Domestic Equity

The fiscal year ended October 31, 2022 began with continued volatility in equity markets in the fourth quarter of 2021 amid substantial inflation and the emergence of a new COVID-19 variant. Pandemic-related supply chain disruption and labor shortages intensified during the quarter, resulting in broadly higher input costs for companies and consumers alike. Additionally, the price of oil rose,¹ causing higher gas prices for consumers, and the Consumer Price Index (CPI) reported for November 2021 increased 0.8%, resulting in a 6.8% increase over the prior 12 months, the highest since 1982.² To combat inflation, the US Federal Reserve (the Fed) announced the potential for three or more interest rate increases in 2022. With solid corporate earnings and optimism about the COVID-19 Omicron variant reporting milder symptoms, stocks rallied at the 2021 year-end.

Equity markets declined in the first quarter of 2022 amid volatility sparked by Russia’s invasion of Ukraine, rising commodity prices, rampant global inflation and the Fed’s shift toward tighter monetary policy. Russia’s invasion exacerbated inflation pressures, disrupting already strained supply chains and increasing shortages of oil, gas and raw materials. The price of oil rose sharply, with crude prices reaching their highest price per barrel since 2008.¹ Inflation continued to be a top concern for consumers, investors and the Fed. To combat inflation, the Fed raised the federal funds rate by one-quarter percentage point in March and the Fed indicated it would “taper” its asset purchase program quickly.³

As the war in Ukraine continued and corporate earnings in high-profile names like Netflix reported slowing growth and profits, the equity markets sold off for much of April 2022. The downward direction of the equity markets continued into the second quarter of 2022 amid record inflation, rising interest rates and an increasing likelihood of a US recession. Driven by higher food and energy prices, the CPI rose by yet another 40-year high to 8.6% for the 12 months ended May 2022.² Oil prices peaked near $122 per barrel in early June, resulting in skyrocketing gasoline prices; the national average price reached a record high above $5 per gallon in early June.¹ To tame inflation, the Fed raised the benchmark federal funds rate three more times, by 0.50% in May, by 0.75% in June and another 0.75% in July, which were the largest increases in nearly 30 years.³ US equity markets rose in July and much of August until Fed chairman Jerome Powell’s hawkish comments at an economic policy symposium held in Jackson Hole, Wyoming sparked a sharp selloff at month-end. The Fed reiterated that it would continue taking aggressive action to curb inflation, even though such measures could “bring pain to households and businesses,” and the Fed raised the benchmark federal funds rate by another 0.75% in September.³

After experiencing a sharp drop in September 2022, US equity markets rebounded in October with strong gains, despite mixed data on the economy and corporate earnings. Inflation data

reported in October came in higher than expected; however, the labor market remained strong, with payroll employment gains and a decline in the unemployment rate to a near record low of 3.5% in September.² The initial estimate of third quarter real gross domestic product showed an increase of 2.6% (annualized) after falling in the prior two quarters, but the headline number masked a drop in demand and investment. Corporate earnings were generally in line with expectations, but many companies’ forward earnings guidance was weaker than expected.

In this environment, US stocks had negative double-digit returns for the fiscal year ended October 31, 2022 of (14.61)%, as measured by the S&P 500 Index.⁴

 

1	Source: Bloomberg LP

2	Source: US Bureau of Labor Statistics

3	Source: US Federal Reserve

4	Source: Lipper Inc.

Global Equity

At the beginning of the fiscal year ended October 31, 2022, developed global equity markets were mostly positive, despite rising inflation and the emergence of Omicron, a new COVID-19 variant. Pandemic-related supply chain disruptions and labor shortages intensified at the end of 2021, resulting in broadly higher costs for companies and consumers. Emerging market equities declined due in part to COVID-19 concerns and China’s ongoing regulatory tightening in the private education and technology sectors and slowing economic growth.

Global equity markets declined in the first half of 2022 amid volatility sparked by Russia’s invasion of Ukraine, rising commodity prices, rampant global inflation and central banks shifting toward tighter monetary policy. Russia’s invasion exacerbated inflationary pressures, disrupting already strained supply chains, and increasing shortages of oil, gas and raw materials, with the price of oil rising sharply.

Inflation headwinds continued into the third quarter of 2022. The US Federal Reserve (the Fed), the European Central Bank and the Bank of England all raised interest rates. In contrast, the People’s Bank of China lowered its policy rate and the Bank of Japan kept rates the same. Emerging market equities, hampered by the strong US dollar, underperformed developed market equities.

During October 2022, developed market equities rebounded and were in positive territory. Developed market equities outperformed emerging market equities, which declined primarily driven by weakness in China as Chinese markets reacted to the reappointment of President Xi and his authority, with no signs of the country’s zero-COVID-19 policy being relaxed. Despite the rebound in October for developed market equities, at the end of the fiscal year, trailing one-year returns for developed market equities and emerging market equities were both in negative territory.

As an index fund, the Invesco FTSE International Low Beta Equal Weight ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE Developed ex-U.S. Low Beta Equal Weight 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, FTSE International Limited (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to provide exposure to constituents of the FTSE Developed ex US Index (the “Developed ex US Index”) that exhibit low beta characteristics. The Developed ex US Index is designed to measure the performance of the international equity markets and consists of large and mid-capitalization companies from developed markets throughout the world, excluding the United States. Beta is a measure of relative risk and is the rate of change of a security’s price. The Index is equally weighted, meaning that the Index Provider assigns each component security the same weight in the Index. 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, 2022, on a market price basis, the Fund returned (26.68)%. On a net asset value (“NAV”) basis, the Fund returned (26.15)%. During the same time period, the Index returned (26.03)%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period as well as residual cash holdings due to the Fund’s small size.

During this same time period, the MSCI World ex USA Index (Net) (the “Benchmark Index”) returned (22.04)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 935 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall international equity market.

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

Relative to the Benchmark Index, the Fund was most overweight in the real estate sector and most underweight in the financials sector during the fiscal year ended October 31, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to its underweight allocation to and stock selection within the health care and energy sectors.

For the fiscal year ended October 31, 2022, no sector contributed positively to the Fund’s return. The industrials sector detracted

most significantly from the Fund’s return, followed by the consumer staples and consumer discretionary sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2022 included Kenon Holdings, Ltd., a utilities company (portfolio average weight of 0.14%), and Hitachi Transport System Ltd., an industrials company (portfolio average weight of 0.15%). Positions that detracted most significantly from the Fund’s return included Varta AG, an industrials company (portfolio average weight of 0.10%), and Koninklijke Philips N.V., a health care company (portfolio average weight of 0.10%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2022
Industrials			18.03
Financials			15.12
Consumer Staples			12.42
Consumer Discretionary			10.13
Materials			8.26
Real Estate			7.58
Communication Services			7.48
Health Care			6.76
Information Technology			5.40
Utilities			4.20
Energy			3.26
Money Market Funds Plus Other Assets Less Liabilities			1.36
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of October 31, 2022
Security
Polski Koncern Naftowy ORLEN S.A.			0.23
Eisai Co. Ltd.			0.18
AIB Group PLC			0.16
FinecoBank Banca Fineco S.p.A.			0.16
Danske Bank A/S			0.15
Commerzbank AG			0.15
Bankinter S.A.			0.15
Santander Bank Polska S.A.			0.15
Bank of Ireland Group PLC			0.15
Sodexo S.A.			0.15
Total			1.63

 

*	Excluding money market fund holdings.

Fund Inception: November 5, 2015

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 S&P Emerging Markets Low Volatility ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P BMI Emerging Markets Low Volatility Index^TM (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, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of the 200 least volatile stocks (over the trailing 12 months) included in the S&P Emerging Plus LargeMidCap Index. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations (increases or decreases in a stock’s price) over time. S&P DJI measures the realized volatility of the Index’s 200 constituents over the trailing 12 months and weights constituents so that the least volatile stocks receive the highest 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, 2022, on a market price basis, the Fund returned (10.40)%. On a net asset value (“NAV”) basis, the Fund returned (10.68)%. During the same time period, the Index returned (9.91)%. 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 that the Fund incurred, as well as trading costs around quarterly rebalances during the period that were higher than average given the relatively less liquid nature of many emerging markets securities.

During this same time period, the MSCI Emerging Markets Index^SM (Net) (the “Benchmark Index”) returned (31.03)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1400 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 equity markets overall.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a beta driven stock selection and an inverse volatility 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 financials sector and most underweight in the information technology sector during the fiscal year ended October 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to its overweight allocation to and stock selection within the financials sector as well as its underweight allocation to and stock selection within the communication services and consumer discretionary sectors, respectively.

For the fiscal year ended October 31, 2022, the health care sector contributed most significantly to the Fund’s return, followed by the energy sector. The financials sector detracted most significantly from the Fund’s return, followed by the materials and information technology sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2022 included Ooredoo Q.P.S.C., a communication services company (portfolio average weight of 0.57%), and Alinma Bank, a financials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Mobile TeleSystems PJSC, a communication services company (portfolio average weight of 0.14%), and X5 Retail Group N.V., a consumer staples company (portfolio average weight of 0.11%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2022
Financials			31.75
Consumer Staples			10.90
Communication Services			9.59
Information Technology			9.34
Consumer Discretionary			7.82
Materials			7.17
Industrials			7.10
Utilities			5.14
Real Estate			3.96
Energy			3.60
Health Care			3.48
Money Market Funds Plus Other Assets Less Liabilities			0.15
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of October 31, 2022
Security
KT&G Corp.			1.09
National Bank of Kuwait SAKP			0.91
Malayan Banking Bhd.			0.90
Taiwan Mobile Co. Ltd.			0.83
Tisco Financial Group PCL, NVDR			0.80
Taiwan High Speed Rail Corp.			0.76
Hong Leong Bank Bhd.			0.75
Mobile Telecommunications Co. KSCP			0.75
Chunghwa Telecom Co. Ltd.			0.74
Abu Dhabi National Oil Co. for Distribution PJSC			0.72
Total			8.25

 

*	Excluding money market fund holdings.

Fund Inception: January 13, 2012

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.

 

-	Net returns reflect reinvested dividends net of withholding taxes.

As an index fund, the Invesco S&P Emerging Markets Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P Momentum Emerging Plus LargeMidCap 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 composed of constituents of the S&P Emerging Plus LargeMidCap (the “Emerging LargeMidCap Index”) that have the highest “momentum score.” In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum style” of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on upward price movements of the security as compared to other eligible securities within the Emerging LargeMidCap Index, which is designed to measure publicly listed equity securities of companies with float-adjusted market values of at least $100 million in emerging market countries.

In selecting constituent securities for the Index, the Index Provider first calculates the momentum score of each stock in the Emerging LargeMidCap Index by evaluating the percentage change in the stock’s price over the last 12 months, excluding the most recent month, and applying an adjustment based on the security’s volatility over that period. The Index Provider then ranks all the stocks in descending order by momentum score, selects the top 20% for inclusion in the Index and weights the selected securities based on a modified market capitalization-weighted strategy. 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, 2022, on a market price basis, the Fund returned (18.28)%. On a net asset value (“NAV”) basis, the Fund returned (18.82)%. During the same time period, the Index returned (18.18)%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and expenses that the Fund incurred during the period as well as trading costs around quarterly rebalances during the period.

During this same time period, the MSCI Emerging Markets Index^SM (Net) (the “Benchmark Index”) returned (31.03)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately

1400 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 equity markets overall.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a beta driven stock selection and a momentum 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 financials sector and most underweight in the information technology sector during the fiscal year ended October 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to its overweight allocation to and security selection within the financials and materials sectors, respectively.

For the fiscal year ended October 31, 2022, the utilities sector contributed most significantly to the Fund’s return, followed by the industrials and materials sectors, respectively. The financials sector detracted most significantly from the Fund’s return, followed by the consumer discretionary sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2022 included Vale S.A., a materials company (no longer held at fiscal year-end), and Saudi Arabian Mining Co., a materials company (portfolio average weight of 1.17%). Positions that detracted most significantly from the Fund’s return included Gazprom PJSC, an energy company (portfolio average weight of 1.03%), and NIO Inc., Class A, a consumer discretionary company (no longer held at fiscal year-end).

 

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2022
Financials			46.26
Energy			11.73
Utilities			10.10
Industrials			7.41
Materials			6.27
Consumer Discretionary			5.37
Communication Services			4.20
Consumer Staples			3.24
Sector Types Each Less Than 3%			5.47
Money Market Funds Plus Other Assets Less Liabilities			(0.05)

Fund Inception: February 24, 2012

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 Momentum Emerging Plus LargeMidCap Index is comprised of the performance of the S&P BMI Emerging Markets High Beta IndexTM, the Fund’s underlying index from Fund inception through the conversion date, March 21, 2016, followed by the performance of the Index for the period March 21, 2016 through October 31, 2022.

 

-	Net returns reflect reinvested dividends net of withholding taxes.

As an index fund, the Invesco S&P International Developed High Dividend Low Volatility ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P EPAC Ex-Korea Low Volatility High Dividend 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, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of 100 securities in the S&P EPAC Ex-Korea LargeMidCap Index (which is comprised of large and mid-cap equity securities and is designed to measure the performance of developed equity markets within the Europe and Asia Pacific regions, excluding South Korea) that historically have provided high dividend yields with lower volatility. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations (increases or decreases in a stock’s price) over time.

The Index Provider begins by identifying the 300 securities with the highest dividend yields over the trailing 12 months, with no one country except the U.S. and no one sector allowed to contribute more than 20 securities and 25 securities, respectively. For the U.S., the maximum number of stocks allowed is 40. From those 300 securities, the 100 securities with the lowest volatility over the trailing 12 months are included in the Index.

The Index Provider weights each of the 100 constituent securities in the Index by its dividend yield, with the highest dividend-yielding securities receiving the highest weights. Each constituent security comprises between 0.05% and 3.0% of the weight of the Index, and no sector comprises more than 25% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

During the fiscal year ended October 31, 2022, on a market price basis, the Fund returned (18.34)%. On a net asset value (“NAV”) basis, the Fund returned (17.57)%. During the same time period, the Index returned (17.52)%. 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, which were partially offset by benefits to the Fund related to dividend tax treatment relative to the Index.

During this same time period, the MSCI EAFE^® Index (Net) (the “Benchmark Index”) returned (23.00)%. 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 the U.S.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a dividend driven stock selection and an inverse volatility 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 health care sector and most underweight in the real estate sector during the fiscal year ended October 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to its overweight allocation to and security selection within the financials sector and its underweight allocation and selection within the information technology sector.

For the fiscal year ended October 31, 2022, the health care sector was the only sector that contributed positively to the Fund’s return. The real estate sector detracted most significantly from the Fund’s return, followed by the utilities and financials sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2022 included BOC Hong Kong Holdings Ltd., a financials company (no longer held at fiscal year-end), and Imperial Brands PLC, a consumer staples company (portfolio average weight of 0.41%). Positions that detracted most significantly from the Fund’s return included New World Development Co. Ltd., a real estate company (portfolio average weight of 0.35%), and Telenor ASA, a communication services company (portfolio average weight of 1.26%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2022
Financials			27.47
Real Estate			20.46
Utilities			13.91
Communication Services			12.35
Industrials			10.16
Consumer Staples			9.11
Sector Types Each Less Than 3%			6.17
Money Market Funds Plus Other Assets Less Liabilities			0.37

Fund Inception: December 1, 2016

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 0.30% 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 S&P International Developed Low Volatility ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P BMI International Developed Low Volatility^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, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of the 200 least volatile stocks of the S&P Developed ex-U.S. & South Korea LargeMidCap Index (which is designed to measure the performance of large- and mid-cap securities in developed markets throughout the world, excluding the United States and South Korea). Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations (increases or decreases in a stock’s price) over time. S&P DJI measures the realized volatility of the Index’s 200 constituents over the trailing 12 months and weights constituents so that the least volatile stocks receive the highest 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, 2022, on a market price basis, the Fund returned (17.50)%. On a net asset value (“NAV”) basis, the Fund returned (17.33)%. During the same time period, the Index returned (17.32)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses incurred by the Fund, which were partially offset by benefits to the Fund related to dividend tax treatment relative to the Index.

During this same time period, the MSCI EAFE^® Index (Net) (the “Benchmark Index”) returned (23.00)%. 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 the U.S.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a beta driven stock selection and an inverse volatility 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 real estate sector and most underweight in the health care sector during the fiscal year ended October 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to its underweight

allocation to and security selection within the consumer discretionary and industrials sectors, respectively.

For the fiscal year ended October 31, 2022, the consumer discretionary sector was the only sector that contributed positively to the Fund’s return. The real estate sector detracted most significantly from the Fund’s return, followed by the financials and utilities sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2022 included Thales S.A., an industrials company (no longer held at fiscal year-end), and BAE Systems PLC, an industrials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included HK Electric Investments & HK Electric Investments Ltd., a utilities company (portfolio average weight of 0.74%), and Hong Kong & China Gas Co. Ltd., a utilities company (portfolio average weight of 0.48%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2022
Financials			19.62
Real Estate			16.32
Consumer Staples			14.02
Utilities			12.98
Industrials			12.22
Communication Services			10.90
Consumer Discretionary			4.72
Health Care			3.52
Sector Types Each Less Than 3%			5.15
Money Market Funds Plus Other Assets Less Liabilities			0.55
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of October 31, 2022
Security
McDonald’s Holdings Co. Japan Ltd.			0.92
HK Electric Investments & HK Electric Investments Ltd.			0.80
HKT Trust & HKT Ltd.			0.76
Hydro One Ltd.			0.75
BCE, Inc.			0.72
MTR Corp. Ltd.			0.70
Canadian Utilities Ltd., Class A			0.69
CapitaLand Ascendas REIT			0.68
Fortis, Inc.			0.67
Orange S.A.			0.66
Total			7.35

 

*	Excluding money market fund holdings.

Fund Inception: January 13, 2012

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.25% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

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

 

-	Net returns reflect reinvested dividends net of withholding taxes.

As an index fund, Invesco S&P International Developed Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P Momentum Developed ex-U.S. & South Korea LargeMidCap (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, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of constituents of the S&P Developed ex-U.S. & South Korea LargeMidCap (the “Developed ex-U.S. & South Korea Index”) that have the highest “momentum score.” In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum style” of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on upward price movements of the security as compared to other eligible securities within the Developed ex-U.S. & South Korea Index, which is designed to measure the performance of large- and mid-cap securities in developed markets throughout the world, excluding the United States and South Korea.

In selecting constituent securities for the Index, the Index Provider first calculates the momentum score of each stock in the Developed ex-U.S. & South Korea Index by evaluating the percentage change in the stock’s price over the last 12 months, excluding the most recent month, and applying an adjustment based on the security’s volatility over that period. The Index Provider then ranks all the stocks in descending order by momentum score, selects the top 20% for inclusion in the Index and weights the selected securities based on a modified market capitalization-weighted strategy. The Fund generally invests in all of the securities comprising the Index in proportion to their weighting in the Index.

For the fiscal year ended October 31, 2022, on a market price basis, the Fund returned (18.21)%. On a net asset value (“NAV”) basis, the Fund returned (18.73)%. During the same time period, the Index returned (18.50)%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE^® Index (Net) (the “Benchmark Index”) returned (23.00)%. 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 the U.S.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a momentum driven 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 financials sector and most underweight in the health care sector during the fiscal year ended October 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to and stock selection within the financials sector and the Fund’s overweight allocation to the energy sector.

For the fiscal year ended October 31, 2022, the energy sector was the only sector to contribute positively to the Fund’s return. The financials sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and industrials sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2022 included Shell PLC, an energy company (portfolio average weight of 2.26%), and TotalEnergies SE, an energy company (portfolio average weight of 1.59%). Positions that detracted most significantly from the Fund’s return included ASML Holdings N.V., an information technology company (no longer held at fiscal year-end), and Toyota Motor Corp., a consumer discretionary company (no longer held at fiscal year-end).

 

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2022
Energy			28.76
Financials			16.43
Health Care			14.97
Industrials			11.54
Consumer Staples			7.48
Communication Services			5.68
Utilities			5.00
Materials			4.39
Consumer Discretionary			3.13
Sector Types Each Less Than 3%			2.46
Money Market Funds Plus Other Assets Less Liabilities			0.16

Fund Inception: February 24, 2012

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently, or in the past, returns would have been lower. See the current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.25% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

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

 

-

The Blended-S&P Momentum Developed ex-U.S. & South Korea LargeMidCap Index is comprised of the performance of the S&P BMI International Developed High Beta IndexTM, the Fund’s underlying index from Fund inception through the conversion date, March 21, 2016, followed by the performance of the Index for the period March 21, 2016 through October 31, 2022.

 

-	Net returns reflect reinvested dividends net of withholding taxes.

Schedule of Investments

 

		Shares				Value
Common Stocks & Other Equity Interests-98.64%
Australia-5.11%
Adbri Ltd.			3,583			$	3,609
AGL Energy Ltd.			1,031				4,490
Alumina Ltd.(a)			5,227				4,512
Ampol Ltd.			229				3,987
APA Group			714				4,799
Aristocrat Leisure Ltd.			222				5,262
ASX Ltd.			101				4,372
Atlas Arteria Ltd.			1,050				4,425
Aurizon Holdings Ltd.			2,123				4,914
Australia & New Zealand Banking Group Ltd.			347				5,671
Beach Energy Ltd.			4,631				4,708
BHP Group Ltd.			195				4,659
Brambles Ltd.			640				4,780
Challenger Ltd.			1,237				5,553
Coles Group Ltd.			451				4,709
CSL Ltd.			27				4,843
Deterra Royalties Ltd.			1,890				4,943
EBOS Group Ltd.			229				4,989
Incitec Pivot Ltd.			2,020				4,844
Insurance Australia Group Ltd.			1,703				5,336
Lynas Rare Earths Ltd.(b)			892				4,751
Magellan Financial Group Ltd.(a)			608				3,861
Medibank Pvt. Ltd.			2,134				3,834
Metcash Ltd.(a)			1,922				5,039
Orora Ltd.			2,385				4,621
Platinum Asset Management Ltd.			4,436				5,077
QBE Insurance Group Ltd.			656				5,134
Qube Holdings Ltd.			2,740				4,766
Ramsay Health Care Ltd.			110				4,120
REA Group Ltd.			62				4,821
Rio Tinto Ltd.			84				4,738
Santos Ltd.			1,004				4,943
Scentre Group			2,693				4,994
Seven Group Holdings Ltd.(a)			426				4,996
Shopping Centres Australasia Property Group			2,901				5,046
Stockland			2,188				5,037
Suncorp Group Ltd.			727				5,304
Tabcorp Holdings Ltd.(a)			8,249				5,090
Telstra Group Ltd.(b)			1,995				5,001
TPG Telecom Ltd.(a)			1,480				4,637
Transurban Group			567				4,808
Treasury Wine Estates Ltd.			600				4,969
Vicinity Ltd.			4,092				5,089
Woodside Energy Group Ltd.			231				5,315
Woolworths Group Ltd.			219				4,624
Worley Ltd.			545				4,973
							220,993
Austria-0.62%
ANDRITZ AG			117				5,442
OMV AG			134				6,177
Telekom Austria AG			868				5,044
Verbund AG			57				4,465
voestalpine AG			268				5,822
							26,950
Belgium-0.95%
Ackermans & van Haaren N.V.			37				5,160

 

		Shares				Value
Belgium-(continued)
Ageas S.A./N.V.			133			$	4,605
Elia Group S.A./N.V.			37				4,677
Etablissements Franz Colruyt N.V.(a)			195				4,701
KBC Group N.V.			114				5,712
Proximus SADP(a)			426				4,467
Solvay S.A., Class A			67				6,042
Umicore S.A.(a)			170				5,603
							40,967
Brazil-0.13%
Yara International ASA			128				5,713
Canada-4.21%
Barrick Gold Corp.			380				5,708
BCE, Inc.			117				5,271
Canadian National Railway Co.			48				5,680
Canadian Tire Corp. Ltd., Class A(a)			48				5,373
Canadian Utilities Ltd., Class A			186				4,943
Cenovus Energy, Inc.			302				6,097
CGI, Inc., Class A(b)			72				5,793
Constellation Software, Inc.			4				5,777
Dollarama, Inc.			93				5,519
Enbridge, Inc.			137				5,331
Fairfax Financial Holdings Ltd.			11				5,396
Fortis, Inc.			128				4,988
George Weston Ltd.			50				5,496
Great-West Lifeco, Inc.			241				5,572
Hydro One Ltd.(c)			209				5,234
Imperial Oil Ltd.			115				6,248
Intact Financial Corp.			39				5,919
Loblaw Cos. Ltd.			64				5,237
Manulife Financial Corp.			327				5,413
Metro, Inc.			107				5,598
Pembina Pipeline Corp.			160				5,276
Power Corp. of Canada			220				5,456
Restaurant Brands International, Inc.			97				5,756
Royal Bank of Canada			61				5,637
Saputo, Inc.			223				5,421
Shaw Communications, Inc., Class B			220				5,643
Sun Life Financial, Inc.			129				5,472
Suncor Energy, Inc.			174				5,978
TC Energy Corp.			117				5,133
TELUS Corp.			251				5,235
Thomson Reuters Corp.			51				5,417
Toronto-Dominion Bank (The)			88				5,625
Tourmaline Oil Corp.			97				5,459
							182,101
China-0.91%
AAC Technologies Holdings, Inc.(b)			2,914				5,338
ESR Group Ltd.(c)			1,932				3,298
Kerry Logistics Network Ltd.			2,466				3,914
Lenovo Group Ltd.			6,555				5,244
Nexteer Automotive Group Ltd.(a)			7,271				3,937
Prosus N.V			88				3,830
SITC International Holdings Co. Ltd.			2,130				3,489
Want Want China Holdings Ltd.			7,691				5,056
Wilmar International Ltd.			1,875				5,141
							39,247

 

		Shares				Value
Denmark-0.80%
Chr. Hansen Holding A/S(a)			93			$	5,166
Coloplast A/S, Class B(a)			47				5,241
Danske Bank A/S			405				6,538
GN Store Nord A/S(a)			191				4,062
Royal Unibrew A/S			72				4,113
SimCorp A/S			74				4,421
Tryg A/S(a)			240				5,195
							34,736
Finland-1.08%
Elisa OYJ			101				4,882
Huhtamaki OYJ			155				5,569
Kojamo OYJ(a)			323				4,204
Kone OYJ, Class B			135				5,531
Nordea Bank Abp			583				5,575
Orion OYJ, Class B			120				5,521
Sampo OYJ, Class A			120				5,489
Stora Enso OYJ, Class R			363				4,732
UPM-Kymmene OYJ			159				5,329
							46,832
France-4.54%
Accor S.A.(b)			226				5,414
Adevinta ASA, Class B(b)			664				4,547
Aeroports de Paris(b)			39				5,283
Air Liquide S.A.			43				5,623
ALD S.A.(c)			497				5,305
Amundi S.A.(c)			106				5,006
AXA S.A.			229				5,658
BioMerieux			59				5,221
BNP Paribas S.A.			116				5,445
Bollore SE			1,130				5,657
Bouygues S.A.			184				5,252
Carrefour S.A.(a)			324				5,215
Credit Agricole S.A.			587				5,329
Danone S.A.			103				5,125
Dassault Aviation S.A.			39				5,797
Edenred			107				5,495
Eiffage S.A.			61				5,519
ENGIE S.A.			455				5,915
EssilorLuxottica S.A.			36				5,705
Ipsen S.A.			57				5,859
JCDecaux S.A.(b)			390				4,922
La Francaise des Jeux SAEM(c)			167				5,447
Neoen S.A.(c)			131				4,573
Orange S.A.			535				5,093
Pernod Ricard S.A.			29				5,093
Publicis Groupe S.A.			111				6,225
Remy Cointreau S.A.			29				4,445
Sanofi			66				5,697
SEB S.A.(a)			73				4,755
Sodexo S.A.			71				6,297
Somfy S.A.			49				5,221
Thales S.A.			45				5,722
TotalEnergies SE			107				5,827
Ubisoft Entertainment S.A.(b)			117				3,211
Unibail-Rodamco-Westfield(a)(b)			105				4,969
Vinci S.A.			59				5,434
Vivendi SE			596				4,880
							196,181