LOGO  

 

Invesco Annual Report to Shareholders

 

 

October 31, 2021

 

  CQQQ   Invesco China Technology ETF
  PIZ   Invesco DWA Developed Markets Momentum ETF
  PIE   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      4  
Schedules of Investments   

Invesco China Technology ETF (CQQQ)

     30  

Invesco DWA Developed Markets Momentum ETF (PIZ)

     34  

Invesco DWA Emerging Markets Momentum ETF (PIE)

     37  

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

     40  

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

     51  

Invesco FTSE RAFI Emerging Markets ETF (PXH)

     66  

Invesco Global Clean Energy ETF (PBD)

     72  

Invesco Global Water ETF (PIO)

     75  

Invesco International BuyBack AchieversTM ETF (IPKW)

     77  

Invesco MSCI Global Timber ETF (CUT)

     79  

Invesco MSCI Green Building ETF (GBLD)

     81  

Invesco S&P Global Water Index ETF (CGW)

     83  

Invesco S&P International Developed Quality ETF (IDHQ)

     85  
Statements of Assets and Liabilities      90  
Statements of Operations      92  
Statements of Changes in Net Assets      94  
Financial Highlights      99  
Notes to Financial Statements      112  
Report of Independent Registered Public Accounting Firm      128  
Fund Expenses      130  
Tax Information      132  
Trustees and Officers      133  

 

 

  2  

 


 

The Market Environment

 

 

 

Domestic Equity

US equity markets posted gains in the fourth quarter of 2020, as positive news on coronavirus (“COVID-19”) vaccines and strong corporate earnings outweighed investor concerns about the political disagreement over a fiscal stimulus package and sharply rising COVID-19 infections nationwide. Cyclical sectors like energy and financials led the way, while real estate and consumer staples lagged. Market leadership also shifted during the quarter with value stocks outperforming growth for the first time since the fourth quarter of 2016. While the US economy rebounded significantly since the pandemic began, the recovery appeared to slow in the fourth quarter with employment gains and gross domestic product (GDP) growth down from the third quarter of 2020. However, stocks were buoyed by the US Federal Reserve’s (the Fed’s) pledge to maintain its accommodative stance and asset purchases, “until substantial further progress has been made” toward employment and inflation targets.

US political unrest and rising COVID-19 infection rates marked the start of the first quarter of 2021. Additionally, retail investors bid up select stocks like GameStop and AMC Theaters, ultimately causing a sharp selloff in late January. Corporate earnings generally beat expectations, but market volatility rose during the quarter as investors worried about rising bond yields and inflation. Despite the Fed’s commitment to an accommodative policy, the 10-year US Treasury yield rose from 0.92% at year-end to 1.74%1 at the end of March 2021. Approval of a third COVID-19 vaccine boosted investors’ optimism for faster economic recovery. Although March saw increased volatility with consecutive down days in the US stock market, stocks continued to hit all-time highs through April 2021.

The US stock market once again hit new highs in the second quarter of 2021, despite higher volatility stemming from inflation concerns and the potential for rising interest rates. Investors remained optimistic about the strength of the economic recovery after the Bureau of Economic Analysis reported that the US GDP grew at a 6.4% annualized rate for the first quarter of 2021.2 Corporate earnings also remained strong as the majority of S&P 500 companies beat Wall Street earnings forecasts. US equity markets continued to move higher in July despite inflation concerns and increasing COVID-19 infection rates due to the rapidly spreading Delta variant. Despite the Consumer Price Index (CPI) increasing in June through September 2021,3 the Fed declined to raise interest rates at its September Federal Open Market Committee (FOMC) meeting. The US stock market saw continued volatility in August 2021 and a selloff through most of September due to increasing concerns of inflation due to a spike in oil prices and supply chain shortages causing rising costs. In October 2021, investor sentiment improved as many S&P 500 index companies met or exceeded earnings expectations and the index hit new record highs. For the fiscal year, the S&P 500 Index returned 42.91%.4

 

1 

Source: US Department of the Treasury

2 

Source: US Bureau of Economic Analysis

3 

Source: US Bureau of Labor Statistics, July 13, 2021

4 

Source: Lipper Inc.

Global Equity

At the beginning of the fiscal year, global equity markets posted gains as good news about COVID-19 vaccines outweighed concerns about sharply rising infection rates and tightening social restrictions. In most global regions, equity market leadership shifted as value stocks outperformed growth stocks. Emerging market equities posted robust gains amplified by US dollar weakness.

Global equity markets ended the first quarter of 2021 in positive territory amid concerns about rising bond yields and inflation. The value-led equity rally continued in most regions, with value stocks outperforming growth stocks. The successful rollout of COVID-19 vaccinations in the US and UK benefited equity markets. However, even regions facing slower rollouts, including the Eurozone and Japan, performed well, driven by a rebound in global demand for goods.

During the second quarter of 2021, global equity markets were again bolstered by the continued acceleration of vaccination rollouts and easing of COVID-19 related restrictions in most developed markets. In a reversal from the first quarter, growth stocks outperformed value stocks in most regions. Emerging market equities were led by Brazil which benefited from global tailwinds, while regulatory concerns weighed on Chinese equities.

Developed global equity markets were flat in the third quarter of 2021 amid concerns about rising inflation, supply disruptions and the economic growth rate. Energy stocks and energy-driven markets performed well as global shortages pushed oil and gas prices higher. Emerging market equities declined during the quarter, primarily due to weak performance from Chinese equities, which were affected by significant regulatory changes in the private tutoring industry, increased regulation in the technology sector and the potential default of a large Chinese property developer.

In October of 2021, global equity stocks were positive with the US market leading the way, and Chinese equities rebounded after their decline in the third quarter. Overall, developed market equities outperformed emerging market equities for the fiscal year.

 

 

  3  

 


 

 

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 FTSE China Incl A 25% Technology 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, FTSE International Limited (the “Index Provider”) compiles, maintains, and calculates the Index. The Index is composed of securities of companies 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), B-shares, H-shares, N-shares, Red Chip shares, P-chip shares and S-chip shares. 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, 2021, on a market price basis, the Fund returned (7.75)%. On a net asset value (“NAV”) basis, the Fund returned (6.41)%. During the same time period, the Index returned (5.69)%. 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.

During this same time period, the MSCI China Index (Net) (the “Benchmark Index”) returned (9.21)%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 714 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 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 based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the interactive media & services industry and most underweight the internet & direct marketing retail industry during the fiscal year ended October 31, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation to the internet & direct marketing retail industry as well as the Fund’s security selection within the internet & direct marketing retail industry.

For the fiscal year ended October 31, 2021, the electronic components industry contributed most significantly to the Fund’s

return, followed by the semiconductors and application software industries, respectively. The interactive media & services industry detracted most significantly from the Fund’s return, followed by the interactive home entertainment and movies & entertainment industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Sunny Optical Technology (Group) Co., Ltd., an electronic components company (portfolio average weight of 7.30%), and Baidu, Inc., ADR, Class A, an interactive media & services company (portfolio average weight of 8.62%). Positions that detracted most significantly from the Fund’s return included Kuaishou Technology Class B, an interactive media & services company (portfolio average weight of 2.21%), and Autohome, Inc., ADR, Class A, an interactive media & services company (portfolio average weight of 3.16%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Interactive Media & Services      30.95  
Semiconductors & Semiconductor Equipment      15.33  
Software      11.13  
Internet & Direct Marketing Retail      10.53  
Electronic Equipment, Instruments & Components      9.58  
Entertainment      9.14  
IT Services      6.80  
Industry Types Each Less Than 3%      6.60  
Money Market Funds Plus Other Assets Less Liabilities      (0.06)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Tencent Holdings Ltd.      10.26  
Meituan, B Shares      9.78  
Baidu, Inc., ADR      8.26  
Kuaishou Technology      6.66  
Bilibili, Inc., ADR      6.43  
Kingdee International Software Group Co. Ltd.      4.07  
GDS Holdings Ltd., ADR      3.95  
Sunny Optical Technology Group Co. Ltd.      3.78  
LONGi Green Energy Technology Co. Ltd., A Shares      3.36  
Tencent Music Entertainment Group, ADR      2.65  
Total      59.20  

 

*

Excluding money market fund holdings.

 

 

  4  

 


 

Invesco China Technology ETF (CQQQ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

    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)     (5.69 )%      20.51     75.00     13.27     86.49     12.72     231.05       10.29     220.44
MSCI China Index (Net)     (9.21     11.49       38.57       10.23       62.77       7.49       105.96         5.27       84.18  
Fund                    
NAV Return     (6.41     19.70       71.50       12.62       81.19       12.48       224.18         10.04       211.97  
Market Price Return     (7.75     19.07       68.80       12.43       79.67       12.58       227.13         9.95       209.01  

 

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 from Fund inception to the conversion date, June 21, 2019, followed by the performance of the Index, starting from the conversion date through October 31, 2021.

 

 

  5  

 


 

 

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

 

As an index fund, the Invesco DWA Developed Markets Momentum ETF (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 with developed economies, 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 of 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, 2021, on a market price basis, the Fund returned 35.26%. On a net asset value (“NAV”) basis, the Fund returned 34.70%. During the same time period, the Index returned 35.42%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 34.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 850 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 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 information technology sector and most underweight in the financials sector during the fiscal period ended October 31, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight in the information technology sector.

For the fiscal year ended October 31, 2021, the industrials sector contributed most significantly to the Fund’s return followed by the information technology and financials sectors, respectively. The communication services 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, 2021 included ASM International N.V., an information technology company (portfolio average weight of 2.30%), and ASML Holding NV, an information technology company (portfolio average weight of 2.32%). Positions that detracted most significantly from the Fund’s return included NEXON Co., Ltd., a communication services company (no longer held at fiscal year-end), and Seegene, Inc., a health care company (no longer held at fiscal year-end).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Information Technology      30.80  
Industrials      30.57  
Health Care      14.58  
Financials      6.17  
Consumer Staples      5.18  
Consumer Discretionary      4.81  
Materials      3.73  
Sector Types Each Less Than 3%      3.96  
Money Market Funds Plus Other Assets Less Liabilities      0.20  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Boyd Group Services, Inc.      3.08  
Mainfreight Ltd.      2.89  
Nemetschek SE      2.89  
Constellation Software, Inc.      2.72  
AddTech AB, Class B      2.55  
Royal Unibrew A/S      2.52  
Recordati Industria Chimica e Farmaceutica S.p.A.      2.41  
BE Semiconductor Industries N.V.      2.35  
Lasertec Corp.      2.32  
ASM International N.V.      2.28  
Total      26.01  

 

*

Excluding money market fund holdings.

 

 

  6  

 


 

Invesco DWA Developed Markets Momentum ETF (PIZ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

    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)     35.42     19.66     71.32     14.43     96.24     10.46     170.38       5.96     122.78
MSCI EAFE® Index (Net)     34.18       11.54       38.77       9.79       59.55       7.37       103.58         3.10       52.53  
Fund                    
NAV Return     34.70       18.79       67.63       13.68       89.86       9.52       148.23         5.03       97.36  
Market Price Return     35.26       18.99       68.46       13.75       90.48       9.64       151.07         5.01       96.67  

 

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.

 

 

  7  

 


 

 

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

 

As an index fund, the Invesco DWA Emerging Markets Momentum ETF (the “Fund”) is passively managed and 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 emerging market countries. 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 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, 2021, on a market price basis, the Fund returned 28.17%. On a net asset value (“NAV”) basis, the Fund returned 29.35%. During the same time period, the Index returned 32.60%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred as well as trading costs and slippage associated with quarterly rebalances.

During this same time period, the MSCI Emerging Markets Index (Net) (the “Benchmark Index”) returned 16.96%. 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 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 semiconductors sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended October 31, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund being underweight in the internet & direct marketing retail sub-industry and the Fund’s security selection in the marine & electronic components sub-industries.

For the fiscal year ended October 31, 2021, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and materials sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the communication services and energy sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Yang Ming Marine Transport Corp., an industrials company (no longer held at fiscal year-end), and Wan Hai Lines Ltd., an industrials company (portfolio average weight of 1.21%). Positions that detracted most significantly from the Fund’s return included Fitipower Integrated Technology Inc., an information technology company (no longer held at fiscal year-end), and Accton Technology Corp., an information technology (no longer held at fiscal year-end).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Information Technology      37.24  
Consumer Discretionary      16.91  
Industrials      12.52  
Financials      12.06  
Consumer Staples      6.44  
Materials      6.26  
Sector Types Each Less Than 3%      8.56  
Money Market Funds Plus Other Assets Less Liabilities      0.01  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
AP Memory Technology Corp.      4.21  
China Meidong Auto Holdings Ltd.      3.05  
Frontken Corp. Bhd.      2.84  
Sinbon Electronics Co. Ltd.      2.52  
Nan Ya Printed Circuit Board Corp.      2.47  
Shenzhou International Group Holdings Ltd.      2.26  
Voltronic Power Technology Corp.      2.20  
Li Ning Co. Ltd.      2.18  
Yulon Finance Corp.      2.16  
ANTA Sports Products Ltd.      2.15  
Total      26.04  

 

*

Excluding money market fund holdings.

 

 

  8  

 


 

Invesco DWA Emerging Markets Momentum ETF (PIE) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

    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)     32.60     19.74     71.68     13.00     84.21     7.17     99.93       3.85     68.63
MSCI Emerging Markets Index (Net)     16.96       12.30       41.62       9.39       56.67       4.88       60.99         2.51       40.89  
Fund                    
NAV Return     29.35       17.87       63.76       11.27       70.59       5.84       76.40         1.13       16.89  
Market Price Return     28.17       17.69       63.03       11.14       69.54       5.81       75.98         1.03       15.29  

 

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.

 

 

  9  

 


 

 

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 (“RA”, and 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, 2021, on a market price basis, the Fund returned 44.22%. On a net asset value (“NAV”) basis, the Fund returned 44.49%. During the same time period, the Index returned 44.98%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund during the period.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 34.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 850 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, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight exposure to and security selection in the financials and energy

sectors, as well as the Fund’s security selection in the consumer discretionary sector.

For the fiscal year ended October 31, 2021, the financials sector contributed most significantly to the Fund’s return, followed by the consumer discretionary and energy sectors, respectively. No sector detracted from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Daimler AG, a consumer discretionary company (portfolio average weight of 0.99%), and TotalEnergies SE, an energy company (portfolio average weight of 1.14%). Positions that detracted most significantly from the Fund’s return included Barrick Gold Corp., a materials company (portfolio average weight of 0.13%), and Takeda Pharmaceutical Co. Ltd., a health care company (portfolio average weight of 0.30%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Financials      24.71  
Industrials      13.45  
Consumer Discretionary      11.15  
Energy      9.26  
Materials      8.46  
Consumer Staples      7.98  
Health Care      7.10  
Information Technology      5.61  
Communication Services      4.91  
Utilities      4.59  
Real Estate      2.36  
Money Market Funds Plus Other Assets Less Liabilities      0.42  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Nestle S.A.      1.29  
Samsung Electronics Co. Ltd.      1.28  
BP PLC      1.25  
TotalEnergies SE      1.23  
Royal Dutch Shell PLC, Class A      1.00  
Roche Holding AG      0.96  
Royal Dutch Shell PLC, Class B      0.90  
Daimler AG      0.88  
Royal Bank of Canada      0.88  
Toronto-Dominion Bank (The)      0.81  
Total      10.48  

 

*

Excluding money market fund holdings.

 

 

  10  

 


 

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, 2021

 

    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)     44.98     9.86     32.58     9.08     54.44     6.69     91.05       3.01     52.94
MSCI EAFE® Index (Net)     34.18       11.54       38.77       9.79       59.55       7.37       103.58         3.07       54.23  
Fund                    
NAV Return     44.49       9.70       32.01       8.90       53.18       6.45       86.87         2.62       44.94  
Market Price Return     44.22       9.78       32.29       8.94       53.46       6.61       89.62         2.61       44.80  

 

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.

 

 

  11  

 


 

 

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 U.S. 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”, and 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, 2021, on a market price basis, the Fund returned 35.26%. On a net asset value (“NAV”) basis, the Fund returned 34.34%. During the same time period, the Index returned 34.88%. During the fiscal year the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE® Small Cap Index (Net) (the “Benchmark Index”) returned 35.77%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,400 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 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 energy sector and most underweight in the real estate sector during the fiscal year ended October 31, 2021. 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 industrials and financials sectors.

For the fiscal year ended October 31, 2021, the industrials sector contributed most significantly to the Fund’s return, followed by the consumer discretionary and materials sectors, respectively. No sector detracted from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included HMM Co. Ltd. an industrials company (portfolio average weight of 0.25%), and Baytex Energy Corp., an energy company (portfolio average weight of 0.10%). Positions that detracted most significantly from the Fund’s return included Nagoya Railroad Co. Ltd., an industrials company (portfolio average weight of 0.06%), and Sun Art Retail Group Ltd., a consumer staples company (portfolio average weight of 0.08%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Industrials      22.14  
Consumer Discretionary      13.76  
Real Estate      10.98  
Materials      10.55  
Financials      10.23  
Information Technology      7.58  
Consumer Staples      7.32  
Health Care      5.49  
Communication Services      5.30  
Energy      3.92  
Utilities      2.53  
Money Market Funds Plus Other Assets Less Liabilities      0.20  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Bombardier, Inc., Class B      0.34  
Samsung Engineering Co. Ltd.      0.26  
ASM International N.V.      0.21  
Stantec, Inc.      0.21  
Aker BP ASA      0.20  
Doosan Co. Ltd.      0.20  
IMCD N.V.      0.20  
Baytex Energy Corp.      0.20  
Spirax-Sarco Engineering PLC      0.20  
Kolon Industries, Inc.      0.20  
Total      2.22  

 

*

Excluding money market fund holdings.

 

 

  12  

 


 

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

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

   

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)     34.88     11.81     39.79     9.75     59.23     8.34     122.77       5.79     120.89
MSCI EAFE® Small Cap Index (Net)     35.77       13.37       45.73       11.37       71.30       10.13       162.51         5.57       114.74  
Fund                    
NAV Return     34.34       11.48       38.55       9.40       56.71       7.89       113.73         5.28       106.44  
Market Price Return     35.26       11.75       39.57       9.61       58.24       8.23       120.51         5.23       105.23  

 

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.

 

 

  13  

 


 

 

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”, and 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. While the Fund generally seeks to invest in all of the securities comprising the Index in proportion to their weightings in the Index, at times the composition of the Index may make such “full replication” impracticable. In such circumstances, the Fund will utilize a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended October 31, 2021, on a market price basis, the Fund returned 31.28%. On a net asset value (“NAV”) basis, the Fund returned 31.79%. During the same time period, the Index returned 33.17%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index during the period primarily due to Indian capital gains taxes incurred, as well as the fees and expenses that the Fund incurred.

During this same time period, the MSCI Emerging Markets Index (Net) (the “Benchmark Index”) returned 16.96%. 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 consumer discretionary sector during the fiscal year ended October 31, 2021. 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 and security selection in the consumer

discretionary sector, as well as the Fund’s overweight exposure to and security selection in the energy sector.

For the fiscal year ended October 31, 2021, the energy sector contributed most significantly to the Fund’s return, followed by the financials and information technology sectors, respectively. The real estate sector was the only sector that detracted from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Gazprom PJSC., an energy company (portfolio average weight of 2.40%), and Taiwan Semiconductor Manufacturing Co. Ltd., an information technology company (portfolio average weight of 4.69%). Positions that detracted most significantly from the Fund’s return included Alibaba Group Holding Ltd., a consumer discretionary company (portfolio average weight of 1.17%), and Ping An Insurance Group Co. of China Ltd. Cl. H, a financials company (portfolio average weight of 1.42%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Financials      32.26  
Energy      18.14  
Information Technology      12.98  
Materials      10.13  
Consumer Discretionary      6.49  
Communication Services      5.40  
Consumer Staples      4.50  
Utilities      3.63  
Industrials      3.28  
Sector Types Each Less Than 3%      3.12  
Money Market Funds Plus Other Assets Less Liabilities      0.07  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Taiwan Semiconductor Manufacturing Co. Ltd.      3.70  
Gazprom PJSC      3.23  
Hon Hai Precision Industry Co. Ltd.      2.88  
Sberbank of Russia PJSC      2.72  
China Construction Bank Corp., H Shares      2.61  
Industrial & Commercial Bank of China Ltd., H Shares      2.45  
Lukoil PJSC      1.81  
Petroleo Brasileiro S.A., Preference Shares      1.74  
Itau Unibanco Holding S.A., Preference Shares      1.65  
Alibaba Group Holding Ltd.      1.63  
Total      24.42  

 

*

Excluding money market fund holdings.

 

 

  14  

 


 

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

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

   

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)     33.17     8.08     26.25     7.43     43.09     3.84     45.72       2.65     44.66
MSCI Emerging Markets Index (Net)     16.96       12.30       41.62       9.39       56.67       4.88       60.99         2.74       46.42  
Fund                    
NAV Return     31.79       7.30       23.55       6.87       39.44       3.30       38.40         1.61       25.28  
Market Price Return     31.28       7.14       23.00       6.80       38.94       3.24       37.53         1.43       22.07  

 

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 0.50% includes the unitary management fee of 0.49% and acquired fund fees and expenses of 0.01%. 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.

 

 

  15  

 


 

 

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 companies 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 Index Provider selects securities principally on the basis of their capital appreciation potential as identified by the Index Provider pursuant to a proprietary methodology, with a bias placed on renewable energy companies. 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, 2021, on a market price basis, the Fund returned 37.26%. On a net asset value (“NAV”) basis, the Fund returned 37.31%. During the same time period, the Index returned 38.13%. 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 the fees and operating expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 34.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 850 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 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 heavy electrical equipment sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended October 31, 2021. 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 electrical components & equipment and semi-conductor & equipment sub-industries.

For the fiscal year ended October 31, 2021, the heavy electrical equipment sub-industry contributed most significantly to the Fund’s return, followed by the pharmaceuticals and interactive home entertainment sub-industries, respectively. The asset management & custody banks sub-industry detracted most significantly from the Fund’s return, followed by the airlines and trading companies & distribution sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included FuelCell Energy, Inc., an electrical components & equipment company (portfolio average weight of 1.19%), and Renova, Inc., a renewable electricity company (portfolio average weight of 1.06%). Positions that detracted most significantly from the Fund’s return included Lordstown Motors Corp. Class A, an automobile manufacturers company (portfolio average weight of 0.56%), and QuantumScape Corporation Class A, an auto parts & equipment company (portfolio average weight of 0.56%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Electrical Components & Equipment      18.46  
Renewable Electricity      15.59  
Heavy Electrical Equipment      10.60  
Semiconductors      8.82  
Semiconductor Equipment      5.25  
Automobile Manufacturers      4.82  
Construction & Engineering      3.89  
Electric Utilities      3.67  
Oil & Gas Refining & Marketing      3.46  
Specialty Chemicals      3.45  
Sub-Industry Types Each Less than 3%      22.05  
Money Market Funds Plus Other Assets Less Liabilities      (0.06)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Bloom Energy Corp., Class A      1.19  
Plug Power, Inc.      1.14  
SunPower Corp.      1.14  
Enphase Energy, Inc.      1.10  
Li-Cycle Holdings Corp.      1.08  
QuantumScape Corp.      1.03  
American Superconductor Corp.      1.03  
Wolfspeed, Inc.      1.02  
NEL ASA      1.00  
Sunrun, Inc.      0.99  
Total      10.72  

 

*

Excluding money market fund holdings.

 

 

  16  

 


 

Invesco Global Clean Energy ETF (PBD) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

   

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     38.13     44.03     198.79     26.23     220.48     14.19     276.92       3.38     61.33
MSCI EAFE® Index (Net)     34.18       11.54       38.77       9.79       59.55       7.37       103.58         3.19       57.02  
Fund                    
NAV Return     37.31       43.88       197.87       25.99       217.41       13.91       267.85         2.69       46.52  
Market Price Return     37.26       44.02       198.74       26.09       218.70       14.07       272.88         2.64       45.52  

 

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.

 

 

  17  

 


 

 

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, 2021, on a market price basis, the Fund returned 35.26%. On a net asset value (“NAV”) basis, the Fund returned 35.17%. During the same time period, the Index returned 35.22%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, which were largely offset by the lower realized tax on the dividends received by the Fund versus the tax rate applied to dividends in the Index.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 34.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 850 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 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 water utilities sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended October 31, 2021. 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 multi-utilities and electric utilities sub-industries.

For the fiscal year ended October 31, 2021, the industrial machinery sub-industry contributed most significantly to the Fund’s return, followed by the building products and multi-utilities

sub-industries, respectively. The diversified support services sub- industry was the only detractor from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Geberit AG, a building products company (portfolio average weight of 7.22%), and Ferguson Plc, a trading companies & distributors company (portfolio average weight of 6.20%). Positions that detracted most significantly from the Fund’s return included Itron, Inc., an electronic equipment & instruments company (portfolio average weight of 0.54%) and HomeServe Plc., a diversified support services company (portfolio average weight of 1.23%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Industrials      50.16  
Utilities      23.78  
Health Care      11.56  
Materials      8.11  
Information Technology      3.96  
Sector Types Each Less Than 3%      2.23  
Money Market Funds Plus Other Assets Less Liabilities      0.20  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Ecolab, Inc.      8.11  
Danaher Corp.      7.91  
Pentair PLC      7.88  
Ferguson PLC      6.45  
Geberit AG      6.39  
Roper Technologies, Inc.      4.15  
American Water Works Co., Inc.      3.93  
Veolia Environnement S.A.      3.92  
Waters Corp.      3.65  
Xylem, Inc.      3.57  
Total      55.96  

 

*

Excluding money market fund holdings.

 

 

  18  

 


 

Invesco Global Water ETF (PIO) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

   

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—NASDAQ OMX Global Water IndexSM     35.22     22.35     83.16     16.07     110.69     10.85     180.03       5.44     114.21
MSCI EAFE® Index (Net)     34.18       11.54       38.77       9.79       59.55       7.37       103.58         3.19       57.02  
Fund                    
NAV Return     35.17       22.13       82.15       15.87       108.85       10.86       180.41         5.10       104.58  
Market Price Return     35.26       22.23       82.63       15.92       109.36       11.02       184.35         4.96       100.70  

 

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 prior to the conversion date, March 1, 2012, followed by the performance of the Index, starting from the conversion date through October 31, 2021.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  19  

 


 

 

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 the 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 cash 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, 2021, on a market price basis, the Fund returned 41.72%. On a net asset value (“NAV”) basis, the Fund returned 41.93%. During the same time period, the Index returned 42.91%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund during the period, which were compounded during a period of high return.

During this same time period, the MSCI ACWI ex USA® Index (Net) (the “Benchmark Index”) returned 29.66%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 2,350 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 communication services sector and most underweight in the consumer staples sector during the fiscal year ended October 31, 2021. 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, and security selection in, the consumer discretionary and information technology sectors.

For the fiscal year ended October 31, 2021, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and consumer discretionary sectors, respectively. No sector detracted from Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Wipro Ltd. ADR, an information technology company (no longer held at fiscal year-end) and Tokyo Electron Ltd.., an information technology company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included POSCO, a materials company (portfolio average weight of 1.21%) and Scout24 SE, a communication services company (portfolio average weight of 1.20%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Industrials      23.79  
Financials      23.65  
Communication Services      15.17  
Materials      10.75  
Consumer Discretionary      9.27  
Energy      7.76  
Real Estate      7.44  
Sector Types Each Less Than 3%      1.50  
Money Market Funds Plus Other Assets Less Liabilities      0.67  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Vivendi SE      5.10  
abrdn PLC      5.05  
Aroundtown S.A.      5.02  
Brambles Ltd.      4.84  
ACS Actividades de Construccion y Servicios S.A.      4.82  
SoftBank Group Corp.      4.65  
POSCO      4.54  
Scout24 SE      4.20  
CI Financial Corp.      2.80  
Quilter PLC      2.77  
Total      43.79  

 

*

Excluding money market fund holdings.

 

 

  20  

 


 

Invesco International Buyback AchieversTM ETF (IPKW) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2021

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
NASDAQ International BuyBack Achievers Index (Net)     42.91     15.58     54.41     12.35     79.03       10.44     114.20
MSCI ACWI ex USA® Index (Net)     29.66       12.00       40.50       9.77       59.40         5.54       51.27  
Fund                
NAV Return     41.93       14.85       51.50       11.68       73.77         9.73       103.79  
Market Price Return     41.72       14.94       51.84       11.64       73.39         9.65       102.75  

 

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.

 

 

  21  

 


 

 

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 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, 2021, on a market price basis, the Fund returned 31.95%. On a net asset value (“NAV”) basis, the Fund returned 31.95%. During the same time period, the Index returned 32.26%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund during the period, which were partially offset by the lower realized tax on the dividends received by the Fund versus the tax rate applied to dividends in the Index.

During this same time period, the MSCI World Index (Net) (the “Benchmark Index”) returned 40.42%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 1,561 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 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 diversified banks sub-industry during the fiscal year ended October 31, 2021. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight in the paper packaging sub-industry.

For the fiscal year ended October 31, 2021, the paper packaging sub-industry contributed most significantly to the Fund’s return, followed by the paper products and forest products sub-industries, respectively. There were no detracting sub-industries from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Avery Dennison Corporation, a paper packaging company (portfolio average weight of 5.11%) and Smurfit Kappa Group Plc, a paper packaging company (portfolio average weight of 4.64%).

Positions that detracted most significantly from the Fund’s return included Huhtamaki Oyj, a paper packaging company (portfolio average weight of 1.80%) and Sylvamo Corporation, a paper products company (portfolio average weight of 0.02%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Materials      90.64  
Real Estate      8.94  
Financials      0.28  
Money Market Funds Plus Other Assets Less Liabilities      0.14  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Weyerhaeuser Co.      5.51  
Avery Dennison Corp.      5.29  
Amcor PLC      5.09  
Packaging Corp. of America      4.89  
WestRock Co.      4.81  
Smurfit Kappa Group PLC      4.81  
UPM-Kymmene OYJ      4.62  
Mondi PLC      4.56  
International Paper Co.      4.47  
Stora Enso OYJ, Class R      3.64  
Total      47.69  

 

*

Excluding money market fund holdings.

 

 

  22  

 


 

Invesco MSCI Global Timber ETF (CUT) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

    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)     32.26     11.72     39.44     10.76     66.69     10.14     162.63       5.54     112.50
MSCI World Index (Net)     40.42       18.20       65.16       15.45       105.12       12.19       215.97         7.15       162.62  
Fund                    
NAV Return     31.95       11.71       39.40       10.77       66.76       9.74       153.39         4.73       90.66  
Market Price Return     31.95       11.77       39.61       10.81       67.06       9.83       155.48         4.72       90.58  

 

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, 2023. According to the Fund’s current prospectus, the total gross annual operating expense ratio is indicated as 0.72% 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 prior to the conversion date, May 20, 2016, followed by the performance of the Index, starting from the conversion date through October 31, 2021.

 

-

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.

 

 

  23  

 


 

 

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 to provide exposure to the environment 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 8,700 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 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.

During the fiscal period from the Fund’s inception (April 22, 2021) through October 31, 2021, on a market price basis, the Fund returned (2.30)%. On a net asset value (“NAV”) basis, the Fund returned (2.74)%. During the same time period, the Index returned (2.70)%. During the fiscal period, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the MSCI All Country World IMI-NR (the “Benchmark Index”) returned 7.14%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,979 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 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 period ended October 31, 2021. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight in the real estate development sub-industry and underweight in the systems software sub-industry.

For the fiscal period ended October 31, 2021, the office REITs sub-industry contributed most significantly to the Fund’s return, followed by the industrial REITs and department stores sub-industries, respectively. The real estate development sub- industry detracted most significantly from the Fund’s return, followed by the diversified real estate activities and diversified REITs sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal period ended October 31, 2021 included Boston Properties, Inc., an office REITs company (portfolio average weight of 6.15%), and Meritage Homes Corporation, a homebuilding company (portfolio average weight of 1.40%). Positions that detracted most significantly from the Fund’s return included Sun Hung Kai Properties Ltd., a diversified real estate activities company (portfolio average weight of 5.37%), and China Evergrande Group, a real estate development company (portfolio average weight of 0.72%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Real Estate      94.33  
Consumer Discretionary      5.63  
Money Market Funds Plus Other Assets Less Liabilities      0.04  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Security   
Alexandria Real Estate Equities, Inc.      9.71  
Sun Hung Kai Properties Ltd.      5.92  
Boston Properties, Inc.      5.72  
Nippon Building Fund, Inc.      3.27  
Unibail-Rodamco-Westfield      3.03  
Japan Real Estate Investment Corp.      2.57  
CapitaLand Integrated Commercial Trust      2.42  
Kilroy Realty Corp.      2.40  
Vornado Realty Trust      2.36  
Nippon Prologis REIT, Inc.      2.31  
Total      39.71  

 

*

Excluding money market fund holdings.

 

 

  24  

 


 

Invesco MSCI Green Building ETF (GBLD) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2021

 

    Fund
Inception
 
Index  

Cumulative

 
MSCI Global Green Building Index     (2.70 )% 
MSCI All Country World IMI-NR     7.14  
Fund  
NAV Return     (2.74
Market Price Return     (2.30

 

Fund Inception: April 22, 2021

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:

 

-

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.

 

 

  25  

 


 

 

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 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, 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 approximately 50 of the largest global companies in water-related businesses. To be eligible for inclusion in the Index, securities must be classified as being in either the water equipment and materials or water utilities and infrastructure segments pursuant to the Index methodology. Index constituents must have a minimum float-adjusted capitalization of $100 million and total market capitalization of $250 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, 2021, on a market price basis, the Fund returned 44.18%. On a net asset value (“NAV”) basis, the Fund returned 44.25%. During the same time period, the Index returned 44.81%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 34.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 850 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 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 sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended October 31, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s security selection within the industrial machinery and commodity chemicals sub-industries, respectively.

For the fiscal period ended October 31, 2021, the industrials sector contributed most significantly to the Fund’s return, followed

by the utilities sector. There were no sectors that detracted from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included Xylem, Inc., an industrials company (portfolio average weight of 9.23%), and Veolia Environnement SA, a utilities company (portfolio average weight of 5.33%). Positions that detracted most significantly from the Fund’s return included Cia de Saneamento Basico do Estado de Sao Paulo, ADR, a utilities company (portfolio average weight of 1.05%), and METAWATER Co. Ltd., an industrials company (portfolio average weight of 0.28%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021
 
Water Utilities      32.34  
Machinery      29.96  
Building Products      11.43  
Multi-Utilities      9.15  
Electronic Equipment, Instruments & Components      6.20  
Commercial Services & Supplies      4.36  
Industry Types Each Less Than 3%      6.50  
Money Market Funds Plus Other Assets Less Liabilities      0.06  

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021

 
Security   
American Water Works Co., Inc.      9.50  
Xylem, Inc.      8.98  
Halma PLC      5.15  
Veolia Environnement S.A.      5.06  
Geberit AG      5.05  
Pentair PLC      4.57  
Essential Utilities, Inc.      4.30  
United Utilities Group PLC      4.30  
Severn Trent PLC      4.20  
Tetra Tech, Inc.      3.71  
Total      54.82  

 

*

Excluding money market fund holdings.

 

 

  26  

 


 

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

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

    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)     44.81     24.65     93.65     17.32     122.22     13.80     264.19       8.80     238.86
MSCI EAFE® Index (Net)     34.18       11.54       38.77       9.79       59.55       7.37       103.58         3.08       55.18  
Fund                    
NAV Return     44.25       24.25       91.83       16.97       118.94       13.44       253.03         8.36       219.17  
Market Price Return     44.18       24.41       92.56       16.98       119.06       13.58       257.39         8.37       219.83  

 

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%. 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.

 

 

  27  

 


 

 

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 net operating 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. 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, 2021, on a market price basis, the Fund returned 28.85%. On a net asset value (“NAV”) basis, the Fund returned 28.24%. During the same time period, the Index returned 28.58%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund during the period.

During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 34.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 850 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, 2021. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight exposure to and security selection in the financials sector, as well as the Fund’s overweight exposure to and security selection in the consumer staples sector respectively.

For the fiscal year ended October 31, 2021, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and industrials sectors, respectively. The communication services sector was the only sector that detracted from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2021 included ASML Holding N.V., an information technology company (portfolio average weight of 5.56%) and Novo Nordisk A/S Class B, a health care company (portfolio average weight of 3.07%). Positions that detracted most significantly from the Fund’s return included Nintendo Co., Ltd., a communication services company (portfolio average weight of 1.49%), and Prosus N.V. Cl. N, a consumer discretionary company (portfolio average weight of 0.73%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2021

 
Health Care      24.56  
Industrials      17.71  
Information Technology      15.30  
Consumer Staples      14.51  
Financials      8.96  
Materials      8.17  
Consumer Discretionary      5.26  
Communication Services      3.93  
Sector Types Each Less Than 3%      1.45  
Money Market Funds Plus Other Assets Less Liabilities      0.15  

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2021

 
Security   
ASML Holding N.V.      5.90  
Nestle S.A.      5.19  
Roche Holding AG      5.09  
Novo Nordisk A/S, Class B      3.49  
SAP SE      2.79  
AstraZeneca PLC      2.78  
Unilever PLC      2.66  
Sanofi      2.23  
GlaxoSmithKline PLC      2.07  
L’Oreal S.A.      1.99  
Total      34.19  
*

Excluding money market fund holdings.

 

 

  28  

 


 

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

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2021

 

   

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)     28.58     16.54     58.27     12.51     80.31     9.58     149.69       4.47     87.51
MSCI EAFE® Index (Net)     34.18       11.54       38.77       9.79       59.55       7.37       103.58         3.19       57.02  
Fund                    
NAV Return     28.24       16.32       57.38       12.36       79.09       9.21       141.23         3.73       69.39  
Market Price Return     28.85       16.58       58.44       12.50       80.23       9.51       148.12         3.65       67.56  

 

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 through March 1, 2012, followed by the performance of S&P International Developed High Quality Rankings Index, the Fund’s underlying index for the period March 1, 2012 through the conversion date, March 18, 2016, followed by the performance of the Index, starting from the conversion date through October 31, 2021.

 

-

Net returns reflect reinvested dividends net of withholding taxes.

 

 

  29  

 


 

Invesco China Technology ETF (CQQQ)

October 31, 2021

Schedule of Investments(a)

 

         Shares                Value        

Common Stocks & Other Equity Interests-100.06%

 

Capital Markets-0.38%

     

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

     331,600      $ 5,845,607  
     

 

 

 

Diversified Financial Services-0.00%

 

Zhengqi Holdings Co. Ltd., Rts., TBA (China)(b)(c)

     122,862        0  
     

 

 

 

Electrical Equipment-1.21%

 

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

     1,273,800        2,060,199  

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

     641,818        2,640,768  

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

     470,620        3,046,862  

Suzhou Anjie Technology Co. Ltd., A Shares (China)

     423,800        913,257  

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

     63,571        7,599,552  

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

     725,900        2,093,997  
     

 

 

 
             18,354,635  
     

 

 

 

Electronic Equipment, Instruments & Components-9.58%

 

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

     509,056        2,783,409  

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

     20,884,274        16,023,907  

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

     8,247,779        3,530,650  

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

     1,120,490        7,003,828  

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

     146,660        1,741,778  

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

     1,003,200        2,215,120  

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

     1,568,300        2,306,143  

Lingyi iTech Guangdong Co., A Shares (China)(b)

     4,352,900        4,530,232  

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

     183,729        8,877,091  

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

     1,661,973        1,942,643  

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

     274,450        3,103,769  

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

     56,607        3,375,385  

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

     1,413,119        4,913,334  

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

     108,964        1,512,552  

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

     740,780        1,622,949  

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

     221,120        893,215  

Sunny Optical Technology Group Co. Ltd. (China)(d)

     2,123,645        57,383,637  

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

     1,423,427        2,738,172  

Unisplendour Corp. Ltd., A Shares (China)

     818,958        3,547,500  
         Shares                Value        

Electronic Equipment, Instruments & Components-(continued)

 

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

     514,000      $ 1,114,859  

Westone Information Industry, Inc., A Shares (China)

     521,900        4,263,737  

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

     1,447,250        4,907,619  

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

     1,169,810        1,871,901  

Xiamen Meiya Pico Information Co. Ltd., A Shares (China)

     497,580        1,197,433  

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

     857,670        2,110,903  
     

 

 

 
        145,511,766  
     

 

 

 

Entertainment-9.14%

 

Bilibili, Inc., ADR (China)(b)(d)

     1,331,676        97,611,851  

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

     428,200        942,143  

Tencent Music Entertainment Group, ADR (China)(b)

     5,121,214        40,252,742  
     

 

 

 
           138,806,736  
     

 

 

 

Health Care Technology-0.17%

 

Winning Health Technology Group Co. Ltd., A Shares (China)

     1,319,029        2,607,428  
     

 

 

 

Interactive Media & Services-30.95%

 

Autohome, Inc., ADR (China)

     536,374        21,106,317  

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

     774,031        125,578,790  

Hello Group, Inc., ADR (China)

     1,375,616        17,126,419  

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

     465,608        23,461,987  

Kuaishou Technology (China)(b)(d)(e)

     7,603,125        101,159,324  

Tencent Holdings Ltd. (China)

     2,520,073        155,823,026  

Weibo Corp., ADR (China)(b)(d)

     490,102        22,044,788  

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

     484,581        4,002,639  
     

 

 

 
        470,303,290  
     

 

 

 

Internet & Direct Marketing Retail-10.53%

 

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

     563,433        11,443,324  

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

     4,284,469        148,487,649  
     

 

 

 
        159,930,973  
     

 

 

 

IT Services-6.80%

 

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

     951,700        1,964,583  

Beijing Ultrapower Software Co. Ltd., A Shares (China)(b)

     1,209,400        1,067,790  

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

     626,871        1,310,696  

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

     1,921,400        2,083,746  

GDS Holdings Ltd., ADR (China)(b)(d)

     1,010,424        60,019,186  

Kingsoft Cloud Holdings Ltd., ADR
(China)(b)(d)

     814,320        18,704,930  

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

     357,573        1,556,730  

TravelSky Technology Ltd., H Shares (China)

     8,216,048        15,377,926  

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

     1,512,945        1,295,601  
     

 

 

 
        103,381,188  
     

 

 

 

 

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

 

    30    

 

 

 

 


 

Invesco China Technology ETF (CQQQ)–(continued)

October 31, 2021

    

 

         Shares                Value        

Machinery-0.68%

 

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

     470,100      $ 3,148,545  

Wuxi Shangji Automation Co. Ltd., A Shares (China)

     152,300        7,117,234  
     

 

 

 
        10,265,779  
     

 

 

 

Media-2.39%

 

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

     3,517,086        24,482,451  

Focus Media Information Technology Co. Ltd., A Shares (China)

     9,052,419        10,411,421  

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

     682,000        1,396,121  
     

 

 

 
            36,289,993  
     

 

 

 

Metals & Mining-0.22%

 

Shenghe Resources Holding Co. Ltd., A Shares (China)

     1,082,509        3,420,426  
     

 

 

 

Real Estate Management & Development-0.09%

 

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

     598,975        1,366,561  
     

 

 

 

Semiconductors & Semiconductor Equipment-15.33%

 

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

     379,354        9,259,621  

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

     175,023        1,736,473  

Gigadevice Semiconductor Beijing, Inc., A Shares (China)

     409,664        10,851,522  

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

     809,200        7,798,254  

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

     4,318,946        21,763,928  

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

     233,500        5,013,501  

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

     1,097,500        5,301,162  

LONGi Green Energy Technology Co. Ltd., A Shares (China)

     3,338,404        50,963,181  

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

     697,554        7,096,208  

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

     1,052,039        4,637,698  

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

     306,257        17,767,242  

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

     2,762,615        14,505,315  

SG Micro Corp., A Shares (China)

     144,775        7,330,036  

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

     110,900        1,774,421  

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

     191,418        3,427,355  

StarPower Semiconductor Ltd., A Shares (China)

     88,100        5,506,852  

Tianjin Zhonghuan Semiconductor Co. Ltd., A Shares (China)

     1,870,525        15,304,907  

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

     1,689,900        3,393,374  

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

     819,600        2,564,092  

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

     374,300        11,853,155  
         Shares                Value        

Semiconductors & Semiconductor Equipment-(continued)

 

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

     374,159      $ 15,552,685  

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

     793,000        9,468,712  
     

 

 

 
        232,869,694  
     

 

 

 

Software-11.13%

 

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

     410,800        1,857,147  

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

     284,315        13,119,018  

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

     714,000        984,089  

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

     924,852        3,422,327  

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

     305,000        2,440,267  

Hundsun Technologies, Inc., A Shares (China)

     901,535        8,875,456  

Iflytek Co. Ltd., A Shares (China)

     1,418,850        12,509,418  

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

     18,710,265        61,813,950  

Ming Yuan Cloud Group Holdings Ltd. (China)(d)

     4,953,612        16,238,115  

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

     636,600        1,500,153  

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

     457,100        1,077,874  

OneConnect Financial Technology Co. Ltd., ADR (China)(b)(d)

     1,075,334        3,408,809  

Sangfor Technologies, Inc., A Shares (China)

     90,414        2,865,448  

Shanghai 2345 Network Holding Group Co. Ltd., A Shares (China)(b)

     2,050,400        644,024  

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

     422,141        4,617,672  

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

     3,406,824        13,617,075  

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

     435,800        899,617  

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

     580,700        1,150,638  

Sinosoft Co. Ltd., A Shares (China)

     130,820        512,707  

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

     233,087        4,953,641  

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

     397,150        2,573,532  

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

     2,017,004        10,023,085  
     

 

 

 
           169,104,062  
     

 

 

 

Technology Hardware, Storage & Peripherals-1.46%

 

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

     1,805,946        3,795,723  

Dawning Information Industry Co. Ltd., A Shares (China)

     894,720        3,840,726  

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

     896,558        4,354,386  

 

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

 

    31    

 

 

 

 


 

Invesco China Technology ETF (CQQQ)–(continued)

October 31, 2021

    

 

         Shares          Value  

Technology Hardware, Storage & Peripherals-(continued)

 

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

     4,545,728      $ 7,993,979  

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

     962,517        2,226,064  
     

 

 

 
        22,210,878  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.06%
(Cost $1,525,503,315)

 

     1,520,269,016  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-19.02%

     

Invesco Private Government Fund,
0.02%(f)(g)(h)

     86,683,578        86,683,578  
         Shares          Value  

Money Market Funds-(continued)

 

Invesco Private Prime Fund, 0.11%(f)(g)(h)

     202,180,811      $ 202,261,685  
  

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $288,945,261)

 

     288,945,263  
  

 

 

 

TOTAL INVESTMENTS IN SECURITIES-119.08%
(Cost $1,814,448,576)

 

     1,809,214,279  

OTHER ASSETS LESS LIABILITIES-(19.08)%

 

     (289,876,084
  

 

 

 

NET ASSETS-100.00%

      $ 1,519,338,195  
     

 

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

Rts. -Rights

TBA -To Be Announced

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) 

Security valued using significant unobservable inputs (Level 3). See Note 5.

(d) 

All or a portion of this security was out on loan at October 31, 2021.

(e) 

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, 2021 was $303,887,331, which represented 20.00% of the Fund’s Net Assets.

(f)

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2021.

 

     Value
October 31, 2020
     Purchases at Cost      Proceeds
from Sales
     Change  in
Unrealized
Appreciation
     Realized
Gain
     Value
October 31,  2021
     Dividend
Income
 
Investments in Affiliated Money Market Funds:                                                        
Invesco Government & Agency Portfolio, Institutional Class                $ -                     $ 332,658,312            $ (332,658,312                  $ -                     $ -            $ -         $ 949  
Investments Purchased with Cash Collateral from Securities on Loan:                                                        
Invesco Private Government Fund         10,604,027              666,501,055              (590,421,504           -              -              86,683,578           9,040
Invesco Private Prime Fund         15,906,040              1,077,083,234              (890,734,140           2              6,549              202,261,685           114,628
     

 

 

          

 

 

          

 

 

         

 

 

          

 

 

          

 

 

       

 

 

 
Total       $ 26,510,067            $ 2,076,242,601            $ (1,813,813,956         $ 2            $ 6,549            $ 288,945,263         $ 124,617  
     

 

 

          

 

 

          

 

 

         

 

 

          

 

 

          

 

 

       

 

 

 

 

*

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.

 

(g) 

The rate shown is the 7-day SEC standardized yield as of October 31, 2021.

(h) 

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 2K.

 

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

 

    32    

 

 

 

 


 

Invesco China Technology ETF (CQQQ)–(continued)

October 31, 2021

    

 

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

  

China

     100.06

 

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

 

    33    

 

 

 

 


 

Invesco DWA Developed Markets Momentum ETF (PIZ)

October 31, 2021

Schedule of Investments

 

         Shares          Value  

Common Stocks & Other Equity Interests-99.80%

 

Austria-0.54%

     

Verbund AG

     12,997      $   1,355,175  
     

 

 

 

Belgium-1.19%

     

Sofina S.A.

     3,660        1,619,669  

Warehouses De Pauw C.V.A.

     30,130        1,373,798  
     

 

 

 
            2,993,467  
     

 

 

 

Canada-9.95%

     

Bank of Nova Scotia (The)

     22,369        1,464,258  

Boyd Group Services, Inc.

     40,048        7,760,501  

Constellation Software, Inc.

     3,901        6,844,932  

Descartes Systems Group, Inc. (The)(a)

     49,014        3,996,487  

Open Text Corp.

     30,115        1,514,557  

Royal Bank of Canada(b)

     15,601        1,621,331  

Toronto-Dominion Bank (The)

     25,957        1,881,309  
     

 

 

 
        25,083,375  
     

 

 

 

China-1.31%

     

SITC International Holdings Co. Ltd.

     610,004        2,066,268  

Xinyi Glass Holdings Ltd.

     437,992        1,235,874  
     

 

 

 
        3,302,142  
     

 

 

 

Denmark-6.05%

     

Coloplast A/S, Class B

         9,367        1,528,539  

DSV A/S

     7,146        1,662,455  

Novo Nordisk A/S, Class B

     37,668        4,126,964  

Novozymes A/S, Class B

     21,255        1,564,611  

Royal Unibrew A/S

     51,172        6,355,554  
     

 

 

 
        15,238,123  
     

 

 

 

Finland-1.18%

     

Sampo OYJ, Class A

     55,648        2,962,340  
     

 

 

 

France-4.19%

     

Dassault Systemes SE

     24,571        1,432,546  

Hermes International

     922        1,462,303  

LVMH Moet Hennessy Louis Vuitton SE

     2,437        1,909,853  

Sartorius Stedim Biotech

     2,469        1,360,623  

SOITEC(a)

     9,771        2,598,463  

Teleperformance

     4,325        1,807,345  
     

 

 

 
        10,571,133  
     

 

 

 

Germany-8.19%

     

adidas AG

     6,255        2,050,696  

Bechtle AG

     32,948        2,470,765  

Carl Zeiss Meditec AG, BR(b)

     6,251        1,258,350  

Eckert & Ziegler Strahlen- und Medizintechnik AG

     21,201        3,177,266  

Evotec SE(a)

     33,561        1,625,391  

HelloFresh SE(a)

     16,749        1,356,796  

Nemetschek SE

     63,412        7,279,651  

Puma SE

     11,357        1,410,233  
     

 

 

 
        20,629,148  
     

 

 

 

Hong Kong-0.92%

     

Techtronic Industries Co. Ltd.

     113,032        2,326,302  
     

 

 

 

Ireland-0.87%

     

Kingspan Group PLC

     18,929        2,182,674  
     

 

 

 
         Shares          Value  

Israel-1.83%

     

Mizrahi Tefahot Bank Ltd.

     47,988      $   1,746,621  

Nice Ltd.(a)

     10,152        2,862,762  
     

 

 

 
        4,609,383  
     

 

 

 

Italy-5.35%

     

Amplifon S.p.A.

     28,236        1,436,116  

Interpump Group S.p.A.

     23,887        1,762,257  

Recordati Industria Chimica e Farmaceutica S.p.A.

     96,811        6,063,312  

Reply S.p.A.

     21,745        4,220,073  
     

 

 

 
          13,481,758  
     

 

 

 

Japan-9.91%

     

Bandai Namco Holdings, Inc.

     16,229        1,236,407  

BayCurrent Consulting, Inc.

     5,847        2,404,949  

Daifuku Co. Ltd.

     19,052        1,746,050  

Daikin Industries Ltd.

     5,242        1,144,252  

Hoya Corp.

     7,963        1,168,000  

Keyence Corp.

     2,520        1,514,100  

Kikkoman Corp.(b)

     15,423        1,260,621  

Lasertec Corp.

     26,621        5,843,663  

MISUMI Group, Inc.

     31,450        1,312,888  

Nippon Yusen K.K.

     14,314        1,026,867  

Nomura Research Institute Ltd.

     31,450        1,252,208  

Rakus Co. Ltd.

     117,132        3,692,958  

Tokyo Electron Ltd.

     2,939        1,362,211  
     

 

 

 
        24,965,174  
     

 

 

 

Luxembourg-0.94%

     

Eurofins Scientific SE

     20,008        2,360,347  
     

 

 

 

Netherlands-6.97%

     

ASM International N.V.(b)

     12,705        5,754,703  

ASML Holding N.V.

     5,559        4,506,426  

BE Semiconductor Industries N.V.

     64,948        5,934,722  

Koninklijke Ahold Delhaize N.V.

     42,239        1,375,026  
     

 

 

 
        17,570,877  
     

 

 

 

New Zealand-3.50%

     

Mainfreight Ltd.

     113,162        7,280,497  

Xero Ltd.(a)

     13,698        1,538,244  
     

 

 

 
        8,818,741  
     

 

 

 

Norway-1.14%

     

Nordic Semiconductor ASA(a)

     43,976        1,299,635  

TOMRA Systems ASA

     24,379        1,571,221  
     

 

 

 
        2,870,856  
     

 

 

 

South Korea-1.09%

     

Ecopro BM Co. Ltd.

     3,811        1,336,810  

Samsung SDI Co. Ltd.

     2,244        1,409,521  
     

 

 

 
        2,746,331  
     

 

 

 

Sweden-12.58%

     

AddLife AB, Class B(b)

     39,865        1,630,155  

AddTech AB, Class B

     287,472        6,426,573  

Atlas Copco AB, Class A(b)

     21,408        1,375,436  

Beijer Ref AB

     74,847        1,537,290  

Fastighets AB Balder, Class B(a)

     67,886        4,918,050  

Hexagon AB, Class B

     134,601        2,162,769  

Indutrade AB

     77,726        2,261,597  

 

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

 

    34    

 

 

 

 


 

Invesco DWA Developed Markets Momentum ETF (PIZ)–(continued)

October 31, 2021

    

 

         Shares                Value        

Sweden-(continued)

     

Investor AB, Class B(b)

     66,115      $   1,523,451  

Lifco AB, Class B

     48,967        1,425,935  

Nibe Industrier AB, Class B

       264,527        3,937,798  

Sinch AB(a)(c)

     169,516        3,214,261  

Swedish Match AB

     144,940        1,275,492  
     

 

 

 
        31,688,807  
     

 

 

 

Switzerland-12.34%

     

Bachem Holding AG, Class B

     2,657        2,140,139  

Belimo Holding AG

     5,752        3,348,907  

Geberit AG

     3,575        2,796,618  

Givaudan S.A.

     373        1,758,968  

Kuehne + Nagel International AG, Class R

     13,390        4,224,719  

Lonza Group AG

     2,332        1,915,622  

Partners Group Holding AG

     1,554        2,716,843  

SGS S.A.

     636        1,884,857  

Sika AG(b)

     5,760        1,954,145  

Sonova Holding AG, Class A

     5,230        2,165,263  

STMicroelectronics N.V.

     29,617        1,402,333  

Straumann Holding AG, Class R

     870        1,810,933  

Tecan Group AG, Class R

     2,516        1,541,953  

VAT Group AG(c)

     3,004        1,437,317  
     

 

 

 
          31,098,617  
     

 

 

 

United Kingdom-9.19%

     

Croda International PLC(b)

     31,854        4,129,732  

Dechra Pharmaceuticals PLC

     20,386        1,430,740  

Diageo PLC

     28,565        1,422,128  

Diploma PLC

     45,609        1,878,059  

Halma PLC

     86,020        3,492,554  
         Shares                Value        

United Kingdom-(continued)

     

JD Sports Fashion PLC

     177,784      $   2,651,430  

Persimmon PLC

     37,342        1,392,787  

Rightmove PLC

     245,579        2,327,444  

Spirax-Sarco Engineering PLC

     20,675        4,422,501  
     

 

 

 
        23,147,375  
     

 

 

 

United States-0.57%

     

Ferguson PLC

     9,605        1,447,609  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.80%
(Cost $220,460,255)

 

     251,449,754  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-3.41%

 

Invesco Private Government Fund,
0.02%(d)(e)(f)

     2,574,626        2,574,626  

Invesco Private Prime Fund, 0.11%(d)(e)(f)

     6,005,058        6,007,460  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $8,582,086)

 

     8,582,086  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-103.21%
(Cost $229,042,341)

 

     260,031,840  

OTHER ASSETS LESS LIABILITIES-(3.21)%

 

     (8,080,400
     

 

 

 

NET ASSETS-100.00%

      $ 251,951,440  
     

 

 

 

 

Investment Abbreviations:

BR-Bearer Shares

Notes to Schedule of Investments:

(a) 

Non-income producing security.

(b) 

All or a portion of this security was out on loan at October 31, 2021.

(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, 2021 was $4,651,578, which represented 1.85% of the Fund’s Net Assets.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2021.

 

     Value
October 31,  2020
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
   Realized
Gain
   Value
October 31,  2021
  Dividend
  Income  
Investments in Affiliated Money Market Funds:                                 
Invesco Government & Agency Portfolio, Institutional Class      $             -      $ 16,929,322      $ (16,929,322 )     $     -      $     -      $             -        $     17

 

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

 

    35    

 

 

 

 


 

Invesco DWA Developed Markets Momentum ETF (PIZ)–(continued)

October 31, 2021

    

 

    Value
October 31, 2020
    Purchases
at Cost
    Proceeds
from Sales
    Change in
Unrealized
Appreciation
(Depreciation)
    Realized
Gain
    Value
October 31, 2021
   

Dividend

  Income  

 
Investments Purchased with Cash Collateral from Securities on Loan:    

    

 

 

     

    

 

 

               

    

 

 

     

    

 

 

   

    

 

 

     

    

 

 

   

    

 

 

     

    

 

 

   

    

 

 

     

    

 

 

Invesco Private Government Fund     $ 2,198,622         $ 30,340,219         $ (29,964,215       $ -         $ -         $ 2,574,626         $    525  
Invesco Private Prime Fund       3,297,934           46,413,536           (43,704,270         (20         280           6,007,460           6,291  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

   

Total

    $ 5,496,556         $ 93,683,077         $ (90,597,807       $ (20       $ 280         $ 8,582,086         $ 6,833    
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

   

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of October 31, 2021.

(f) 

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

 

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

 

    36    

 

 

 

 


 

Invesco DWA Emerging Markets Momentum ETF (PIE)

October 31, 2021

Schedule of Investments

 

         Shares                Value        

Common Stocks & Other Equity Interests-99.99%

 

Brazil-3.95%

     

Braskem S.A., ADR(a)

     55,462      $   1,074,299  

Embraer S.A., ADR(a)

     88,554        1,375,243  

Eneva S.A.(a)

     435,800        1,113,273  

Petro Rio S.A.(a)

     660,000        2,747,951  

TOTVS S.A.

     172,300        1,001,339  

WEG S.A.

     179,800        1,180,167  
     

 

 

 
            8,492,272  
     

 

 

 

China-23.76%

     

Aluminum Corp. of China Ltd., H
Shares(a)(b)

     1,754,000        1,048,470  

ANTA Sports Products Ltd.

     295,824        4,624,241  

China Coal Energy Co. Ltd., H Shares(b)

     1,745,000        1,063,279  

China Hongqiao Group Ltd.(b)

     826,500        919,036  

China Longyuan Power Group Corp. Ltd., H Shares

     668,065        1,561,299  

China Meidong Auto Holdings Ltd.

     1,262,291        6,555,628  

China Mengniu Dairy Co. Ltd.(a)

     184,000        1,172,020  

China Merchants Bank Co. Ltd., H Shares

     227,778        1,919,366  

China Resources Beer Holdings Co. Ltd.

     343,375        2,847,094  

China Resources Power Holdings Co. Ltd.

     474,000        1,224,751  

COSCO SHIPPING Holdings Co. Ltd., H Shares(a)(b)

     1,546,947        2,402,237  

Li Ning Co. Ltd.(b)

     420,460        4,675,351  

Pharmaron Beijing Co. Ltd., H Shares(b)(c)

     64,425        1,403,775  

Sany Heavy Equipment International Holdings Co. Ltd.

     2,407,000        2,760,034  

Shenzhou International Group Holdings Ltd.

     225,209        4,857,929  

Silergy Corp.

     21,302        3,508,393  

Sunny Optical Technology Group Co. Ltd.(b)

     41,225        1,113,953  

WuXi AppTec Co. Ltd., H Shares(c)

     86,255        1,843,953  

Xinjiang Goldwind Science & Technology Co. Ltd., H Shares

     509,800        1,142,930  

Yanzhou Coal Mining Co. Ltd., H Shares(b)

     648,000        961,290  

Zhongsheng Group Holdings Ltd.(b)

     188,950        1,708,773  

Zijin Mining Group Co. Ltd., H Shares

     1,260,000        1,755,793  
     

 

 

 
        51,069,595  
     

 

 

 

Hungary-0.67%

     

OTP Bank Nyrt(a)

     23,855        1,434,063  
     

 

 

 

India-3.50%

     

HDFC Bank Ltd., ADR

     26,138        1,879,584  

ICICI Bank Ltd., ADR

     59,948        1,267,900  

Infosys Ltd., ADR

     55,197        1,229,789  

Tata Motors Ltd., ADR(a)(b)

     65,326        2,062,995  

Wipro Ltd., ADR

     119,973        1,074,958  
     

 

 

 
        7,515,226  
     

 

 

 

Indonesia-2.40%

     

PT Merdeka Copper Gold Tbk(a)

     12,587,686        2,807,629