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.

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.

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.

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.

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.

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.

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.

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 RAFI^TM 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.

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.

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 RAFI^TM 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.

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.

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 RAFI^TM 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.

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.

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.

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.

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 Index^SM (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.

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.

As an index fund, the Invesco International BuyBack Achievers^TM ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Nasdaq International BuyBack Achievers^TM 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 Achievers^TM” pursuant to the Index Provider’s proprietary selection methodology. To qualify as an “International BuyBack Achiever^TM“, 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.