  
Sector Types Each Less Than 3%      2.85  
Money Market Funds Plus Other Assets Less Liabilities      0.07  

 

 

  7  

 


 

Invesco RAFITM Strategic US ETF (IUS) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of August 31, 2023
       
Security   
Apple, Inc.      4.43  
Alphabet, Inc., Class A      3.86  
Microsoft Corp.      2.72  
Exxon Mobil Corp.      2.49  
Meta Platforms, Inc., Class A      2.39  
Amazon.com, Inc.      1.88  
Chevron Corp.      1.70  
UnitedHealth Group, Inc.      1.29  
Comcast Corp., Class A      1.20  
AT&T, Inc.      1.11  
Total      23.07  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment Since Inception

 

 

LOGO

Fund Performance History as of August 31, 2023

 

          3 Years
Average
Annualized
    3 Years
Cumulative
          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Invesco Strategic US Index     14.67     15.98     56.03       12.79     81.78
Russell 1000® Index     15.40       9.93       32.84         10.94       67.46  
Fund            
NAV Return     14.46       15.76       55.11         12.60       80.28  
Market Price Return     14.34       15.68       54.79         12.60       80.33  

 

 

  8  

 


 

Invesco RAFITM Strategic US ETF (IUS) (continued)

 

Fund Inception: September 12, 2018

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information.

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.19% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  9  

 


 

Liquidity Risk Management Program

 

 

The Securities and Exchange Commission (“SEC”) has adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Funds have adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Funds’ liquidity risk, which is the risk that the Funds could not meet redemption requests without significant dilution of remaining investors’ interests in the Funds. The Board of Trustees of the Funds (the “Board”) has appointed Invesco Capital Management LLC (“Invesco”), the Funds’ investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco and its affiliates.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Funds’ liquidity risk that takes into account, as relevant to the Funds’ liquidity risk: (1) each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Funds during both normal and reasonably foreseeable stressed conditions; (3) each Fund’s holdings of cash and cash equivalents and any borrowing arrangements; (4) the relationship between the Funds’ portfolio liquidity and the way in which, and the prices and spreads at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants; and (5) the effect of the composition of baskets on the overall liquidity of each Fund’s portfolio. The Liquidity Rule also requires the classification of each Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. Each Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, a Fund may not acquire an investment if, immediately after the acquisition, over 15% of such Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of such Fund’s assets.

At a meeting held on March 24, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

The Report stated, in relevant part, that during the Program Reporting Period:

 

   

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Funds’ liquidity risk and was operated effectively to achieve that goal;

 

   

Each Fund’s investment strategy remained appropriate for an open-end fund;

 

   

Each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

 

   

The Funds did not breach the 15% limit on Illiquid Investments; and

 

   

The Funds primarily held Highly Liquid Investments and therefore have not adopted an HLIM.

 

   10   

 

 

 

 


 

Invesco Bloomberg Pricing Power ETF (POWA)

August 31, 2023

Schedule of Investments(a)

 

         Shares    Value  

Common Stocks & Other Equity Interests-100.01%

 

Communication Services-2.21%

    

Comcast Corp., Class A

     102,762      $ 4,805,151  
    

 

 

 

Consumer Discretionary-12.13%

    

Best Buy Co., Inc.

     59,413       4,542,124  

Garmin Ltd.

     39,998       4,240,588  

Home Depot, Inc. (The)

     14,112       4,661,194  

Lowe’s Cos., Inc.

     20,175       4,649,934  

O’Reilly Automotive, Inc.(b)

     4,423       4,156,293  

Tractor Supply Co.

     18,802       4,108,237  
    

 

 

 
        26,358,370  
    

 

 

 

Consumer Staples-12.76%

    

Archer-Daniels-Midland Co.

     56,397       4,472,282  

Costco Wholesale Corp.

     8,510       4,674,373  

Dollar General Corp.

     19,672       2,724,572  

Hershey Co. (The)

     15,651       3,362,774  

PepsiCo, Inc.

     22,222       3,953,738  

Sysco Corp.

     57,655       4,015,671  

Walmart, Inc.

     27,829       4,525,273  
    

 

 

 
       27,728,683  
    

 

 

 

Health Care-19.08%

    

Agilent Technologies, Inc.

     33,958       4,111,295  

Cardinal Health, Inc.

     48,357       4,223,017  

Cencora, Inc.

     24,017       4,226,512  

McKesson Corp.

     10,363       4,272,872  

Mettler-Toledo International, Inc.(b)

     3,128       3,795,765  

ResMed, Inc.

     18,640       2,974,758  

Veeva Systems, Inc., Class A(b)

     25,267       5,273,223  

Vertex Pharmaceuticals, Inc.(b)

     12,306       4,286,672  

Waters Corp.(b)

     15,985       4,488,588  

Zimmer Biomet Holdings, Inc.

     31,942       3,804,931  
    

 

 

 
       41,457,633  
    

 

 

 

Industrials-38.71%

    

AMETEK, Inc.

     28,479       4,542,685  

Automatic Data Processing, Inc.

     19,197       4,887,748  
         Shares    Value  

Industrials-(continued)

    

Cintas Corp.

     8,888      $ 4,481,063  

Cummins, Inc.

     19,513       4,488,770  

Dover Corp.

     30,288       4,491,710  

General Dynamics Corp.

     19,892       4,508,323  

HEICO Corp.

     25,163       4,245,250  

IDEX Corp.

     20,525       4,646,860  

Illinois Tool Works, Inc.

     18,506       4,577,459  

J.B. Hunt Transport Services, Inc.

     24,419       4,587,842  

Johnson Controls International PLC

     67,628       3,994,110  

Lockheed Martin Corp.

     9,074       4,068,328  

Otis Worldwide Corp.

     50,659       4,333,877  

PACCAR, Inc.

     58,323       4,799,400  

Republic Services, Inc.

     28,836       4,156,133  

Rollins, Inc.

     102,966       4,074,365  

Trane Technologies PLC

     24,719       5,073,822  

Waste Management, Inc.

     25,263       3,960,733  

Xylem, Inc.

     40,651       4,209,004  
    

 

 

 
       84,127,482  
    

 

 

 

Information Technology-10.77%

    

Accenture PLC, Class A

     14,325       4,638,005  

Amphenol Corp., Class A

     56,303       4,976,059  

Cadence Design Systems, Inc.(b)

     20,171       4,849,915  

Lam Research Corp.

     7,260       5,099,424  

VeriSign, Inc.(b)

     18,501       3,844,323  
    

 

 

 
       23,407,726  
    

 

 

 

Materials-2.16%

    

Avery Dennison Corp.

     24,932       4,696,690  
    

 

 

 

Real Estate-2.19%

    

Equinix, Inc.

     6,086       4,755,479  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-100.01%
(Cost $211,130,328)

 

    217,337,214  

OTHER ASSETS LESS LIABILITIES-(0.01)%

       (19,873
    

 

 

 

NET ASSETS-100.00%

     $ 217,317,341  
    

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2023.

 

     Value
August 31, 2022
   Purchases
at Cost
   Proceeds
 from Sales 
  Change in
Unrealized
Appreciation
   Realized
Gain
(Loss)
   Value
August 31, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                  
Invesco Government & Agency Portfolio, Institutional Class      $ 52,209      $ 7,249,831      $ (7,302,040 )     $ -      $ -      $ -      $ 7,096

 

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

 

   11   

 

 

 

 


 

Invesco Bloomberg Pricing Power ETF (POWA)–(continued)

August 31, 2023

 

     Value
August 31, 2022
   Purchases
at Cost
   Proceeds
 from Sales 
  Change in
Unrealized
Appreciation
   Realized
Gain
(Loss)
  Value
August 31, 2023
   Dividend
Income
Investments Purchased with Cash Collateral from Securities on Loan:                                 
Invesco Private Government Fund      $ -      $ 3,697,617      $ (3,697,617 )     $ -      $ -     $ -      $ 1,172 *
Invesco Private Prime Fund        -        9,398,134        (9,398,030 )       -        (104 )       -        3,020 *
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 
Total      $ 52,209      $ 20,345,582      $ (20,397,687 )     $ -      $ (104 )     $ -      $ 11,288
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 

 

*

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statements of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

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

 

   12   

 

 

 

 


 

Invesco RAFITM Strategic US ETF (IUS)

August 31, 2023

Schedule of Investments(a)

 

          Shares       Value  

Common Stocks & Other Equity Interests-99.93%

 

Communication Services-12.28%

     

Activision Blizzard, Inc.

     2,625      $ 241,474  

Alphabet, Inc., Class A(b)

     63,063        8,587,289  

Altice USA, Inc., Class A(b)(c)

     27,130        83,289  

AT&T, Inc.

     166,182        2,457,832  

Atlanta Braves Holdings, Inc., Series C(b)(c)

     24        884  

Charter Communications, Inc., Class A(b)

     2,293        1,004,609  

Comcast Corp., Class A

     57,178        2,673,643  

DISH Network Corp., Class A(b)(c)

     30,826        184,956  

Electronic Arts, Inc.

     1,355        162,573  

Fox Corp., Class A

     7,621        251,950  

Frontier Communications Parent, Inc.(b)(c)

     4,552        72,923  

IAC, Inc.(b)

     1,022        56,547  

Interpublic Group of Cos., Inc. (The)

     3,011        98,189  

Liberty Broadband Corp., Class C(b)

     2,501        233,994  

Liberty Media Corp.-Liberty Formula One(b)

     875        60,191  

Liberty Media Corp.-Liberty Live, Series C(b)

     36        1,211  

Live Nation Entertainment, Inc.(b)(c)

     739        62,468  

Lumen Technologies, Inc.

     139,050        221,089  

Meta Platforms, Inc., Class A(b)

     17,938        5,307,675  

Netflix, Inc.(b)

     778        337,403  

News Corp., Class A

     7,336        157,651  

Nexstar Media Group, Inc., Class A

     644        104,843  

Omnicom Group, Inc.

     1,720        139,337  

Paramount Global, Class B(c)

     18,433        278,154  

Take-Two Interactive Software, Inc.(b)

     466        66,265  

Telephone & Data Systems, Inc.

     11,640        250,144  

T-Mobile US, Inc.(b)

     3,695        503,444  

Verizon Communications, Inc.

     66,936        2,341,421  

Walt Disney Co. (The)(b)

     11,589        969,768  

Warner Bros Discovery, Inc.(b)

     27,952        367,289  
     

 

 

 
          27,278,505  
     

 

 

 

Consumer Discretionary-10.83%

     

Academy Sports & Outdoors, Inc.(c)

     1,258        68,649  

Adient PLC(b)(c)

     1,963        76,891  

Advance Auto Parts, Inc.(c)

     999        68,751  

Airbnb, Inc., Class A(b)

     1,719        226,134  

Amazon.com, Inc.(b)

     30,301        4,181,841  

Aptiv PLC(b)

     1,542        156,436  

Aramark

     2,409        89,567  

Asbury Automotive Group, Inc.(b)(c)

     470        108,100  

Autoliv, Inc. (Sweden)

     873        85,205  

AutoNation, Inc.(b)

     1,067        167,615  

AutoZone, Inc.(b)

     112        283,509  

Bath & Body Works, Inc.

     3,211        118,390  

Best Buy Co., Inc.

     4,543        347,312  

Booking Holdings, Inc.(b)

     150        465,754  

BorgWarner, Inc.

     3,175        129,381  

Brunswick Corp.(c)

     889        70,338  

Burlington Stores, Inc.(b)(c)

     380        61,659  

Caesars Entertainment, Inc.(b)

     1,959        108,254  

Capri Holdings Ltd.(b)

     2,396        125,766  

CarMax, Inc.(b)(c)

     2,327        190,069  

Chipotle Mexican Grill, Inc.(b)

     53        102,112  

Coupang, Inc. (South Korea)(b)(c)

     4,122        78,236  

D.R. Horton, Inc.

     2,544        302,787  

Dana, Inc.

     4,517        72,769  
          Shares       Value  

Consumer Discretionary-(continued)

     

Darden Restaurants, Inc.(c)

     907      $ 141,048  

Dick’s Sporting Goods, Inc.(c)

     1,058        123,088  

Dillard’s, Inc., Class A

     238        82,139  

DoorDash, Inc., Class A(b)

     877        73,782  

eBay, Inc.

     8,894        398,273  

Expedia Group, Inc.(b)

     1,934        209,626  

Foot Locker, Inc.

     2,137        41,928  

Ford Motor Co.

     102,477          1,243,046  

Gap, Inc. (The)(c)

     7,709        89,270  

Garmin Ltd.(c)

     820        86,936  

General Motors Co.

     43,035        1,442,103  

Genuine Parts Co.

     1,023        157,266  

Goodyear Tire & Rubber Co. (The)(b)

     8,600        111,026  

Group 1 Automotive, Inc.

     476        125,864  

H&R Block, Inc.

     2,003        80,080  

Harley-Davidson, Inc.

     2,128        71,820  

Hasbro, Inc.

     1,136        81,792  

Hilton Worldwide Holdings, Inc.

     706        104,947  

Home Depot, Inc. (The)

     5,727        1,891,628  

Hyatt Hotels Corp., Class A(c)

     593        66,659  

Kohl’s Corp.

     8,114        216,157  

Lear Corp.

     1,071        154,320  

Lennar Corp., Class A

     3,487        415,267  

Lithia Motors, Inc., Class A

     689        212,226  

LKQ Corp.

     2,968        155,909  

Lowe’s Cos., Inc.(c)

     5,879        1,354,992  

lululemon athletica, inc.(b)

     253        96,459  

Macy’s, Inc.

     13,750        168,162  

Marriott International, Inc., Class A

     1,014        206,359  

Marriott Vacations Worldwide Corp.

     514        55,867  

McDonald’s Corp.

     1,886        530,249  

MercadoLibre, Inc. (Brazil)(b)

     82        112,534  

MGM Resorts International(c)

     4,762        209,433  

Mohawk Industries, Inc.(b)

     1,233        125,014  

Murphy USA, Inc.

     422        134,044  

Newell Brands, Inc.

     9,854        104,255  

NIKE, Inc., Class B

     5,513        560,727  

NVR, Inc.(b)

     26        165,811  

ODP Corp. (The)(b)

     1,417        69,886  

O’Reilly Automotive, Inc.(b)

     271        254,659  

Penn Entertainment, Inc.(b)

     3,465        82,086  

Penske Automotive Group, Inc.

     415        68,184  

Phinia, Inc.(b)

     634        17,625  

Polaris, Inc.

     639        71,625  

Pool Corp.

     167        61,055  

PulteGroup, Inc.

     2,597        213,110  

PVH Corp.

     1,127        94,217  

Qurate Retail, Inc., Class A(b)

     101,125        78,372  

Ralph Lauren Corp.(c)

     770        89,805  

Ross Stores, Inc.

     1,719        209,391  

Service Corp. International

     1,234        77,878  

Signet Jewelers Ltd.(c)

     1,111        83,325  

Starbucks Corp.

     3,622        352,928  

Tapestry, Inc.

     2,927        97,528  

Taylor Morrison Home Corp., Class A(b)

     2,064        97,834  

Tempur Sealy International, Inc.(c)

     1,680        78,490  

Tesla, Inc.(b)

     4,106        1,059,676  

Thor Industries, Inc.(c)

     1,314        137,733  

 

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

 

   13   

 

 

 

 


 

Invesco RAFITM Strategic US ETF (IUS)–(continued)

August 31, 2023

 

         Shares       Value  

Consumer Discretionary-(continued)

     

TJX Cos., Inc. (The)

     5,949       $ 550,163  

Toll Brothers, Inc.

     1,809        148,211  

Tractor Supply Co.(c)

     619        135,251  

Ulta Beauty, Inc.(b)

     257        106,663  

VF Corp.

     4,539        89,691  

Whirlpool Corp.(c)

     1,501        210,080  

Williams-Sonoma, Inc.(c)

     1,063        150,096  

Yum! Brands, Inc.

     657        85,003  
     

 

 

 
          24,056,196  
     

 

 

 

Consumer Staples-8.08%

     

Albertson’s Cos., Inc., Class A

     11,061        247,766  

Altria Group, Inc.

     13,588        600,861  

Andersons, Inc. (The)

     1,590        81,662  

Archer-Daniels-Midland Co.

     9,336        740,345  

BJ’s Wholesale Club Holdings, Inc.(b)

     1,430        96,368  

Brown-Forman Corp., Class B

     1,251        82,729  

Bunge Ltd.

     2,208        252,419  

Campbell Soup Co.

     1,367        57,004  

Casey’s General Stores, Inc.

     407        99,475  

Church & Dwight Co., Inc.

     922        89,222  

Clorox Co. (The)

     465        72,749  

Coca-Cola Co. (The)

     14,638        875,792  

Colgate-Palmolive Co.

     3,299        242,378  

Conagra Brands, Inc.

     4,382        130,934  

Constellation Brands, Inc., Class A

     1,120        291,827  

Costco Wholesale Corp.

     2,559        1,405,608  

Darling Ingredients, Inc.(b)

     1,109        68,492  

Dollar General Corp.

     1,571        217,584  

Dollar Tree, Inc.(b)(c)

     1,356        165,920  

Estee Lauder Cos., Inc. (The), Class A

     1,329        213,344  

General Mills, Inc.

     3,595        243,238  

Hershey Co. (The)

     616        132,354  

Hormel Foods Corp.

     3,670        141,625  

Ingredion, Inc.

     555        57,115  

JM Smucker Co. (The)

     892        129,295  

Kellogg Co.

     2,357        143,824  

Kenvue, Inc.

     7,741        178,430  

Keurig Dr Pepper, Inc.

     7,187        241,843  

Kimberly-Clark Corp.

     1,500        193,245  

Kraft Heinz Co. (The)

     14,815        490,228  

Kroger Co. (The)

     16,496        765,249  

McCormick & Co., Inc.

     1,014        83,229  

Molson Coors Beverage Co., Class B

     2,823        179,232  

Mondelez International, Inc., Class A

     7,230        515,210  

Monster Beverage Corp.(b)

     1,305        74,920  

PepsiCo, Inc.

     5,258        935,503  

Performance Food Group Co.(b)

     3,665        227,707  

Philip Morris International, Inc.

     7,303        701,526  

Procter & Gamble Co. (The)

     11,627        1,794,511  

Sysco Corp.

     5,126        357,026  

Target Corp.

     5,783        731,839  

Tyson Foods, Inc., Class A

     8,691        462,970  

United Natural Foods, Inc.(b)

     4,817        96,966  

US Foods Holding Corp.(b)

     3,966        160,345  

Walgreens Boots Alliance, Inc.

     22,182        561,426  

Walmart, Inc.

     14,313        2,327,437  
     

 

 

 
        17,958,772  
     

 

 

 

Energy-11.65%

     

Antero Resources Corp.(b)

     5,589        154,648  
         Shares       Value  

Energy-(continued)

     

APA Corp.

     6,227      $ 272,992  

Baker Hughes Co., Class A

     9,986        361,393  

Cheniere Energy, Inc.

     2,339        381,725  

Chesapeake Energy Corp.(c)

     2,287        201,736  

Chevron Corp.

     23,461        3,779,567  

Chord Energy Corp.

     606        97,869  

Civitas Resources, Inc.(c)

     1,275        104,830  

CNX Resources Corp.(b)(c)

     4,126        92,216  

ConocoPhillips

     16,567        1,971,970  

Coterra Energy, Inc.

     12,167        342,988  

CVR Energy, Inc.(c)

     3,031        99,114  

Delek US Holdings, Inc.(c)

     4,017        103,438  

Devon Energy Corp.

     7,704        393,597  

Diamondback Energy, Inc.

     2,558        388,253  

EOG Resources, Inc.

     6,010        773,006  

EQT Corp.

     4,952        214,025  

Exxon Mobil Corp.

     49,741        5,530,702  

Halliburton Co.

     6,064        234,192  

Hess Corp.

     1,339        206,875  

HF Sinclair Corp.

     5,419        298,533  

Kinder Morgan, Inc.

     26,604        458,121  

Marathon Oil Corp.

     14,095        371,403  

Marathon Petroleum Corp.

     14,809        2,114,281  

Matador Resources Co.

     1,427        90,615  

Murphy Oil Corp.

     2,461        111,729  

Occidental Petroleum Corp.

     12,421        779,915  

ONEOK, Inc.

     4,444        289,749  

Ovintiv, Inc.

     5,783        271,570  

PBF Energy, Inc., Class A

     6,300        295,407  

Phillips 66

     11,193        1,277,793  

Pioneer Natural Resources Co.

     3,605        857,738  

Range Resources Corp.

     2,561        82,925  

Schlumberger N.V.

     7,395        436,009  

SM Energy Co.

     2,581        109,202  

Southwestern Energy Co.(b)

     20,860        141,431  

Targa Resources Corp.

     2,873        247,796  

Valero Energy Corp.

     10,651        1,383,565  

Williams Cos., Inc. (The)

     10,710        369,816  

World Kinect Corp.

     8,815        193,048  
     

 

 

 
          25,885,782  
     

 

 

 

Financials-5.96%

     

Affiliated Managers Group, Inc.

     550        73,706  

Allstate Corp. (The)

     5,099        549,723  

American Express Co.

     6,119        966,741  

American Financial Group, Inc.

     1,257        145,711  

Aon PLC, Class A

     932        310,720  

Arch Capital Group Ltd.(b)

     3,164        243,185  

Assurant, Inc.

     937        130,552  

Berkshire Hathaway, Inc., Class B(b)

     4,038        1,454,488  

Block, Inc., Class A(b)(c)

     2,725        157,096  

Bread Financial Holdings, Inc.(c)

     2,364        88,839  

Brown & Brown, Inc.

     895        66,320  

Cboe Global Markets, Inc.

     473        70,813  

Chubb Ltd.

     5,005        1,005,354  

Cincinnati Financial Corp.

     1,683        178,045  

Everest Group Ltd.

     418        150,764  

First American Financial Corp.

     1,868        115,218  

Fiserv, Inc.(b)

     4,073        494,421  

FleetCor Technologies, Inc.(b)

     468        127,170  

 

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

 

   14   

 

 

 

 


 

Invesco RAFITM Strategic US ETF (IUS)–(continued)

August 31, 2023

 

         Shares       Value  

Financials-(continued)

     

Franklin Resources, Inc.

     4,108      $ 109,848  

Hanover Insurance Group, Inc. (The)

     504        53,787  

Hartford Financial Services Group, Inc. (The)

     5,210        374,182  

Janus Henderson Group PLC

     2,738        75,213  

Lazard Ltd., Class A(c)

     2,445        84,939  

LPL Financial Holdings, Inc.

     466        107,455  

Markel Group, Inc.(b)

     147        217,401  

Marsh & McLennan Cos., Inc.

     1,972        384,520  

Mastercard, Inc., Class A

     2,085        860,354  

Moody’s Corp.

     443        149,202  

MSCI, Inc.

     179        97,308  

Nasdaq, Inc.

     1,918        100,657  

Old Republic International Corp.

     5,425        148,374  

OneMain Holdings, Inc.

     3,725        154,625  

PayPal Holdings, Inc.(b)

     9,228        576,842  

Progressive Corp. (The)

     3,657        488,100  

StoneX Group, Inc.(b)

     2,516        236,202  

T. Rowe Price Group, Inc.

     2,317        260,037  

Travelers Cos., Inc. (The)

     3,192        514,646  

Visa, Inc., Class A(c)

     5,905        1,450,740  

W.R. Berkley Corp.

     2,194        135,721  

Western Union Co. (The)

     5,788        71,482  

Willis Towers Watson PLC

     1,272        262,999  
     

 

 

 
          13,243,500  
     

 

 

 

Health Care-14.79%

     

Abbott Laboratories

     8,473        871,872  

AbbVie, Inc.

     9,477        1,392,740  

Agilent Technologies, Inc.

     1,108        134,146  

Align Technology, Inc.(b)

     250        92,535  

Amgen, Inc.

     3,608        924,875  

AMN Healthcare Services, Inc.(b)

     602        53,205  

Avantor, Inc.(b)(c)

     3,640        78,806  

Baxter International, Inc.

     4,006        162,644  

Becton, Dickinson and Co.

     1,478        413,027  

Biogen, Inc.(b)

     669        178,864  

BioNTech SE, ADR (Germany)(b)

     4,505        544,790  

Boston Scientific Corp.(b)

     3,658        197,312  

Bristol-Myers Squibb Co.

     18,932        1,167,158  

Cardinal Health, Inc.

     9,977        871,291  

Cencora, Inc.

     4,865        856,143  

Centene Corp.(b)

     14,608        900,583  

Cigna Group (The)

     6,106        1,686,844  

Cooper Cos., Inc. (The)

     195        72,148  

CVS Health Corp.

     34,161        2,226,272  

Danaher Corp.

     2,526        669,390  

DaVita, Inc.(b)

     1,414        144,822  

DENTSPLY SIRONA, Inc.

     1,766        65,501  

DexCom, Inc.(b)

     519        52,409  

Edwards Lifesciences Corp.(b)

     1,569        119,981  

Elanco Animal Health, Inc.(b)

     8,963        109,349  

Elevance Health, Inc.

     2,621        1,158,508  

Eli Lilly and Co.

     1,286        712,701  

Fortrea Holdings, Inc.(b)(c)

     1,024        28,211  

Gilead Sciences, Inc.

     8,492        649,468  

HCA Healthcare, Inc.

     1,987        550,995  

Henry Schein, Inc.(b)

     1,332        101,951  

Hologic, Inc.(b)

     1,436        107,327  

Horizon Therapeutics PLC(b)(c)

     854        96,280  

Humana, Inc.

     1,313        606,120  
         Shares       Value  

Health Care-(continued)

     

IDEXX Laboratories, Inc.(b)

     135      $ 69,040  

Illumina, Inc.(b)

     463        76,497  

Intuitive Surgical, Inc.(b)

     669        209,183  

IQVIA Holdings, Inc.(b)(c)

     981        218,400  

Jazz Pharmaceuticals PLC(b)

     460        65,946  

Johnson & Johnson

     12,174        1,968,292  

Laboratory Corp. of America Holdings

     1,114        231,823  

McKesson Corp.

     3,288        1,355,708  

Medtronic PLC

     9,422        767,893  

Merck & Co., Inc.

     10,697        1,165,759  

Mettler-Toledo International, Inc.(b)

     57        69,168  

Moderna, Inc.(b)(c)

     3,136        354,587  

Molina Healthcare, Inc.(b)

     635        196,926  

Perrigo Co. PLC

     1,765        61,775  

Pfizer, Inc.

     56,338        1,993,238  

Quest Diagnostics, Inc.

     1,452        190,938  

Regeneron Pharmaceuticals, Inc.(b)

     591        488,456  

ResMed, Inc.

     254        40,536  

STERIS PLC

     437        100,331  

Stryker Corp.

     924        262,000  

Syneos Health, Inc.(b)

     1,416        60,506  

Teladoc Health, Inc.(b)(c)

     3,031        68,622  

Tenet Healthcare Corp.(b)

     1,504        116,650  

Thermo Fisher Scientific, Inc.

     1,461        813,923  

UnitedHealth Group, Inc.

     6,008        2,863,293  

Universal Health Services, Inc., Class B

     1,147        154,501  

Vertex Pharmaceuticals, Inc.(b)

     674        234,781  

Viatris, Inc.

     31,870        342,602  

Zimmer Biomet Holdings, Inc.

     1,119        133,295  

Zoetis, Inc.(c)

     1,054        200,798  
     

 

 

 
          32,873,735  
     

 

 

 

Industrials-10.33%

     

3M Co.

     5,940        633,620  

A.O. Smith Corp.

     886        64,235  

AECOM

     1,302        114,251  

AGCO Corp.

     728        94,298  

AMETEK, Inc.

     797        127,129  

Atkore, Inc.(b)

     468        72,058  

Automatic Data Processing, Inc.

     1,452        369,694  

Avis Budget Group, Inc.(b)

     1,654        352,947  

Boeing Co. (The)(b)

     808        181,016  

Boise Cascade Co.

     938        102,589  

Booz Allen Hamilton Holding Corp.

     826        93,594  

Broadridge Financial Solutions, Inc.

     382        71,132  

Builders FirstSource, Inc.(b)

     2,526        366,371  

C.H. Robinson Worldwide, Inc.

     1,855        167,748  

CACI International, Inc., Class A(b)

     194        63,634  

Carlisle Cos., Inc.

     368        96,791  

Carrier Global Corp.(c)

     5,523        317,296  

Caterpillar, Inc.

     3,537        994,357  

Cintas Corp.

     288        145,201  

Copart, Inc.(b)

     1,476        66,169  

CSX Corp.

     14,928        450,826  

Cummins, Inc.

     1,212        278,808  

Deere & Co.

     1,798        738,870  

Delta Air Lines, Inc.

     2,351        100,811  

Dover Corp.

     782        115,971  

Eaton Corp. PLC

     1,738        400,383  

EMCOR Group, Inc.

     518        116,162  

 

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

 

   15   

 

 

 

 


 

Invesco RAFITM Strategic US ETF (IUS)–(continued)

August 31, 2023

 

         Shares       Value  

Industrials-(continued)

     

Emerson Electric Co.

     3,521      $ 345,938  

Equifax, Inc.

     367        75,859  

Expeditors International of Washington, Inc.

     1,662        193,972  

Fastenal Co.

     1,842        106,062  

FedEx Corp.

     3,468        905,217  

Fluor Corp.(b)

     2,336        81,737  

Fortive Corp.

     1,936        152,654  

Fortune Brands Innovations, Inc.

     1,333        92,004  

General Dynamics Corp.

     2,360        534,870  

General Electric Co.

     6,732        770,545  

GXO Logistics, Inc.(b)

     1,010        64,610  

Hertz Global Holdings, Inc.(b)(c)

     4,160        70,512  

Honeywell International, Inc.

     3,252        611,181  

Howmet Aerospace, Inc.

     1,732        85,682  

Hubbell, Inc.

     224        73,035  

Huntington Ingalls Industries, Inc.

     419        92,314  

Illinois Tool Works, Inc.

     1,143        282,721  

Ingersoll Rand, Inc.

     2,012        140,055  

J.B. Hunt Transport Services, Inc.

     618        116,110  

Jacobs Solutions, Inc.

     1,054        142,100  

Johnson Controls International PLC

     5,283        312,014  

Knight-Swift Transportation Holdings, Inc.

     1,998        109,530  

L3Harris Technologies, Inc.

     1,951        347,454  

Landstar System, Inc.

     354        67,193  

Leidos Holdings, Inc.

     1,488        145,095  

Lockheed Martin Corp.

     1,994        894,010  

ManpowerGroup, Inc.

     1,643        129,583  

Masco Corp.

     1,953        115,247  

Matson, Inc.

     1,084        95,262  

MDU Resources Group, Inc.

     2,190        44,588  

Norfolk Southern Corp.

     1,909        391,364  

Northrop Grumman Corp.

     936        405,372  

Old Dominion Freight Line, Inc.

     385        164,537  

Oshkosh Corp.

     1,055        109,541  

Otis Worldwide Corp.

     1,275        109,076  

Owens Corning

     1,225        176,290  

PACCAR, Inc.

     4,033        331,876  

Parker-Hannifin Corp.

     657        273,903  

Paychex, Inc.

     811        99,129  

Quanta Services, Inc.

     717        150,477  

Regal Rexnord Corp.

     640        103,802  

Republic Services, Inc.

     987        142,256  

Robert Half, Inc.

     1,038        76,770  

Rockwell Automation, Inc.

     367        114,533  

RTX Corp.

     11,709          1,007,442  

Ryder System, Inc.

     1,652        166,356  

Science Applications International Corp.

     662        77,891  

Snap-on, Inc.

     337        90,518  

Southwest Airlines Co.

     1,969        62,220  

SS&C Technologies Holdings, Inc.

     1,778        102,093  

Stanley Black & Decker, Inc.

     2,575        243,028  

Textron, Inc.

     2,611        202,901  

Trane Technologies PLC

     1,209        248,159  

TransDigm Group, Inc.(b)

     99        89,481  

Uber Technologies, Inc.(b)

     4,550        214,897  

UFP Industries, Inc.

     868        90,576  

Union Pacific Corp.

     3,998        881,839  

United Airlines Holdings, Inc.(b)

     1,574        78,401  

United Parcel Service, Inc., Class B

     6,550        1,109,570  

United Rentals, Inc.

     624        297,361  
         Shares       Value  

Industrials-(continued)

     

Verisk Analytics, Inc.

     590      $ 142,910  

W.W. Grainger, Inc.

     188        134,258  

Wabtec Corp.

     1,478        166,305  

Waste Connections, Inc.

     1,035        141,785  

Waste Management, Inc.

     1,926        301,958  

Watsco, Inc.(c)

     182        66,348  

WESCO International, Inc.

     653        105,688  

WillScot Mobile Mini Holdings Corp.(b)

     1,327        54,434  

XPO, Inc.(b)

     1,320        98,512  

Xylem, Inc.

     615        63,677  

ZIM Integrated Shipping Services Ltd. (Israel)(c)

     15,391        185,769  
     

 

 

 
          22,966,418  
     

 

 

 

Information Technology-18.49%

     

Accenture PLC, Class A

     2,980        964,835  

Adobe, Inc.(b)

     1,624        908,368  

Advanced Micro Devices, Inc.(b)

     5,590        590,975  

Akamai Technologies, Inc.(b)

     1,194        125,477  

Amdocs Ltd.

     901        80,369  

Amkor Technology, Inc.

     3,003        83,964  

Amphenol Corp., Class A

     2,403        212,377  

Analog Devices, Inc.

     3,116        566,427  

ANSYS, Inc.(b)

     221        70,470  

Apple, Inc.

     52,440        9,851,903  

Applied Materials, Inc

     4,640        708,806  

Arista Networks, Inc.(b)

     501        97,810  

Arrow Electronics, Inc.(b)

     1,734        231,368  

Autodesk, Inc.(b)

     667        148,034  

Avnet, Inc.

     2,820        143,115  

Broadcom, Inc.

     1,848        1,705,501  

Cadence Design Systems, Inc.(b)

     473        113,728  

CDW Corp.

     892        188,346  

Cisco Systems, Inc.

     28,118        1,612,567  

Cognizant Technology Solutions Corp., Class A

     4,540        325,109  

Corning, Inc.

     7,927        260,164  

Dell Technologies, Inc., Class C

     13,479        758,059  

Dropbox, Inc., Class A(b)

     2,758        76,645  

DXC Technology Co.(b)

     6,181        128,194  

Flex Ltd.(b)(c)

     7,109        196,137  

Fortinet, Inc.(b)

     1,735        104,464  

Gartner, Inc.(b)

     279        97,561  

Gen Digital, Inc.

     3,831        77,578  

GoDaddy, Inc., Class A(b)

     1,120        81,211  

Hewlett Packard Enterprise Co.

     27,332        464,371  

HP, Inc.

     17,397        516,865  

Intel Corp.

     52,871        1,857,887  

International Business Machines Corp.

     6,867        1,008,282  

Intuit, Inc.

     849        459,997  

Jabil, Inc.

     2,424        277,354  

Juniper Networks, Inc.

     2,662        77,517  

Keysight Technologies, Inc.(b)

     704        93,843  

KLA Corp.

     723        362,852  

Kyndryl Holdings, Inc.(b)

     7,021        118,514  

Lam Research Corp.

     615        431,976  

Marvell Technology, Inc.

     3,824        222,748  

Microchip Technology, Inc.

     2,599        212,702  

Micron Technology, Inc.

     12,660        885,440  

Microsoft Corp.

     18,472        6,054,383  

 

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

 

   16   

 

 

 

 


 

Invesco RAFITM Strategic US ETF (IUS)–(continued)

August 31, 2023

 

         Shares       Value  

Information Technology-(continued)

     

Motorola Solutions, Inc.

     422      $ 119,667  

NetApp, Inc.

     1,740        133,458  

NVIDIA Corp.

     2,489        1,228,446  

ON Semiconductor Corp.(b)

     1,535        151,136  

Oracle Corp.

     5,924        713,190  

Palo Alto Networks, Inc.(b)

     622        151,333  

Qorvo, Inc.(b)

     1,215        130,479  

QUALCOMM, Inc.

     7,364        843,399  

Roper Technologies, Inc.

     311        155,208  

Salesforce, Inc.(b)

     3,501        775,331  

Sanmina Corp.(b)

     1,151        64,111  

Seagate Technology Holdings PLC(c)

     2,593        183,558  

ServiceNow, Inc.(b)

     268        157,806  

Silicon Laboratories, Inc.(b)

     437        58,934  

Skyworks Solutions, Inc.

     1,373        149,300  

Synopsys, Inc.(b)

     361        165,659  

TD SYNNEX Corp.

     1,457        148,250  

TE Connectivity Ltd.

     2,200        291,258  

Teledyne Technologies, Inc.(b)

     198        82,823  

Teradyne, Inc.

     872        94,063  

Texas Instruments, Inc.

     3,849        646,863  

Trimble, Inc.(b)

     1,410        77,254  

Twilio, Inc., Class A(b)(c)

     1,522        96,967  

VMware, Inc., Class A(b)

     1,941        327,602  

Western Digital Corp.(b)

     4,523        203,535  

Workday, Inc., Class A(b)

     466        113,937  

Xerox Holdings Corp.(c)

     5,427        86,235  

Zebra Technologies Corp., Class A(b)

     272        74,803  

Zoom Video Communications, Inc., Class A(b)

     1,485        105,480  
     

 

 

 
          41,084,378  
     

 

 

 

Materials-4.67%

     

Air Products and Chemicals, Inc.

     976        288,398  

Albemarle Corp.(c)

     477        94,785  

Alcoa Corp.

     3,485        104,829  

Amcor PLC

     16,925        164,850  

Avery Dennison Corp.

     525        98,900  

Ball Corp.

     2,664        145,055  

Berry Global Group, Inc.

     2,310        150,935  

Celanese Corp.(c)

     1,260        159,214  

CF Industries Holdings, Inc.

     3,402        262,192  

Chemours Co. (The)

     2,505        85,220  

Cleveland-Cliffs, Inc.(b)

     15,067        230,374  

Commercial Metals Co.

     1,704        95,918  

Corteva, Inc.

     5,548        280,229  

Crown Holdings, Inc.

     1,504        139,361  

Dow, Inc.

     13,507        736,942  

DuPont de Nemours, Inc.

     5,010        385,219  

Eastman Chemical Co.

     2,059        175,036  

Ecolab, Inc.

     919        168,921  

FMC Corp.

     657        56,653  

Freeport-McMoRan, Inc.

     11,759        469,302  

Graphic Packaging Holding Co.

     2,760        61,382  

Huntsman Corp.

     4,510        125,694  

International Flavors & Fragrances, Inc.

     2,671        188,172  

International Paper Co.

     8,206        286,554  

Linde PLC

     2,534        980,759  

Louisiana-Pacific Corp.

     1,632        101,967  

LyondellBasell Industries N.V., Class A

     5,158        509,456  

Martin Marietta Materials, Inc.

     245        109,370  
         Shares       Value  

Materials-(continued)

     

Mosaic Co. (The)

     8,034      $ 312,121  

Newmont Corp.

     8,125        320,287  

Nucor Corp.

     4,660        801,986  

Olin Corp.

     2,728        158,279  

Packaging Corp. of America

     913        136,128  

PPG Industries, Inc.

     1,164        165,009  

Reliance Steel & Aluminum Co.

     734        209,161  

Sherwin-Williams Co. (The)

     985        267,644  

Sonoco Products Co.

     985        56,588  

Steel Dynamics, Inc.

     2,872        306,126  

Ternium S.A., ADR (Mexico)

     5,646        235,890  

United States Steel Corp.

     12,015        373,546  

Vulcan Materials Co.

     525        114,581  

WestRock Co.

     8,204        268,353  
     

 

 

 
        10,381,386  
     

 

 

 

Real Estate-0.68%

     

CBRE Group, Inc., Class A(b)

     3,178        270,289  

CoStar Group, Inc.(b)

     778        63,788  

Equinix, Inc.(c)

     234        182,843  

Host Hotels & Resorts, Inc.

     3,876        61,202  

Iron Mountain, Inc.(c)

     1,489        94,611  

Jones Lang LaSalle, Inc.(b)(c)

     1,038        179,366  

Public Storage

     978        270,300  

SBA Communications Corp., Class A

     386        86,669  

Weyerhaeuser Co.

     7,254        237,569  

Zillow Group, Inc., Class C(b)

     1,314        68,538  
     

 

 

 
        1,515,175  
     

 

 

 

Utilities-2.17%

     

AES Corp. (The)(c)

     6,511        116,742  

Alliant Energy Corp.

     1,509        75,707  

Ameren Corp.

     2,012        159,491  

American Electric Power Co., Inc.

     4,646        364,246  

CenterPoint Energy, Inc.

     5,777        161,121  

CMS Energy Corp.

     2,105        118,280  

Consolidated Edison, Inc.

     3,421        304,332  

DTE Energy Co.

     1,956        202,211  

Edison International

     3,428        236,018  

Entergy Corp.

     2,210        210,503  

Eversource Energy

     3,087        197,012  

FirstEnergy Corp.

     5,435        196,040  

NiSource, Inc.

     3,954        105,809  

NRG Energy, Inc.

     5,612        210,731  

OGE Energy Corp.

     1,954        66,534  

PPL Corp.

     8,294        206,687  

Public Service Enterprise Group, Inc.

     3,667        223,980  

Sempra

     5,048        354,471  

Southern Co. (The)

     7,934        537,370  

UGI Corp.

     3,930        98,957  

Vistra Corp.

     7,110        223,396  

WEC Energy Group, Inc.

     2,233        187,840  

Xcel Energy, Inc.

     4,442        253,771  
     

 

 

 
        4,811,249  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.93%
(Cost $218,742,249)

 

     222,055,096  
     

 

 

 

 

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

 

   17   

 

 

 

 


 

Invesco RAFITM Strategic US ETF (IUS)–(continued)

August 31, 2023

 

         Shares       Value  
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-3.53%

 

Invesco Private Government Fund,
5.30%(d)(e)(f)

     2,195,569      $ 2,195,569  

Invesco Private Prime Fund, 5.51%(d)(e)(f)

     5,653,488        5,653,488  
  

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $7,849,162)

 

     7,849,057  
  

 

 

 

TOTAL INVESTMENTS IN SECURITIES-103.46%
(Cost $226,591,411)

 

     229,904,153  

OTHER ASSETS LESS LIABILITIES-(3.46)%

 

     (7,683,760
  

 

 

 

NET ASSETS-100.00%

 

   $ 222,220,393  
     

 

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at August 31, 2023.

(d) 

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2023.

 

     Value
August 31, 2022
   Purchases
at Cost
   Proceeds
 from  Sales 
  Change  in
Unrealized
Appreciation

(Depreciation)
  Realized
Gain
(Loss)
  Value
August 31, 2023
   Dividend
Income
Invesco Ltd.      $ 103,448        $ 93,502      $ (195,243 )     $ (819 )     $ (888 )     $   -      $ 4,658
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class        56,869          4,862,288        (4,919,157 )         -         -         -        2,722
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund        1,578,393          32,247,892        (31,630,716 )         -         -       2,195,569        90,747 *
Invesco Private Prime Fund        4,058,724          62,318,765        (60,723,463 )       (134 )       (404 )       5,653,488        241,525 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total      $ 5,797,434        $ 99,522,447      $ (97,468,579 )     $ (953 )     $ (1,292 )     $ 7,849,057      $ 339,652
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statements of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

 

(e) 

The rate shown is the 7-day SEC standardized yield as of August 31, 2023.

(f)

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

 

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

 

   18   

 

 

 

 


 

Statements of Assets and Liabilities

August 31, 2023

 

     Invesco
Bloomberg
Pricing Power
ETF (POWA)
  Invesco
RAFITM
Strategic US
ETF (IUS)

Assets:

        

Unaffiliated investments in securities, at value(a)

     $ 217,337,214       $222,055,096

Affiliated investments in securities, at value

       -       7,849,057

Receivable for:

        

Dividends

       375,591       434,522

Securities lending

       1       4,625

Foreign tax reclaims

       165       -

Other assets

       7,309       -
    

 

 

     

 

 

 

Total assets

       217,720,280       230,343,300
    

 

 

     

 

 

 

Liabilities:

        

Due to custodian

       248,532       239,381

Payable for:

        

Collateral upon return of securities loaned

       -       7,849,162

Accrued unitary management fees

       9,555       34,364

Accrued advisory fees

       81,624       -

Accrued trustees’ and officer’s fees

       8,891       -

Accrued expenses

       54,337       -
    

 

 

     

 

 

 

Total liabilities

       402,939       8,122,907
    

 

 

     

 

 

 

Net Assets

     $ 217,317,341       $222,220,393
    

 

 

     

 

 

 

Net assets consist of:

        

Shares of beneficial interest

     $ 293,452,772       $227,357,503

Distributable earnings (loss)

       (76,135,431 )       (5,137,110 )
    

 

 

     

 

 

 

Net Assets

     $ 217,317,341       $222,220,393
    

 

 

     

 

 

 

Shares outstanding (unlimited amount authorized, $0.01 par value)

       3,160,000       5,375,001

Net asset value

     $ 68.77       $41.34
    

 

 

     

 

 

 

Market price

     $ 68.79       $41.34
    

 

 

     

 

 

 

Unaffiliated investments in securities, at cost

     $ 211,130,328       $218,742,249
    

 

 

     

 

 

 

Affiliated investments in securities, at cost

     $ -       $ 7,849,162
    

 

 

     

 

 

 

(a) Includes securities on loan with an aggregate value of:

     $ -       $ 7,678,191
    

 

 

     

 

 

 

 

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

 

   19   

 

 

 

 


 

Statements of Operations

For the year ended August 31, 2023

 

     Invesco
Bloomberg
Pricing Power
ETF (POWA)
    Invesco
RAFITM
Strategic US
ETF (IUS)
 

Investment income:

    

Unaffiliated dividend income

   $ 5,133,780     $ 3,904,289  

Affiliated dividend income

     7,096       7,380  

Securities lending income, net

     6,959       30,374  

Foreign withholding tax

     (576     (163
  

 

 

   

 

 

 

Total investment income

     5,147,259       3,941,880  
  

 

 

   

 

 

 

Expenses:

    

Unitary management fees

     9,555       374,864  

Advisory fees

     1,230,190       -  

Accounting & administration fees

     14,813       -  

Custodian & transfer agent fees

     (2,072     -  

Trustees’ and officer’s fees

     9,166       -  

Other expenses

     60,350       -  
  

 

 

   

 

 

 

Total expenses

     1,322,002       374,864  
  

 

 

   

 

 

 

Less: Waivers

     (171     (75
  

 

 

   

 

 

 

Net expenses

     1,321,831       374,789  
  

 

 

   

 

 

 

Net investment income

     3,825,428       3,567,091  
  

 

 

   

 

 

 

Realized and unrealized gain (loss) from:

    

Net realized gain (loss) from:

    

Unaffiliated investment securities

     (8,319,666     (3,191,222

Affiliated investment securities

     (104     (3,857

Unaffiliated in-kind redemptions

     16,838,108       17,471,144  

Affiliated in-kind redemptions

     -       2,565  
  

 

 

   

 

 

 

Net realized gain

     8,518,338       14,278,630  
  

 

 

   

 

 

 

Change in net unrealized appreciation (depreciation) of:

    

Unaffiliated investment securities

     1,748,510       6,267,487  

Affiliated investment securities

     -       (953
  

 

 

   

 

 

 

Change in net unrealized appreciation

     1,748,510       6,266,534  
  

 

 

   

 

 

 

Net realized and unrealized gain

     10,266,848       20,545,164  
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

   $ 14,092,276     $ 24,112,255  
  

 

 

   

 

 

 

 

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

 

   20   

 

 

 

 


 

Statements of Changes in Net Assets

For the years ended August 31, 2023 and 2022

 

     Invesco Bloomberg Pricing
Power ETF (POWA)
    Invesco RAFITM
Strategic US ETF (IUS)
 
     2023     2022     2023     2022  

Operations:

        

Net investment income

   $ 3,825,428     $ 3,768,495     $ 3,567,091     $ 2,940,282  

Net realized gain

     8,518,338       8,398,181       14,278,630       33,719,057  

Change in net unrealized appreciation (depreciation)

     1,748,510       (30,530,441     6,266,534       (42,182,610
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     14,092,276       (18,363,765     24,112,255       (5,523,271
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders from:

        

Distributable earnings

     (4,063,244     (3,001,999     (3,191,512     (3,038,324
  

 

 

   

 

 

   

 

 

   

 

 

 

Shareholder Transactions:

        

Proceeds from shares sold

     138,251,132       298,090,596       172,451,669       107,737,113  

Value of shares repurchased

     (196,076,496