LOGO               

 

Invesco Annual Report to Shareholders

 

October 31, 2023

 

  CQQQ   Invesco China Technology ETF
  PIZ   Invesco Dorsey Wright Developed Markets Momentum ETF (formerly, Invesco DWA Developed Markets Momentum ETF)
  PIE   Invesco Dorsey Wright Emerging Markets Momentum ETF (formerly, Invesco DWA Emerging Markets Momentum ETF)
  PXF   Invesco FTSE RAFI Developed Markets ex-U.S. ETF
  PDN   Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF
  PXH   Invesco FTSE RAFI Emerging Markets ETF
  PBD   Invesco Global Clean Energy ETF
  PIO   Invesco Global Water ETF
  IPKW   Invesco International BuyBack AchieversTM ETF
  CUT   Invesco MSCI Global Timber ETF
  GBLD   Invesco MSCI Green Building ETF
  CGW   Invesco S&P Global Water Index ETF
  IDHQ   Invesco S&P International Developed Quality ETF


 

Table of Contents

 

The Market Environment      3     
Management’s Discussion of Fund Performance      5     
Schedules of Investments      

Invesco China Technology ETF (CQQQ)

     38     

Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)

     42     

Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE)

     45     

Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)

     48     

Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)

     59     

Invesco FTSE RAFI Emerging Markets ETF (PXH)

     74     

Invesco Global Clean Energy ETF (PBD)

     80     

Invesco Global Water ETF (PIO)

     83     

Invesco International BuyBack AchieversTM ETF (IPKW)

     85     

Invesco MSCI Global Timber ETF (CUT)

     88     

Invesco MSCI Green Building ETF (GBLD)

     90     

Invesco S&P Global Water Index ETF (CGW)

     93     

Invesco S&P International Developed Quality ETF (IDHQ)

     95     
Statements of Assets and Liabilities      100     
Statements of Operations      104     
Statements of Changes in Net Assets      106     
Financial Highlights      111     
Notes to Financial Statements      123     
Report of Independent Registered Public Accounting Firm      139     
Fund Expenses      140     
Tax Information      142     
Trustees and Officers      143     

 

    2    

 

 

 

 


 

The Market Environment

 

Domestic Equity

At the start of the fiscal year, US equity markets rebounded, despite mixed data on the economy and corporate earnings. However, the US Federal Reserve’s (the Fed’s) message that rate hikes would continue until data showed inflation meaningfully declining, sent markets lower in December 2022. 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 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. Following the March banking crisis, markets stabilized in April, as corporate earnings season got underway, with many companies surprising consensus earnings and revenue estimates. Facing persistently strong employment data, the Fed raised the federal funds rate by 0.25% at its May meeting,1 but left rates unchanged at its June meeting, giving investors the long-awaited “pause” in rate hikes, which sent equities broadly higher.

Equity markets declined in the third quarter and into October 2023 as a resilient US economy complicated the Fed’s efforts to tame inflation. While inflation has slowed from its peak, the Consumer Price Index (CPI) rose by 0.2% in July, and the 12-month headline inflation rate rose to 3.2% from 3% in June.2 Due to the persistence of inflation, the Fed raised the federal funds rate in July by 0.25% again. The CPI data released in September was higher-than-expected and the overall US labor market remained tight with unemployment

near historic lows. At the same time, wages rose and consumers continued to spend, pushing the third quarter year-over-year Gross Domestic Product (GDP) to 4.9%, far above expectations.2 Despite the higher-than-expected GDP for the third quarter of 2023, the Fed held interest rates steady at its September and October meetings, but left open the possibility of another rate hike before the end of the calendar year.1

Despite higher rates and increased market volatility, US stocks for the fiscal year had positive returns of 10.69%, as measured by the S&P 500 Index.3

 

1 

Source: US Federal Reserve

2 

Source: US Bureau of Labor Statistics

3 

Source: Lipper Inc.

Global Equity

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

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

The global equity rally in the first half of 2023 came to an end in the third quarter as global equity markets declined. Concerns about a slowing global economy and interest rates staying “higher for longer” hampered stock returns. During the quarter, value stocks outperformed growth stocks. Energy was the best performing sector, ending the quarter in positive territory, boosted by rising oil prices as Russia and the Organization of Petroleum Exporting Countries (OPEC) cut supplies. Developed global equities underperformed emerging market equities. Within emerging markets, China’s equities were weighed down by concerns in the real estate sector, but positive performance in the United Arab Emirates, Turkey and India offset those results.

 

    3    

 

 

 

 


 

The Market Environment–(continued)

 

 

Global equity markets continued their decline in October 2023, but growth stocks managed to outperform value stocks. Despite higher rates and increased market volatility, both developed market equities and emerging market equities finished the fiscal year ended October 31, 2023, in positive territory.

 

    4    

 

 

 

 


 

 

CQQQ    Management’s Discussion of Fund Performance
   Invesco China Technology ETF (CQQQ)

 

As an index fund, Invesco China Technology ETF’s (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE China Incl A 25% Technology Capped Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, FTSE International Limited (the “Index Provider”) compiles, maintains, and calculates the Index. The Index is composed of securities that the Index Provider, pursuant to the Index methodology, has classified as being in the technology industry and that are constituents of the FTSE China Index or FTSE China A Stock Connect CNH Index. The Index may include China A-Shares (shares of Chinese incorporated companies that may trade on the Shanghai or Shenzhen stock exchanges via a Stock Connect program (“Stock Connect Programs”)), B Shares, H Shares, N Shares, Red Chips, P Chips and S Chips. Index constituents are modified market capitalization weighted. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 8.56%. On a net asset value (“NAV”) basis, the Fund returned 7.95%. During the same time period, the Index returned 8.75%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI China Index (Net) (the “Benchmark Index”) returned 21.12%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 765 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 Chinese stocks.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a stock selection methodology within a specific sector whereas the Benchmark Index selects and weights stocks across multiple sectors based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the semiconductors & semiconductor equipment industry and most underweight the banks industry during the fiscal year ended October 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the semiconductors & semiconductor equipment industry as well as the Fund’s overweight allocation to and security selection within the software and electronic equipment instruments & components industries, respectively.

For the fiscal year ended October 31, 2023, the interactive media & services industry contributed most significantly to the Fund’s return, followed by the broadline retail industry. The software industry detracted most significantly from the Fund’s return, followed by the electronic equipment instruments & components industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included PDD Holdings Inc., ADR, a broadline retail company (portfolio average weight of 7.47%), and Tencent Holdings Ltd., an interactive media & services company (portfolio average weight of 10.41%). Positions that detracted most significantly from the Fund’s return during the period included MOG Digitech Holdings Ltd., an electronic equipment, instruments & components company (portfolio average weight of 0.11%), and SenseTime Group, Inc., Class B, a software company (portfolio average weight of 1.77%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Interactive Media & Services      23.33  
Semiconductors & Semiconductor Equipment      21.39  
Electronic Equipment, Instruments & Components      13.50  
Software      11.55  
Hotels, Restaurants & Leisure      9.72  
Broadline Retail      9.30  
Entertainment      4.29  
Industry Types Each Less Than 3%      7.02  
Money Market Funds Plus Other Assets Less Liabilities      (0.10)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Tencent Holdings Ltd.      9.85  
PDD Holdings, Inc., ADR      9.30  
Meituan, B Shares      8.72  
Baidu, Inc., A Shares      5.74  
Kuaishou Technology      5.14  
Sunny Optical Technology Group Co. Ltd.      3.72  
Kingdee International Software Group Co. Ltd.      2.32  
Bilibili, Inc., Z Shares      2.18  
Kingsoft Corp. Ltd.      2.04  
Sanan Optoelectronics Co. Ltd., A Shares      1.94  
Total      50.95  

 

*

Excluding money market fund holdings.

 

 

  5  

 


 

Invesco China Technology ETF (CQQQ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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—FTSE China Incl A 25% Technology Capped Index (Net)

    8.75     (21.62 )%      (51.85 )%      (2.23 )%      (10.65 )%      1.36     14.50       3.61     63.60

MSCI China Index (Net)

    21.12       (16.95     (42.71     (2.65     (12.56     0.98       10.21         1.09       16.23  

Fund

                   

NAV Return

    7.95       (22.17     (52.85     (2.88     (13.59     1.13       11.93         3.31       57.19  

Market Price Return

    8.56       (22.31     (53.10     (3.01     (14.19     1.20       12.62         3.30       57.09  

 

Guggenheim China Technology ETF (the “Predecessor Fund”) Fund Inception: December 08, 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 0.70% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Performance results for the indexes stated above are based upon a hypothetical investment in their respective constituent securities. The

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

Notes Regarding Indexes and Fund Performance History:

 

-

Effective after the close of business on May 18, 2018, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund.

 

-

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

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

-

The Blended-FTSE China Incl A 25% Technology Capped Index (Net) is comprised of the performance of the AlphaShares China Technology Index, the Fund’s previous underlying index, prior to June 22, 2019, followed by the performance of the Index thereafter through October 31, 2023.

 

 

  6  

 


 

 

PIZ    Management’s Discussion of Fund Performance
   Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)

 

Effective after the close of markets on August 25, 2023, Invesco DWA Developed Markets Momentum ETF changed its name to Invesco Dorsey Wright Developed Markets Momentum 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 Dorsey Wright® Developed Markets Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey Wright & Associates, LLC (“Dorsey Wright” or the “Index Provider”) selects securities pursuant to its proprietary selection methodology for inclusion in the Index, which is designed to identify securities that demonstrate powerful relative strength characteristics.

“Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index is comprised of equity securities of large capitalization companies based in countries classified as developed markets, excluding the United States. Dorsey Wright selects securities for inclusion in the Index from an eligible universe of the largest 1,000 constituents by market capitalization within the Nasdaq Developed Markets Ex United States Index (except for U.S.-listed American depositary receipts (“ADRs”) or foreign listings). The Index Provider assigns a relative strength score to each eligible security and selects approximately 100 securities with the greatest scores for inclusion in the Index. Component security weights are based on relative scores, with securities with higher scores receiving larger weights. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 8.18%. On a net asset value (“NAV”) basis, the Fund returned 7.40%. During the same time period, the Index returned 7.90%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, which were partially offset by dividend tax withholding differences between the Fund and the Index as well as income from the securities lending program in which the Fund participates.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 14.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on

the average performance of approximately 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 markets of economically developed countries outside of the U.S.

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

Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the health care sector during the fiscal year ended October 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation to and security selection within the energy sector as well as the Fund’s security selection within the materials sector.

For the fiscal year ended October 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the financials sector. The energy sector detracted most significantly from the Fund’s return, followed by the consumer staples sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Ecopro BM Co., Ltd., an industrials company (no longer held at fiscal year-end), and Novo Nordisk A/S, Class B, a health care company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included L & F Co., Ltd., an information technology company (no longer held at fiscal year-end), and Interpump Group S.p.A., an industrials company (portfolio average weight of 0.78%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Industrials      38.14  
Financials      14.28  
Information Technology      11.20  
Energy      8.37  
Consumer Discretionary      7.59  
Consumer Staples      7.02  
Materials      5.17  
Utilities      4.21  
Sector Types Each Less Than 3%      3.79  
Money Market Funds Plus Other Assets Less Liabilities      0.23  

 

 

  7  

 


 

Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Constellation Software, Inc.      3.12  
ASM International N.V.      2.99  
InterContinental Hotels Group PLC      2.83  
ASML Holding N.V.      2.77  
Kuehne + Nagel International AG, Class R      2.60  
Flughafen Zureich AG      2.57  
Belimo Holding AG      2.22  
Singapore Exchange Ltd.      2.13  
Diploma PLC      2.12  
Chocoladefabriken Lindt & Spruengli AG      2.10  
Total      25.45  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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  

Dorsey Wright® Developed Markets Technical Leaders Index (Net)

    7.90     (0.55 )%      (1.64 )%      4.47     24.44     3.21     37.19       3.09     61.83

MSCI EAFE® Index (Net)

    14.40       5.73       18.20       4.10       22.24       3.05       35.11         1.88       34.37  

Fund

                   

NAV Return

    7.40       (1.16     (3.43     3.75       20.18       2.41       26.83         2.22       41.50  

Market Price Return

    8.18       (0.90     (2.68     3.92       21.21       2.43       27.19         2.22       41.51  

 

 

  8  

 


 

Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) (continued)

 

Fund Inception: December 28, 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 0.80% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  9  

 


 

 

PIE    Management’s Discussion of Fund Performance
   Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE)

 

Effective after the close of markets on August 25, 2023, Invesco DWA Emerging Markets Momentum ETF changed its name to Invesco Dorsey Wright Emerging Markets Momentum ETF (the “Fund”).

The Fund seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Emerging Markets Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey Wright & Associates, LLC (“Dorsey Wright” or the “Index Provider”) selects securities pursuant to its proprietary selection methodology for inclusion in the Index, which is designed to identify securities that demonstrate powerful relative strength characteristics.

“Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index is comprised of equity securities of large capitalization companies based in countries classified as emerging markets.

Dorsey Wright selects securities for inclusion in the Index from an eligible universe of the largest 1,000 constituents by market capitalization within the Nasdaq Emerging Markets Index (except for U.S.-listed American Depositary Receipts (“ADRs”) or foreign listings). The Index Provider assigns a relative strength score to each eligible security and selects approximately 100 securities with the greatest scores for inclusion in the Index. Component security weights are based on relative scores, with securities with higher scores receiving larger weights. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 13.16%. On a net asset value (“NAV”) basis, the Fund returned 12.98%. During the same time period, the Index returned 14.95%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, as well as trading and foreign currency costs associated with rebalancing activity.

During this same time period, the MSCI Emerging Markets Index (Net) (the “Benchmark Index”) returned 10.80%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 1,400 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 emerging market equities.

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

Relative to the Benchmark Index, the Fund was most overweight in the electronic components sub-industry and most underweight in the interactive media & services sub-industry during the fiscal year ended October 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 and security selection within the technology hardware, storage & peripherals sub-industry, followed by security selection in the electronic components sub-industry.

For the fiscal year ended October 31, 2023, the technology hardware, storage & peripherals sub-industry contributed most significantly to the Fund’s return, followed by the electronic components and apparel, accessories & luxury goods sub-industries, respectively. The coal & consumable fuels sub-industry detracted most significantly from the Fund’s return, followed by the agricultural & farm machinery and electric utilities sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Asia Vital Components Co., Ltd., a technology hardware, storage & peripherals company (no longer held at fiscal year-end), and Wiwynn Corp., a technology hardware, storage & peripherals company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Thungela Resources Ltd., a coal & consumable fuels company (no longer held at fiscal year-end), and Turk Traktor ve Ziraat Makineleri A.S., an agricultural & farm machinery company (portfolio average weight of 0.21%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Information Technology      26.57  
Financials      15.94  
Consumer Staples      13.96  
Industrials      13.61  
Materials      9.55  
Consumer Discretionary      7.27  
Energy      6.57  
Sector Types Each Less Than 3%      6.55  
Money Market Funds Plus Other Assets Less Liabilities      (0.02)  

 

 

  10  

 


 

Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Yulon Finance Corp.      3.13  
Frontken Corp. Bhd.      3.03  
Gold Circuit Electronics Ltd.      2.71  
Topco Scientific Co. Ltd.      2.62  
PRIO S.A.      2.47  
Micro-Star International Co. Ltd.      2.47  
WT Microelectronics Co. Ltd.      2.46  
Jinan Acetate Chemical Co. Ltd.      2.28  
Taiwan Semiconductor Manufacturing Co. Ltd.      2.26  
Clicks Group Ltd.      2.18  
Total      25.61  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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  

Dorsey Wright® Emerging Markets Technical Leaders Index (Net)

    14.95     0.69     2.08     5.74     32.17     2.64     29.72       1.66     29.82

MSCI Emerging Markets Index (Net)

    10.80       (3.67     (10.62     1.59       8.23       1.19       12.53         0.47       7.67  

Fund

                   

NAV Return

    12.98       (1.22     (3.63     4.06       22.01       1.13       11.88         (0.87     (12.91

Market Price Return

    13.16       (1.34     (3.97     4.08       22.14       1.13       11.86         (0.92     (13.63

 

 

  11  

 


 

Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) (continued)

 

Fund Inception: December 28, 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 0.90% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  12  

 


 

 

PXF    Management’s Discussion of Fund Performance
   Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)

 

As an index fund, the Invesco FTSE RAFI Developed Markets ex-U.S. ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE RAFITM Developed ex U.S. 1000 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, FTSE International Limited (“FTSE”) in conjunction with Research Affiliates LLC (“RA” together with FTSE, the “Index Provider”), compiles, maintains and calculates the Index, which is comprised of companies located in countries that are classified as “developed” within the country classification definition of FTSE, excluding the United States.

The Index is designed to track the performance of non-U.S.-listed companies domiciled in developed markets countries with the largest cumulative scores (“Fundamental Value”), selected from the constituents of the FTSE Developed ex US Total Cap Index as determined by the Index Provider. The Index selects and weights companies based on their Fundamental Values, which are derived from the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 15.68%. On a net asset value (“NAV”) basis, the Fund returned 15.00%. During the same time period, the Index returned 15.16%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, which were significantly offset by benefits to the Fund related to dividend tax treatment relative to the Index.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 14.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 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 markets of economically developed countries outside of the U.S.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the health care sector during the fiscal year ended October 31, 2023. The majority of the

Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight exposure to the health care sector, as well as the Fund’s overweight exposure to, and security selection within, the financials sector.

For the fiscal year ended October 31, 2023, the energy sector contributed most significantly to the Fund’s return. No sector detracted from the Fund’s performance during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Mitsubishi UFJ Financial Group, Inc., a financials company (portfolio average weight of 0.76%), and Shell PLC, an energy company (portfolio average weight of 2.57%). Positions that detracted most significantly from the Fund’s return included Roche Holding Ltd., a health care company (portfolio average weight of 0.81%), and Credit Suisse Group AG, a financials company (no longer held at fiscal year-end).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Financials      25.76  
Industrials      13.22  
Consumer Discretionary      10.17  
Energy      9.61  
Materials      9.31  
Consumer Staples      7.64  
Health Care      6.45  
Information Technology      5.83  
Communication Services      4.76  
Utilities      4.70  
Real Estate      2.33  
Money Market Funds Plus Other Assets Less Liabilities      0.22  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Shell PLC      2.65  
TotalEnergies SE      1.54  
Samsung Electronics Co. Ltd.      1.41  
BP PLC      1.27  
HSBC Holdings PLC      1.11  
Nestle S.A.      1.04  
Toyota Motor Corp.      0.97  
Mitsubishi UFJ Financial Group, Inc.      0.93  
Allianz SE      0.91  
Novartis AG      0.83  
Total      12.66  

 

*

Excluding money market fund holdings.

 

 

  13  

 


 

Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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

 

FTSE RAFI Developed ex U.S. 1000 Index (Net)

    15.16     11.13     37.26     4.65     25.52     3.28     38.11       2.29     44.80

MSCI EAFE® Index (Net)

    14.40       5.73       18.20       4.10       22.24       3.05       35.11         1.89       35.86  

Fund

                   

NAV Return

    15.00       10.89       36.35       4.49       24.55       3.10       35.76         1.93       36.76  

Market Price Return

    15.68       11.10       37.12       4.69       25.78       3.13       36.04         1.97       37.67  

 

Fund Inception: June 25, 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 0.45% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  14  

 


 

 

PDN    Management’s Discussion of Fund Performance
   Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)

 

As an index fund, the Invesco FTSE RAFI Developed Markets ex- U.S. Small-Mid ETF (the “Fund) is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE RAFITM Developed ex US Mid Small 1500 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, FTSE International Limited (“FTSE”) in conjunction with Research Affiliates LLC (“RA” together with FTSE, the “Index Provider”), compiles, maintains and calculates the Index, which is comprised of securities of small- and mid-capitalization companies that are classified as “developed” within the country classification definition of FTSE, excluding the United States.

The Index is designed to track the performance of the small-and mid-capitalization companies in developed markets based on their cumulative scores (“Fundamental Value”), selected from the constituents of the FTSE Developed ex US Total Cap Index, as determined by the Index Provider. The Index selects and weights companies based on their Fundamental Values, which are derived from the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 9.58%. On a net asset value (“NAV”) basis, the Fund returned 8.88%. During the same time period, the Index returned 9.25%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE® Small Cap Index (Net) (the “Benchmark Index”) returned 6.47%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,300 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 small capitalization companies located in markets of economically developed countries outside of the U.S.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the materials sector and most underweight in the information technology sector during the fiscal year ended October 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 in the industrials sector, as well as its security selection in the materials sector.

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

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Yamazaki Baking Co., Ltd., a consumer staples company (portfolio average weight of 0.15%), and Asics Corp., a consumer discretionary company (portfolio average weight of 0.18%). Positions that detracted most significantly from the Fund’s return included Synthomer PLC, a materials company (portfolio average weight of 0.11%), and Tower Semiconductor Ltd., an information technology company (portfolio average weight of 0.14%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Industrials      21.67  
Consumer Discretionary      12.98  
Materials      11.49  
Financials      10.96  
Real Estate      10.17  
Consumer Staples      8.03  
Information Technology      7.15  
Health Care      5.51  
Energy      4.88  
Communication Services      4.50  
Utilities      2.50  
Money Market Funds Plus Other Assets Less Liabilities      0.16  

 

 

  15  

 


 

Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Yamazaki Baking Co. Ltd.      0.25  
BE Semiconductor Industries N.V.      0.24  
Zensho Holdings Co. Ltd.      0.24  
KDX Realty Investment Corp.      0.23  
Skylark Holdings Co. Ltd.      0.22  
Hachijuni Bank Ltd. (The)      0.22  
HOCHTIEF AG      0.21  
Eldorado Gold Corp.      0.21  
Kyushu Financial Group, Inc.      0.21  
Sapporo Holdings Ltd.      0.21  
Total      2.24  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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

 

FTSE RAFI Developed ex U.S. Mid-Small 1500 Index (Net)

    9.25     2.21     6.76     2.04     10.65     3.09     35.52       3.53     74.84

MSCI EAFE® Small Cap Index (Net)

    6.47       0.26       0.78       1.58       8.17       3.36       39.14         2.94       59.40  

Fund

                   

NAV Return

    8.88       1.87       5.72       1.74       9.03       2.75       31.18         3.06       62.46  

Market Price Return

    9.58       2.09       6.41       1.89       9.80       2.64       29.82         3.02       61.45  

 

 

  16  

 


 

Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) (continued)

 

Fund Inception: September 27, 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 0.49% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  17  

 


 

 

PXH    Management’s Discussion of Fund Performance
   Invesco FTSE RAFI Emerging Markets ETF (PXH)

 

As an index fund, the Invesco FTSE RAFI Emerging Markets ETF (the “Fund) is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE RAFITM Emerging Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, FTSE International Limited (“FTSE”) in conjunction with Research Affiliates LLC (“RA” together with FTSE, the “Index Provider”), compiles, maintains and calculates the Index, which is comprised of securities of companies located in countries that are classified as emerging markets within the country classification definition of FTSE. The Index includes securities of companies selected from the constituents of the FTSE Emerging Total Cap Index. The Index selects and weights its component securities based on their cumulative score (“Fundamental Value”), which is derived from the following four fundamental measures of firm size: book value, cash flows, sales and dividends. In such circumstances, the Fund will utilize a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 14.09%. On a net asset value (“NAV”) basis, the Fund returned 14.21%. During the same time period, the Index returned 14.98%. 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 expenses that the Fund incurred during the period, as well as Indian capital gains taxes that the Fund incurred during the period.

During this same time period, the MSCI Emerging Markets Index (Net) (the “Benchmark Index”) returned 10.80%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 1,400 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 emerging market equities.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the information technology sector during the fiscal year ended October 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 in the financials and energy sectors.

For the fiscal year ended October 31, 2023, the financials sector contributed most significantly to the Fund’s return, followed by the energy sector and the information technology sectors, respectively. The real estate sector detracted most significantly from the Fund’s return, followed by the health care sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Taiwan Semiconductor Manufacturing Co., an information technology company (portfolio average weight of 4.50%), and Petroleo Brasileiro SA, Pfd., an energy company (portfolio average weight of 2.11%). Positions that detracted most significantly from the Fund’s return included Banco Bradesco SA, Pfd., a financials company (portfolio average weight of 1.05%), and Country Garden Holdings Co. Ltd., a real estate company (portfolio average weight of 0.30%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Financials      30.46  
Energy      14.05  
Information Technology      13.70  
Materials      10.46  
Consumer Discretionary      9.16  
Communication Services      7.04  
Consumer Staples      4.83  
Industrials      4.02  
Utilities      3.20  
Sector Types Each Less Than 3%      2.94  
Money Market Funds Plus Other Assets Less Liabilities      0.14  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Taiwan Semiconductor Manufacturing Co. Ltd.      4.84  
Petroleo Brasileiro S.A., Preference Shares      3.02  
Alibaba Group Holding Ltd.      3.00  
Petroleo Brasileiro S.A.      2.19  
Vale S.A.      2.18  
Industrial & Commercial Bank of China Ltd., H Shares      2.15  
Tencent Holdings Ltd.      2.08  
China Construction Bank Corp., H Shares      2.00  
Ping An Insurance (Group) Co. of China Ltd., H Shares      1.79  
Reliance Industries Ltd.      1.54  
Total      24.79  

 

*

Excluding money market fund holdings.    

 

 

  18  

 


 

Invesco FTSE RAFI Emerging Markets ETF (PXH) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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

 

FTSE RAFI Emerging Index (Net)

    14.98     5.09     16.06     1.93     10.03     1.92     20.99       1.45     26.08

MSCI Emerging Markets Index (Net)

    10.80       (3.67     (10.62     1.59       8.23       1.19       12.53         0.70       11.90  

Fund

                   

NAV Return

    14.21       4.37       13.69       1.28       6.58       1.38       14.73         0.48       8.07  

Market Price Return

    14.09       4.35       13.63       1.26       6.46       1.47       15.75         0.34       5.66  

 

Fund Inception: September 27, 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 0.49% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  19  

 


 

 

PBD    Management’s Discussion of Fund Performance
   Invesco Global Clean Energy ETF (PBD)

 

As an index fund, the Invesco Global Clean Energy ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the WilderHill New Energy Global Innovation Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, WilderHill New Energy Finance LLC (the “Index Provider”) compiles and maintains the Index, which is comprised of securities of companies that are located in developed and emerging markets throughout the world and that are engaged in the business of the advancement of cleaner energy and conservation.

The Index is comprised primarily of companies whose technologies focus on the generation and use of cleaner energy, conservation and efficiency, and the advancement of renewable energy in general, as determined by the Index Provider. The Index includes companies in wind, solar, biofuels, hydro, wave, tidal, geothermal and other relevant renewable energy businesses and those involved in energy conversion, storage, conservation, efficiency, materials relating to those activities, carbon and greenhouse gas reduction, pollution control, emerging hydrogen and fuel cells. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned (26.86)%. On a net asset value (“NAV”) basis, the Fund returned (27.24)%. During the same time period, the Index returned (27.47)%. 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 from the securities lending program in which the Fund participates, which was partially offset by the fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 14.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 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 markets of economically developed countries outside of the U.S.

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

Relative to the Benchmark Index, the Fund was most overweight in the electrical components & equipment sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended October 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 in the electrical components & equipment sub-industry and overweight allocation to the renewable electricity sub-industry.

For the fiscal year ended October 31, 2023, the electronic equipment & instruments sub-industry contributed most significantly to the Fund’s return, followed by the motorcycle manufacturers sub-industry. The electrical components & equipment sub-industry detracted most significantly from the Fund’s return, followed by the renewable electricity sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Abalance Corp., a heavy electrical equipment company (no longer held at fiscal year-end), and Teco Electric & Machinery Co., Ltd., an electrical components & equipment company (portfolio average weight of 1.06%). Positions that detracted most significantly from the Fund’s return included ChargePoint Holdings, Inc., Class A, an electrical components & equipment company (portfolio average weight of 0.77%), and SunPower Corp., an electrical components & equipment company (portfolio average weight of 0.79%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Electrical Components & Equipment      23.17  
Renewable Electricity      18.30  
Heavy Electrical Equipment      8.69  
Semiconductors      7.83  
Electric Utilities      6.55  
Semiconductor Materials & Equipment      6.25  
Automobile Manufacturers      4.76  
Specialty Chemicals      3.08  
Automotive Parts & Equipment      3.01  
Construction & Engineering      2.82  
Sub-Industry Types Each Less than 3%      15.45  
Money Market Funds Plus Other Assets Less Liabilities      0.09  

 

 

  20  

 


 

Invesco Global Clean Energy ETF (PBD) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
West Holdings Corp.      1.59  
NFI Group, Inc.      1.31  
Sino-American Silicon Products, Inc.      1.31  
Verbund AG      1.31  
Solaria Energia y Medio Ambiente S.A.      1.29  
Subsea 7 S.A.      1.25  
Novozymes A/S, Class B      1.22  
Landis+Gyr Group AG      1.20  
Terna S.p.A.      1.20  
JinkoSolar Holding Co. Ltd., ADR      1.19  
Total      12.9  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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  

WilderHill New Energy Global Innovation Index

    (27.47 )%      (15.02 )%      (38.64 )%      5.83     32.74     2.92     33.38       (2.01 )%      (28.33 )% 
MSCI EAFE® Index (Net)     14.40       5.73       18.20       4.10       22.24       3.05       35.11         2.00       38.32  
Fund                    

NAV Return

    (27.24     (14.99     (38.57     5.91       33.26       2.69       30.34         (2.55     (34.45
Market Price Return     (26.86     (15.00     (38.59     5.97       33.65       2.71       30.61         (2.59     (34.90

 

 

  21  

 


 

Invesco Global Clean Energy ETF (PBD) (continued)

 

Fund Inception: June 13, 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 0.75% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  22  

 


 

 

PIO    Management’s Discussion of Fund Performance
   Invesco Global Water ETF (PIO)

 

As an index fund, the Invesco Global Water ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the NASDAQ OMX Global Water IndexSM (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that are based on the securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) compiles, maintains, and calculates the Index, which is comprised of securities of global exchange-listed companies located in the United States, as well as developed and emerging markets throughout the world, that create products designed to conserve and purify water for homes, businesses and industries. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 4.37%. On a net asset value (“NAV”) basis, the Fund returned 4.57%. During the same time period, the Index returned 4.92%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, which were partially offset by the benefits to the Fund related to dividend tax treatment relative to the Index.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 14.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 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 markets of economically developed countries outside of the U.S.

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

Relative to the Benchmark Index, the Fund was most overweight in the industrial machinery & supplies & components sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended October 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 the life sciences tools & services sub-industry, followed by security selection in the water utilities sub-industry.

For the fiscal year ended October 31, 2023, the trading companies & distributors sub-industry contributed most significantly to the

Fund’s return, followed by the application software sub-industry. The life sciences tools & services sub-industry detracted most significantly from the Fund’s return, followed by the electric utilities sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Ferguson PLC, a trading companies & distributors company (portfolio average weight of 6.81%), and Pentair PLC, an industrial machinery & supplies & components company (portfolio average weight of 7.78%). Positions that detracted most significantly from the Fund’s return included Danaher Corp., a life sciences tools & services company (portfolio average weight of 7.66%) and Spirax-Sarco Engineering PLC, an industrial machinery & supplies & components company (portfolio average weight of 3.00%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Industrials      52.70  
Utilities      19.37  
Information Technology      12.58  
Health Care      10.27  
Materials      4.12  
Consumer Discretionary      0.90  
Money Market Funds Plus Other Assets Less Liabilities      0.06  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Roper Technologies, Inc.      8.85  
Pentair PLC      7.48  
Danaher Corp.      6.55  
Geberit AG      5.84  
Veolia Environnement S.A.      5.27  
Cia de Saneamento Basico do Estado de Sao Paulo SABESP      4.47  
Ferguson PLC      4.16  
Ecolab, Inc.      4.12  
Xylem, Inc.      4.08  
Halma PLC      3.73  
Total      54.55  

 

*

Excluding money market fund holdings.

 

 

  23  

 


 

Invesco Global Water ETF (PIO) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2023

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  

Blended—Nasdaq OMX Global Water IndexSM

    4.92     2.14     6.55     7.61     44.33     5.37     68.68       3.25     68.80
MSCI EAFE® Index (Net)     14.40       5.73       18.20       4.10       22.24       3.05       35.11         2.00       38.32  
Fund                    

NAV Return

    4.57       1.90       5.81       7.35       42.58       5.19       65.82         2.92       60.15  
Market Price Return     4.37       1.91       5.84       7.40       42.91       5.17       65.54         2.79       57.05  

 

Fund Inception: June 13, 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 0.75% 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 the indexes are based on the inception date of the Fund.

 

-

The Blended-Nasdaq OMX Global Water IndexSM performance is comprised of the performance of the Palisades Global Water Index, the Fund’s previous underlying index until the conversion date, March 1, 2012, followed by the performance of the Index on a total return basis, starting from the conversion date until December 23, 2013, followed by the performance of the Index on a net basis thereafter through October 31, 2023.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  24  

 


 

 

IPKW    Management’s Discussion of Fund Performance
   Invesco International BuyBack AchieversTM ETF (IPKW)

 

As an index fund, the Invesco International BuyBack AchieversTM ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the NASDAQ International BuyBack AchieversTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) compiles, maintains, and calculates the Index, which is comprised of the securities of foreign companies that are classified as “International BuyBack AchieversTM” pursuant to the Index Provider’s proprietary selection methodology.

To qualify as an “International BuyBack AchieverTM” a company must have effected a net reduction of 5% or more of its outstanding shares in its latest fiscal year. Additionally, to be eligible for inclusion in the Index, a security must: (i) be included in the NASDAQ Global Ex-US Index (a broad-based index designed to track the performance of the global equity market and whose component securities are issued by companies located throughout the world, excluding the United States); (ii) have a minimum market capitalization of $250 million; and (iii) have a minimum three-month average daily dollar trading volume of $1 million. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 12.85%. On a net asset value (“NAV”) basis, the Fund returned 12.38%. During the same time period, the Index returned 13.06%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI ACWI ex USA® Index (Net) (the “Benchmark Index”) returned 12.07%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 2,300 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 developed and emerging equity markets outside of the U.S.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a modified market capitalization weighting methodology and selects stocks based on constituent companies engaging in stock buybacks, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the industrials sector during the fiscal year ended October 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 in the financials sector and overweight allocation to the energy sector. For the fiscal year ended October 31, 2023, the financials sector contributed most significantly to the Fund’s return, followed by the materials and energy sectors, respectively. The health care sector detracted most significantly from Fund’s return followed by the industrials and consumer discretionary sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Dai-ichi Life Holdings, Inc., a financials company (no longer held at fiscal year-end) and Fairfax Financial Holdings Ltd., a financials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Naspers Ltd., Class N, a consumer discretionary company (portfolio average weight of 1.18%) and Renesas Electronics Corp., an information technology company (portfolio average weight of 0.54%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Financials      32.40  
Energy      25.96  
Consumer Discretionary      9.73  
Industrials      9.55  
Materials      7.96  
Health Care      5.43  
Communication Services      5.37  
Sector Types Each Less Than 3%      3.56  
Money Market Funds Plus Other Assets Less Liabilities      0.04  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Shell PLC      5.36  
BP PLC      5.00  
UBS Group AG      5.00  
Novartis AG      4.81  
Canadian Natural Resources Ltd.      4.01  
Lloyds Banking Group PLC      3.78  
Banco Bilbao Vizcaya Argentaria S.A.      3.27  
Barclays PLC      2.77  
UniCredit S.p.A.      2.76  
Vale S.A.      2.69  
Total      39.45  

 

*

Excluding money market fund holdings.    

 

 

  25  

 


 

Invesco International Buyback AchieversTM ETF (IPKW) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  

Nasdaq International BuyBack Achievers Index (Net)

    13.06     7.42     23.95     6.02     33.92       6.62     85.78
MSCI ACWI ex USA® Index (Net)     12.07       3.03       9.38       3.46       18.53         2.55       27.61  
Fund                

NAV Return

    12.38       6.84       21.95       5.41       30.17         5.96       75.10  
Market Price Return     12.85       6.89       22.11       5.52       30.83         5.94       74.70  

 

Fund Inception: February 27, 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 0.55% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  26  

 


 

 

CUT    Management’s Discussion of Fund Performance
   Invesco MSCI Global Timber ETF (CUT)

 

As an index fund, the Invesco MSCI Global Timber ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the MSCI ACWI IMI Timber Select Capped Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, MSCI, Inc. (“MSCI” or the “Index Provider”) compiles, maintains, and calculates the Index, which is comprised of equity securities of companies in both developed and emerging markets throughout the world that are primarily engaged in the ownership and management of forests and timberlands and the production of finished products that use timber as a raw material.

The securities in the Index are selected from a universe of securities that are included in the MSCI ACWI Investable Market Index and classified by the Global Industry Classification Standard (“GICS”) to be in the sub-industries of forest products, paper products, paper packaging or specialized real estate investment trusts (“REITs”) classified as “timber” REITs. The constituents of the Index are weighted based on their free-float-adjusted market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 0.85%. On a net asset value (“NAV”) basis, the Fund returned 0.40%. During the same time period, the Index returned 0.40%. During the fiscal year, the Fund’s performance, on a NAV basis, matched the return of the Index. The fees and expenses that the Fund incurred during the period were primarily offset by benefits to the Fund related to dividend tax treatment relative to the Index.

During this same time period, the MSCI World Index (Net) (the “Benchmark Index”) returned 10.48%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 1,500 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of equity markets in economically developed countries.

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

Relative to the Benchmark Index, the Fund was most overweight in the paper packaging sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended October 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 the paper & plastic packaging products & materials and paper products sub-industries.

For the fiscal year ended October 31, 2023, the forest products sub-industry contributed most significantly to the Fund’s return, followed by the paper products sub-industry. The timber REITs sub-industry detracted most significantly from the Fund’s return during the period, followed by the paper & plastic packaging products & materials sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Packaging Corp. of America, a paper & plastic packaging products & materials company (portfolio average weight of 5.15%) and Stella-Jones Inc., a forest products company (portfolio average weight of 1.11%). Positions that detracted most significantly from the Fund’s return included Sealed Air Corp., a paper & plastic packaging products & materials company (portfolio average weight of 3.03%) and Amcor PLC, a paper & plastic packaging products & materials company (portfolio average weight of 4.90%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Materials      91.12  
Real Estate      8.04  
Exchange-Traded Fund      0.66  
Money Market Funds Plus Other Assets Less Liabilities      0.18  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
UPM-Kymmene OYJ      5.38  
Packaging Corp. of America      5.37  
International Paper Co.      5.06  
Avery Dennison Corp.      5.00  
Amcor PLC      4.78  
WestRock Co.      4.75  
Weyerhaeuser Co.      4.48  
Svenska Cellulosa AB S.C.A., Class B      4.29  
Smurfit Kappa Group PLC      4.28  
Suzano S.A.      4.19  
Total      47.58  

 

*

Excluding money market fund holdings.

 

 

  27  

 


 

Invesco MSCI Global Timber ETF (CUT) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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—MSCI ACWI IMI Timber Select Capped Index (Net)     0.40     3.43     10.64     3.13     16.64     3.80     45.18       3.67     77.76
MSCI World Index (Net)     10.48       8.14       26.47       8.27       48.75       7.53       106.74         5.54       136.53  
Fund                    
NAV Return     0.40       3.36       10.42       3.13       16.66       3.60       42.46         2.97       59.56  
Market Price Return     0.85       3.44       10.68       3.21       17.11       3.62       42.77         2.98       59.87  

 

Guggenheim MSCI Global Timber ETF (the “Predecessor Fund”) Fund Inception: November 9, 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. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio is indicated as 0.69% and the net annual operating expense ratio is indicated as 0.61%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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 the indexes are based on the inception date of the Fund.

 

-

The Blended-MSCI ACWI IMI Timber Select Capped Index performance is comprised of the performance of the Beacon Global Timber Index, the Fund’s previous underlying index until the conversion date, May 20, 2016, followed by the performance of the Index thereafter through October 31, 2023.

 

-

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

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  28  

 


 

 

GBLD    Management’s Discussion of Fund Performance
   Invesco MSCI Green Building ETF (GBLD)

 

As an index fund, the Invesco MSCI Green Building ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the MSCI Global Green Building Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, MSCI Inc. (the “Index Provider”) compiles, maintains and calculates the Index, which is comprised of companies that the index methodology has determined provide exposure to the environmental impact theme of “green building”. The index methodology defines “green building” to include the design, construction, redevelopment, retrofitting, or acquisition of green-certified properties to promote mechanisms for raising capacity for effective climate change mitigation and adaptation.

The Index is composed of securities that are also components of the MSCI ACWI Investable Market Index (the “Parent Index”), an equity index composed of more than 9,100 securities of large-, mid- and small-capitalization companies located in both developed and emerging market countries around the world. Securities eligible for inclusion in the Index include American depositary receipts (“ADRs”), global depositary receipts (“GDRs”), and real estate investment trusts (“REITs”). Companies that derive 50% or more of their revenue from green building are eligible for inclusion in the Index. Such companies are evaluated for their level of involvement in, and strategic commitment to green building, based on the Index Provider’s internal environmental, social and governance (“ESG”) rating and score data. Once included in the Index, securities will remain constituents as long as they continue to meet the eligibility criteria and the revenue they derive from green building does not fall below 40%. The Index weights its constituents by their free-float adjusted market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned (5.28)%. On a net asset value (“NAV”) basis, the Fund returned (5.79)%. During the same time period, the Index returned (5.99)%. 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 benefits to the Fund related to dividend tax treatment relative to the Index, which were partially offset by the fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI All Country World IMI Index (Net) (the “Benchmark Index”) returned 9.43%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 9,204 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 markets of economically developed countries outside of the U.S.

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

Relative to the Benchmark Index, the Fund was most overweight in the office REITs sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended October 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 the office REITs and retail REITs sub-industries.

For the fiscal year ended October 31, 2023, the diversified real estate activities sub-industry contributed most significantly to the Fund’s return, followed by the homebuilding and broadline retail sub-industries, respectively. The office REITs sub-industry detracted most significantly from the Fund’s return, followed by the industrial REITs and retail REITs sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Sun Hung Kai Properties Ltd., a diversified real estate activities company (no longer held at fiscal year-end), and Meritage Homes Corp., a homebuilding company (portfolio average weight of 1.70%). Positions that detracted most significantly from the Fund’s return included Alexandria Real Estate Equities, Inc., an office REITs company (portfolio average weight of 8.31%), and Boston Properties, Inc., an office REITs company (portfolio average weight of 3.75%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Real Estate      90.84  
Consumer Discretionary      7.87  
Exchange-Traded Fund      0.97  
Money Market Funds Plus Other Assets Less Liabilities      0.32  

 

 

  29  

 


 

Invesco MSCI Green Building ETF (GBLD) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Daiwa House Industry Co. Ltd.      7.14  
Alexandria Real Estate Equities, Inc.      6.86  
Boston Properties, Inc.      3.58  
CapitaLand Ascendas REIT      3.18  
CapitaLand Integrated Commercial Trust      3.07  
Nippon Building Fund, Inc.      2.77  
Unibail—Rodamco-Westfield SE      2.61  
Klepierre S.A.      2.33  
Berkeley Group Holdings PLC (The)      2.29  
Land Securities Group PLC      2.19  
Total      36.02  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

    1 Year           Fund Inception  
Index   Average
Annualized
    Cumulative  
MSCI Global Green Building Index (Net)     (5.99 )%        (15.37 )%      (34.36 )% 
MSCI All Country World IMI Index (Net)     9.43         (2.61     (6.46
Fund        
NAV Return     (5.79       (15.22     (34.07
Market Price Return     (5.28       (14.97     (33.58

 

 

  30  

 


 

Invesco MSCI Green Building ETF (GBLD) (continued)

 

Fund Inception: April 22, 2021

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 0.39% 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 the indexes are based on the inception date of the Fund.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  31  

 


 

 

CGW    Management’s Discussion of Fund Performance
   Invesco S&P Global Water Index ETF (CGW)

 

As an index fund, the Invesco S&P Global Water Index ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P Global Water Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains, and calculates the Index, which is designed to measure the performance of the largest global companies in water-related businesses, with a target constituent count of 100. To be eligible for inclusion in the Index, companies must either derive at least 25% in aggregate revenue from water-related businesses as defined by FactSet’s Revere Business Industry Classification System (“RBICS”) or belong to the water utilities sub-industry classification under the Global Industry Classification Standard (“GICS”). Index constituents must have a minimum float-adjusted capitalization of $100 million and total market capitalization of at least $300 million.

The Index excludes from the eligible universe securities of companies based on their specific business activities and noncompliance with United Nations Global Compact (“UNGC”) Principles, using information provided by Sustainalytics, a globally recognized independent provider of environmental, social and governance (“ESG”) research, ratings, and data. Companies without Sustainalytics coverage are ineligible for inclusion until receiving such coverage. The UNGC is an arrangement by which companies voluntarily and publicly commit to a set of principles drawn from key UN Conventions and Declarations. The principles of the UNGC represent a set of values that the UN believes responsible businesses should incorporate into their operations in order to meet fundamental responsibilities in the areas of human rights, labor, the environment, and anti-corruption. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 0.81%. On a net asset value (“NAV”) basis, the Fund returned 0.81%. During the same time period, the Index returned 0.80%. 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 positive impacts from dividend tax withholding and sampling in newly added markets, partially offset by the fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 14.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 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 markets of economically developed countries outside of the U.S.

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

Relative to the Benchmark Index, the Fund was most overweight in the water utilities industry and most underweight in the banks industry during the fiscal year ended October 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the water utilities industry, followed by security selection within the machinery industry and an overweight allocation to the building products industry.

For the fiscal year ended October 31, 2023, the multi-utilities industry contributed most significantly to the Fund’s return, followed by the machinery and chemicals industries, respectively. The water utilities industry detracted most significantly from the Fund’s return during the period, followed by the building products and construction and engineering industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included United Utilities Group PLC, a utilities company (portfolio average weight of 6.42%), and Severn Trent PLC, a utilities company (portfolio average weight of 6.21%). Positions that detracted most significantly from the Fund’s return included American Water Works Co., Inc., a utilities company (portfolio average weight of 7.78%), and Essential Utilities, a utilities company (portfolio average weight of 5.58%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Water Utilities      40.25  
Machinery      26.31  
Building Products      11.23  
Construction & Engineering      6.46  
Commercial Services & Supplies      4.52  
Chemicals      4.32  
Industry Types Each Less Than 3%      6.82  
Money Market Funds Plus Other Assets Less Liabilities      0.09  

 

 

  32  

 


 

Invesco S&P Global Water Index ETF (CGW) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Xylem, Inc.      8.84  
American Water Works Co., Inc.      8.60  
Severn Trent PLC      7.03  
United Utilities Group PLC      6.89  
Stantec, Inc.      4.55  
Essential Utilities, Inc.      4.36  
Ecolab, Inc.      4.32  
Geberit AG      4.17  
Tetra Tech, Inc.      4.02  
Pentair PLC      3.99  
Total      56.77  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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&P Global Water Index (Net)     0.80     4.88     15.36     9.06     54.26     7.51     106.20       6.22     169.94
MSCI EAFE® Index (Net)     14.40       5.73       18.20       4.10       22.24       3.05       35.11         1.92       36.70  
Fund                    
NAV Return     0.81       4.64       14.57       8.79       52.36       7.23       101.01         5.81       153.50  
Market Price Return     0.81       4.55       14.28       8.82       52.63       7.23       101.04         5.81       153.50  

 

 

  33  

 


 

Invesco S&P Global Water Index ETF (CGW) (continued)

 

Guggenheim S&P Global Water Index ETF (the “Predecessor Fund”) Fund Inception: May 14, 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 total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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 the indexes are based on the inception date of the Fund.

 

-

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

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  34  

 


 

 

IDHQ    Management’s Discussion of Fund Performance
   Invesco S&P International Developed Quality ETF (IDHQ)

 

As an index fund, Invesco S&P International Developed Quality ETF (the “Fund) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P Quality Developed ex-U.S. LargeMidCap Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is constructed from constituents of the S&P Developed ex-U.S. LargeMidCap (the “Parent Index”) that the Index Provider identifies as being of the highest quality—that is, stocks of companies that seek to generate higher revenue and cash flow than their counterparts through prudent use of assets and finances.

The Parent Index is designed to measure the top 85% of float-adjusted market cap in each developed country, excluding the United States.

In selecting constituent securities for the Index, the Index Provider calculates the quality score of each security in the Parent Index and selects the top 20% of securities with the highest quality scores based on a composite of the following three equally-weighted factors: (i) return-on-equity, calculated as the company’s trailing 12-month earnings per share divided by the company’s latest book value per share; (ii) accruals ratio, computed using the change of the company’s net operating assets over the last year divided by the company’s average total assets over the last two years; and (iii) financial leverage, calculated as the company’s latest total debt divided by the company’s book value. Eligible securities also must have a minimum three-month average daily trading volume of $3 million.

The Index is modified market-capitalization weighted, weighting component securities by multiplying their market capitalization and their quality score; securities with higher scores receive relatively greater weights. The Fund generally invests all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 17.00%. On a net asset value (“NAV”) basis, the Fund returned 16.13%. During the same time period, the Index returned 16.29%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 14.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 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 markets of economically developed countries outside of the U.S.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a quality metric weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the health care sector and most underweight in the financials sector during the fiscal year ended October 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 in the health care sector and overweight allocation to the energy sector.

For the fiscal year ended October 31, 2023, the health care sector contributed most significantly to the Fund’s return, followed by the information technology and industrials sectors, respectively. No sector detracted from the Fund’s performance during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Novo Nordisk A/S, Class B, a health care company (portfolio average weight of 5.57%) and ASML Holding N.V., an information technology company (portfolio average weight of 5.00%). Positions that detracted most significantly from the Fund’s return included Roche Holding AG, a health care company (portfolio average weight of 4.74%), and LVMH Moet Hennessy Louis Vuitton SE, a consumer discretionary company (portfolio average weight of 1.40%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Health Care      20.04  
Energy      15.41  
Consumer Staples      14.04  
Industrials      11.13  
Materials      10.93  
Consumer Discretionary      9.59  
Information Technology      8.20  
Financials      6.37  
Communication Services      3.37  
Sector Types Each Less Than 3%      0.77  
Money Market Funds Plus Other Assets Less Liabilities      0.15  

 

 

  35  

 


 

Invesco S&P International Developed Quality ETF (IDHQ) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Novo Nordisk A/S, Class B      6.50  
Nestle S.A.      4.83  
BHP Group Ltd.      4.54  
ASML Holding N.V.      4.45  
Roche Holding AG      4.31  
Novartis AG      4.02  
Shell PLC      3.66  
LVMH Moet Hennessy Louis Vuitton SE      3.38  
TotalEnergies SE      2.94  
Unilever PLC      2.77  
Total      41.40  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 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—S&P Quality Developed ex-U.S. LargeMidCap Index (Net)     16.29     3.16     9.79     6.21     35.14     5.08     64.06       2.91     60.10
MSCI EAFE® Index (Net)     14.40       5.73       18.20       4.10       22.24       3.05       35.11         2.00       38.32  
Fund                    
NAV Return     16.13       2.97       9.18       6.03       34.00       4.88       61.07         2.26       44.21  
Market Price Return     17.00       3.22       9.99       6.22       35.25       4.95       62.08         2.21       43.03  

 

 

  36  

 


 

Invesco S&P International Developed Quality ETF (IDHQ) (continued)

 

Fund Inception: June 13, 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 0.29% 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 the indexes are based on the inception date of the Fund.

 

-

The Blended-S&P Quality Developed ex-U.S. LargeMidCap Index is comprised of the performance of the QSG Developed International Opportunities Index, the Fund’s previous underlying index from Fund inception until March 1, 2012, followed by the performance of S&P International Developed High Quality Rankings Index (Net), the Fund’s underlying index for the period March 1, 2012 until March 18, 2016, followed by the performance of the Index thereafter through October 31, 2023.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  37  

 


 

Invesco China Technology ETF (CQQQ)

October 31, 2023

Schedule of Investments(a)

 

          Shares         Value  

Common Stocks & Other Equity Interests-100.10%

 

Broadline Retail-9.30%

   

PDD Holdings, Inc., ADR (China)(b)(c)

    628,097      $ 63,701,598  
   

 

 

 

Capital Markets-0.49%

   

Hithink RoyalFlush Information Network Co. Ltd., A Shares (China)

    175,800       3,377,341  
   

 

 

 

Chemicals-0.07%

   

Jiangsu Cnano Technology Co. Ltd., A Shares (China)

    113,633       453,408  
   

 

 

 

Consumer Staples Distribution & Retail-0.18%

 

 

Dada Nexus Ltd., ADR (China)(b)(c)

    325,956       1,251,671  
   

 

 

 

Electrical Equipment-1.71%

   

China XD Electric Co. Ltd., A Shares (China)

    6,693,801       4,225,873  

East Group Co. Ltd., A Shares (China)

    685,500       600,437  

Hongfa Technology Co. Ltd., A Shares (China)

    221,149       876,364  

Qingdao TGOOD Electric Co. Ltd., A Shares (China)

    348,218       857,923  

Sieyuan Electric Co. Ltd., A Shares (China)

    249,320       1,679,259  

Suzhou Maxwell Technologies Co. Ltd., A Shares (China)

    91,812       1,515,542  

YunengTechnology Co. Ltd. (China)

    118,514       1,980,443  
   

 

 

 
        11,735,841  
   

 

 

 

Electronic Equipment, Instruments & Components-13.50%

 

Avary Holding Shenzhen Co. Ltd., A Shares (China)

    273,456       800,403  

Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., A Shares (China)

    68,486       515,650  

BOE Technology Group Co. Ltd., A Shares (China)

    12,245,674       6,559,495  

BOE Technology Group Co. Ltd., B Shares (China)

    3,265,460       1,076,718  

Chaozhou Three-Circle Group Co. Ltd., A Shares (China)

    624,590       2,633,860  

China Zhenhua Group Science & Technology Co. Ltd., A Shares (China)

    168,959       1,544,806  

Everdisplay Optronics (Shanghai) Co. Ltd. (China)(b)

    14,951,800       5,352,990  

Guangzhou Shiyuan Electronic Technology Co. Ltd., A Shares (China)

    82,360       472,568  

Hengdian Group DMEGC Magnetics Co. Ltd., A Shares (China)

    536,600       1,066,879  

Holitech Technology Co. Ltd., A Shares (China)(b)

    954,700       429,205  

Huagong Tech Co. Ltd., A Shares (China)

    331,700       1,275,926  

IRICO Display Devices Co. Ltd.
(China)(b)

    4,696,100       3,888,764  

Lens Technology Co. Ltd., A Shares (China)

    1,621,500       2,893,755  

Leyard Optoelectronic Co. Ltd., A Shares (China)

    834,500       699,018  

Lingyi iTech Guangdong Co., A Shares (China)

    2,282,100       1,892,888  

Maxscend Microelectronics Co. Ltd., A Shares (China)

    155,346       3,199,006  

MOG Digitech Holdings Ltd. (China)(b)

    2,561,469       720,194  

Raytron Technology Co. Ltd., A Shares (China)

    147,571       949,580  
          Shares         Value  

Electronic Equipment, Instruments & Components-(continued)

 

Shanghai BOCHU Electronic Technology Corp. Ltd., A Shares (China)

    44,090      $ 1,443,599  

Shengyi Technology Co. Ltd., A Shares (China)

    771,319       1,853,965  

Shennan Circuits Co. Ltd., A Shares (China)

    61,064       580,426  

Shenzhen Everwin Precision Technology Co. Ltd., A Shares (China)(b)

    396,280       628,689  

Shenzhen Huaqiang Industry Co. Ltd., A Shares (China)

    320,475       502,295  

Shenzhen Kaifa Technology Co. Ltd., A Shares (China)

    514,917       1,208,821  

Shenzhen Kinwong Electronic Co. Ltd., A Shares (China)

    117,420       354,277  

Sunny Optical Technology Group Co. Ltd. (China)

    3,044,318       25,503,546  

TCL Technology Group Corp., A Shares (China)(b)

    6,137,310       3,295,887  

Tianma Microelectronics Co. Ltd., A Shares (China)(b)

    761,352       1,018,521  

Tunghsu Optoelectronic Technology Co. Ltd., A Shares (China)(b)

    1,775,700       528,966  

Unisplendour Corp. Ltd., A Shares
(China)(b)

    438,058       1,173,845  

Universal Scientific Industrial Shanghai Co. Ltd., A Shares (China)

    274,600       545,215  

Wuhan Guide Infrared Co. Ltd., A Shares (China)

    1,408,901       1,524,780  

WUS Printed Circuit Kunshan Co. Ltd., A Shares (China)

    628,410       1,677,913  

Xiamen Faratronic Co. Ltd., A Shares (China)

    74,100       1,010,634  

Zhejiang Crystal-Optech Co. Ltd., A Shares (China)

    458,770       865,119  

Zhejiang Dahua Technology Co. Ltd., A Shares (China)

    4,365,200       12,168,470  

Zhuzhou Hongda Electronics Corp. Ltd., A Shares (China)

    131,500       587,950  
   

 

 

 
        92,444,623  
   

 

 

 

Entertainment-4.29%

   

Bilibili, Inc., Z Shares (China)(b)(c)

    1,103,384       14,933,462  

Hangzhou Shunwang Technology Co. Ltd., A Shares (China)

    229,000       463,126  

Kingsoft Corp. Ltd. (China)

    4,012,119       13,998,268  
   

 

 

 
      29,394,856  
   

 

 

 

Hotels, Restaurants & Leisure-9.72%

   

Meituan, B Shares (China)(b)(d)

    4,224,984       59,719,760  

TravelSky Technology Ltd., H Shares (China)

    4,359,937       6,875,958  
   

 

 

 
      66,595,718  
   

 

 

 

Interactive Media & Services-23.33%

   

Autohome, Inc., ADR (China)

    280,574       7,505,354  

Baidu, Inc., A Shares (China)(b)

    2,998,516       39,356,337  

JOYY, Inc., ADR (China)(c)

    154,378       6,008,392  

Kuaishou Technology (China)(b)(d)

    5,476,310       35,239,144  

Tencent Holdings Ltd. (China)

    1,824,851       67,447,142  

Visual China Group Co. Ltd., A Shares (China)

    180,900       350,029  

Weibo Corp., ADR (China)

    331,607       3,922,911  
   

 

 

 
      159,829,309  
   

 

 

 

 

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

 

    38    

 

 

 

 


 

Invesco China Technology ETF (CQQQ)–(continued)

October 31, 2023

 

 

           Shares         Value  

IT Services-1.82%

    

Beijing Sinnet Technology Co. Ltd., A Shares (China)(b)

     593,000      $ 822,474  

China TransInfo Technology Co. Ltd., A Shares (China)(b)

     335,171       528,077  

DHC Software Co. Ltd., A Shares (China)

     1,057,400       910,294  

Digital China Information Service Co. Ltd., A Shares (China)

     197,000       328,418  

GDS Holdings Ltd., A Shares (China)(b)(c)

     4,374,555       5,411,867  

Kingsoft Cloud Holdings Ltd., H shares (China)(b)

     7,311,499       2,317,373  

Taiji Computer Corp. Ltd., A Shares (China)

     204,573       800,614  

Wangsu Science & Technology Co. Ltd., A Shares (China)

     804,045       770,194  

Wonders Information Co. Ltd., A Shares (China)(b)

     476,100       586,822  
    

 

 

 
         12,476,133  
    

 

 

 

Machinery-0.13%

    

Han’s Laser Technology Industry Group Co. Ltd., A Shares (China)

     309,800       908,474  
    

 

 

 

Media-1.20%

    

China Literature Ltd. (China)(b)(d)

     1,857,576       6,255,544  

NanJi E-Commerce Co. Ltd., A Shares (China)(b)

     809,868       377,373  

People.cn Co. Ltd., A Shares (China)

     358,400       1,586,772  
    

 

 

 
       8,219,689  
    

 

 

 

Semiconductors & Semiconductor Equipment-21.39%

 

3Peak, Inc., A Shares (China)

     31,915       702,574  

ACM Research (Shanghai), Inc. (China)

     307,600       5,064,949  

Advanced Micro-Fabrication Equipment, Inc., A Shares (China)

     201,649       4,716,009  

All Winner Technology Co. Ltd., A Shares (China)

     178,353       609,531  

Amlogic Shanghai Co. Ltd., A Shares (China)(b)

     137,015       1,126,548  

ASR Microelectronics Co. Ltd. (China)(b)

     546,800       4,873,910  

Bestechnic (Shanghai) Co. Ltd. (China)(b)

     156,400       2,663,551  

Cambricon Technologies Corp. Ltd.
(China)(b)

     543,200       7,959,352  

China Resources Microelectronics Ltd., A Shares (China)

     314,273       2,282,506  

GalaxyCore, Inc., A Shares (China)

     3,265,000       8,213,696  

GigaDevice Semiconductor, Inc., A Shares (China)

     217,664       3,182,527  

Goke Microelectronics Co. Ltd., A Shares (China)

     71,600       651,220  

Hangzhou Chang Chuan Technology Co. Ltd., A Shares (China)

     202,802       1,131,220  

Hangzhou Lion Electronics Co. Ltd., A Shares (China)

     223,312       980,753  

Hangzhou Silan Microelectronics Co. Ltd., A Shares (China)

     467,000       1,548,137  

Hoyuan Green Energy Co. Ltd., A Shares (China)

     169,735       865,827  

Hua Hong Semiconductor Ltd.
(China)(b)(c)(d)

     1,928,797       4,732,881  

Hwatsing Technology Co. Ltd. (China)

     166,579       4,845,020  

Ingenic Semiconductor Co. Ltd., A Shares (China)

     128,300       1,293,852  

JCET Group Co. Ltd., A Shares (China)

     579,400       2,438,546  

Loongson Technology Corp. Ltd.
(China)(b)

     523,641       5,786,590  
           Shares         Value  

Semiconductors & Semiconductor Equipment-(continued)

 

Montage Technology Co. Ltd., A Shares (China)

     370,289      $ 2,784,466  

National Silicon Industry Group Co. Ltd., A Shares (China)(b)

     3,580,600       8,870,646  

NAURA Technology Group Co. Ltd., A Shares (China)

     173,057       6,053,838  

Piotech, Inc., A Shares (China)

     190,632       6,566,529  

Rockchip Electronics Co. Ltd., A Shares (China)

     50,108       445,885  

Sanan Optoelectronics Co. Ltd., A Shares (China)

     6,542,900       13,303,774  

SG Micro Corp., A Shares (China)

     150,620       1,843,722  

Shanghai Awinic Technology Co. Ltd. (China)(b)

     303,200       3,446,274  

Shanghai Fudan Microelectronics Group Co. Ltd., A Shares (China)

     94,617       625,772  

Shanghai Fudan Microelectronics Group Co. Ltd., H Shares (China)(c)

     1,321,381       2,492,598  

Shenzhen Goodix Technology Co. Ltd., A Shares (China)(b)

     599,300       6,055,976  

Shenzhen SC New Energy Technology Corp., A Shares (China)

     102,618       1,023,642  

SICC Co. Ltd., A Shares (China)(b)

     563,000       4,669,805  

StarPower Semiconductor Ltd., A Shares (China)

     50,300       1,181,945  

Suzhou Novosense Microelectronics Co. Ltd. (China)

     148,400       2,909,152  

Tianshui Huatian Technology Co. Ltd., A Shares (China)

     1,057,100       1,289,939  

TongFu Microelectronics Co. Ltd., A Shares (China)

     499,200       1,394,985  

Unigroup Guoxin Microelectronics Co. Ltd., A Shares (China)(b)

     277,759       2,858,017  

Verisilicon Microelectronics (Shanghai) Co. Ltd. (China)(b)

     652,400       4,756,090  

Will Semiconductor Co. Ltd., A Shares (China)

     270,549       4,078,143  

Wuxi Autowell Technology Co. Ltd., A Shares (China)

     39,067       729,974  

Yangzhou Yangjie Electronic Technology Co. Ltd., A Shares (China)

     178,645       926,656  

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., A Shares (China)

     427,100       2,538,170  
    

 

 

 
       146,515,197  
    

 

 

 

Software-11.55%

    

360 Security Technology, Inc., A Shares (China)(b)

     2,334,300       2,864,407  

Beijing E-Hualu Information Technology Co. Ltd., A Shares (China)(b)

     219,600       870,226  

Beijing Kingsoft Office Software, Inc., A Shares (China)

     150,636       5,909,675  

Beijing Orient National Communication Science & Technology Co. Ltd., A Shares (China)(b)

     380,200       540,835  

Beijing Shiji Information Technology Co. Ltd., A Shares (China)(b)

     900,225       1,294,102  

China National Software & Service Co. Ltd., A Shares (China)

     283,930       1,332,722  

Empyrean Technology Co. Ltd. (China)

     342,985       4,836,782  

 

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

 

    39    

 

 

 

 


 

Invesco China Technology ETF (CQQQ)–(continued)

October 31, 2023

 

 

           Shares         Value  

Software-(continued)

    

Hundsun Technologies, Inc., A Shares (China)

     619,825      $ 2,635,787  

Iflytek Co. Ltd., A Shares (China)

     759,450       4,728,077  

Kingdee International Software Group Co. Ltd. (China)(b)

     11,993,186       15,909,985  

Longshine Technology Group Co. Ltd., A Shares (China)

     361,967       923,948  

Ming Yuan Cloud Group Holdings Ltd. (China)(b)(c)

     2,571,920       1,074,838  

Neusoft Corp., A Shares (China)(b)

     403,600       526,140  

Newland Digital Technology Co. Ltd., A Shares (China)

     340,500       796,102  

NSFOCUS Technologies Group Co. Ltd., A Shares (China)

     244,800       306,079  

Qi An Xin Technology Group, Inc. (China)(b)

     897,800       5,651,965  

Sangfor Technologies, Inc., A Shares (China)(b)

     48,814       559,639  

SenseTime Group, Inc., B Shares
(China)(b)(c)(d)

     71,907,317         12,865,865  

Shanghai Baosight Software Co. Ltd., A Shares (China)

     359,217       2,094,504  

Shanghai Baosight Software Co. Ltd., B Shares (China)

     2,820,691       5,799,341  

Shanghai Hyron Software Co. Ltd., A Shares (China)

     1,096,600       419,573  

Shenzhen Infogem Technologies Co. Ltd., A Shares (China)(b)

     233,000       383,340  

Shenzhen Kingdom Sci-Tech Co. Ltd., A Shares (China)

     310,300       495,252  

Sinosoft Co. Ltd., A Shares (China)

     69,820       292,042  

Thunder Software Technology Co. Ltd., A Shares (China)

     134,787       1,292,781  

Topsec Technologies Group, Inc., A Shares (China)(b)

     390,800       501,443  

Tuya, Inc., ADR (China)(b)

     1,009,824       1,726,799  

Yonyou Network Technology Co. Ltd., A Shares (China)

     1,119,104       2,503,346  
    

 

 

 
       79,135,595  
    

 

 

 
           Shares         Value  

Technology Hardware, Storage & Peripherals-1.24%

 

China Greatwall Technology Group Co. Ltd., A Shares (China)

     1,064,146      $ 1,596,633  

Inspur Electronic Information Industry Co. Ltd., A Shares (China)

     476,458       1,913,489  

Legend Holdings Corp., H Shares
(China)(d)

     2,425,533       2,160,617  

Ninestar Corp., A Shares (China)

     458,250       1,537,916  

Tsinghua Tongfang Co. Ltd., A Shares (China)(b)

     1,105,200       1,253,489  
    

 

 

 
       8,462,144  
    

 

 

 

Trading Companies & Distributors-0.18%

 

Beijing United Information Technology Co. Ltd., A Shares (China)

     238,579       1,226,458  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.10%
(Cost $817,075,029)

 

    685,728,055  
    

 

 

 

Investments Purchased with Cash Collateral

from Securities on Loan

 

 

Money Market Funds-3.77%

 

Invesco Private Government Fund,
5.32%(e)(f)(g)

     7,228,670       7,228,670  

Invesco Private Prime Fund, 5.53%(e)(f)(g)

     18,591,720       18,593,579  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $25,822,311)

 

    25,822,249  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-103.87%
(Cost $842,897,340)

 

    711,550,304  

OTHER ASSETS LESS LIABILITIES-(3.87)%

 

    (26,499,260
    

 

 

 

NET ASSETS-100.00%

 

  $ 685,051,044  
    

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

 

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

 

    40    

 

 

 

 


 

Invesco China Technology ETF (CQQQ)–(continued)

October 31, 2023

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

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

(d) 

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2023 was $120,973,811, which represented 17.66% of the Fund’s Net Assets.

(e) 

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

 

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

(Depreciation)
  Realized
  Gain  
   Value
October 31,  2023
   Dividend
Income

Investments in Affiliated

Money Market Funds:

                                     

Invesco Government & Agency Portfolio, Institutional Class

     $ 276,917           $ 154,170,712      $ (154,447,629 )     $ -     $ -      $ -      $ 84,424

Investments Purchased

with Cash Collateral from

Securities on Loan:

                                     

Invesco Private Government Fund

       13,979,864             200,970,626        (207,721,820 )       -       -        7,228,670        461,596 *

Invesco Private Prime Fund

       35,951,651             477,423,670        (494,793,634 )       (487 )       12,379        18,593,579        1,231,909 *
    

 

 

           

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

Total

     $ 50,208,432           $ 832,565,008      $ (856,963,083 )     $ (487 )     $ 12,379      $ 25,822,249      $ 1,777,929
    

 

 

           

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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

 

(f) 

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

(g) 

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

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

 

China

     100.10

 

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

 

    41    

 

 

 

 


 

Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)

October 31, 2023

Schedule of Investments

 

         Shares             Value        

Common Stocks & Other Equity Interests-99.77%

 

Australia-1.11%

    

BHP Group Ltd.

     23,094      $ 650,678  

REA Group Ltd.(a)

     6,090       554,129  
    

 

 

 
       1,204,807  
    

 

 

 

Canada-21.05%

    

ATS Corp.(b)

     19,892       669,156  

Cameco Corp.

     23,230       949,280  

Canadian Pacific Kansas City Ltd.

     15,498       1,099,177  

CGI, Inc., Class A(b)

     17,585       1,695,862  

Constellation Software, Inc.

     1,693       3,390,281  

Element Fleet Management Corp.

     69,221       935,412  

Enerplus Corp.

     112,026       1,892,317  

Fairfax Financial Holdings Ltd.

     719       597,693  

Finning International, Inc.

     19,644       525,821  

Ivanhoe Mines Ltd., Class A(a)(b)

     89,635       659,874  

Premium Brands Holdings Corp.

     26,637       1,713,057  

Quebecor, Inc., Class B

     31,262       644,269  

Stantec, Inc.

     9,372       572,818  

TFI International, Inc.

     11,304       1,249,160  

Thomson Reuters Corp.

     5,628       673,414  

TMX Group Ltd.

     33,256       691,830  

Tourmaline Oil Corp.

     32,924       1,739,108  

Whitecap Resources, Inc.

     271,116       2,091,592  

WSP Global, Inc.

     8,084       1,056,845  
    

 

 

 
       22,846,966  
    

 

 

 

France-7.70%

    

Alten S.A.

     6,977       820,803  

Eiffage S.A.

     6,716       608,368  

Hermes International S.C.A.

     885       1,646,010  

Legrand S.A.

     7,075       609,330  

L’Oreal S.A.

     2,091       875,566  

Rexel S.A.

     25,961       527,823  

Technip Energies N.V.

     24,534       535,505  

Veolia Environnement S.A.

     20,027       546,784  

Vinci S.A.(a)

     19,838       2,190,817  
    

 

 

 
       8,361,006  
    

 

 

 

Germany-4.29%

    

Allianz SE

     2,451       572,287  

Deutsche Post AG

     14,834       576,380  

Hannover Rueck SE

     6,323       1,392,155  

Mercedes-Benz Group AG

     8,817       516,584  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class R

     2,015       806,150  

Rheinmetall AG

     2,771       791,988  
    

 

 

 
       4,655,544  
    

 

 

 

Greece-0.91%

    

Mytilineos S.A.

     26,687       986,722  
    

 

 

 

Ireland-0.71%

    

AIB Group PLC

     177,166       766,661  
    

 

 

 

Israel-0.54%

    

Mizrahi Tefahot Bank Ltd.

     18,809       581,163  
    

 

 

 

Italy-5.36%

    

Banco BPM S.p.A.

     149,724       763,280  

Davide Campari-Milano N.V.(a)

     152,708       1,683,531  
         Shares             Value        

Italy-(continued)

    

Infrastrutture Wireless Italiane S.p.A.(a)(c)

     49,168      $ 536,337  

Interpump Group S.p.A.(a)

     34,469       1,435,490  

Terna S.p.A.

     94,842       724,392  

UniCredit S.p.A.

     27,241       680,252  
    

 

 

 
       5,823,282  
    

 

 

 

Japan-9.38%

    

ASICS Corp.

     19,648       613,526  

Haseko Corp.

     51,502       629,301  

Inpex Corp.

     42,718       615,616  

ITOCHU Corp.(a)

     30,483       1,081,483  

Kobe Steel Ltd.

     58,198       677,110  

Marubeni Corp.

     42,462       610,665  

Mitsubishi Corp.

     12,065       554,076  

Mitsubishi Heavy Industries Ltd.

     10,734       545,188  

Mitsui & Co. Ltd.

     16,359       585,141  

Mitsui OSK Lines Ltd.(a)

     43,196       1,107,531  

Nippon Steel Corp.

     25,374       541,509  

NOF Corp.

     17,975       704,187  

Sanrio Co. Ltd.

     15,270       645,304  

Sumitomo Forestry Co. Ltd.

     21,032       490,786  

Toyota Tsusho Corp.

     14,892       777,418  
    

 

 

 
       10,178,841  
    

 

 

 

Netherlands-8.34%

    

Arcadis N.V.

     14,260       601,707  

ASM International N.V.(a)

     7,911       3,248,610  

ASML Holding N.V.(a)

     5,023       3,001,354  

Koninklijke Ahold Delhaize N.V.

     35,974       1,064,687  

Wolters Kluwer N.V.

     8,873       1,135,768  
    

 

 

 
       9,052,126  
    

 

 

 

Norway-1.18%

    

Equinor ASA

     18,360       615,386  

Kongsberg Gruppen ASA

     16,381       668,630  
    

 

 

 
       1,284,016  
    

 

 

 

Singapore-5.04%

    

Keppel Corp. Ltd.

     122,074       553,323  

Keppel REIT

     24,414       14,167  

Oversea-Chinese Banking Corp. Ltd.

     134,510       1,244,908  

Sembcorp Industries Ltd.

     401,824       1,346,208  

Singapore Exchange Ltd.

     333,731       2,306,801  
    

 

 

 
       5,465,407  
    

 

 

 

South Korea-0.40%

    

POSCO Holdings, Inc.

     1,424       433,880  
    

 

 

 

Spain-0.69%

    

Banco de Sabadell S.A.

     608,760       753,491  
    

 

 

 

Sweden-1.26%

    

Atlas Copco AB, Class A(a)

     105,897       1,366,761  
    

 

 

 

Switzerland-19.32%

    

ABB Ltd.

     28,255       945,093  

Belimo Holding AG

     5,749       2,406,867  

BKW AG

     6,970       1,168,751  

Chocoladefabriken Lindt & Spruengli AG

     21       2,284,490  

Flughafen Zureich AG

     15,010       2,790,717  

Kuehne + Nagel International AG, Class R

     10,501       2,821,268  

Novartis AG

     6,872       638,381  

 

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

 

    42    

 

 

 

 


 

Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)–(continued)

October 31, 2023

    

 

         Shares       Value  

Switzerland-(continued)

 

Sandoz Group AG(b)

     1,375      $ 35,733  

Schindler Holding AG, PC

     10,010       2,015,089  

Siegfried Holding AG(b)

     1,142       902,883  

Sika AG

     8,150       1,942,459  

Swiss Life Holding AG

     2,117       1,353,410  

VAT Group AG(a)(c)

     3,002       1,057,900  

Zurich Insurance Group AG(a)

     1,291       610,851  
    

 

 

 
       20,973,892  
    

 

 

 

United Kingdom-10.62%

    

3i Group PLC

     61,302       1,439,016  

Ashtead Group PLC

     9,604       548,203  

AstraZeneca PLC

     6,363       791,422  

BAE Systems PLC

     46,617       624,505  

Centrica PLC

     411,168       784,820  

Diploma PLC

     66,574       2,295,889  

InterContinental Hotels Group PLC

     43,540       3,069,635  

RELX PLC

     20,084       698,959  

Rentokil Initial PLC

     127,927       647,012  

Rolls-Royce Holdings PLC(b)

     238,820       624,221  
    

 

 

 
       11,523,682  
    

 

 

 

United States-1.87%

    

Ferrovial SE(a)

     25,264       759,463  

Samsonite International S.A.(b)(c)

     201,300       622,583  

Tenaris S.A.

     41,057       644,015  
    

 

 

 
       2,026,061  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.77%
(Cost $109,015,217)

       108,284,308  
    

 

 

 
         Shares       Value  

Investments Purchased with Cash Collateral from

Securities on Loan

 

 

Money Market Funds-11.12%

    

Invesco Private Government Fund,
5.32%(d)(e)(f)

     3,378,573      $ 3,378,573  

Invesco Private Prime Fund, 5.53%(d)(e)(f)

     8,689,105       8,689,974  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $12,068,541)

       12,068,547  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-110.89%
(Cost $121,083,758)

 

    120,352,855  

OTHER ASSETS LESS LIABILITIES-(10.89)%

 

    (11,819,595
    

 

 

 

NET ASSETS-100.00%

     $ 108,533,260  
    

 

 

 

Investment Abbreviations:

PC-Participation Certificate

REIT-Real Estate Investment Trust

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2023 was $2,216,820, which represented 2.04% of the Fund’s Net Assets.

(d) 

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

 

     Value
October 31, 2022
   Purchases
     at Cost     
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
   Realized
  Gain  
   Value
October 31, 2023
   Dividend
Income

Investments in Affiliated Money Market Funds:

                                      

Invesco Government & Agency Portfolio, Institutional Class

       $                    -             $    8,127,950        $  (8,127,950       $      -        $        -        $               -        $    1,691  

 

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

 

    43    

 

 

 

 


 

Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)–(continued)

October 31, 2023

    

 

     Value
October 31, 2022
   Purchases
     at Cost     
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
  Gain  
   Value
October 31, 2023
   Dividend
Income