LOGO  

 

Invesco Annual Report to Shareholders

 

August 31, 2023

 
  PWZ   Invesco California AMT-Free Municipal Bond ETF
  PCEF   Invesco CEF Income Composite ETF
  GOVI   Invesco Equal Weight 0-30 Year Treasury ETF (formerly, Invesco 1-30 Laddered Treasury ETF)
  PVI   Invesco Floating Rate Municipal Income ETF (formerly, Invesco VRDO Tax-Free ETF)
  PHB   Invesco Fundamental High Yield® Corporate Bond ETF
  PFIG   Invesco Fundamental Investment Grade Corporate Bond ETF
  PZA   Invesco National AMT-Free Municipal Bond ETF
  PZT   Invesco New York AMT-Free Municipal Bond ETF
  PGX   Invesco Preferred ETF
  TBLL   Invesco Short Term Treasury ETF (formerly, Invesco Treasury Collateral ETF)
  BAB   Invesco Taxable Municipal Bond ETF
  VRP   Invesco Variable Rate Preferred ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      5  
Liquidity Risk Management Program      37  
Schedules of Investments   

Invesco California AMT-Free Municipal Bond ETF (PWZ)

     38  

Invesco CEF Income Composite ETF (PCEF)

     45  

Invesco Equal Weight 0-30 Year Treasury ETF (GOVI)

     48  

Invesco Floating Rate Municipal Income ETF (PVI)

     49  

Invesco Fundamental High Yield® Corporate Bond ETF (PHB)

     51  

Invesco Fundamental Investment Grade Corporate Bond ETF (PFIG)

     55  

Invesco National AMT-Free Municipal Bond ETF (PZA)

     67  

Invesco New York AMT-Free Municipal Bond ETF (PZT)

     91  

Invesco Preferred ETF (PGX)

     93  

Invesco Short Term Treasury ETF (TBLL)

     98  

Invesco Taxable Municipal Bond ETF (BAB)

     99  

Invesco Variable Rate Preferred ETF (VRP)

     117  
Statements of Assets and Liabilities      124  
Statements of Operations      126  
Statements of Changes in Net Assets      128  
Financial Highlights      132  
Notes to Financial Statements      141  
Report of Independent Registered Public Accounting Firm      156  
Fund Expenses      157  
Tax Information      159  
Trustees and Officers      160  
Approval of Investment Advisory and Sub-Advisory Contracts      170  

 

 

 

  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.

Fixed Income

The beginning of the fiscal year was headlined by the US Federal Reserve (the Fed) continuing its rapid tightening of monetary policy in an effort to combat inflation via higher interest rates while simultaneously engineering a soft landing to not push the economy into a recession. The Fed aggressively raised its federal funds rate at the beginning of the fiscal year: a 0.75% hike in November, its largest hike since 1994, a 0.50% hike in December and a 0.25% hike in January, to a target federal funds rate of 4.50% to 4.75%.1

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, significant volatility plagued fixed income markets as 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 pushed overall corporate spread premiums wider over the fiscal year. However, issues did not seem to be systemic as policymakers responded swiftly which calmed markets. The Fed, aiming to further stabilize markets, continued course with their hawkish policy with two 0.25% hikes in March and May to a target federal funds rate of 5.00% to 5.25%. Markets stabilized due to milder inflation data and better-than-expected corporate earnings.

Through the second quarter of 2023, global economic growth remained resilient but bifurcated as emerging markets and Asian economies showed robust growth while developed western economies had sluggish yet positive growth. US labor markets maintained momentum with unemployment still at

 

 

 

  3  

 

 


 

The Market Environment–(continued)

 

historic lows despite a slight uptick at the end of May. Inflation generally eased in developed economies, largely driven by moderation in the goods component of inflation. However, core inflation remained more stubborn and led to developed central banks to continue tightening, showcased by another 0.25% hike by the Fed in July, bringing the target rate from 5.25% to 5.50%, its highest level since June 2006.1 While rates remained elevated across all maturities on the yield curve, the two-year Treasury rates increased from 3.45% to 4.85% during the fiscal year, while 10-year Treasury rates increased from 3.53% to 4.48%.2 At the end of the fiscal year, the yield curve remained inverted. Additionally, in August, US debt was downgraded by the Fitch credit rating agency from AAA to AA on the premise of expected fiscal deterioration over the next three years.3

We believe markets have priced in that the Fed is near the end or has finished its interest rate hiking cycle, with the expectations that the US is likely to avoid a substantial broad-based recession. We expect some weakness in the second half of the calendar year as policymakers accomplish a bumpy landing. We anticipate economic activity will remain relatively resilient. In the US, we believe rate hikes are ending and inflation will continue to fall significantly, albeit imperfectly. As we enter 2024, we expect a more positive growth outlook to unfold as the US economy recovers.

 

1

Source: Federal Reserve of Economic Data

2 

Source: US Department of the Treasury

3 

Source: Fitch Ratings

A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice.

 

 

 

  4  

 

 


 

 

PWZ    Management’s Discussion of Fund Performance
   Invesco California AMT-Free Municipal Bond ETF (PWZ)

 

As an index fund, the Invesco California AMT-Free Municipal Bond ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the ICE BofA California Long-Term Core Plus Municipal Securities Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components of the Index.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is composed of U.S. dollar-denominated, tax-exempt municipal debt publicly issued by California or any U.S. territory and their political subdivisions, in the U.S. domestic market. Such securities are exempt from the federal alternative minimum tax and are considered investment grade based on an average of ratings by S&P Global Ratings, a division of S&P Global Inc., Moody’s Investors Service, Inc. and Fitch Ratings Inc. To be eligible for inclusion in the Index, such securities must have a term of at least 15 years remaining to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $25 million per maturity. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 2.91%. On a net asset value (“NAV”) basis, the Fund returned 2.27%. During the same time period, the Index returned 2.69%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund during the period.

During this same time period, the Bloomberg Municipal Bond 20 Year Index (the “Benchmark Index”) returned 2.15%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 5,800 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 municipal securities with maturities of 17 to 22 years.

Relative to the Benchmark Index, the Fund was most overweight in California bonds and most underweight in New York bonds during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s exposure to California bonds.

For the fiscal year ended August 31, 2023, California bonds contributed the most to the Fund’s return. There were no states that detracted 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 California

(State of) Health Facilities Financing Authority, 4.00% coupon, due 8/15/2050 (portfolio average weight of 1.98%), and Regents of the University of California Medical Center, 3.50% coupon, due 5/15/2054 (portfolio average weight of 1.90%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended August 31, 2023 included San Diego Unified School District (Election of 2012), 5.00% coupon, due 7/1/2041 (portfolio average weight of 0.56%), and California (State of) Municipal Finance Authority, 4.00% coupon, due 3/1/2050 (portfolio average weight of 0.33%).

 

Revenue Type Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Ad Valorem Property Tax      24.20  
Health, Hospital, Nursing Home Revenue      15.52  
General Fund      10.90  
College & University Revenue      8.91  
Sales Tax Revenue      8.73  
Port, Airport & Marina Revenue      6.19  
Electric Power Revenue      6.15  
Lease Revenue      3.98  
Water Revenue      3.91  
Sewer Revenue      3.10  
Revenue Types Each Less Than 3%      5.80  
Other Assets Less Liabilities      2.61  

 

 

  5  

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ) (continued)

 

Top Ten Fund Holdings
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Marin (County of), CA Healthcare District (Election of 2013), Series 2017 A, GO Bonds, 5.00%, 08/01/2041      2.41  
Irvine Facilities Financing Authority (Irvine Great Park Infrastructure), Series 2023 A, RB, 5.25%, 09/01/2053      2.33  
California (State of) Health Facilities Financing Authority (Stanford Health Care), Series 2020 A, Ref. RB, 4.00%, 08/15/2050      1.99  
California State University, Series 2016 A, Ref. RB, 5.00%, 11/01/2041      1.95  
Regents of the University of California Medical Center, Series 2022 P, RB, 3.50%, 05/15/2054      1.92  
Hayward Unified School District (Election of 2018), Series 2022, GO Bonds, 4.00%, 08/01/2050      1.43  
San Francisco (City & County of), CA Airport Commission (San Francisco International Airport), Series 2016 C, RB, 5.00%, 05/01/2046      1.33  
Monterey Peninsula Unified School District (Election of 2018), Series 2023 D, GO Bonds, 4.00%, 08/01/2048      1.32  
California (State of), Series 2021, Ref. GO Bonds, 5.00%, 09/01/2041      1.24  
Sacramento Area Flood Control Agency (Consolidated Capital Assessment District No.2), Series 2016, Ref. RB, 5.00%, 10/01/2047      1.10  
Total      17.02  

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—ICE BofA California Long-Term Core Plus Municipal Securities Index     2.69     (1.85 )%      (5.45 )%      1.43     7.35     3.70     43.82       3.66     77.10
Bloomberg Municipal Bond 20 Year Index     2.15       (1.55     (4.57     1.76       9.13       3.67       43.36         3.98       85.78  
Fund                    
NAV Return     2.27       (1.97     (5.81     1.15       5.86       3.32       38.63         3.25       66.11  
Market Price Return     2.91       (1.82     (5.37     1.22       6.24       3.46       40.56         3.22       65.34  

 

 

  6  

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ) (continued)

 

Fund Inception: October 11, 2007

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 0.28% 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:

 

-

The Blended—ICE BofA California Long-Term Core Plus Municipal Securities Index is comprised of the performance of the BofA Merrill Lynch California Insured Long-Term Core Municipal Securities Index, the Fund’s underlying index from Fund inception through the conversion date, May 29, 2009, followed by the performance of the BofA Merrill Lynch California Insured Long-Term Core Plus Municipal Securities Index, the Fund’s underlying index for the period May 29, 2009 until July 8, 2014, followed by the performance of the Index for the period July 8, 2014 through August 31, 2023.

 

-

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

 

 

  7  

 


 

 

PCEF    Management’s Discussion of Fund Performance
   Invesco CEF Income Composite ETF (PCEF)

 

As an index fund, the Invesco CEF Income Composite ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S-Network Composite Closed-End Fund IndexSM (the “Index”). The Fund generally will invest at least 90% of its total assets in the components of the Index. The Fund is a “fund of funds,” meaning that it invests its assets in the common shares of funds included in the Index rather than in individual securities (each, an “Underlying Fund” and collectively, the “Underlying Funds”).

S-Network Global Indexes, Inc. compiles, maintains and calculates the Index, which is designed to measure the overall performance of a universe of U.S.-listed closed-end funds that are organized under the laws of the United States and are principally engaged in asset management processes designed to produce taxable annual yield. Each Underlying Fund must have a stated objective to invest in taxable investment grade fixed-income securities, taxable high yield fixed-income securities or taxable options. The Index may include closed-end funds that are advised by an affiliate of Invesco Capital Management LLC, the Fund’s investment adviser. The Fund generally invests in each Underlying Fund in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 0.65%. On a net asset value (“NAV”) basis, the Fund returned 0.49%. During the same time period, the Index returned 0.43%. 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 income received from the securities lending program in which the Fund participates, which was partially offset by fees and operating expenses that the Fund incurred 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, which is based on the average performance of approximately 500 equity 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.

Relative to the Benchmark Index, the Fund was most overweight in investment grade and high yield fixed-income closed-end funds during the fiscal year ended August 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index can be attributed to the Fund’s fixed-income exposure, which generally underperformed the equity markets during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023 included Virtus Dividend, Interest & Premium Strategy Fund (portfolio average weight of 2.45%) followed by the BlackRock Innovation and Growth Term Trust (portfolio average weight of 3.78%). Positions

that detracted most significantly from the Fund’s return included Highland Opportunities and Income Fund (portfolio average weight of 1.78%), and First Trust Intermediate Duration Preferred & Income Fund (portfolio average weight of 1.89%).

 

Asset Class Breakdown*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Bonds      32.36  
Option Income      29.86  
Bonds/High Yield      20.61  
Equities      7.83  
Fixed Income      5.93  
Domestic Equity      3.33  
Money Market Funds Plus Other Assets Less Liabilities      0.08  

 

*

Reflects exposure achieved through investments in underlying funds.

 

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Eaton Vance Tax-Managed Global Diversified Equity Income Fund      4.00  
BlackRock Innovation and Growth Term Trust      3.78  
BlackRock Health Sciences Term Trust      3.58  
BlackRock ESG Capital Allocation Term Trust      3.01  
BlackRock Science & Technology Term Trust      2.99  
Virtus Dividend, Interest & Premium Strategy Fund      2.52  
Nuveen Preferred & Income Securities Fund      2.51  
BlackRock Corporate High Yield Fund, Inc.      2.17  
Eaton Vance Tax-Managed Diversified Equity Income Fund      2.14  
Eaton Vance Limited Duration Income Fund      1.87  
Total      28.57  

 

*

Excluding money market fund holdings.

 

 

  8  

 


 

Invesco CEF Income Composite ETF (PCEF) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
S-Network Composite Closed-End Fund IndexSM     0.43     3.05     9.45     3.24     17.27     5.59     72.28       5.97     119.16
S&P 500® Index     15.94       10.52       35.00       11.12       69.43       12.81       233.79         13.12       429.69  
Fund                    
NAV Return     0.49       2.96       9.16       3.09       16.42       5.26       67.03         5.60       108.85  
Market Price Return     0.65       3.02       9.34       3.09       16.44       5.28       67.26         5.59       108.75  

 

Fund Inception: February 19, 2010

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 1.99% includes the unitary management fee of 0.50% and acquired fund fees and expenses of 1.49%. 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 and indices are based on the inception date of the Fund.

 

 

  9  

 


 

 

GOVI    Management’s Discussion of Fund Performance
   Invesco Equal Weight 0-30 Year Treasury ETF (GOVI)

 

Effective after the close of markets on August 25, 2023, the Invesco 1-30 Laddered Treasury ETF changed its name to Invesco Equal Weight 0-30 Year Treasury ETF (the “Fund”) and the underlying index changed from Ryan/NASDAQ U.S. 1-30 Year Treasury Laddered Index (the “Previous Index”) to ICE 1-30 Year Laddered Maturity US Treasury Index (the “Index”). At that time, the Fund also changed its ticker symbol from PLW to GOVI 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.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to track the performance of up to 30 U.S. Treasury Notes or Bonds representing the annual February maturity ladder across the yield curve. Eligible securities must be U.S. dollar denominated sovereign debt publicly issued by the U.S. government in the U.S. domestic market. The Index is structured with 30 different annual maturity points, or “rungs,” which are equally weighted at each annual February rebalancing. Securities eligible for the Index must: (i) have a fixed coupon schedule; (ii) a minimum amount outstanding of $1 billion (excluding any amount held by the Federal Reserve’s System Open Market Account); and (iii) have at least 18 months to final maturity at the time of issuance. The Index Provider selects for each rung securities with February maturities, which, once selected, will remain in the Index, provided they continue to meet the eligibility criteria. If no February maturity is available for a given rung, then the next-closest maturing security is selected as long as it is within six months of the February target maturity.

The securities selected for each rung of the Index from 1 to 30 years are equally weighted. The weights of any rungs for which no securities are available are re-allocated equally to the securities of closest rungs on both sides of the ladder. The Fund generally invests in all of the securities comprising its 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 (5.66)%. On a net asset value (“NAV”) basis, the Fund returned (6.07)%. During the same time period, the Blended – Invesco Equal Weight 0-30 Year Treasury ETF Index (a composite of the returns of the Previous Index through August 25, 2023, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended Index”) returned (5.85)%. During the fiscal year, the Fund fully replicated the components of the Blended Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the

Blended Index primarily due to fees and operating expenses incurred by the Fund during the period.

During this same time period, the Bloomberg U.S. Treasury Index (the “Benchmark Index”) returned (2.07)%. The Benchmark Index is an unmanaged index weighted by market capitalization, which is based on the average performance of approximately 300 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 roughly 5-year average duration of the U.S. Treasury market.

Relative to the Benchmark Index, the Fund was most overweight in bonds with maturities of 11 years duration and most underweight in bonds with maturities of 8 years duration 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 overweight allocation to bonds with maturities greater than 5 months.

For the fiscal year ended August 31, 2023, bonds with maturities of 5 months contributed most significantly to the Fund’s return. Bonds with maturities of 10 years detracted most significantly from the Fund’s return, followed by bonds with maturities of 19 years.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023 included U.S. Treasury Note, 2.75% coupon, due 2/15/2024 (portfolio average weight of 3.50%), and U.S. Treasury Bond, 7.63% coupon, due 2/15/2025 (portfolio average weight 3.40%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended August 31, 2023 included U.S. Treasury Bond, 4.50% coupon, due 02/15/2036 (portfolio average weight of 6.71%) and U.S. Treasury Bond, 2.25% coupon, due 2/15/2052 (portfolio average weight 3.22%).

 

Duration Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Maturing in 0-5 Years      17.00  
Maturing in 6-10 Years      20.31  
Maturing in 11-15 Years      13.38  
Maturing in 16-20 Years      16.56  
Maturing in 21-25 Years      16.38  
Maturing in 26-30 Years      16.20  
Money Market Funds Plus Other Assets Less Liabilities      0.17  

 

 

  10  

 


 

Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) (continued)

 

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
U.S. Treasury Bonds, 4.50%, 02/15/2036      6.70  
U.S. Treasury Notes, 2.75%, 02/15/2024      3.46  
U.S. Treasury Notes, 2.75%, 02/15/2028      3.43  
U.S. Treasury Notes, 1.50%, 02/15/2030      3.42  
U.S. Treasury Notes, 1.88%, 02/15/2032      3.40  
U.S. Treasury Bonds, 5.25%, 02/15/2029      3.39  
U.S. Treasury Bonds, 6.00%, 02/15/2026      3.38  
U.S. Treasury Bonds, 6.63%, 02/15/2027      3.37  
U.S. Treasury Notes, 3.50%, 02/15/2033      3.37  
U.S. Treasury Bonds, 5.38%, 02/15/2031      3.37  
Total      37.29  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Invesco Equal Weight 0-30 Year Treasury ETF Index     (5.85 )%      (8.72 )%      (23.94 )%      (0.41 )%      (2.02 )%      1.54     16.51       3.42     70.59
ICE 1-30 Year Laddered Maturity US Treasury Index     N/A       N/A       N/A       N/A       N/A       N/A       N/A         N/A       N/A  
Ryan/Nasdaq U.S. 1-30 Year Treasury Laddered Index     (5.84     (8.71     (23.93     (0.40     (2.00     1.54       16.53         3.42       70.62  
Bloomberg U.S. Treasury Index     (2.07     (5.08     (14.49     0.19       0.97       0.93       9.69         2.36       44.89  
Fund                    
NAV Return     (6.07     (8.92     (24.45     (0.65     (3.22     1.29       13.69         3.14       63.48  
Market Price Return     (5.66     (8.84     (24.25     (0.60     (2.97     1.32       14.04         3.13       63.27  

 

 

 

  11  

 


 

Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) (continued)

 

Fund Inception: October 11, 2007

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 0.15% 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:

 

-

The Custom Equal Weight 0-30 Year Treasury ETF Index is comprised of the performance of the Previous Index from Fund inception through the conversion date, August 25, 2023, followed by the performance of the Index for the period August 26, 2023 through August 31, 2023.

 

-

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

 

 

  12  

 


 

 

PVI    Management’s Discussion of Fund Performance
   Invesco Floating Rate Municipal Income ETF (PVI)

 

Effective after the close of markets on August 25, 2023, the Invesco VRDO Tax-Free ETF changed its name to Invesco Floating Rate Municipal Income ETF (the “Fund”). As an index fund, the Fund is passively managed and seeks to track the investment results (before fees and expenses) of the ICE US Municipal AMT-Free VRDO Constrained Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components of the Index.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) compiles and calculates the Index, which is designed to track the performance of U.S. dollar denominated tax-exempt variable rate demand obligations (“VRDOs”) that are publicly issued by U.S. states and territories, and their political subdivisions, and that have interest rates that reset daily, weekly or monthly. Securities eligible for the Index must have at least one day remaining term to final maturity, at least $10 million amount outstanding, an investment grade rating (based on an average of ratings from Moody’s Investors Service, Inc., S&P Global Ratings, a division of S&P Global Inc., and Fitch Ratings, Inc). Securities whose interest is subject to the U.S. alternative minimum tax are excluded from the Index. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 2.57%. On a net asset value (“NAV”) basis, the Fund returned 2.45%. During the same time period, the Index returned 2.04%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the positive effects of the sampling approach employed by the portfolio management team, which were partially offset by the fees and operating expenses incurred by the Fund and costs associated with portfolio rebalancing during the period.

During this same time period, the Bloomberg Municipal 1-Year Bond Index (the “Benchmark Index”) returned 1.83%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 7,700 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 market for municipal securities with no more than a 1-year duration.

Relative to the Benchmark Index, the Fund was most overweight in Florida bonds and most underweight in California bonds during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s allocation to California and New York bonds.

For the fiscal year ended August 31, 2023, New York bonds contributed most significantly to the Fund’s return, followed by

California bonds and Texas bonds, respectively. There were no states that detracted 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 Louisiana (State of) Offshore Terminal Authority, 3.50% coupon, due 9/1/2033 (portfolio average weight of 5.03%), and Houston (City of), TX, 4.08% coupon, due 5/15/2034 (portfolio average weight of 5.03%). There were no detracting positions for the fiscal year ended August 31, 2023.

 

Revenue Type Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Water Revenue      15.86  
Local or GTD Housing      15.21  
Port, Airport & Marina Revenue      12.71  
Miscellaneous Revenue      9.34  
Lease Revenue      7.05  
Ad Valorem Property Tax      7.05  
Electric Power Revenue      6.29  
Health, Hospital, Nursing Home Revenue      5.79  
Transit Revenue      4.03  
Highway Tolls Revenue      3.77  
College & University Revenue      3.02  
Revenue Types Each Less Than 3%      5.91  
Other Assets Less Liabilities      3.97  

 

 

  13  

 


 

Invesco Floating Rate Municipal Income ETF (PVI) (continued)

 

Top Ten Fund Holdings
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Wyoming (State of) Community Development Authority, Series 2022-2, Ref. VRD RB, 4.05%, 06/01/2048      5.65  
Houston (City of), TX, Series 2012 A, Ref. VRD RB, 4.08%, 05/15/2034      5.04  
Louisiana (State of) Offshore Terminal Authority Deepwater Port (Loop LLC), Series 2013 B, Ref. VRD RB, 3.50%, 09/01/2033      5.03  
Raleigh & Durham (Cities of), NC Airport Authority, Series 2008 C, Ref. VRD RB, 4.03%, 05/01/2036      5.03  
Chelan County Public Utility District No. 1, Series 2008 B, Ref. VRD RB, 3.40%, 07/01/2032      5.03  
San Mateo (City of), CA Joint Powers Financing Authority (Public Safety), Series 2007 A, VRD RB, 2.75%, 04/01/2039      4.53  
Pasadena Independent School District, Series 2005 B, VRD GO Bonds, 4.05%, 02/01/2035      4.53  
Metropolitan Transportation Authority, Subseries 2013 G, Ref. VRD RB, 3.97%, 11/01/2026      4.03  
Emmaus (Borough of), PA General Authority, Series 1996, VRD RB, 3.45%, 12/01/2028      4.03  
West Palm Beach (City of), FL, Series 2008 C, VRD RB, 3.45%, 10/01/2038      3.78  
Total      46.68  

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—ICE US Municipal AMT-Free VRDO Constrained Index     2.04     0.83     2.50     0.96     4.89     0.69     7.17       0.74     12.43
Bloomberg Municipal 1-Year Bond Index     1.83       0.28       0.83       1.08       5.53       0.93       9.70         1.41       24.65  
Fund                    
NAV Return     2.45       0.80       2.42       0.87       4.43       0.55       5.66         0.72       12.08  
Market Price Return     2.57       0.84       2.55       0.90       4.56       0.56       5.78         0.73       12.21  

 

 

  14  

 


 

Invesco Floating Rate Municipal Income ETF (PVI) (continued)

 

Fund Inception: November 15, 2007

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 0.25% 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 and indexes are based on the inception date of the Fund.

 

-

The Blended-ICE US Municipal AMT-Free VRDO Constrained Index is comprised of the performance of the Thomson Municipal Market Data VRDO Index, the Fund’s underlying index from Fund inception through the conversion date, August 5, 2010, followed by the performance of the Bloomberg U.S. Municipal AMT-Free Weekly VRDO Index, the Fund’s underlying index for the period August 5, 2010 through March 24, 2021, followed by the performance of the Index for the period March 24, 2021 through August 31, 2023.

 

 

  15  

 


 

 

PHB    Management’s Discussion of Fund Performance
   Invesco Fundamental High Yield® Corporate Bond ETF (PHB)

 

As an index fund, the Invesco Fundamental High Yield® Corporate Bond ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the RAFI® Bonds U.S. High Yield 1-10 Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Research Affiliates, LLC (the “Index Provider”) or its agent compiles and calculates the Index, which is designed to measure the performance of U.S. dollar-denominated high yield corporate bonds that are SEC-registered securities, Rule 144A securities under the Securities Act of 1933 (the “Securities Act”), or Section 3(a)(2) securities under the Securities Act with registration rights (issued after July 31, 2013) and whose issuers are public companies domiciled in the United States. The Index selects and weights securities based on the Fundamental Index® approach developed by the Index Provider that uses four fundamental factors of company size: book value of assets, gross sales, gross dividends and cash flow. Only non-convertible, non-exchangeable, non-zero, fixed coupon high-yield corporate bonds qualify for inclusion in the Index. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 6.64%. On a net asset value (“NAV”) basis, the Fund returned 6.09%. During the same time period, the Index returned 6.33%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund during the period.

During this same time period, the Bloomberg U.S. Corporate High Yield Index (the “Benchmark Index”) returned 7.16%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 2,100 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 broad-based U.S. high-yield corporate bond market.

Relative to the Benchmark Index, the Fund was most overweight in the consumer finance industry and most underweight in the media industry 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 security selection within the office REITs industry.

For the fiscal year ended August 31, 2023, the hotels, restaurants & leisure industry contributed most significantly to the Fund’s return, followed by the consumer finance and oil, gas & consumable fuels industries, respectively. The office REITs

industry detracted most significantly from the Fund’s return, followed by the food products industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Royal Caribbean Cruises Ltd., 3.70% coupon, due 3/15/2028, a hotels, restaurants & leisure company (portfolio average weight of 1.13%), and TransDigm, Inc., 5.50% coupon, due 11/15/2027, an aerospace & defense company (portfolio average weight of 1.44%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended August 31, 2023, included MPT Operating Partnership LP / MPT Finance Corp., 5.00% coupon, due 10/15/2027, a health care REIT company (portfolio average weight of 0.40%), and MPT Operating Partnership LP / MPT Finance Corp., 3.50% coupon, due 3/15/2031, a health care REIT company (portfolio average weight of 0.41%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Consumer Discretionary      25.68  
Industrials      13.42  
Materials      9.93  
Energy      9.50  
Financials      8.94  
Information Technology      8.02  
Real Estate      6.35  
Utilities      6.19  
Health Care      5.63  
Communication Services      3.76  
Consumer Staples      0.99  
Money Market Funds Plus Other Assets Less Liabilities      1.59  
Credit Quality Rating (S&P)*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
BBB      16.01  
BB      72.15  
B      9.25  
Not Rated      1.00  
Money Market Funds Plus Other Assets Less Liabilities      1.59  

 

*

Source: Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to C (lowest); ratings are subject to change without notice. “Non-Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard & Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Ratings Resources on the homepage.

 

 

  16  

 


 

Invesco Fundamental High Yield® Corporate Bond ETF (PHB) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—RAFI® Bonds U.S. High Yield 1-10 Index     6.33     1.52     4.62     3.40     18.22     4.27     51.98       4.64     104.75
Bloomberg US Corporate High Yield Index     7.16       1.81       5.53       3.32       17.74       4.47       54.84         6.24       159.96  
Fund                    
NAV Return     6.09       1.03       3.13       2.68       14.16       3.46       40.49         3.17       63.67  
Market Price Return     6.64       1.07       3.25       2.72       14.37       3.48       40.85         3.02       60.07  

 

Fund Inception: November 15, 2007

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 0.50% 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 and indices are based on the inception date of the Fund.

 

-

The Blended-RAFI® Bonds U.S. High Yield 1-10 Index is comprised of the performance of the Wells Fargo® High Yield Bond Index, the Fund’s previous index, from Fund inception through the conversion date, August 2, 2010, followed by the performance of the Index starting at the conversion date through August 31, 2023.

 

 

  17  

 


 

 

PFIG    Management’s Discussion of Fund Performance
   Invesco Fundamental Investment Grade Corporate Bond ETF (PFIG)

 

As an index fund, the Invesco Fundamental Investment Grade Corporate Bond ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the RAFI® Bonds U.S. Investment Grade 1-10 Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Research Affiliates, LLC (the “Index Provider”) or its agent compiles and calculates the Index, which is designed to measure the performance of U.S. dollar-denominated investment grade corporate bonds that are SEC-registered securities, or Rule 144A securities under the Securities Act of 1933 (the “Securities Act”), or Section 3(a)(2) securities under the Securities Act with registration rights (issued after July 31, 2013) and whose issuers are public companies domiciled in the United States. The Index selects and weights securities based on the Fundamental Index® approach developed by the Index Provider that uses four fundamental factors of company size: book value of assets, gross sales, gross dividends and cash flow. Only non-convertible, non-exchangeable, non-zero, fixed coupon investment grade corporate bonds qualify for inclusion in the Index. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 1.46%. On a net asset value (“NAV”) basis, the Fund returned 1.20%. During the same time period, the Index returned 1.41%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Bloomberg U.S. Corporate Index (the “Benchmark Index”) returned 0.90%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 7,300 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 broad-based U.S. corporate bond market.

Relative to the Benchmark Index, the Fund was most overweight in the insurance industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s security selection within the insurance industry.

For the fiscal year ended August 31, 2023, the insurance industry contributed most significantly to the Fund’s return, followed by the oil, gas & consumable fuels and health care providers & services industries, respectively. The broadline retail industry detracted most significantly from the Fund’s return, followed by the real estate management & development and office REITs industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included JPMorgan Chase & Co., 2.95% coupon, due 10/1/2026, a banks company (portfolio average weight of 1.09%), and Citigroup, Inc., 6.63% coupon, due 6/15/2032, a banks company (portfolio average weight of 0.42%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended August 31, 2023, included U.S. Bancorp, 1.38% coupon, due 7/22/2030, a banks company (portfolio average weight of 0.22%), and Johnson & Johnson, 1.30% coupon, due 9/1/2030, a pharmaceuticals company (portfolio average weight of 0.29%).

 

Sector Breakdown
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Financials      20.62  
Health Care      11.22  
Information Technology      11.15  
Industrials      10.24  
Consumer Staples      10.07  
Consumer Discretionary      8.18  
Utilities      6.99  
Energy      5.84  
Real Estate      5.28  
Communication Services      5.12  
Materials      4.30  
Money Market Funds Plus Other Assets Less Liabilities      0.99  

Credit Quality Rating (S&P)*
(% of the Fund’s Net Assets)

as of August 31, 2023

 
AAA      1.49  
AA      8.13  
A      33.52  
BBB      55.87  
Money Market Funds Plus Other Assets Less Liabilities      0.99  

 

*

Source: Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to C (lowest); ratings are subject to change without notice. “Non-Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard & Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Ratings Resources on the homepage.

 

 

 

  18  

 


 

Invesco Fundamental Investment Grade Corporate Bond ETF (PFIG) (continued)

 

Top Ten Fund Holdings*

(% of the Fund’s Net Assets)

as of August 31, 2023

       
Security   
JPMorgan Chase & Co., 2.95%, 10/01/2026      1.07  
Bank of America Corp., 3.25%, 10/21/2027      0.90  
Microsoft Corp., 3.30%, 02/06/2027      0.82  
Morgan Stanley, 3.63%, 01/20/2027      0.58  
Apple, Inc., 1.65%, 02/08/2031      0.49  
Cisco Systems, Inc., 2.50%, 09/20/2026      0.48  
Berkshire Hathaway Energy Co., 3.70%, 07/15/2030      0.48  
Apple, Inc., 3.25%, 02/23/2026      0.46  
Walmart, Inc., 3.90%, 09/09/2025      0.46  
Berkshire Hathaway, Inc., 3.13%, 03/15/2026      0.44  
Total      6.18  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
RAFI® Bonds U.S. Investment Grade 1-10 Index     1.41     (2.51 )%      (7.34 )%      1.75     9.06     2.33     25.86       2.45     33.57
Bloomberg U.S. Corporate Index     0.90       (4.17     (11.98     1.41       7.24       2.58       28.98         2.84       39.85  
Fund                    
NAV Return     1.20       (2.70     (7.88     1.51       7.80       2.07       22.79         2.11       28.38  
Market Price Return     1.46       (2.70     (7.88     1.50       7.75       2.13       23.43         2.12       28.50  

 

 

 

  19  

 


 

Invesco Fundamental Investment Grade Corporate Bond ETF (PFIG) (continued)

 

Fund Inception: September 15, 2011

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 0.22% 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 and indices are based on the inception date of the Fund.

 

 

  20  

 


 

 

PZA   

Management’s Discussion of Fund Performance

   Invesco National AMT-Free Municipal Bond ETF (PZA)

 

As an index fund, the Invesco National AMT-Free Municipal Bond ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the ICE BofA National Long-Term Core Plus Municipal Securities Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components of the Index.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is composed of U.S. dollar-denominated, tax-exempt municipal debt publicly issued by U.S. states and territories and their political subdivisions, in the U.S. domestic market. Such securities are exempt from the federal alternative minimum tax and are considered investment grade based on an average of ratings by S&P Global Ratings, a division of S&P Global Inc., Moody’s Investors Service, Inc. and Fitch Ratings Inc. To be eligible for inclusion in the Index, such securities must have a term of at least 15 years remaining to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $25 million per maturity. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 2.08%. On a net asset value (“NAV”) basis, the Fund returned 2.00%. During the same time period, the Index returned 2.26%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Bloomberg Municipal Bond 20 Year Index (the “Benchmark Index”) returned 2.15%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 5,800 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 municipal securities with maturities of 17 to 22 years.

Relative to the Benchmark Index, the Fund was most overweight in New York bonds and most underweight in California bonds 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 security selection within Louisiana bonds.

For the fiscal year ended August 31, 2023, New York bonds contributed most significantly to the Fund’s return, followed by California bonds. Louisiana bonds detracted most significantly from the Fund’s return, followed by North Dakota bonds.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included San Diego Unified School District (Election of 2012), 4.00% coupon, due

7/1/2050 (portfolio average weight of 0.60%), and Triborough Bridge & Tunnel Authority (MTA Bridges & Tunnels), 4.00% coupon, due 5/15/2057 (portfolio average weight of 0.40%). Positions that detracted most significantly from the Fund’s return included Massachusetts (Commonwealth of), 5.00% coupon, due 11/1/2048 (portfolio average weight of 0.82%), and Chicago (City of), IL Transit Authority, 5.00% coupon, due 12/1/2051 (portfolio average weight of 0.05%).

 

Revenue Type Breakdown
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Ad Valorem Property Tax      16.74  
Health, Hospital, Nursing Home Revenue      16.00  
Water Revenue      8.52  
College & University Revenue      8.43  
Income Tax Revenue      7.85  
Sales Tax Revenue      6.63  
Highway Tolls Revenue      6.35  
Lease Revenue      5.01  
Miscellaneous Revenue      4.52  
Electric Power Revenue      4.25  
Port, Airport & Marina Revenue      3.57  
Revenue Types Each Less Than 3%      11.00  
Other Assets Less Liabilities      1.13  

 

 

  21  

 


 

Invesco National AMT-Free Municipal Bond ETF (PZA) (continued)

 

Top Ten Fund Holdings
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Security   
Massachusetts (Commonwealth of), Series 2022 E, GO Bonds, 5.00%, 11/01/2048      0.80  
Miami Beach (City of), FL, Series 2015, RB, 5.00%, 09/01/2040      0.60  
Colorado (State of) Health Facilities Authority (Adventhealth Obligated Group), Series 2021 A, Ref. RB,
4.00%, 11/15/2050
     0.60  
San Diego Unified School District (Election of 2012), Series 2020 M-2, GO Bonds, 4.00%, 07/01/2050      0.59  
Los Angeles (County of), CA Public Works Financing Authority, Series 2016 D, RB, 5.00%, 12/01/2045      0.51  
Licking Heights Local School District, Series 2022, GO Bonds, 5.50%, 10/01/2059      0.47  
Grand Parkway Transportation Corp. (TELA Supported), Series 2018 A, RB, 5.00%, 10/01/2043      0.45  
Triborough Bridge & Tunnel Authority (MTA Bridges & Tunnels), Series 2017 C-2, RB, 5.00%, 11/15/2042      0.44  
University of California, Series 2016 AR, Ref. RB, 5.00%, 05/15/2046      0.42  
Jurupa Unified School District, Series 2017 B, GO Bonds, 4.00%, 08/01/2041      0.42  
Total      5.30  

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—ICE BofA National Long-Term Core Plus Municipal Securities Index     2.26     (1.89 )%      (5.57 )%      1.45     7.46     3.54     41.60       3.69     77.94
Bloomberg Municipal Bond 20 Year Index     2.15       (1.55     (4.57     1.76       9.13       3.67       43.36         3.98       85.78  
Fund                    
NAV Return     2.00       (2.31     (6.78     0.98       5.01       3.26       37.84         3.19       64.68  
Market Price Return     2.08       (2.33     (6.83     0.97       4.93       3.35       39.06         3.13       63.06  

 

 

  22  

 


 

Invesco National AMT-Free Municipal Bond ETF (PZA) (continued)

 

Fund Inception: October 11, 2007

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 0.28% 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:

 

-

The Blended-ICE BofA National Long-Term Core Plus Municipal Securities Index is comprised of the performance of the BofA Merrill Lynch National Insured Long-Term Core Municipal Securities Index, the Fund’s underlying index from Fund inception through the conversion date, May 29, 2009, followed by the performance of the BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities Index, the Fund’s underlying index for the period May 29, 2009 through July 8, 2014, followed by the performance of the Index for the period July 8, 2014 through August 31, 2023.

 

-

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

 

 

  23  

 


 

 

PZT   

Management’s Discussion of Fund Performance

   Invesco New York AMT-Free Municipal Bond ETF (PZT)

 

As an index fund, the Invesco New York AMT-Free Municipal Bond ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the ICE BofA New York Long-Term Core Plus Municipal Securities Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components of the Index.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is composed of U.S. dollar-denominated, tax-exempt municipal debt publicly issued by New York or any U.S. territory and their political subdivisions in the U.S. domestic market. Such securities are exempt from the federal alternative minimum tax and are considered investment grade based on an average of ratings by S&P Global Ratings, a division of S&P Global Inc., Moody’s Investors Service, Inc. and Fitch Ratings Inc. To be eligible for inclusion in the Index, such securities must have a term of at least 15 years remaining to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $25 million per maturity. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 1.88%. On a net asset value (“NAV”) basis, the Fund returned 2.15%. During the same time period, the Index returned 3.11%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, as well as costs associated with portfolio rebalancing, sampling, trading and the security selection within New York bonds.

During this same time period, the Bloomberg Municipal Bond 20 Year Index (the “Benchmark Index”) returned 2.15%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 5,800 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 market for municipal securities with maturities of 17 to 22 years.

Relative to the Benchmark Index, the Fund was most overweight in New York bonds and most underweight in California bonds during the fiscal year ended August 31, 2023.

For the fiscal year ended August 31, 2023, New York bonds were the only contributor to the Fund’s return. There were no states that detracted from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return included New York (State of) Dormitory Authority, 4.00% coupon, due 2/15/2044 (portfolio average weight of 2.71%), and New

York (State of) Power Authority (Green Transmission), 4.00% coupon, due 11/15/2052 (portfolio average weight of 4.23%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended August 31, 2023, included New York (City of), NY Transitional Finance Authority, 3.00% coupon, due 11/1/2047 (portfolio average weight of 1.70%), and New York (State of) Thruway Authority, 3.00% coupon, due 3/15/2049 (portfolio average weight of 0.85%).

 

Revenue Type Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Water Revenue      12.17  
Electric Power Revenue      12.17  
Income Tax Revenue      11.23  
Miscellaneous Revenue      8.79  
Highway Tolls Revenue      8.57  
Lease Revenue      7.76  
College & University Revenue      7.56  
Health, Hospital, Nursing Home Revenue      6.83  
Ad Valorem Property Tax      5.51  
Hotel Occupancy Tax      4.43  
Transit Revenue      3.75  
Port, Airport & Marina Revenue      3.71  
Revenue Types Each Less Than 3%      6.40  
Other Assets Less Liabilities      1.12  

 

 

  24  

 


 

Invesco New York AMT-Free Municipal Bond ETF (PZT) (continued)

 

Top Ten Fund Holdings
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
New York (State of) Power Authority (Green Transmission) (Green Bonds), Series 2022, RB, 4.00%, 11/15/2052      4.22  
Battery Park (City of), NY Authority (Sustainability Bonds), Series 2019, RB, 5.00%, 11/01/2049      2.96  
Triborough Bridge & Tunnel Authority (MTA Bridges & Tunnels), Series 2021 A, RB, 5.00%, 11/15/2051      2.95  
New York (State of) Dormitory Authority (Bidding Group 3), Series 2017 B, Ref. RB, 4.00%, 02/15/2044      2.71  
New York (State of) Utility Debt Securitization Authority, Series 2017, RB, 5.00%, 12/15/2038      2.41  
New York (City of), NY, Series 2019 B-1, GO Bonds, 5.00%, 10/01/2039      2.38  
New York (City of), NY Municipal Water Finance Authority, Series 2021 AA-1, RB, 5.00%, 06/15/2048      2.37  
Long Island (City of), NY Power Authority, Series 2016 B, Ref. RB, 5.00%, 09/01/2041      2.33  
New York Convention Center Development Corp. (Hotel Unit Fee Secured), Series 2015, Ref. RB, 5.00%, 11/15/2045      2.27  
New York (City of), NY Municipal Water Finance Authority, Series 2023 D, Ref. RB, 4.13%, 06/15/2047      2.20  
Total      26.80  

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—ICE BofA New York Long-Term Core Plus Municipal Securities Index     3.11     (1.75 )%      (5.17 )%      1.31     6.73     3.59     42.30       3.39     69.80
Bloomberg Municipal Bond 20 Year Index     2.15       (1.55     (4.57     1.76       9.13       3.67       43.36         3.98       85.78  
Fund                    
NAV Return     2.15       (2.11     (6.21     1.18       6.02       3.19       36.83         2.88       57.12  
Market Price Return     1.88       (2.28     (6.68     1.19       6.11       3.29       38.26         2.81       55.21  

 

 

 

  25  

 


 

Invesco New York AMT-Free Municipal Bond ETF (PZT) (continued)

 

Fund Inception: October 11, 2007

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 0.28% 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:

 

-

The Blended-ICE BofA New York Long-Term Core Plus Municipal Securities Index is comprised of the performance of the BofA Merrill Lynch New York Insured Long-Term Core Municipal Securities Index, the Fund’s underlying index from Fund inception through the conversion date, May 29, 2009, followed by the performance of the BofA Merrill Lynch New York Insured Long-Term Core Plus Municipal Securities Index, the Fund’s underlying index for the period May 29, 2009 through July 8, 2014, followed by the performance of the Index for the period July 8, 2014 through August 31, 2023.

 

-

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

 

 

  26  

 


 

 

PGX   

Management’s Discussion of Fund Performance

   Invesco Preferred ETF (PGX)

 

As an index fund, the Invesco Preferred ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the ICE BofA Core Plus Fixed Rate Preferred Securities Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components of the Index.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) selects securities for the Index, which is a market capitalization-weighted index designed to measure the performance of the fixed rate U.S. dollar-denominated preferred securities market. The Index includes both traditional and other preferred securities. Unlisted preferred securities are excluded from the Index, but unlisted senior or subordinated debt-like securities are eligible for inclusion. The Index may include Rule 144A securities. Securities are selected for the Index using a rules-based methodology. Qualifying securities must be rated at least B3 (based on an average of ratings by Moody’s Investors Services, Inc. (“Moody’s”), S&P Global Ratings, a division of S&P Global Inc. (“S&P”) and Fitch Ratings, Inc. (“Fitch”)) and must have an investment grade country risk profile (based on an average of Moody’s, S&P and Fitch foreign currency long-term sovereign debt ratings). The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned (3.56)%. On a net asset value (“NAV”) basis, the Fund returned (3.48)%. During the same time period, the Index returned (3.32)%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses incurred by the Fund and costs associated with portfolio rebalancing during the period, which were partially offset by the positive effects of the sampling approach employed by the portfolio management team.

During this same time period, the S&P U.S. Preferred Stock Index (the “Benchmark Index”) returned 0.58%. The Benchmark Index is an unmanaged index weighted by modified market capitalization, which is based on the average performance of approximately 300 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 preferred stock market, which includes convertible preferred stocks.

Relative to the Benchmark Index, the Fund was most overweight in the insurance industry and most underweight in the banks industry 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 security selection within the insurance industry.

For the fiscal year ended August 31, 2023, the insurance industry contributed most significantly to the Fund’s return, followed by the electric utilities industry. The banks industry detracted most significantly from the Fund’s return, followed by the diversified telecommunication services industry.

Positions that contributed most significantly to the Fund’s return included Reinsurance Group of America, Inc., 7.13%, an insurance company (portfolio average weight 0.75%), and AT&T, Inc., 4.75%, a diversified telecommunication services company (portfolio average weight 1.34%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended August 31, 2023, included Qwest Corp., 6.50%, a diversified telecommunication services company (portfolio average weight 0.50%), and Qurate Retail, Inc., Pfd., 8.00%, a broadline retail company (portfolio average weight 0.06%).

 

Sector Breakdown
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Financials      68.97  
Utilities      10.71  
Real Estate      7.87  
Communication Services      6.96  
Consumer Discretionary      3.07  
Sector Types Each Less Than 3%      1.93  
Money Market Funds Plus Other Assets Less Liabilities      0.49  

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Security   
JPMorgan Chase & Co., Series EE, Pfd., 6.00%,      1.80  
JPMorgan Chase & Co., Series DD, Pfd., 5.75%,      1.63  
Wells Fargo & Co., Series Z, Pfd., 4.75%,      1.57  
JPMorgan Chase & Co., Series MM, Pfd., 4.20%,      1.47  
JPMorgan Chase & Co., Series LL, Pfd., 4.63%,      1.44  
AT&T, Inc., Series C, Pfd., 4.75%,      1.35  
Bank of America Corp., Series KK, Pfd., 5.38%,      1.28  
Bank of America Corp., Series GG, Pfd., 6.00%,      1.28  
AT&T, Inc., Pfd., 5.35%, 11/01/2066      1.20  
Capital One Financial Corp., Series I, Pfd., 5.00%,      1.16  
Total      14.18  

 

*

Excluding money market fund holdings.

 

 

  27  

 


 

Invesco Preferred ETF (PGX) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—ICE BofA Core Plus Fixed Rate Preferred Securities Index     (3.32 )%      (3.66 )%      (10.57 )%      0.39     1.96     3.95     47.27       3.07     60.23
S&P U.S. Preferred Stock Index     0.58       (0.57     (1.71     1.74       8.99       4.23       51.40         4.41       95.77  
Fund                    
NAV Return     (3.48     (3.88     (11.19     0.18       0.91       3.68       43.48         2.56       48.23  
Market Price Return     (3.56     (4.01     (11.56     0.14       0.68       3.67       43.44         2.44       45.68  

 

Fund Inception: January 31, 2008

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 0.50% 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 and indices are based on the inception date of the Fund.

 

-

The Blended-ICE BofA Core Plus Fixed Rate Preferred Securities Index is comprised of the performance of The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index, the Fund’s previous underlying index, from Fund inception through the conversion date, April 1, 2012, followed by the performance of the Index starting from the conversion date through August 31, 2023.

 

 

  28  

 


 

 

TBLL   

Management’s Discussion of Fund Performance

   Invesco Short Term Treasury ETF (TBLL)

 

Effective after the close of markets on August 25, 2023, the Fund’s name changed from Invesco Treasury Collateral ETF to Invesco Short Term Treasury ETF (the “Fund”) and the Fund also changed its ticker symbol from CLTL to TBLL.

As an index fund, the Fund is passively managed and seeks to track the investment results (before fees and expenses) of the ICE U.S. Treasury Short Bond Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components of the Index.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of U.S. Treasury Obligations with a maximum remaining maturity of less than or equal to 12 months. “U.S. Treasury Obligations” refer to securities issued or guaranteed by the U.S. Treasury where the payment of principal and interest is backed by the full faith and credit of the U.S. government. They include U.S. Treasury notes, bills and bonds. The Fund expects to invest 100% of its total assets in cash and U.S. Treasury Obligations with a maximum remaining maturity of less than 12 months.

The Index includes all publicly-issued, non-convertible U.S. Treasury Obligations that: (i) are issued in U.S. dollars, (ii) have a minimum remaining maturity greater than one month and a maximum remaining maturity of less than or equal to 12 months at the time of rebalance, (iii) have a fixed coupon schedule, and (iv) have a minimum amount outstanding of $300 million. The Index excludes inflation-linked securities, original issue zero coupon securities, floating rate notes, any government agency debt issued with or without a government guarantee and Separate Trading of Registered Interest and Principal of Securities (“STRIPS”). The Index uses a market value-weighted methodology. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 4.03%. On a net asset value (“NAV”) basis, the Fund returned 3.98%. During the same time period, the Index returned 4.08%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

For the fiscal year ended August 31, 2023, bonds with maturities between 1-2 months duration contributed most significantly to the Fund’s return. Bonds with maturities between 7-8 months duration detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included U.S. Treasury Note, coupon 0.50%- 2.88%, due 11/30/2023 (portfolio average

weight of 3.03%), and U.S. Treasury Note, coupon 0.38 – 2.88%, due 10/31/2023 (portfolio average weight of 2.55%). Positions that detracted most significantly from the Fund’s return included U.S. Treasury Bill, due 6/13/2024 (portfolio average weight of 1.37%), and Treasury Bill, due 7/11/2024 (portfolio average weight of 1.36%).

 

Security Type Breakdown
(% of the Fund’s Net Assets)

as of August 31, 2023

 
U.S. Treasury Bills      51.46  
U.S. Treasury Notes      47.63  
Money Market Funds Plus Other Assets Less Liabilities      0.91  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
U.S. Treasury Bills, 5.73%, 10/05/2023      3.54  
U.S. Treasury Notes, 0.50%, 11/30/2023      3.02  
U.S. Treasury Notes, 0.13%, 12/15/2023      2.67  
U.S. Treasury Notes, 1.63%, 10/31/2023      2.64  
U.S. Treasury Bills, 5.56%, 11/02/2023      2.57  
U.S. Treasury Notes, 0.25%, 11/15/2023      2.56  
U.S. Treasury Notes, 0.38%, 10/31/2023      2.54  
U.S. Treasury Notes, 2.75%, 11/15/2023      2.43  
U.S. Treasury Bills, 5.59%, 10/26/2023      2.36  
U.S. Treasury Notes, 0.13%, 01/15/2024      2.31  
Total      26.64  

 

*

Excluding money market fund holdings.

 

 

  29  

 


 

Invesco Short Term Treasury ETF (TBLL) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
ICE U.S. Treasury Short Bond Index     4.08     1.41     4.28     1.67     8.64       1.55     10.73
Fund                
NAV Return     3.98       1.37       4.17       1.62       8.35         1.49       10.32  
Market Price Return     4.03       1.40       4.24       1.62       8.37         1.50       10.35  

 

Fund Inception: January 12, 2017

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 0.08% 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.

Index performance results are based upon a hypothetical investment in their respective constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does 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 Index and Fund Performance History:

 

-

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

 

 

  30  

 


 

 

BAB   

Management’s Discussion of Fund Performance

   Invesco Taxable Municipal Bond ETF (BAB)

 

As an index fund, the Invesco Taxable Municipal Bond ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the ICE BofA US Taxable Municipal Securities Plus 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, ICE Data Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of U.S. dollar-denominated taxable municipal debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market.

Securities eligible for inclusion in the Index must have: (i) at least 18 months to final maturity at the time of issuance, (ii) at least one year remaining term to final maturity, (iii) a fixed coupon schedule, including zero coupon bonds, and (iv) an investment grade rating (based on an average of ratings by Moody’s Investors Service, Inc., S&P Global Ratings, a division of S&P Global Inc., and Fitch Ratings, Inc.). Component securities also must have a minimum amount outstanding that varies according to the bond’s initial term to final maturity at time of issuance: maturities between 1-5 years must have at least $10 million outstanding; maturities between 5-10 years must have at least $15 million outstanding; and maturities of 10 years or more must have at least $25 million outstanding.

The Index excludes secondarily issued securities, securities issued under the Municipal Liquidity Facility or a municipal commercial paper program, Rule 144A securities and securities in legal default. However, it may include bonds eligible to participate in the Build America Bond program created under the American Recovery and Reinvestment Act of 2009 or other legislation providing for the issuance of taxable municipal securities on which the issuer receives federal support of the interest paid (“Build America Bonds”). Unlike most other municipal obligations, interest received on Build America Bonds is subject to federal and state income tax. The Index does not include bonds that, under the Build America Bond program, are eligible for tax credits. Build America Bonds must have at least $1 million outstanding to be eligible for inclusion in the Index.

The Index uses a market capitalization-weighted methodology, weighting its constituent bonds using a factor that equals their current amount outstanding multiplied by their market price, plus accrued interest. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned (0.59)%. On a net asset value (“NAV”) basis, the Fund returned (0.70)%. During the same time period, the Index returned (0.50)%. During the fiscal year, the Fund’s

performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund during the period.

During this same time period, ICE BofA U.S. Corporate Master Index returned 0.98% and the Bloomberg U.S. Aggregate Bond Index returned (1.19)% (each, a “Benchmark Index” and collectively, the “Benchmark Indices”). The Benchmark Indices are unmanaged indices weighted by market capitalization and based on the average performance of approximately 9,600 securities and 12,700 securities, respectively. These Benchmark Indices were selected for their recognition in the marketplace, and their performance comparisons are a useful measure for investors as broad representations of the market for investment grade corporate debt with at least one year to maturity, and the market for U.S. investment grade, fixed-rate bonds, respectively.

Relative to the ICE BofA U.S. Corporate Master Index, the majority of the Fund’s underperformance during the period can be attributed to the Fund’s overweight allocation to California bonds. Relative to the Bloomberg U.S. Aggregate Bond Index, the majority of the Fund’s outperformance can be attributed to the Fund’s overweight allocation to Illinois bonds.

For the fiscal year ended August 31, 2023, Illinois bonds contributed most significantly to the Fund’s return, followed by New York and New Jersey bonds, respectively. California bonds detracted most significantly from the Fund’s return, followed by Pennsylvania and Michigan bonds, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Chicago (City of), IL, 6.21% coupon, due 1/1/2036 (portfolio average weight of 0.33%), and South Carolina Student Loan Corp., 3.59% coupon, due 12/1/2039 (portfolio average weight of 0.15%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended August 31, 2023, included University of California, 4.50% coupon, due 5/15/2052 (portfolio average weight of 0.06%), and Allegheny (County of), PA, 2.09% coupon, due 11/1/2033 (portfolio average weight of 0.05%).

 

 

  31  

 


 

Invesco Taxable Municipal Bond ETF (BAB) (continued)

 

Revenue Type Breakdown
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Ad Valorem Property Tax      21.03  
College & University Revenue      12.96  
Miscellaneous Revenue      7.52  
Port, Airport & Marina Revenue      7.51  
Electric Power Revenue      7.37  
General Fund      6.48  
Sales Tax Revenue      5.87  
Lease Revenue      5.53  
Water Revenue      5.25  
Highway Tolls Revenue      3.79  
Health, Hospital, Nursing Home Revenue      3.72  
Revenue Types Each Less Than 3%      11.02  
Money Market Funds Plus Other Assets Less Liabilities      1.95  

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Security   
California (State of), Series 2009, GO Bonds, 7.55%, 04/01/2039      1.37  
California (State of), Series 2009, GO Bonds, 7.50%, 04/01/2034      1.14  
California (State of), Series 2009, GO Bonds, 7.30%, 10/01/2039      1.10  
University of California, Series 2020 BG, RB, 1.32%, 05/15/2027      0.81  
University of California, Series 2019 BD, RB, 3.35%, 07/01/2029      0.80  
Texas (State of) Transportation Commission State Highway Fund, Series 2010 B, RB, 5.18%, 04/01/2030      0.78  
American Municipal Power, Inc. (Combined Hydroelectric), Series 2010 B, RB, 8.08%, 02/15/2050      0.69  
California (State of), Series 2009, GO Bonds, 7.35%, 11/01/2039      0.66  
Board of Regents of the University of Texas System (Build America Bonds), Series 2010 C, RB, 4.64%, 08/15/2030      0.65  
Illinois (State of), Series 2010 2, GO Bonds, 6.90%, 03/01/2035      0.65  
Total      8.65  

 

*

Excluding money market fund holdings.

 

 

  32  

 


 

Invesco Taxable Municipal Bond ETF (BAB) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—ICE BofA US Taxable Municipal Securities Plus Index     (0.50 )%      (4.47 )%      (12.82 )%      1.25     6.40     3.74     44.40       4.88     92.76
ICE BofA U.S. Corporate Master Index     0.98       (3.94     (11.37     1.51       7.81       2.65       29.88         3.59       62.54  
Bloomberg U.S. Aggregate Bond Index     (1.19     (4.41     (12.65     0.49       2.47       1.48       15.86         2.12       33.51  
Fund                    
NAV Return     (0.70     (5.05     (14.41     0.76       3.85       3.38       39.49         4.68       87.95  
Market Price Return     (0.59     (5.06     (14.42     0.88       4.46       3.49       40.89         4.66       87.37  

 

Fund Inception: November 17, 2009

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 0.28% 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 and indices are based on the inception date of the Fund.

 

-

The Blended-ICE BofA US Taxable Municipal Securities Plus Index is comprised of the performance of the ICE BofA Build America Bond Index, the Fund’s previous underlying index, from Fund inception through the conversion date, May 31, 2017, followed by the performance of the Index starting at the conversion date through August 31, 2023.

 

 

  33  

 


 

 

VRP   

Management’s Discussion of Fund Performance

   Invesco Variable Rate Preferred ETF (VRP)

 

As an index fund, the Invesco Variable Rate Preferred ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the ICE Variable Rate Preferred & Hybrid Securities Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the components of the Index, as well as American depositary receipts (“ADRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, ICE Data Indices, LLC (the “Index Provider”) compiles and calculates the Index, a market capitalization-weighted index designed to track the performance of floating and variable rate investment grade and below investment grade U.S. dollar denominated preferred stock, as well as certain types of hybrid securities that are, in the judgment of the Index Provider, comparable to preferred stocks, that are issued by corporations in the U.S. domestic market. To be eligible for inclusion in the Index, the preferred stock or hybrid security must: (i) be publicly issued, (ii) be U.S.-registered or exempt from registration in the United States, (iii) have at least one day remaining to maturity and at least 18 months to maturity at the time of its issuance, (iv) be issued in either $25 or $1,000 par value increments, and (v) have a floating rate coupon or dividend, and must meet other minimum liquidity, trading volume and other requirements, as determined by the Index Provider.

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. Although preferred stocks represent a partial ownership interest in a company, preferred stocks generally do not carry voting rights. Preferred stocks often have a liquidation value that equals the original purchase price of the stock at the time of issuance. Preferred stocks have economic characteristics similar to fixed-income securities; for example, preferred stocks generally pay dividends at a specified rate, which may be fixed or variable. Variable- or floating-rate preferred stocks pay dividends at rates that adjust periodically according to formulae intended generally to reflect market rates of interest, 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). Dividends may be paid on a variable rate percentage of the fixed par value at which the preferred stock is issued. The Index may include fixed-to-floating rate preferred securities, which are securities that have an initial term with a fixed dividend rate and following this initial term bear a floating dividend rate.

Hybrid securities that are comparable to preferred stock are those securities that, like traditional preferred stock, have preference over the common stock within an issuer’s capital structure, and are issued and traded in a similar manner to traditional preferred stock. Like preferred stock (but unlike debt securities or common stock), hybrid securities have the ability to defer dividend payments to stockholders and to extend their maturity dates to different durations. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 4.83%. On a net asset value (“NAV”) basis, the Fund returned 4.68%. During the same time period, the Index returned 4.99%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, which were partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P U.S. Preferred Stock Index (the “Benchmark Index”) returned 0.58%. The Benchmark Index is an unmanaged index weighted by modified market capitalization and based on the average performance of approximately 300 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 primarily fixed-rate preferred stock market.

Relative to the Benchmark Index, the Fund was most overweight in the oil, gas & consumable fuels industry and most underweight in the capital markets industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the banks industry.

For the fiscal year ended August 31, 2023, the banks industry contributed most significantly to the Fund’s return, followed by the oil, gas & consumable fuels and capital markets industries, respectively. The consumer finance industry detracted most significantly from the Fund’s return, followed by the machinery and media industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included General Electric Co., Series D, 8.88%, an industrial conglomerates company (portfolio average weight of 1.26%), and Citigroup Capital XIII, Pfd., 12.00%, a financial services company (portfolio average weight of 1.24%). Positions that detracted most significantly from the Fund’s return included Ally Financial, Inc., 4.70%, a consumer finance company (portfolio average weight of 0.46%) and PNC Financial Services Group, Inc. (The), Series W, 6.25%, a banks company (portfolio average weight of 0.64%).

 

 

  34  

 


 

Invesco Variable Rate Preferred ETF (VRP) (continued)

 

Sector Breakdown
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Financials      72.60  
Energy      12.23  
Utilities      8.98  
Sector Types Each Less Than 3%      5.53  
Money Market Funds Plus Other Assets Less Liabilities      0.66  

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)

as of August 31, 2023

 
Security   
Wells Fargo & Co., Series BB, 3.90%,      1.46  
JPMorgan Chase & Co., Series HH, 4.60%,      1.32  
General Electric Co., Series D, 8.88%,      1.24  
Citigroup Capital XIII, Pfd., 12.00%, 10/30/2040      1.23  
BP Capital Markets PLC, 4.38%,      1.14  
Charles Schwab Corp. (The), Series G, 5.38%,      1.12  
BP Capital Markets PLC, 4.88%,      1.09  
JPMorgan Chase & Co., Series FF, 5.00%,      1.05  
Bank of America Corp., Series FF, 5.88%,      0.99  
Vodafone Group PLC, 7.00%, 04/04/2079      0.97  
Total      11.61  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—ICE Variable Rate Pfd & Hybrid Securities Index     4.99     2.03     6.22     3.19     17.02       4.24     47.31
S&P U.S. Preferred Stock Index     0.58       (0.57     (1.71     1.74       8.99         3.48       37.63  
Fund                
NAV Return     4.68       1.71       5.21       2.93       15.55         3.97       43.78  
Market Price Return     4.83       1.63       4.96       2.97       15.74         3.94       43.44  

 

 

  35  

 


 

Invesco Variable Rate Preferred ETF (VRP) (continued)

 

Fund Inception: May 1, 2014

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 0.50% 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 and indices are based on the inception date of the Fund.

 

-

The Blended-ICE Variable Rate Preferred & Hybrid Securities Index is comprised of the performance of the Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 30, 2021, followed by the performance of the Index starting at the conversion date through August 31, 2023.

 

 

  36  

 


 

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.

 

 

 

  37  

 

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ)

August 31, 2023

 

Schedule of Investments

 

     Interest
Rate
  Maturity
Date
     Principal
Amount
(000)
     Value  

Municipal Obligations-97.39%

          

California-97.39%

          

Alameda (City of), CA Corridor Transportation Authority, Series 2022 C, RB, (INS - AGM)(a)

     5.00     10/01/2052      $  1,000      $   1,058,359  

Alameda (County of), CA Transportation Commission, Series 2022, RB

     5.00     03/01/2045        1,750        1,911,865  

Alvord Unified School District, Series 2023 A, GO Bonds, (INS - BAM)(a)

     5.00     08/01/2052        1,500        1,613,043  

Bay Area Toll Authority (San Francisco Bay Area), Series 2017 S-7, Ref. RB

     4.00     04/01/2042        3,000        2,982,652  

Bay Area Toll Authority (San Francisco Bay Area), Series 2017, Ref. RB

     4.00     04/01/2038        150        150,649  

Burbank (City of), CA, Series 2023, RB

     5.00     06/01/2048        2,520        2,685,423  

California (State of), Series 2013, GO Bonds

     5.00     11/01/2043        3,165        3,171,671  

California (State of), Series 2014, GO Bonds

     5.00     10/01/2044        1,000        1,012,207  

California (State of), Series 2014, Ref. GO Bonds

     4.00     11/01/2044        520        516,102  

California (State of), Series 2015, GO Bonds

     4.00     03/01/2045        195        192,903  

California (State of), Series 2015, GO Bonds

     5.00     03/01/2045        1,000        1,019,452  

California (State of), Series 2015, GO Bonds

     5.00     08/01/2045        1,100        1,127,150  

California (State of), Series 2016, GO Bonds

     5.00     09/01/2045        1,100        1,142,774  

California (State of), Series 2016, GO Bonds

     5.00     09/01/2046        2,000        2,076,195  

California (State of), Series 2017, GO Bonds

     5.00     08/01/2046        1,000        1,037,060  

California (State of), Series 2017, GO Bonds

     5.00     11/01/2047        4,570        4,802,575  

California (State of), Series 2018, GO Bonds

     5.00     10/01/2047        1,720        1,773,602  

California (State of), Series 2019, Ref. GO Bonds

     5.00     11/01/2039        1,500        1,608,889  

California (State of), Series 2020, GO Bonds

     4.00     03/01/2046        5,660        5,616,002  

California (State of), Series 2020, GO Bonds

     3.00     03/01/2050        2,860        2,216,730  

California (State of), Series 2020, Ref. GO Bonds

     4.00     03/01/2040        6,000        6,034,899  

California (State of), Series 2021, GO Bonds

     4.00     10/01/2039        4,990        5,055,031  

California (State of), Series 2021, GO Bonds

     2.38     12/01/2043        2,000        1,390,053  

California (State of), Series 2021, GO Bonds

     3.00     12/01/2043        400        328,624  

California (State of), Series 2021, GO Bonds

     5.00     12/01/2043        1,200        1,300,159  

California (State of), Series 2021, GO Bonds

     3.00     12/01/2046        750        596,527  

California (State of), Series 2021, GO Bonds

     5.00     12/01/2046        500        538,191  

California (State of), Series 2021, GO Bonds

     2.50     12/01/2049        750        489,909  

California (State of), Series 2021, GO Bonds

     3.00     12/01/2049        625        486,284  

California (State of), Series 2021, Ref. GO Bonds

     5.00     09/01/2041        7,445        8,169,411  

California (State of), Series 2021, Ref. GO Bonds

     4.00     10/01/2041        3,500        3,516,227  

California (State of), Series 2022 CU, GO Bonds

     4.75     12/01/2042        3,000        3,122,456  

California (State of), Series 2022 CU, GO Bonds

     4.85     12/01/2046        1,700        1,772,377  

California (State of), Series 2022 CU, GO Bonds

     5.50     12/01/2052        4,985        5,519,315  

California (State of), Series 2022, GO Bonds

     5.25     09/01/2047        1,000        1,108,956  

California (State of), Series 2022, Ref. GO Bonds

     5.00     04/01/2042        1,720        1,814,417  

California (State of), Series 2022, Ref. GO Bonds

     5.00     04/01/2042        2,560        2,812,377  

California (State of), Series 2022, Ref. GO Bonds

     5.00     09/01/2042        3,000        3,307,997  

California (State of), Series 2022, Ref. GO Bonds

     5.00     09/01/2042        3,000        3,177,761  

California (State of), Series 2023, GO Bonds

     5.00     10/01/2045        2,300        2,528,294  

California (State of), Series 2023, GO Bonds

     5.25     10/01/2045        3,100        3,474,826  

California (State of) Educational Facilities Authority (Stanford University), Series 2019 V-1, RB

     5.00     05/01/2049        3,000        3,417,197  

California (State of) Educational Facilities Authority (Stanford University), Series 2021 V-2, Ref. RB

     5.00     04/01/2051        1,000        1,139,596  

California (State of) Educational Facilities Authority (Stanford University) (Sustainability Bonds), Series 2021, Ref. RB

     2.25     04/01/2051        400        249,478  

California (State of) Educational Facilities Authority (University of San Francisco), Series 2018 A, RB

     5.00     10/01/2053        2,000        2,044,798  

California (State of) Health Facilities Financing Authority (Cedars Sinai Health System), Series 2021 A, Ref. RB

     4.00     08/15/2040        1,000        996,947  

California (State of) Health Facilities Financing Authority (Cedars Sinai Health System), Series 2021, Ref. RB

     3.00     08/15/2051        2,200        1,645,234  

California (State of) Health Facilities Financing Authority (Cedars Sinai Health System), Series 2021, Ref. RB

     5.00     08/15/2051        1,000        1,062,919  

California (State of) Health Facilities Financing Authority (Cedars-Sinai Medical Center), Series 2021 A, Ref. RB

     4.00     08/15/2048        4,535        4,409,959  

 

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

 

 

 

  38  

 

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ)–(continued)

August 31, 2023

 

     Interest
Rate
  Maturity
Date
     Principal
Amount
(000)
     Value  

California-(continued)

          

California (State of) Health Facilities Financing Authority (Children’s Hospital Los Angeles), Series 2017 A, Ref. RB

     5.00     08/15/2042      $  6,500      $   6,571,635  

California (State of) Health Facilities Financing Authority (Kaiser Permanente), Subseries 2017 A-2, RB

     4.00     11/01/2044        1,440        1,416,023  

California (State of) Health Facilities Financing Authority (Kaiser Permanente), Subseries 2017 A-2, RB

     5.00     11/01/2047        6,000        6,553,387  

California (State of) Health Facilities Financing Authority (Lucile Salter Packard Children’s Hospital at Stanford), Series 2016 B, RB

     5.00     08/15/2055        1,000        1,010,860  

California (State of) Health Facilities Financing Authority (Lucile Salter Packard Children’s Hospital at Stanford), Series 2017, RB

     5.00     11/15/2056        145        147,178  

California (State of) Health Facilities Financing Authority (PIH Health), Series 2020 A, RB

     4.00     06/01/2050        5,000        4,404,444  

California (State of) Health Facilities Financing Authority (Providence St. Joseph Health), Series 2016 A, Ref. RB

     3.00     10/01/2047        2,620        1,862,325  

California (State of) Health Facilities Financing Authority (Providence St. Joseph Health), Series 2016 A, Ref. RB

     4.00     10/01/2047        335        301,889  

California (State of) Health Facilities Financing Authority (Stanford Health Care), Series 2017 A, Ref. RB

     4.00     11/15/2040        885        878,616  

California (State of) Health Facilities Financing Authority (Stanford Health Care), Series 2020 A, Ref. RB

     4.00     08/15/2050        13,700        13,108,848  

California (State of) Health Facilities Financing Authority (Sutter Health), Series 2016 B, Ref. RB

     4.00     11/15/2041        885        871,549  

California (State of) Health Facilities Financing Authority (Sutter Health), Series 2017 A, Ref. RB

     4.00     11/15/2048        5,175        4,919,401  

California (State of) Health Facilities Financing Authority (Sutter Health), Series 2018 A, RB

     4.00     11/15/2042        170        166,083  

California (State of) Infrastructure & Economic Development Bank (Academy Motion Picture Arts & Sciences Obligated Group), Series 2015 A, Ref. RB(b)(c)

     5.00     11/01/2023        1,000        1,002,344  

California (State of) Infrastructure & Economic Development Bank (Academy Motion Picture Arts & Sciences Obligated Group), Series 2015, Ref. RB

     4.00     11/01/2045        395        380,043  

California (State of) Infrastructure & Economic Development Bank (California State Teachers’ Retirement System Headquarters Expansion) (Green Bonds), Series 2019, RB

     5.00     08/01/2044        2,005        2,132,161  

California (State of) Infrastructure & Economic Development Bank (California State Teachers’ Retirement System Headquarters Expansion) (Green Bonds), Series 2019, RB

     5.00     08/01/2049        1,250        1,318,796  

California (State of) Infrastructure & Economic Development Bank (Los Angeles County Museum of Natural History Foundation), Series 2020, Ref. RB

     3.00     07/01/2050        2,000        1,399,053  

California (State of) Infrastructure & Economic Development Bank (Los Angeles County Museum of Natural History Foundation), Series 2020, Ref. RB

     4.00     07/01/2050        1,250        1,156,070  

California (State of) Infrastructure & Economic Development Bank (UCSF 2130 Third Street), Series 2017, RB

     5.00     05/15/2047        1,000        1,046,398  

California (State of) Municipal Finance Authority (Clinicas Del Camino Real, Inc.), Series 2020, RB

     4.00     03/01/2050        3,085        2,207,014  

California (State of) Municipal Finance Authority (Community Medical Centers), Series 2017 A, Ref. RB

     4.00     02/01/2042        1,000        924,352  

California (State of) Municipal Finance Authority (Eisenhower Medical Centers), Series 2017 A, Ref. RB

     5.00     07/01/2042        1,000        1,004,073  

California (State of) Municipal Finance Authority (Green Bonds), Series 2021, RB, (INS - BAM)(a)

     4.00     05/15/2046        500        452,556  

California (State of) Municipal Finance Authority (Green Bonds), Series 2021, RB, (INS - BAM)(a)

     3.00     05/15/2051        1,000        716,606  

California (State of) Municipal Finance Authority (Green Bonds), Series 2021, RB, (INS - BAM)(a)

     3.00     05/15/2054        1,000        698,675  

California (State of) Municipal Finance Authority (NorthBay Healthcare Group), Series 2017 A, RB

     5.00     11/01/2047        1,000        871,243  

California (State of) Municipal Finance Authority (NorthBay Healthcare Group), Series 2017 A, RB

     5.25     11/01/2047        500        456,169  

California (State of) Municipal Finance Authority (Orange County Civic Center Infrastructure Improvement Program - Phase I), Series 2017 A, RB

     5.00     06/01/2042        1,000        1,041,148  

California (State of) Municipal Finance Authority (UCR North District Phase 1 Student Housing), Series 2019, RB

     5.00     05/15/2049        2,000        1,991,252  

California (State of) Public Finance Authority (Hoag Memorial Hospital), Series 2022 A, RB

     5.00     07/15/2046        500        537,761  

California (State of) Public Works Board (Green Bonds), Series 2021, RB

     4.00     11/01/2046        1,000        954,404  

California (State of) Public Works Board (Green Bonds), Series 2021, RB

     5.00     11/01/2046        2,250        2,427,404  

California (State of) Public Works Board (Various Capital), Series 2021 B, RB

     4.00     05/01/2046        5,000        4,774,932  

California (State of) Statewide Communities Development Authority (Emanate Health), Series 2020 A, RB

     3.00     04/01/2050        1,000        701,287  

California (State of) Statewide Communities Development Authority (Front Porch Communities & Services), Series 2021, Ref. RB

     3.00     04/01/2046        1,250        897,335  

 

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

 

 

 

  39  

 

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ)–(continued)

August 31, 2023

 

     Interest
Rate
  Maturity
Date
     Principal
Amount
(000)
     Value  

California-(continued)

          

California (State of) Statewide Communities Development Authority (Front Porch Communities & Services), Series 2021, Ref. RB

     4.00     04/01/2051      $  1,900      $   1,667,454  

California (State of) Statewide Communities Development Authority (John Muir Health), Series 2016 A, Ref. RB

     4.00     08/15/2046        1,650        1,563,939  

California (State of) Statewide Communities Development Authority (John Muir Health), Series 2016 A, Ref. RB

     4.00     08/15/2051        165        147,723  

California (State of) Statewide Communities Development Authority (John Muir Health), Series 2016 A, Ref. RB

     5.00     08/15/2051        1,000        1,016,515  

California (State of) Statewide Communities Development Authority (John Muir Health), Series 2018 A, Ref. RB

     5.00     12/01/2057        1,075        1,095,859  

California (State of) Statewide Communities Development Authority (Marin General Hospital) (Green Bonds), Series 2018, RB

     4.00     08/01/2045        1,000        845,821  

California (State of) Statewide Communities Development Authority (Methodist Hospital of Southern California), Series 2018, RB

     5.00     01/01/2048        1,975        1,991,668  

California (State of) Statewide Communities Development Authority (University of California - Irvine East Campus Apartments - CHF-Irvine, LLC), Series 2016, Ref. RB

     5.00     05/15/2040        1,000        1,011,983  

California (State of) Statewide Communities Development Authority (University of California - Irvine East Campus Apartments, Phase IV-A - CHF-Irvine, LLC), Series 2017 A, RB

     5.00     05/15/2047        1,500        1,509,941  

California State University, Series 2015 A, Ref. RB

     5.00     11/01/2038        2,515        2,591,711  

California State University, Series 2015 A, Ref. RB

     5.00     11/01/2047        2,000        2,046,581  

California State University, Series 2016 A, Ref. RB

     4.00     11/01/2038        535        535,164  

California State University, Series 2016 A, Ref. RB

     5.00     11/01/2041        12,410        12,859,387  

California State University, Series 2016 A, Ref. RB

     5.00     11/01/2045        1,700        1,751,843  

California State University, Series 2018 A, Ref. RB

     5.00     11/01/2048        3,000        3,172,337  

California State University, Series 2019 A, RB

     5.00     11/01/2049        1,000        1,056,308  

California State University, Series 2020 C, RB

     4.00     11/01/2045        1,720        1,675,424  

Chabot-Las Positas Community College District (Election of 2016), Series 2017 A, GO Bonds

     4.00     08/01/2047        5,090        4,888,710  

Chaffey Joint Union High School District (Election of 2012), Series 2015 B, GO Bonds

     5.00     08/01/2044        2,000        2,034,427  

Chino Valley Unified School District, Series 2020 B, GO Bonds

     5.00     08/01/2055        5,000        5,271,025  

Chino Valley Unified School District (Election of 2016), Series 2022 C, GO Bonds

     4.00     08/01/2055        6,835        6,572,023  

Coachella Valley Unified School District (2005 Election), Series 2016 E, GO Bonds, (INS - AGM)(a)

     4.00     08/01/2045        1,500        1,417,119  

Compton Unified School District, Series 2019 B, GO Bonds, (INS - BAM)(a)

     4.00     06/01/2049        115        109,266  

Contra Costa Community College District (Election of 2014), Series 2014 A, GO Bonds

     4.00     08/01/2039        100        99,360  

Desert Community College District, Series 2021 A-1, GO Bonds

     4.00     08/01/2051        500        488,110  

East Bay Municipal Utility District (Green Bonds), Series 2017 A, RB

     5.00     06/01/2042        1,500        1,570,246  

East Bay Municipal Utility District (Green Bonds), Series 2017 A, RB

     5.00     06/01/2045        2,000        2,087,946  

Folsom Cordova Unified School District, Series 2019 D, GO Bonds, (INS - AGM)(a)

     4.00     10/01/2044        250        241,527  

Foothill-Eastern Transportation Corridor Agency, Subseries 2014 B-1, Ref. RB(c)

     3.95     01/15/2053        2,000        1,791,535  

Fremont Union High School District, Series 2015, GO Bonds

     4.00     08/01/2044        1,000        984,668  

Fremont Union High School District, Series 2019 A, GO Bonds

     4.00     08/01/2046        3,110        3,045,526  

Fresno Unified School District, Series 2022 B, GO Bonds

     4.00     08/01/2052        2,000        1,895,929  

Fresno Unified School District, Series 2022 B, GO Bonds

     4.00     08/01/2055        2,500        2,349,570  

Glendale Community College District, Series 2020 B, GO Bonds

     3.00     08/01/2047        1,000        757,786  

Glendale Community College District, Series 2020 B, GO Bonds

     4.00     08/01/2050        2,400        2,300,421  

Hayward Unified School District (Election of 2018), Series 2022, GO Bonds, (INS - BAM)(a)

     4.00     08/01/2050        10,000        9,416,999  

Inland Valley Development Agency, Series 2014 A, Ref. RB, (INS - AGM)(a)

     5.00     09/01/2044        1,000        1,003,856  

Irvine (City of), CA, Series 2023, RB, (INS - BAM)(a)

     4.00     09/01/2058        5,000        4,712,296  

Irvine (City of), CA Community Facilities District No. 2013-3 (Great Park Improvement Area No. 10), Series 2023, RB, (INS - BAM)(a)

     5.25     09/01/2053        1,370        1,509,829  

Irvine Facilities Financing Authority (Gateway Preserve Land Acquisition), Series 2023 A, RB

     4.25     05/01/2053        6,000        5,963,492  

Irvine Facilities Financing Authority (Irvine Great Park Infrastructure), Series 2023 A, RB, (INS - BAM)(a)

     5.25     09/01/2053        14,000        15,404,684  

Irvine Facilities Financing Authority (Irvine Great Park Infrastructure), Series 2023, RB, (INS - BAM)(a)

     5.00     09/01/2048        2,500        2,704,234  

Irvine Unified School District (Community Facilities District No. 01-1), Series 2015, Ref. RB, (INS - BAM)(a)

     5.00     09/01/2038        1,600        1,631,131  

Jurupa Unified School District, Series 2017 B, GO Bonds

     4.00     08/01/2041        2,000        1,953,845  

Kaweah Delta Health Care District Guild, Series 2015 B, RB

     4.00     06/01/2045        240        161,268  

La Mesa-Spring Valley School District, Series 2023 B, GO Bonds

     4.00     08/01/2051        1,625        1,575,889  

 

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

 

 

 

  40  

 

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ)–(continued)

August 31, 2023

 

     Interest
Rate
  Maturity
Date
     Principal
Amount
(000)
     Value  

California-(continued)

          

Lodi Unified School District (Election of 2016), Series 2020, GO Bonds

     3.00     08/01/2043      $  5,000      $   3,962,470  

Long Beach (City of), CA, Series 2017 C, Ref. RB

     5.00     05/15/2047        1,500        1,563,662  

Long Beach (City of), CA (Alamitos Bay Marina), Series 2015, RB

     5.00     05/15/2040        500        501,754  

Long Beach (City of), CA (Alamitos Bay Marina), Series 2015, RB

     5.00     05/15/2045        500        500,481  

Long Beach (City of), CA Bond Finance Authority, Series 2023, RB

     4.00     08/01/2053        1,000        945,025  

Long Beach Community College District, Series 2019 C, GO Bonds

     4.00     08/01/2049        1,500        1,460,855  

Los Angeles (City of), CA, Series 2013 A, RB

     5.00     06/01/2043        2,860        2,860,560  

Los Angeles (City of), CA (Green Bonds), Series 2017 A, RB

     5.25     06/01/2047        1,000        1,047,593  

Los Angeles (City of), CA (Green Bonds), Series 2022 A, RB

     5.00     06/01/2047        3,000        3,247,131  

Los Angeles (City of), CA Department of Airports, Series 2019 E, RB

     5.00     05/15/2044        610        647,641  

Los Angeles (City of), CA Department of Airports, Series 2021 B, Ref. RB

     5.00     05/15/2045        1,500        1,625,743  

Los Angeles (City of), CA Department of Airports, Series 2021 B, Ref. RB

     5.00     05/15/2048        1,900        2,045,546  

Los Angeles (City of), CA Department of Airports (Green Bonds), Series 2022 I, RB

     5.00     05/15/2048        2,000        2,161,702  

Los Angeles (City of), CA Department of Water & Power, Series 2014 A, RB

     5.00     07/01/2044        1,000        1,009,355  

Los Angeles (City of), CA Department of Water & Power, Series 2014 D, RB

     5.00     07/01/2039        1,000        1,010,246  

Los Angeles (City of), CA Department of Water & Power, Series 2015 E, RB

     5.00     07/01/2044        1,000        1,009,031  

Los Angeles (City of), CA Department of Water & Power, Series 2016 A, Ref. RB

     5.00     07/01/2040        1,000        1,032,266  

Los Angeles (City of), CA Department of Water & Power, Series 2016 A, Ref. RB

     5.00     07/01/2046        1,000        1,024,176  

Los Angeles (City of), CA Department of Water & Power, Series 2016 A, Ref. RB

     5.00     07/01/2046        2,500        2,560,440  

Los Angeles (City of), CA Department of Water & Power, Series 2016 B, RB

     5.00     07/01/2042        1,500        1,544,234  

Los Angeles (City of), CA Department of Water & Power, Series 2017 A, RB

     5.00     07/01/2042        1,500        1,562,195  

Los Angeles (City of), CA Department of Water & Power, Series 2018 A, RB

     5.00     07/01/2048        2,000        2,086,937  

Los Angeles (City of), CA Department of Water & Power, Series 2018 B, Ref. RB

     5.00     07/01/2048        1,000        1,048,051  

Los Angeles (City of), CA Department of Water & Power, Series 2019 C, RB

     5.00     07/01/2049        1,000        1,053,869  

Los Angeles (City of), CA Department of Water & Power, Series 2019 D, Ref. RB

     5.00     07/01/2049        2,235        2,355,398  

Los Angeles (City of), CA Department of Water & Power, Series 2020 B, Ref. RB

     5.00     07/01/2039        2,250        2,484,845  

Los Angeles (City of), CA Department of Water & Power, Series 2020 B, Ref. RB

     5.00     07/01/2040        1,000        1,099,317  

Los Angeles (City of), CA Department of Water & Power, Series 2021 C, Ref. RB

     5.00     07/01/2040        1,000        1,095,486  

Los Angeles (City of), CA Department of Water & Power, Series 2021 C, Ref. RB

     5.00     07/01/2041        1,000        1,094,203  

Los Angeles (City of), CA Department of Water & Power, Series 2021, RB

     5.00     07/01/2045        3,750        4,051,363  

Los Angeles (City of), CA Department of Water & Power, Series 2021, RB

     5.00     07/01/2051        1,250        1,334,634  

Los Angeles (City of), CA Department of Water & Power, Series 2022 B, RB

     5.00     07/01/2047        2,000        2,159,436  

Los Angeles (City of), CA Department of Water & Power, Series 2022 B, RB

     5.00     07/01/2052        2,000        2,148,010  

Los Angeles (City of), CA Department of Water & Power, Series 2022 C, Ref. RB

     5.00     07/01/2041        2,500        2,770,824  

Los Angeles (City of), CA Department of Water & Power, Series 2022 C, Ref. RB

     5.00     07/01/2042        2,500        2,749,681  

Los Angeles (City of), CA Department of Water & Power, Series 2022 C, Ref. RB

     5.00     07/01/2043        1,500        1,656,308  

Los Angeles (City of), CA Department of Water & Power, Series 2022 C, Ref. RB

     5.00     07/01/2043        2,000        2,192,243  

Los Angeles (County of), CA Metropolitan Transportation Authority, Series 2017 A, RB

     5.00     07/01/2042        6,500        6,816,844  

Los Angeles (County of), CA Metropolitan Transportation Authority (Green Bonds), Series 2017 A, RB

     5.00     07/01/2041        1,000        1,050,988  

Los Angeles (County of), CA Metropolitan Transportation Authority (Green Bonds), Series 2019 A, RB

     5.00     07/01/2044        1,000        1,062,407  

Los Angeles (County of), CA Public Works Financing Authority, Series 2015 A, RB

     5.00     12/01/2044        2,000        2,023,512  

Los Angeles (County of), CA Public Works Financing Authority, Series 2016 D, RB

     4.00     12/01/2040        185        185,029  

Los Angeles (County of), CA Public Works Financing Authority, Series 2016 D, RB

     5.00     12/01/2045        1,050        1,076,228  

Los Angeles (County of), CA Public Works Financing Authority (Green Bonds), Series 2020 A, RB

     4.00     12/01/2043        3,000        2,965,022  

Los Angeles (County of), CA Public Works Financing Authority (Green Bonds), Series 2020 A, RB

     5.00     12/01/2045        2,050        2,210,685  

Los Angeles (County of), CA Public Works Financing Authority (Green Bonds), Series 2020 A, RB

     3.00     12/01/2050        585        440,644  

Los Angeles Community College District (Election of 2008), Series 2017 J, GO Bonds

     4.00     08/01/2041        250        247,050  

Los Angeles Community College District (Election of 2008), Series 2019 K, GO Bonds

     3.00     08/01/2039        3,800        3,209,670  

Los Angeles Community College District (Election of 2008), Series 2019 K, GO Bonds

     4.00     08/01/2039        100        99,360  

Los Angeles Unified School District, Series 2020 C, GO Bonds

     4.00     07/01/2040        1,000        1,000,258  

Los Angeles Unified School District, Series 2020 C, GO Bonds

     3.00     07/01/2045        1,000        772,739  

Los Angeles Unified School District, Series 2020 RYQ, GO Bonds

     4.00     07/01/2044        5,000        4,932,492  

Los Angeles Unified School District (Election of 2008), Series 2018 B-1, GO Bonds

     5.00     07/01/2038        1,000        1,068,652  

Madera Unified School District (Election of 2014), Series 2017, GO Bonds

     4.00     08/01/2046        3,000        2,873,485  

Marin (County of), CA Healthcare District (Election of 2013), Series 2015, GO Bonds

     4.00     08/01/2040        190        186,055  

Marin (County of), CA Healthcare District (Election of 2013), Series 2017 A, GO Bonds

     5.00     08/01/2041        15,180        15,934,174  

Marin (County of), CA Healthcare District (Election of 2013), Series 2017 A, GO Bonds

     4.00     08/01/2047        150        143,201  

Metropolitan Water District of Southern California, Series 2020 A, RB

     5.00     10/01/2045        2,000        2,142,669  

 

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

 

 

 

  41  

 

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ)–(continued)

August 31, 2023

 

     Interest
Rate
  Maturity
Date
     Principal
Amount
(000)
     Value  

California-(continued)

          

Metropolitan Water District of Southern California, Series 2021 A, RB

     5.00     10/01/2046      $  1,000      $   1,081,365  

Metropolitan Water District of Southern California, Series 2021 A, RB

     5.00     10/01/2051        1,000        1,071,051  

Monterey Peninsula Unified School District (Election of 2018), Series 2023 D, GO Bonds

     4.00     08/01/2047        5,000        4,912,696  

Monterey Peninsula Unified School District (Election of 2018), Series 2023 D, GO Bonds

     4.00     08/01/2048        8,930        8,739,297  

Moreno Valley Unified School District, Series 2021 C, GO Bonds, (INS - BAM)(a)

     3.00     08/01/2050        3,000        2,215,147  

Morgan Hill Unified School District (Election of 2012), Series 2017 B, GO Bonds

     4.00     08/01/2047        3,000        2,898,834  

Mountain View Shoreline Regional Park Community, Series 2018 A, RB, (INS - AGM)(a)

     5.00     08/01/2048        1,800        1,875,484  

Oakland (City of), CA, Series 2020 B-1, GO Bonds

     3.00     01/15/2050        1,500        1,130,879  

Ontario (City of), CA Public Financing Authority (Civic Center Improvements), Series 2022 A, RB, (INS - AGM)(a)

     5.00     11/01/2052        2,500        2,648,681  

Orange (County of), CA Local Transportation Authority, Series 2019, RB

     5.00     02/15/2041        1,000        1,076,538  

Orange (County of), CA Water District, Series 2017 A, Ref. RB

     4.00     08/15/2041        2,000        1,975,777  

Oxnard Union High School District, Series 2020 B, GO Bonds

     5.00     08/01/2045        2,180        2,291,723  

Oxnard Union High School District (Election of 2018), Series 2022 C, GO Bonds

     4.00     08/01/2047        3,000        2,898,834  

Pasadena Area Community College District, Series 2023 A-1, Ref. GO Bonds

     5.00     08/01/2048        2,000        2,162,859  

Pasadena Area Community College District, Series 2023 A-1, Ref. GO Bonds

     4.00     08/01/2052        2,000        1,921,487  

Peralta Community College District, Series 2022 B, GO Bonds

     5.50     08/01/2052        1,000        1,117,244  

Regents of the University of California Medical Center, Series 2016 L, Ref. RB

     5.00     05/15/2041        1,000        1,034,016  

Regents of the University of California Medical Center, Series 2016 L, Ref. RB

     5.00     05/15/2047        2,605        2,674,775  

Regents of the University of California Medical Center, Series 2022 P, RB

     5.00     05/15/2041        1,000        1,100,481  

Regents of the University of California Medical Center, Series 2022 P, RB

     5.00     05/15/2042        5,000        5,466,776  

Regents of the University of California Medical Center, Series 2022 P, RB

     5.00     05/15/2047        450        481,475  

Regents of the University of California Medical Center, Series 2022 P, RB

     3.50     05/15/2054        15,000        12,669,976  

Riverside (County of), CA Transportation Commission, Series 2021 B-1, Ref. RB

     4.00     06/01/2039        675        649,736  

Riverside (County of), CA Transportation Commission, Series 2021 B-1, Ref. RB

     4.00     06/01/2040        750        714,888  

Riverside (County of), CA Transportation Commission, Series 2021 B-1, Ref. RB

     4.00     06/01/2046        625        582,201  

Riverside (County of), CA Transportation Commission, Series 2021 B-1, Ref. RB

     3.00     06/01/2049        2,000        1,441,222  

Sacramento (City of), CA (Convention Center Complex), Series 2018 A, RB

     5.00     06/01/2048        2,700        2,794,797  

Sacramento (City of), CA Municipal Utility District (Green Bonds), Series 2020 H, RB

     5.00     08/15/2050        6,000        6,424,006  

Sacramento (City of), CA Municipal Utility District (Green Bonds), Series 2023 K, RB

     5.00     08/15/2048        500        549,301  

Sacramento (City of), CA Municipal Utility District (Green Bonds), Series 2023 K, RB

     5.00     08/15/2053        500        546,243  

Sacramento (City of), CA Unified School District (Election of 2020), Series 2022 A, GO Bonds, (INS - BAM)(a)

     5.50     08/01/2047        1,500        1,633,172  

Sacramento (City of), CA Unified School District (Election of 2020), Series 2022 A, GO Bonds, (INS - BAM)(a)

     5.50     08/01/2052        3,000        3,258,401  

Sacramento (City of), CA Unified School District (Measure Q) (Election of 2012), Series 2021 G, GO Bonds, (INS - AGM)(a)

     4.00     08/01/2049        1,000        955,568  

Sacramento (County of), CA Sanitation Districts Financing Authority, Series 2014 A, Ref. RB

     5.00     12/01/2044        1,525        1,537,359  

Sacramento Area Flood Control Agency (Consolidated Capital Assessment District No.2), Series 2016, Ref. RB

     5.00     10/01/2047        7,000        7,229,076  

Salinas Union High School District, Series 2022 A, GO Bonds

     4.00     08/01/2047        2,500        2,415,695  

San Diego (City of), CA Association of Governments, Series 2017 A, RB

     5.00     07/01/2042        1,000        1,032,921  

San Diego (City of), CA Public Facilities Financing Authority, Series 2020 A, RB

     4.00     08/01/2045        300        292,589  

San Diego (City of), CA Public Facilities Financing Authority (Capital Improvement), Series 2015 A, RB

     5.00     10/15/2044        1,000        1,023,355  

San Diego (City of), CA Public Facilities Financing Authority (Capital Improvement), Series 2021 A, RB

     5.00     10/15/2046        1,535        1,647,068  

San Diego (City of), CA Public Facilities Financing Authority (Capital Improvement), Series 2021 A, RB

     4.00     10/15/2050        500        475,849  

San Diego (County of), CA Regional Airport Authority, Series 2019 A, Ref. RB

     5.00     07/01/2044        1,500        1,582,497  

San Diego (County of), CA Regional Airport Authority, Series 2019 A, Ref. RB

     5.00     07/01/2049        2,000        2,096,840  

San Diego (County of), CA Regional Airport Authority, Series 2021 A, RB

     4.00     07/01/2046        500        479,500  

San Diego (County of), CA Regional Airport Authority, Series 2021 A, RB

     5.00     07/01/2046        750        800,273  

San Diego (County of), CA Regional Transportation Commission, Series 2016 A, RB

     5.00     04/01/2048        1,000        1,036,451  

San Diego (County of), CA Water Authority, Series 2022 A, RB

     5.00     05/01/2047        2,500        2,709,960  

San Diego Unified School District (Election of 2012), Series 2016 F, GO Bonds

     5.00     07/01/2040        1,000        1,022,686  

San Diego Unified School District (Election of 2012), Series 2017 I, GO Bonds

     5.00     07/01/2041        3,535        3,705,143  

San Diego Unified School District (Election of 2012), Series 2017 I, GO Bonds

     5.00     07/01/2047        3,000        3,125,538  

San Diego Unified School District (Election of 2012), Series 2019 L, GO Bonds

     4.00     07/01/2049        4,560        4,379,319  

San Francisco (City & County of), CA Airport Commission (San Francisco International Airport),
Series 2014 B, RB

     5.00     05/01/2044        2,000        2,013,318  

 

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

 

 

 

  42  

 

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ)–(continued)

August 31, 2023

 

     Interest
Rate
  Maturity
Date
     Principal
Amount
(000)
     Value  

California-(continued)

          

San Francisco (City & County of), CA Airport Commission (San Francisco International Airport), Series 2016 C, RB

     5.00     05/01/2046      $  8,570      $   8,784,961  

San Francisco (City & County of), CA Airport Commission (San Francisco International Airport), Series 2017 B, RB

     5.00     05/01/2047        6,835        7,060,912  

San Francisco (City & County of), CA Airport Commission (San Francisco International Airport), Series 2018, RB

     5.00     05/01/2048        1,625        1,690,531  

San Francisco (City & County of), CA Airport Commission (San Francisco International Airport), Series 2019 F, RB

     5.00     05/01/2050        1,940        2,028,074  

San Francisco (City & County of), CA Airport Commission (San Francisco International Airport), Series 2019, RB

     5.00     05/01/2049        3,000        3,141,563  

San Francisco (City & County of), CA Public Utilities Commission (Green Bonds), Series 2021 A, RB

     5.00     10/01/2045        4,110        4,462,501  

San Francisco (City of), CA Public Utilities Commission (Green Bonds), Series 2020 A, RB

     5.00     11/01/2050        1,000        1,065,875  

San Francisco (City of), CA Public Utilities Commission (Hetch Hetchy Water), Series 2020 D, RB

     3.00     11/01/2050        2,000        1,473,954  

San Francisco Bay Area Rapid Transit District (Election of 2004) (Green Bonds), Series 2019 F-1, GO Bonds

     3.00     08/01/2038        3,500        2,961,841  

San Francisco Bay Area Rapid Transit District (Green Bonds) (Election of 2016), Series 2022 D-1, GO Bonds

     3.00     08/01/2042        1,000        822,874  

San Francisco Bay Area Rapid Transit District (Green Bonds) (Election of 2016), Series 2022 D-1, GO Bonds

     4.00     08/01/2047        1,500        1,440,681  

San Francisco Community College District (Election of 2020), Series 2020 A, GO Bonds

     4.00     06/15/2045        3,000        2,802,530  

San Mateo & Foster (Cities of), CA Public Financing Authority (Clean Water Program), Series 2019, RB

     4.00     08/01/2044        5,000        4,888,995  

San Mateo & Foster (Cities of), CA Public Financing Authority (Clean Water Program), Series 2019, RB

     5.00     08/01/2049        6,500        6,914,068  

San Mateo Foster City School District, Series 2021 A, GO Bonds

     2.50     08/01/2046        1,000        689,214  

San Mateo Foster City School District, Series 2021 A, GO Bonds

     2.50     08/01/2051        1,000        652,373  

San Mateo Union High School District, Series 2021 B, GO Bonds

     2.00     09/01/2045        1,000        617,441  

San Mateo Union High School District, Series 2021 B, GO Bonds

     2.13     09/01/2048        1,000        607,853  

San Rafael City High School District (Election of 2015), Series 2018 B, GO Bonds

     4.00     08/01/2047        5,000        4,831,390  

Santa Clara Unified School District (Election of 2018), Series 2019, GO Bonds

     4.00     07/01/2048        100        97,139  

Santa Clara Valley Water District, Series 2016 A, Ref. RB

     5.00     06/01/2046        4,090        4,204,233  

Simi Valley Unified School District (Election of 2016), Series 2017 A, GO Bonds

     4.00     08/01/2046        1,000        964,906  

Transbay Joint Powers Authority (Green Bonds), Series 2020 A, RB

     5.00     10/01/2049        1,200        1,204,836  

Tulare (County of), CA Local Health Care District, Series 2020, Ref. GO Bonds, (INS - BAM)(a)

     4.00     08/01/2039        2,000        1,984,880  

University of California, Series 2016 AR, Ref. RB

     5.00     05/15/2046        1,115        1,152,222  

University of California, Series 2017 AV, RB

     5.25     05/15/2042        4,000        4,239,706  

University of California, Series 2018 AZ, Ref. RB

     5.00     05/15/2043        1,915        2,038,682  

University of California, Series 2018 AZ, Ref. RB

     5.00     05/15/2048        3,500        3,689,112  

University of California, Series 2019 BB, Ref. RB

     5.00     05/15/2049        1,705        1,800,574  

University of California, Series 2020 BE, Ref. RB

     4.00     05/15/2047        2,750        2,712,469  

University of California, Series 2020 BE, Ref. RB

     4.00     05/15/2050        2,000        1,958,948  

University of California, Series 2021 BH, Ref. RB

     4.00     05/15/2046        4,000        3,955,647  

University of California, Series 2021 BH, Ref. RB

     4.00     05/15/2051        4,355        4,253,832  

University of California (Limited), Series 2017 M, RB

     5.00     05/15/2042        1,725        1,810,503  

University of California (Limited), Series 2017 M, RB

     4.00     05/15/2047        125        122,365  

University of California (Limited), Series 2018 O, Ref. RB

     5.00     05/15/2058        1,500        1,573,330  

University of California (Limited), Series 2021 Q, Ref. RB

     5.00     05/15/2046        5,000        5,422,812  

Vacaville Unified School District, Series 2020 D, GO Bonds

     4.00     08/01/2045        1,000        980,933  

Val Verde Unified School District (Election of 2020), Series 2021 B, GO Bonds, (INS - AGM)(a)

     4.00     08/01/2051        2,500        2,424,445  

Vista Unified School District, Series 2022 B, GO Bonds, (INS - BAM)(a)

     5.25     08/01/2048        1,500        1,635,974  
          

 

 

 

TOTAL INVESTMENTS IN SECURITIES(d)-97.39%
(Cost $684,128,011)

             642,920,632  

OTHER ASSETS LESS LIABILITIES-2.61%

             17,218,437  
          

 

 

 

NET ASSETS-100.00%

           $ 660,139,069  
          

 

 

 

 

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

 

 

 

  43  

 

 


 

Invesco California AMT-Free Municipal Bond ETF (PWZ)–(continued)

August 31, 2023

 

Investment Abbreviations:

AGM

  -Assured Guaranty Municipal Corp.

BAM

  -Build America Mutual Assurance Co.

GO

  -General Obligation

INS

  -Insurer

RB

  -Revenue Bonds

Ref.

  -Refunding

Notes to Schedule of Investments:

(a) 

Principal and/or interest payments are secured by the bond insurance company listed.

(b) 

Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.

(c) 

Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

(d) 

This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

 

Entity    Percentage  

Build America Mutual Assurance Co.

     7.73%  

 

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

 

 

 

  44  

 

 


 

Invesco CEF Income Composite ETF (PCEF)

August 31, 2023

 

Schedule of Investments